Title
Resolution to Approve an Allocation of $1,091,015 in funds for Colonial Oaks Redevelopment and Conversion under the Rental Assistance Demonstration Program
Memorandum
Ann Arbor Housing Commission is converting 2670 -2680 Main, 221 -253 S. Seventh, 1020 - 1042 Pennsylvania, and 3681 - 3689 Platt, collectively known as Colonial Oaks under the Rental Assistance Demonstration program. The AAHC will not be applying for tax credits for these properties due to their small size. The AAHC will be self-funding these properties with Capital Funds and Reserves which will be off-set by any grants the AAHC is able to secure.
HUD requires the entire budget of $1,091,015 to be deposited into a rehabilitation bank account at the time of closing. The AAHC has applied for $420,000 in FHLB funds, which if awarded will be available no earlier than July 2015. The AAHC has been awarded $160,000 in CDBG funds from the county that will be available no earlier than July 2015. In addition, the AAHC has already spent over $100,000 in pre-development costs for these properties which will be reimbursed to the AAHC at closing.
Staff
Prepared and approved by Jennifer Hall, Executive Director
Body
WHEREAS, The AAHC is converting 2670 -2680 Main, 221 -253 S. Seventh, 1020 - 1042 Pennsylvania, and 3681 - 3689 Platt under the Rental Assistance Demonstration program in a project called Colonial Oaks with a total estimated development budget of $1,091,015 for 25 apartments;
RESOLVED, that the Ann Arbor Housing Commission Board allocate $1,091,015 in CFP funds and AAHC funds to rehabilitate the following properties: 2670 -2680 Main, 221 -253 S. Seventh, 1020 - 1042 Pennsylvania, and 3681 - 3689 Platt in Ann Arbor; and authorize the Executive Director or her designee, Betsy Cornellier, Finance and Administrative Manager, to negotiate and sign documents and to take all actions required to give effect to the transactions.