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File #: 14-1172    Version: 1 Name: 8/18/14 Ann Arbor Housing Commission Funding Request
Type: Resolution Status: Passed
File created: 9/2/2014 In control: Housing and Human Services Advisory Board
On agenda: 9/2/2014 Final action: 9/2/2014
Enactment date: 9/2/2014 Enactment #: R-14-313
Title: Resolution to Appropriate $729,879.00 from the Ann Arbor Affordable Housing Trust Fund and Allocate $729,879.00 to the Ann Arbor Housing Commission's Phase III Rental Assistance Demonstration Project (8 Votes Required)
Attachments: 1. 3 - City AAHTF Request for Funding 7 1 2014 West Arbor.pdf
Title
Resolution to Appropriate $729,879.00 from the Ann Arbor Affordable Housing Trust Fund and Allocate $729,879.00 to the Ann Arbor Housing Commission's Phase III Rental Assistance Demonstration Project (8 Votes Required)
Memorandum
Attached for your approval is a resolution appropriating $729,879.00 from the Ann Arbor Housing Trust Fund (AAHTF) and allocating this amount to Phase III of Ann Arbor Housing Commission's Rental Assistance Demonstration (RAD) project. The AAHTF has an unassigned fund balance of $1,580,799.00 and this allocation will reduce the fund balance to $850,920.00 without any operational impacts.

In 2012, the Ann Arbor Housing Commission (AAHC) submitted an application and was approved by the HUD for participation in the RAD Program which provides transition of its public housing to the Section 8 Project Based Voucher Program. The AAHC decided to participate in this program to be able to secure enough necessary funding needed for renovating or replacing their aged properties to ensure that low income housing units will be retained in the community. Some of the units have deteriorated to a level that they need to be demolished and reconstructed. Reconstruction of units provides an opportunity to add additional units that are more energy efficient. The RAD conversion project is divided into five phases over several years. Funding for phases I and II is in place.

The AAHC is working towards securing funding for Phase III of the RAD project which includes AAHC properties at North Maple Estates, North Maple Duplexes and Lower Platt. The total development cost for Phase III is estimated to be $16,564,370.00. Low Income Housing Tax Credits (LIHTC) and other debt are anticipated to provide $14,091,491.00 and there is a gap of $1,472,879.00. The AAHC has secured $50,000.00 from MSHDA and $293,000.00 from the Community Challenge Planning Grant. Although the AAHC is applying to other sources for funding such as Federal Home Loan Bank Affor...

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