Title
Resolution to Approve an Affordable Housing Fund Grant Agreement with the Ann Arbor Housing Commission and Ann Arbor Housing Development Corporation, for a Pre-Development Sub-Grant to Avalon Housing Inc for Hickory Way III, and Appropriate $100,000.00 (8 Votes Required)
Memorandum
This resolution is requested by the Ann Arbor Housing Commission (AAHC) to appropriate and grant $100,000.00 from the Ann Arbor Affordable Housing Fund to the Ann Arbor Housing Development Corporation (AAHDC) to sign a sub-grant agreement with Avalon Housing for Hickory Way III at 1146 S Maple Road in the City of Ann Arbor.
The Ann Arbor Affordable Housing Fund Guidelines allow a qualified non-profit to request a grant for eligible pre-development activities, on a quarterly rolling basis, if funds are available. Pre-development grants cannot exceed $100,000.00 per project. Avalon Housing Inc. (“Avalon”) applied for a grant of up to $100,000.00 to develop 29 apartments. All of the apartments will be set aside for households at 60% AMI or less, through a deed restriction and 50% of the apartments will have a further restriction for homeless households with incomes at 30% AMI or less. The AAHDC’s board reviewed and approved the application at its board meeting.
The AAHDC will enter into a sub-grant agreement with Avalon Housing and will administer the grant funds in compliance with the Ann Arbor Affordable Housing Fund Guidelines. Avalon will have 7 years to expend the funds.
Budget/Fiscal Impact: Funding is available in the fund balance of the Affordable Housing Fund. It is requested the $100,000.00 be appropriated from the fund balance to the FY 2027 Affordable Housing Fund expenditure budget.
Staff
Prepared by: Jennifer Hall, Executive Director, Ann Arbor Housing Commission
Reviewed by: Marti Praschan, Chief Financial Officer
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The Ann Arbor Housing Commission requests an allocation of $100,000 from the Ann Arbor Affordable Housing Fund to subgrant to Avalon Housing Inc. for pre-development activities at Hickory Way III at 1146 S Maple Road in the City of Ann Arbor;
Whereas, All of the apartments at Hickory Way III will be set aside for households at 60% AMI or less through a deed restriction, including 50% of the apartments restricted to homeless households with incomes at 30% AMI or less; and
Whereas, Funding is available in the Ann Arbor Affordable Housing Fund;
RESOLVED, That City Council approves an Affordable Housing Fund Grant Agreement between the City of Ann Arbor, the Ann Arbor Housing Commission, and the Ann Arbor Housing Development Corporation for the pre-development expenses incurred by Avalon Housing in the amount of $100,000.00 for eligible pre-development activities at Hickory Way III (“Grant Agreement);
RESOLVED, That the Mayor and City Clerk are authorized and directed to sign the Grant Agreement after approval by the City Administrator and City Attorney;
RESOLVED, That City Council appropriates $100,000.00 from the fund balance of Affordable Housing Fund to the FY 2027 Ann Arbor Housing Commission expenditure budget in the Affordable Housing Fund;
RESOLVED, That all amounts herein are without regard to fiscal year; and
RESOLVED, That the City Administrator is authorized to take all appropriate actions to implement this resolution and the Grant Agreement, including the exercise of all determinations and authority delegated to the City under the Grant Agreement, and the negotiation and execution of the recorded restriction and ancillary documents, instruments, and agreements.