Title
Resolution to Amend an Approved Payment in Lieu of Taxes (PILOT) for Ann Arbor Limited Dividend Housing Association Limited Partnership at 2625 Burton Road for Burton Commons Apartments
Memorandum
On July 7, 2008 (R-08-285) Council approved a PILOT for Burton Commons Apartments. In 2007, Council approved the site plan for Burton Commons as a 120-unit 3-story 5-building apartment complex (R-262-6-07). Due to the nationwide housing financial crisis, the developers were not able to secure all of the financing needed to build Burton Commons in 2007. The owner has re-grouped and re-visited the design and management of the property. The owner is now partners with a Michigan non-profit housing provider called MHT Housing Inc., based in Bingham Farms, Michigan (http://mhthousing.org). MHT Housing owns and manages over 4,600 affordable housing units, making it one of the largest non-profit affordable housing providers in Michigan. MHT has over 20 years experience working with MSHDA and Low Income Housing Tax Credits (LIHTC), among other financing tools.
Attached for Council approval is a resolution requesting 3 changes to the PILOT that was approved for the project in 2008. First, although the owner will continue to be the Ann Arbor Limited Dividend Housing Association Limited Partnership, the original development partner of Simpson Housing Solutions has been replaced by MHT Housing Inc. As is required by LIHTC financing, MHT will create an affiliate that will become a partner in the Ann Arbor Limited Dividend Housing Association Limited Partnership.
The second change is that the number of units will be reduced from 120 to 80 by eliminating the 3rd story of each building. The third change is that the PILOT requires the project to secure federal or state-aided financing. The original proposal included federal HOME funds from the City of Ann Arbor. The current development plan does not include a request for HOME funds from the City of Ann Arbor. The owne...
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