Title
Resolution to Approve the Sale of Washtenaw Affordable Housing Corporation’s Property at 723 S. Main Street, 13 Metroview and 5 Trowbridge
Memorandum
Washtenaw Affordable Housing Corporation (WAHC) has been working with the Office of Community Development (OCD) and Michigan State Housing Development Authority (MSHDA) on a long-term strategy to maintain WAHC’s units as affordable housing. A consultant, Corporate FACTS, was hired by MSHDA and the City to analyze WAHC’s portfolio, property management plan, finances, and staffing. All parties have agreed that the most viable solution for WAHC is to merge with Avalon Housing, Inc.
The OCD is working with Corporate FACTS, WAHC, and Avalon on a short-term transition plan and long-term feasibility plan. An immediate concern is a projected operating deficit of a little over $100,000 for WAHC through December 2008. Avalon is not able to absorb this debt, when it acquires WAHC’s properties. A short-term staffing plan and immediate cash-infusion has been resolved, with financial support from Washtenaw County. MSHDA will continue to contract with Corporate FACTS to help with the transition, as well as analyze Avalon’s portfolio, staffing, finances, and property management to strengthen Avalon’s ability to manage its properties and continue to grow.
This process is a huge undertaking and will have long-term implications for the permanent affordable housing stock in the city. The goal is to ensure that a strong housing provider emerges from this merger. Each property is unique and has different funding sources, restrictions, and tenants. It could take a year or longer before a full merger is completed. Therefore, a long-term solution to the cash-flow problem is needed.
Corporate FACTS has conducted a capital needs assessment of WAHC’s properties and will conduct an assessment of Avalon’s properties, to determine the investment needed to keep the properties functional. WAHC’s properties will require new inve...
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