Title
Resolution to Approve a Contract with Avalon Housing, Inc. for the Management of Washtenaw Affordable Housing Corporation’s Properties and Operations ($35,000.00 Ann Arbor Affordable Housing Trust Fund)
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 and Avalon’s housing portfolios, property management plans, finances, and staffing. All parties have agreed that WAHC does not have a future as a viable stand-alone organization, and that the most feasible solution for preserving its substantial housing portfolio is by pursuing a merger between WAHC and Avalon Housing, Inc.
The OCD is working with Corporate FACTS, WAHC, and Avalon on a short-term transition plan and long-term feasibility plan. Avalon has agreed to take over the management of WAHC’s property and operations to facilitate this merger, and will work to increase WAHC’s cash-flow by filling vacant units. However, Avalon cannot hire a staff person to fulfill these functions until funding is secured. The minimum anticipated budget is $100,000.00 through June 30, 2009, to cover staffing costs and overhead to manage this process. WAHC does not have the funds to pay Avalon.
Additional funds will be needed for property management and resident services, and a separate memo and resolution will be forthcoming, once an analysis of all of WAHC and Avalon’s properties, finances, and staffing is completed.
The OCD recommends that Council approve $35,000.00 from the Ann Arbor Housing Trust Fund to Avalon to enable them to take over the management of WAHC during the merger process. Washtenaw County has approved $25,000.00 toward the $100,000.00 needed and the remaining gap will be filled with a combination of funds from MSHDA, LI...
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