Title
Resolution to Approve the Sale/Transfer of Washtenaw Affordable Housing Corporation’s Property at 701 Miller to Avalon Housing Inc., or an Affiliated Agency, Discharge of the City CDBG and HOME Mortgages for $27,920.00 and $348,541.62 Respectively, Approve Affordability Agreement with Avalon and Avalon’s Assumption of $507,000.00 HOME Mortgage
Memorandum
Washtenaw Affordable Housing Corporation (WAHC) has been working with the Office of Community Development (OCD) and Michigan State Housing Development Authority (MSHDA) on a long-term strategy to maintain WAHC’s units as affordable housing. A consultant, Corporate FACTS, was hired by MSHDA and the City to analyze WAHC’s portfolio, property management plan, finances, and staffing. All parties have agreed that the most viable solution for WAHC is to merge with Avalon Housing, Inc. (“Avalon”).
Avalon is currently managing all the properties for WAHC. In addition, Avalon has agreed to acquire 701 Miller (Parkside Apartments) from WAHC. WAHC currently has the following mortgage liens on its properties.
Amount Funding Source Affordability Period Expiration
$348,541.62 HOME funds 2000
$27,920.00 CDBG funds n/a
$507,000.00 HOME funds 2015
The Office of Community Development recommends that Council approve the sale/ transfer of 701 Miller to Avalon Housing Inc., or an affiliated agency. The City’s existing Affordability Agreement requires WAHC to get permission to sell or transfer the properties. Avalon will maintain the units as affordable rental housing for the period of the City Affordability Agreement and Avalon will execute a Housing Affordability Agreement with the City. Avalon will also assume the $507,000 HOME mortgage, which has an affordability period that has not expired yet and needs to be maintained on the property.
The Office of Community Development recommends that Council approve the discharge of the $348,541.62 City HOME mortgage and the $27,920.00 City CDBG mort...
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