Title
Resolution to Appropriate and Allocate $60,166.00 in HOME Funds to Avalon Housing Inc. or an Affiliated Ownership Entity for the Acquisition and Rehabilitation of 701 Miller ($60,166.00 HOME Funds) (8 Votes Required)
Memorandum
Attached for your review and approval is a resolution to appropriate and allocate $60,166 in HOME 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 $60,166.00 in HOME funds is program income received in January, 2011 from loan repayments from two other projects. The total budget for 701 Miller is approximately $2,749,496.00. Avalon has secured $374,378.00 in City NSP funds (R-9-481 and R-10-279), $1,100,000.00 from the Michigan State Housing Development Authority (MSHDA), $200,000.00 from the Downtown Development Authority, $230,000.00 from the Federal Home Loan Bank (FHLB), through the Bank of Ann Arbor or other local bank, and $485,581.00 from Washtenaw County. Avalon will also be assuming a $507,000 HOME loan that is currently on the property (R-10-188).
Avalon currently manages the property for Washtenaw Affordable Housing Corporation (WAHC). Avalon will purchase and manage the property and they will either provide support services or contract with another agency for supportive services. As the property managers, Avalon will screen and income-qualify the tenants.
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 units will be occupied by households at 50% AMI or less, which is the current income limit for the existing tenants. The project will include 4 project based vouchers for special needs tenants. The City Attorney’s office will review the legal and contractual documents to ensure that Avalon will comply with HOME regulations. It will be the responsibility of the Office of Community...
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