Title
Resolution to Allocate $205,000 in HOME Funds to Whispering Creek Project LLC for the Acquisition and Rehabilitation of 3331 - 3333 Platt Road and to Approve the Housing Affordability Agreement ($205,000 HOME Funds)
Memorandum
Attached for your review and approval is a resolution to allocate $205,000 in HOME Funds to Whispering Creek Project LLC, a subsidiary of Michigan Ability Partners (MAP), to acquire and rehabilitate 5 units of transitional housing for disabled persons, with a set-aside for disabled veterans. MAP and HERO will provide on-site and off-site treatment and employment services.
The total budget is $398,209. The budget includes the cost of converting a unit into an office/meeting room space. The request for City funds constitutes 52% of the total project costs. Michigan Ability Partners has secured $100,751 from the Department of Veteran’s Affairs, $12,500 from Washtenaw County and $79,958 from the Federal Home Loan Bank.
The project is consistent with the City’s Consolidated Strategy and Plan. The targeted tenants are extremely low income and are considered a special needs population. The City Attorney’s office will review the legal and contractual documents to ensure that Whispering Creek Project LLC will comply with the requirements in the HOME regulations. It will be the responsibility of the Office of Community Development to monitor agency compliance with these regulations as part of their annual HOME Program monitoring.
Consistent with HOME Program requirements, a mortgage and housing affordability agreement will be placed on the property to preserve the affordability of these units. The project will be ineligible for additional HOME funds for a minimum of 15 years as required by the HOME program regulations. The City’s affordability period will be 99-years, consistent with previous projects. Consequently, MAP will ensure that replacement reserves (for large property improvements such as a new roof) and operating reserve...
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