Title
Resolution to Allocate $65,851.00 in HOME Funds to William Street Apartments LDHA LP for the Refinance and Rehabilitation of 201 W. William and to Approve the Housing Affordability Agreement ($65,851.00 HOME Funds)
Memorandum
Attached for your review and approval is a resolution to allocate $65,851 in HOME Funds to William Street Apartments LDHA LP, an affiliated entity of Avalon Nonprofit Housing Corporation to refinance and rehabilitate 6 units of permanent affordable housing for very low-income individuals. The total budget is $280,851. The request for City funds constitutes 23% of the total project costs. William Street Apartments has secured $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.
William Street Apartments LDHA LP will own the property, Avalon Housing will manage the property and Catholic Social Services will provide supportive services. As the property managers, Avalon will screen the tenants. Avalon acquired the property in 1992 through an affiliated entity, William Street Apartments LP. The property was originally financed with low-income housing tax-credits. The tax-credit compliance period has expired and Avalon is restructuring the ownership and purchasing the property from the original partners.
The appraised value of the property is $472,000. The total debt on the property will be $190,851. The City will be in 3rd lien position behind the Federal Home Loan Bank and MSHDA.
The project is consistent with the City’s Consolidated Strategy and Plan and the Blueprint to End Homelessness. 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 William Street Apartments LDHA LP will comply with the requirements in the HOME regulations. It will be the responsibility of the Office of Community Develop...
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