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File #: 19-2125    Version: Name: 11/18/19 Affordable Housing Financial Feasibility City Property - - Development of Ashley & Catherine
Type: Resolution Status: Passed
File created: 11/18/2019 In control: City Council
On agenda: 11/18/2019 Final action: 11/18/2019
Enactment date: 11/18/2019 Enactment #: R-19-514
Title: Resolution to Direct the Ann Arbor Housing Commission to Develop 121 E. Catherine as Affordable Housing
Related files: 19-0450, 19-0451, 19-0531, 19-0605, 19-2023
Title
Resolution to Direct the Ann Arbor Housing Commission to Develop 121 E. Catherine as Affordable Housing
Memorandum
On April 1, 2019, Ann Arbor City Council adopted Resolution R-19-138 directing the City Administrator to collaborate with the Ann Arbor Housing Commission (AAHC) to provide coordinated analysis on the feasibility of city-owned properties as potential locations for affordable housing. This resolution incorporated previous resolutions R-19-110, R-19-111 and R-19-116.

Jennifer Hall, Executive Director of the Ann Arbor Housing Commission led the analysis along with support from a staff team and several contractors to determine the feasibility for 11 sites including review of land use and zoning, environmental conditions, financial resources, site -specific costs, and overall risk among other factors. The analysis, three potential portfolio scenarios, and next step recommendations were presented to City Council at the Nov.18, 2019 City Council meeting.

Through the analysis, two properties are best suited for immediate action for affordable housing development: 121 E. Catherine and 404 N. Ashley. Both properties are free of negative site issues that would impede affordable housing development, both score competitively for Low-Income Housing Tax Credits and other federal and state funds for affordable housing. Both sites are also in the DDA district, and are eligible to receive financial support from the DDA. If tax credits are secured for both sites, the sites could be developed with very little local financial support compared to the other sites. It's estimated that together both sites could yield between 120-170 units of affordable housing for households up to an average of 60% of the Area Median Income (AMI).

The staff team is requesting that City Council direct the Ann Arbor Housing Commission to proceed with development of these two sites as affordable housing for households up to an average of 60% of the Area Median Income (AMI) wit...

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