Title
Resolution to Approve Avalon's Request of $130,004.00 Grant for Water Service Expenses at Hickory Way Apartments (1110/1132 S. Maple) from the Ann Arbor Affordable Housing Fund Water Utility Fund (HHSAB Recommendation: Approval - 10 Yeas, 0 Nays, 1 Abstention) (8 Votes Required)
Memorandum
Avalon Housing, Inc. or an affiliated entity as required by funding sources, will be acquiring the properties at 1110 and 1132 S. Maple, demolishing the existing structures, building approximately 70 units of affordable housing, and applying for Low Income Housing Tax Credits (LIHTC) from the Michigan State Housing Development Authority (MSHDA). The upcoming project has previously been awarded HOME funds from the Washtenaw Urban County.
Avalon is requesting $130,004.00 in Ann Arbor Affordable Housing Fund grant funding support for water service expenses at the proposed South Maple/Hickory Way Apartments located at 1110 and 1132 S. Maple. Under the City's fee system and based on Avalon's current plans for sizing of water meters, they project a water connection charge of $210,818.00, a sewer connection charge of $274,574.00 and a fire suppression line fee of $167,546.00. This is a total of $652,938.00 in water and sewer connection fees. In addition, Avalon project's footing drain disconnect fees will be $129,000.00. This results in total charges between water connection, sewer connection, fire suppression and footing drain disconnect fees of $781,938.00. A grant towards these costs will help make the project more financially feasible.
IN 2007/2008, $65,000.00 was contributed to the Affordable Housing Fund (see attached Resolution R-08-0114), and in 2008/2009 $65,004.00 was contributed to the Affordable Housing Fund as part of the annual budget. The funds totaling $130,004.00 were earmarked to assist lower-income households as part of the city's water-meter automation program at the time. Additional expenses were expected related to the deteriorated condition o...
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