Title
Resolution to Approve the Sale of 2706 Yost from Child and Family Services - Huron Service for Youth D/B/A HelpSource to Washtenaw Community Health Organization (WCHO) and to Approve the Assumption of a $50,000.00 HOME Mortgage, Note and Housing Affordability Agreement by WCHO
Memorandum
On April 19, 2004, City Council approved an allocation of $50,000.00 in HOME funds (R-151-4-04) to Child and Family Services - Huron Service for Youth D/B/A HelpSource for the rehabilitation of 2706 Yost to be used as a licensed group home for youth aged 11-17. HelpSource has closed its doors and must sell off its assets. The City’s Affordability Agreement with HelpSource states that the property cannot be transferred without the written consent of the City. In addition, the City has the right to purchase the property or choose another non-profit to purchase the property, after publicly advertising the sale. HelpSource, Washtenaw County, and the City issued a Request for Proposal and WCHO was the most qualified bidder on this property.
WCHO is proposing to use 2706 Yost for a 24-hour supported living home for 4 individuals with developmental disabilities or mental illness. The City currently has five Affordability Agreements with WCHO for similar group homes. WCHO currently owns and rents group homes in a 4-county area. WCHO is moving toward owning properties instead of renting them, to lower long-term expenses.
The OCD supports this transaction because it is important to keep this unit in the City’s affordable housing stock, the HOME affordability period of 30 years is still in effect, and therefore, if the unit is not maintained as a HOME-eligible project, the City will have to pay HUD back $50,000.00 from the General Fund. If WCHO is not able to purchase 2706 Yost, the alternative is to try to sell the home to a low-income homeowner with a restrictive covenant, similar to the Ashley Mews and Stone School units.
The City Attorney’s office will review the legal...
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