Title
Resolution to Approve a New Lease of Property at 201 W. William Street with William Street Apartments LDHA, LP at a Cost of $1.00
Memorandum
Attached for your review and approval is a resolution to approve a new lease for City-owned land to William Street Apartments LDHA, LP, a subsidiary of Avalon Housing Inc., for the building at 201 W. William. In 1992, the City issued an RFP to move a house from the corner of Ashley and William (on the former Kline’s lot) across the street to a vacant City lot, to be used for affordable housing. The City agreed to lease the lot for $1 to whomever won the bid. The Shelter Association of Washtenaw County won the bid, and purchased and moved the house to the city-owned leased land. The address of that house is 201 W. William. When Avalon was incorporated as a housing development organization, the Shelter subsequently transferred ownership of the house and assignment of the lease to Avalon Housing,
In 1992, Avalon formed a partnership, William Street Apartments, LP, to secure Low Income Housing Tax Credits for 201 W. William. The tax-credit compliance period has expired and Avalon is restructuring the partnership and purchasing the property from the original partners. Avalon’s subsidiary, William Street Apartments LDHA LP, will own the building, Avalon Housing will manage the property and Catholic Social Services will provide supportive services.
Avalon is refinancing and rehabilitating 201 W. William to continue providing affordable housing to very low-income and special needs tenants. There will be a separate memorandum and resolution to City Council to approved $65,851 in HOME funds to rehabilitate 201 W. William, which leverages $65,000 from the Michigan State Housing Development Authority (MSHDA), $60,000 from the Federal Home Loan Bank and $90,000 from the City of Ann Arbor DDA for a total project cost of $280,851.
Although the current City lease expires on June 1, 2021, Avalon is requesting a new lease a...
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