Title
Resolution to Amend an Approved Payment in Lieu of Taxes (PILOT) for Ann Arbor Limited Dividend Housing Association Limited Partnership at 2805 Burton Road for Burton Commons Apartments
Memorandum
On July 7, 2008 (R-08-285) Council approved a PILOT for Burton Commons Apartments. In 2007, Council approved the site plan for Burton Commons apartment complex (R-262-6-07). This approval was amended to reduce the number of units to 80, amend height and elevations, and amendments to parking, landscaping, and grading (Administrative Amendment December 28, 2011). Due to the nationwide housing financial crisis, the developers were not able to secure all of the financing needed to build Burton Commons in 2007.
Attached for Council approval is a resolution requesting two changes to the PILOT resolution that was approved for the project in 2011. First, although the owner will continue to be the Ann Arbor Limited Dividend Housing Association Limited Partnership, the development partner of MHT Housing has been replaced by Highridge Costa Housing Partners (HCHP) (
). This company has evolved from a core of principals and senior management that have been working on affordable housing stock since 1994. This Company has developed or invested in 275 affordable rental properties comprising approximately 27,000 affordable housing units. Affiliates of HCHP are the general and limited partners of the Ann Arbor Limited Dividend Housing Association Limited Partnership. Attached is a copy of City Ordinance, Chapter 19 - Tax Exemptions for Housing Projects.
The second change is the proposed income set-aside mix of housing units for the site. While the total number of units remains at 80, they will now be targeted for a mixture of Extremely low (30% of Area Median Income) to Low Income (60% of Area Median Income), with no units set aside for supportive housing services.
The PILOT will not take effect until the financing is secured, the buildings ...
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