Title
Resolution To Transfer Ownership of 2072 Garden Circle From the City of Ann Arbor to the Ann Arbor Housing Commission.
..Memorandum
The Ann Arbor Housing Commission owns a single-family home at 2072 Garden Circle, Ann Arbor, MI, that was built in 1971 through HUD’s Turnkey III lease to ownership program. The Turnkey III program no longer exists and the families that have lived in this home have not been able to purchase the property. The Turnkey III program was a program within HUD’s Public Housing program and Garden Circle is in HUD’s database as the only public housing unit in the AAHC’s portfolio. The AAHC will dispose of the property through the Section 18 Disposition process for Very Small PHAs, through the HUD Special Applications Center (SAC). The property will be acquired for $1.00 by the Ann Arbor Housing Development Corporation (AAHDC), a Michigan 501(c)(3) nonprofit organization created by the AAHC.
After the Section 18 Disposition, the AAHC will receive a tenant protection voucher from HUD. The existing tenant may continue to live at the property with a project-based voucher or move with a tenant-based voucher if they are qualified under the voucher program. The existing tenant indicated that they prefer to remain at the property after conversion. If the family is not income eligible for a tenant-protection voucher, they can continue to live at 2072 Garden Circle and continue paying comparable rent. Staff held the first meeting with the resident regarding conversion on March 10, 2023 and again on April 21, 2023. The AAHC obtained a letter of support from Mayor Taylor on February 21, 2024, as required by the Section 18 regulations.
Staff
Created and Approved by: Jennifer Hall, Executive Director
Body
Whereas, the Ann Arbor Housing Commission (the “Commission”) is a public body corporate, which is separate from the City of Ann Arbor (the “City”), and the Commission provides management and oversight to affordable housing within the City;
Whereas, the Commission has successfully removed or converted all of its units from its public housing inventory and now will dispose of its sole remaining public housing unit pursuant to Section 18 of the U.S. Housing Act of 1937 (42 U.S.C. 1437p) and 24 C.F.R. 970;
Whereas, the Commission’s last remaining public housing unit is located at 2072 Garden Circle Ann Arbor, MI 48103 (the “Property”) and must be transferred out of the City’s ownership to the Commission to then be ground leased to Colonial Oaks, LLC, an entity related and controlled by the Commission, to complete the closeout of the Commission’s public housing inventory;
Whereas, in June 2013, Ann Arbor City Council approved R-13-173 to transfer ownership of 26 properties (inclusive of 2072 Garden Circle) the City acquired for the Commission to the Commission for one dollar per parcel;
Whereas, the U.S. Department of Housing and Urban Development (“HUD”) has determined that the Commission’s proposal to dispose of the Property from the public housing inventory is consistent with the U.S. Housing Act of 1937 and has approved the Commission’s application to dispose of the unit from public housing;
Whereas, the family that currently resides in the property will remain in the property and the property will remain permanently affordable for households at or below 60% Average Median Income;
Whereas, the completion of this transfer will permit the Commission to commence the process of terminating its existing Annual Contributions Contracts (“ACCs”) with HUD, thereby formally closing out the Commission’s public housing program;
Whereas, to complete this transaction, the Commission is authorized to do the following:
• Accept the City conveyance of the property to the Commission for $1.00 via a Quit Claim Deed(QCD);
• Continue to operate the property as affordable consistent with a deed restriction in the QCD;
• Include the property in Ground Lease with the Colonial Oaks LLC;
• Enter into a Release of Restrictions document with HUD to remove their oversight restriction requirements as a public housing unit; and
• Enter into a HUD Use Agreement, which will include the City affordability requirements.
Whereas, the Commission finds that the transfer of the Property and the closeout of its public housing program are in the best interests of the Commission, its residents, and the continued efficient administration of its housing programs.
RESOLVED that the Board of the Ann Arbor Housing Commission has reviewed the materials of the application and authorize the PHA to submit the application through SAC for Section 18 Disposition of 2072 Garden Circle, Ann Arbor MI.
I, Dr. Lee Meadows, President of the Board of Directors of Ann Arbor Housing Commission ("AAHC''), certify that this resolution was adopted on March 13, 2026 by the Board of Directors of AAHC.
Dr. Lee Meadows, President Date