Title
Resolution to Transfer Ownership of 26 Parcels Owned by the City of Ann Arbor to the Ann Arbor Housing Commission (8 Votes Required)
Memorandum
The Ann Arbor Housing Commission (Commission) is requesting Council approval of the transfer of ownership of 26 parcels that the City acquired for the Housing Commission to the Commission for one dollar per parcel. Twenty parcels are public housing sites, one parcel is a Turnkey III property which is a lease to own program, and five parcels are vacant parcels intended for use as affordable housing.
The Commission has applied to the U.S. Department of Housing and Urban Development (HUD) to convert its public housing units to project based vouchers under HUD’s Rental Assistance Demonstration (RAD) program in order to stabilize its source of operating funds and reinvest in the capital needs of the buildings. HUD funding continues to diminish for public housing, while the voucher program has historically been funded at much higher levels. Separate from RAD, sequestration has had a devastating impact on both the public housing and voucher programs. The impact of sequestration on the Commission’s public housing funding is over $300,000/year less for operations and an estimated $50,000 - $75,000 less for capital funding.
If Congress does not change the current sequestration levels of funding, there are three possible scenarios that will impact the Commission’s revenue and budget.
1. Council does not approve the transfer of City-owned properties to convert public housing units under RAD. The Commission will annually experience over $300,000 in operating revenue losses and $50,000 - $75,000 in capital fund losses in the Public Housing Program compared to fully-funded pre-sequestration levels. In addition, the Commission will annually experience over $200,000 in administrative fee losses in the Voucher Program.
· FY 13/14 net operating loss of approximately $542,000 plus capital fund losses
· FY 14/15 net operating l...
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