Title
Resolution to Allocate $845,000.00 in HOME Funds to Avalon’s Pear Street Apartments LDHA LP for the Acquisition and Rehabilitation of 1440 Pear Street and to Approve the Housing Affordability Agreement ($845,000.00 HOME Funds)
Memorandum
Attached for your review and approval is a resolution to allocate $845,000.00 in HOME Funds to Avalon’s Pear Street Apartments LDHA LP to acquire and rehabilitate 20 units of permanent affordable housing for very low-income tenants and 6 chronically homeless individuals. The total budget is $2,713,610.00. The request for City funds constitutes 31% of the total project costs. Avalon has secured $500,000.00 from the Michigan State Housing Development Authority (MSHDA), $200,000.00 from the Federal Home Loan Bank (FHLB), approximately $886,079.00 in Low Income Housing Tax Credits (LIHTC), and approximately $282,531.00 loan from Great Lakes Capital Fund.
Avalon will own and manage the property and Catholic Social Services will provide supportive services. Chronically homeless tenants will be referred by the Shelter Association of Washtenaw County and the PORT Team. All units will benefit from project-based Section 8 vouchers from the Ann Arbor Housing Commission. As the property managers, Avalon will screen the tenants. Avalon has acquired the property with a bridge loan while permanent financing is secured.
The project is consistent with the City’s Consolidated Strategy and Plan and the Blueprint to End Homelessness. The targeted tenants are very low income and some are considered a special needs population. The City Attorney’s office will review the legal and contractual documents to ensure that Avalon 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 agree...
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