Title
Resolution to Approve the Workforce Housing Covenant for the Collective on Fifth Development at 319 S. Fifth
Memorandum
Attached is a resolution to approve the City of Ann Arbor Workforce Housing Covenant for the Collective on Fifth ("Covenant"). The Collective on Fifth is the name of the proposed development to be constructed over the Library Lane Parking Structure at 319 S. Fifth ("Development"). The Covenant is contemplated by the Agreement of Sale executed by the City and the developer, Core Spaces Ann Arbor Fifth LLC ("Developer"), to be agreed to and entered into prior to September 28, 2018, which is the end of the due diligence period.
The Covenant includes all previously negotiated terms between the City and the Developer, which are incorporated into the Agreement of Sale. The Covenant requires that 12% of the residential units in the Development, but no fewer than 35 of the units, be workforce housing. (The City has the option to pay the developer $1,475,000 to designate an additional 2.5%, but no less than 9, of the residential units as workforce housing.) The Covenant requires tenants to be income certified by the City prior to leasing a workforce housing unit, which will be leased at 150% of the HUD Fair Market Rent level to individuals and families with household incomes ranging from 60% to 100% of AMI.
Under the terms of the Covenant, the workforce housing units shall be a mix of efficiencies, studios, and one bedroom units. All of the affordable rental units will be of the same size and appearance as market-rate units, have the same finishes as the market-rate units, and be distributed throughout the residential component of the project.
Staff
Prepared by: Kevin S. McDonald, Senior Assistant City Attorney
Reviewed by: Tom Crawford, CFO/Finance and Administrative Services Area Administrator
Stephen K. Postema, City Attorney
Approved by: Howard S. Lazarus, City Administrator
Sponsored by: Christopher Taylor, Mayor
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