Title
Resolution to Approve the Sale of 909 Evelyn Court to Habitat for Humanity of Huron Valley
Memorandum
The Ann Arbor Housing Commission built 909 Evelyn in 1992 with public housing funds. Evelyn is a single family home built on a crawl space, with 3 bedrooms, 1 bath, and a garage. The most recent resident was a 5 person household that moved out with a Housing Choice Voucher after living at Evelyn for 8 years.
The home has extensive damage and is a gut rehab, including replacing the subfloor in the laundry room and bathroom, plumbing, electrical, HVAC, roof, siding, cabinets, fixtures, doors, and relocating the bathroom entrance among other items. The estimated renovation cost is $142,830 to completely renovate the home so that a new low-income family can move in.
Evelyn no longer has a HUD Declaration of Trust, which is a covenant that attaches public housing regulatory requirements to a property. When North Maple converted under the RAD program, HUD allowed Evelyn to be removed from public housing under the RAD de minimis rule. HUD allows PHA's to remove 5% of its public housing inventory from public housing regulations as it converts its apartments under the RAD program. In 2013, when the AAHC applied to the RAD program, the AAHC board, city council (R-13-0566) and HUD approved the sale of Evelyn to generate revenue to invest in the renovation of other AAHC properties.
Originally, the intent was to sell Evelyn to a family in the AAHC's HCV program who was interested in purchasing a home. However, that would require the AAHC to renovate the property first because it must meet Housing Quality Standards for the HCV program as well as meet lender standards for the homebuyer to get a mortgage.
Rather than spend $142,830 to renovate the house and sell it to a low-income homebuyer, it would be more feasible to sell it to Habitat for Humanity so that Habitat can renovate it and sell it to a low-income homebuyer. Habitat's cost to renovate the h...
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