Title
Resolution to Approve a Contract with Avalon Housing, Inc. for Activities Related to its Merger with Washtenaw Affordable Housing Corporation (WAHC) ($295,000.00 Ann Arbor Housing Trust Fund)
Memorandum
Attached for your review and approval is a resolution to approve a contract with Avalon Housing, Inc. for activities related to its merger with Washtenaw Affordable Housing Corporation (WAHC), including management of WAHC’s properties and operations during the transition period prior to the formal merger. $295,000.00 in initial funding is requested from the Ann Arbor Housing Trust Fund to support the merger.
The Office of Community Development (OCD) and the Michigan State Housing Development Authority (MSHDA) have been working with Washtenaw Affordable Housing Corporation (WAHC) on a long-term strategy to maintain WAHC’s units as affordable housing. In early 2007 Corporate FACTS, a firm that specializes in assessing the performance of non-profit real estate developers, evaluating real estate portfolio’s and developing sustainable strategies for neighborhood revitalization, was hired by MSHDA and the City to analyze WAHC’s housing portfolio, property management plan, finances, and staffing. The analysis concluded that WAHC’s long-term viability was at risk due to excessive debt, organizational challenges and financial instability. An agreement was reached with the Avalon Housing Corporation to merge operations with WAHC and seek remedies to preserve WAHC’s substantial housing portfolio.
The Office of Community Development is working with Corporate FACTS, WAHC, and Avalon to implement a short-term transition plan and to develop a long-term feasibility strategy to ensure a successful merger. In the short term, Avalon has agreed to take over the management of WAHC’s properties and operations to facilitate this merger, and will work to increase WAHC’s cash flow by filling vacant units.
The goal of this merger, and any funds provided to support it, is to pr...
Click here for full text