Title
Resolution to Approve the Sale of Avalon Housing, Inc.’s Property at 618 N. Main to Dawn Farm
Memorandum
In 1992 the City of Ann Arbor approved an affordability agreement for the Shelter Association of Washtenaw to acquire and rehabilitate 2 units at 618 N. Main. The allocations were 0% interest, deferred payment loans with no payment due until sale. Avalon Housing, Inc. (“Avalon Housing”) was subsequently formed as a separate entity from the Shelter Association, and took over ownership, operation, and responsibility for the affordability agreement on the property.
In 2007, responding to difficulty in leasing the property due to the particular configuration of units, Avalon Housing executed a lease agreement with Dawn Farm to operate a recovery-based transitional housing program, component to a broader range of recovery services that Dawn Farm provides to needed members of the community. In support of this arrangement, the City of Ann Arbor approved that the original City investment of HUD HOME funds would be replaced with Ann Arbor Housing Trust Funds ($72,710.00) and a small CDBG loan ($4,500.00), as the transitional housing operated by Dawn Farm would not comply with HOME regulations. The Affordable Housing Covenant for this property preserved the affordability of all units for those individuals at or below 50% of Area Median Income (AMI) ($29,500.00) with half of the units targeted to households at or below 30% AMI ($17,700.00).
This arrangement has worked and it is now the goal of both agencies to sell the property to Dawn Farm to simplify the operation and management of the property for both agencies. It is anticipated that Dawn Farm will acquire the property and operate it similarly as conducted for the past 6 years. Attached for Council approval is a resolution that would release and discharge the existing CDBG Loan and Affordable Housing Covenant, and all related instruments, approve the sale of 618 N. Main from Avalon Housing to Dawn F...
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