Resolution to Allocate $200,000.00 in Neighborhood Stabilization Program Funds to Avalon Housing Inc. or an Affiliated Ownership Entity for the Acquisition and Rehabilitation of 701 Miller ($200,000.00 CDBG-NSP Funds) (8 Votes Required)
Attached for your review and approval is a resolution to allocate $200,000.00 in Neighborhood Stabilization Program Funds to Avalon Housing Inc. or an affiliated ownership entity to acquire and rehabilitate 23 units of permanent affordable housing for low-income tenants. The total budget is approximately $917,000.00. The request for City funds constitutes 22% of the total project costs. Avalon will apply for $425,000.00 from the Michigan State Housing Development Authority (MSHDA), $200,000.00 from the Downtown Development Authority (approved), and approximately $92,000.00 from the Washtenaw County Weatherization program.
Avalon currently manages the property for Washtenaw Affordable Housing Corporation (WAHC). Avalon will purchase and manage the property and contract with another agency for supportive services. As the property managers, Avalon will screen and income-qualify the tenants.
The project was included in the City’s Neighborhood Stabilization Program Grant that City Council approved on September 8, 2009 (R-09-366). The targeted tenants are very low income and some are considered a special needs population and will receive supportive services to assist them to maintain their housing. The NSP plan requires that the units be occupied by households at 50% AMI or less, which is the current income limit for the existing tenants. The City Attorney’s office will review the legal and contractual documents to ensure that Avalon will comply with the requirements in the NSP regulations. It will be the responsibility of the Office of Community Development to monitor agency compliance with these regulations as part of their annual NSP Program monitoring.
Consistent with NSP Program requirements, a mortgage...Click here for full text