Title
Resolution to Approve the Sale/Transfer of Washtenaw Affordable Housing Corporation’s Property at 1500 Pauline to Avalon Housing Inc., or an Affiliated Agency, and Discharge of the City HOME and CDBG Mortgages for $700,000.00 and $300,000.00 Respectively
Memorandum
Washtenaw Affordable Housing Corporation (WAHC) has been working with the Office of Community Development (OCD) and the 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 of the properties for WAHC. In addition, Avalon has recently acquired 701 Miller (Parkside Apartments) from WAHC, and has agreed to acquire 1500 Pauline (Parkhurst Apartments). WAHC currently has the following City mortgage liens on 1500 Pauline:
Amount Funding Source Affordability Period Expiration
$700,000 HOME funds 2005
$300,000 CDBG funds n/a
The Office of Community Development recommends that Council approve the sale/ transfer of 1500 Pauline to Avalon Housing Inc., or an affiliated agency. The City’s existing Housing Affordability Agreement requires WAHC to get permission to sell or transfer the properties. Avalon will maintain the units as affordable rental housing and will execute a Housing Affordability Agreement with Washtenaw County as part of the redevelopment of the property. Avalon has requested HOME funds from the Urban County to redevelop the property and continue to provide affordable housing on the site.
The Office of Community Development recommends that Council approve the discharge of the $700,000 City HOME mortgage and the $300,000 City CDBG mortgage. The existing liens on this property achieve two City goals - to se...
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