Title
Resolution to Direct the Ann Arbor Housing Commission, and Its Affiliated Legal Entities, to Complete Due Diligence to Enable Rezoning and Land Division of 721 N Main to Develop Affordable Housing on the W Summit Portion of the Property
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. That resolution incorporated previous resolutions R-19-110, R-19-111 and R-19-116.
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.
As part of the analysis, it was determined that 721 N Main had numerous site challenges including a FEMA Hazard Mitigation Grant deed, restricting the floodway and floodplain permanently as open space for the conservation of natural floodplain functions. The northwest corner of the site that abuts W Summit street is the only portion of the site that is not in the floodway or floodplain and is suitable for affordable housing development.
This site is not eligible for Low-Income Housing Tax Credit (LIHTC), HUD funding or City of Ann Arbor Affordable Housing millage funding due the floodway/floodplain. However, the site can be developed with affordable housing millage funds and other funding sources, if the property is divided and the floodway/floodplain portion of the property is separated and consolidated into 1 parcel; and if the and a 14,520 SF portion in the NW corner that is not in the floodway/...
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