Title
Resolution to Approve the First Amendment to the Ann Arbor Affordable Housing Millage Fund Grant Agreement Between the City of Ann Arbor, the Ann Arbor Housing Commission, and the Ann Arbor Housing Development Corporation
Memorandum
Attached for your consideration is a resolution authorizing the First Amendment to the Ann Arbor Affordable Housing Millage Grant Agreement with the Ann Arbor Housing Commission (“AAHC” or Commission”), and the Ann Arbor Housing Development Corporation (AAHDC”), a Michigan non-profit corporation, whose sole member is the Commission (the “Grant Agreement Amendment”).
On November 3, 2020, the voters of the City approved a millage to annually levy a tax of up to one mill on all taxable real and personal property in the City for the purpose of building, maintaining, and acquiring new affordable housing units (“Millage”). Revenues from the Millage are included in the annual budget within the AAHC’s budget. The annual budget includes staffing costs, IT costs, affordable housing expenditures and affordable housing services.
On June 20, 2023, City Council approved the original Ann Arbor Affordable Housing Millage Grant Agreement (“Grant Agreement”), #R-23-207, which annually grants to the AAHDC the revenue from the Millage, subject to annual appropriations, less the annually budgeted expenses allocated to fund staff time spent working on affordable housing-millage related activities, and the administrative operating costs related to Millage-funded projects. In addition, the Grant Agreement outlines the roles and responsibilities of administration of the Millage, including compliance with the City Charter, Section 8.25.
On May 20, 2024, City Council approved the Resolution Authorizing Issuance of 2024 Capital Improvement Bonds for the 121 Catherine Street Affordable Housing Development is also on the agenda for City Council’s consideration. The Grant Agreement Amendment is necessary in that it permits the City to retain the necessary funds from the grant to pay the debt service on the 2024 Capital Improvement Bonds issued for the 121 Catherine Street project and on any additional Bonds that may be issued by the City on behalf of the AAHC or AAHDC.
Staff
Prepared and Approved by:
Jennifer Hall, Executive Director
Body
Whereas, Since FY22, the Ann Arbor Housing Commission (AAHC) has been administering the City’s Affordable Housing Millage through the Ann Arbor Housing Development Corporation (AAHDC), a Michigan non-profit whose sole member is the AAHC;
Whereas, On June 20, 2023 City Council approved the Ann Arbor Affordable Housing Millage Fund Grant Agreement between the City of Ann Arbor, the Ann Arbor Housing Commission, and the Ann Arbor Housing Development Corporation via #R-23-207;
Whereas, The Grant Agreement granted the Millage to the AAHDC, based on an annual appropriation less the annually budgeted expenses allocated to fund staff time spent working on affordable housing-millage related activities, and the administrative operating costs related to Millage-funded projects;
Whereas, City Council approved the Resolution Authorizing Issuance of 2024 Capital Improvement Bonds for the 121 Catherine Street Affordable Housing Development; and
Whereas, The Grant Agreement Amendment permits the City to retain the necessary funds from the grant to pay the debt service on the 2024 Capital Improvement Bonds issued for the 121 Catherine Street project and any additional Bonds issued by the City on behalf of the AAHC or AAHDC;
RESOLVED, That the Ann Arbor Housing Commission approve the First Amendment to the Ann Arbor Affordable Housing Millage Fund Grant Agreement between the City of Ann Arbor, the Ann Arbor Housing Commission, and the Ann Arbor Housing Development Corporation;
RESOLVED, That the Executive Director be authorized and directed to execute the Grant Agreement Amendment, consistent with this resolution; and
RESOLVED, That the Executive Director be authorized to take any necessary action to implement this resolution.