Title
Resolution to Approve the County Mental Health Millage Grant Agreement between the City of Ann Arbor, the Ann Arbor Housing Commission, and the Ann Arbor Housing Development Corporation
Memorandum
Attached for consideration is a resolution authorizing execution of the County Mental Health Millage Grant Agreement between the City of Ann Arbor, the Ann Arbor Housing Commission (AAHC), and the Ann Arbor Housing Development Corporation (AAHDC), a Michigan non-profit corporation, whose sole member is the AAHC.
In November 2024, County residents approved an eight-year renewal and restoration of the “Washtenaw County Community Mental Health and Public Safety Preservation Millage,” a portion of which is rebated back to the City from the County annually (“the Millage”). In October of 2024, City Council adopted R-24-396, allocating 40% of the Millage rebate revenue for supportive services for residents of Ann Arbor Housing Commission properties.
The Millage is currently used to pay local non-profit partners to provide tenant support services for AAHC residents and AAHC tenant-based voucher participants. Those services include:
• Mental Health Support
• Medical Care
• Substance Abuse Recovery Support
• Domestic Violence Support
• Conflict Resolution
• Parenting and Child Welfare
• Youth and Community Center Programs
• Education and Employment Support
• Coordination of Entitlements
• Money Management and Financial Literacy
• Assistance with Basic Needs
• Legal Services
• Child Care
• Transportation
• Security
• Household Maintenance and Activities of Daily Living
• Connections Tomma instream Services and Community Resources
• Tenancy Problems and Lease Violations
• Guest Monitoring and Support
• Regular meetings with property manager to address problems and coordinate plans
The interest earned on the investment of the grant funds will be used to cover staffing and overhead costs of the AAHC and AAHDC in the administration of the funds.
The AAHC currently has contractual common performance metrics for all of its service providers for AAHC residents. The contracts for service providers who work with participants in the tenant-based voucher program have different performance metrics than for AAHC residents, depending on the voucher program.
The AAHC has adopted simple formula for allocating funding to service providers. The formula takes into consideration the program intensity and the service intensity. The AAHC conducts an annual review prior to the start of the fiscal year, to readjust the funding allocations, based on the following formula:
2,100.00/rent-subsidized household for on-site service providers for locations where the service provider has an office/community center on an AAHC property.
$1,050.00/rent-subsidized household for off-site service providers for locations where there is not an office/community center on an AAHC property.
$110.00/unsubsidized household. This is currently Lurie Terrace, which is primarily households that pay full rent (although below market rent) without a rent subsidy.
$2,100.00/household who were homeless at the time of lease-up. This is in addition to the funding provided for in numbers 1-3 above.
$1,050.00/household per year for emergency support for tenants of all voucher programs who are in danger of losing their voucher.
$3,500.00/unit per year for lease-up support and ongoing case management for youth aging out of foster care in the Family Unification Program (FUP).
The AAHC will propose an annual budget to the City Administrator and City Council. The AAHDC will continue to execute contracts with non-profit service providers, process invoices and pay non-profits directly from the Millage revenue granted to it.
The AAHDC financials will continue to be included in the AAHC audit and provided to the City for its own audit. In addition, the City may request detailed illage-related financial reporting from the AAHC at any time.
The duration of the Grant Agreement coincides with the duration of the Millage, through fiscal year 2034.
Staff
Prepared by: Jennifer Hall, Executive Director, Ann Arbor Housing Commission
Reviewed by: Marti Praschan, Financial Services Area Administrator and CFO
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, In November 2024, county residents approved an eight-year renewal and restoration of the Washtenaw County Mental Health and Public Safety Preservation Millage, a portion of which is rebated back to the City from the County and put into the City’s “County Mental Health Millage Fund;” and
Whereas, In October of 2024, City Council adopted Resolution, R-24-396, allocating 40% of the Millage rebate revenue to supportive services for residents of Ann Arbor Housing Commission properties;
RESOLVED, That the City Council approve the County Mental Health Millage Grant Agreement between the City, the Ann Arbor Housing Commission, and the Ann Arbor Housing Development Corporation (the “Grant Agreement”);
RESOLVED, That the City Council approve the expenditure of County Mental Health Millage funds pursuant to the annually adopted budget for each fiscal year of the Grant Agreement;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the Grant Agreement, consistent with this resolution, subject to approval as to substance by the City Administrator and approval as to form by the City Attorney;
RESOLVED, That all amounts granted, and annual appropriations made pursuant to the Grant Agreement, shall be authorized for expenditure without regard to fiscal year; and
RESOLVED, That the City Administrator be authorized to take any necessary administrative action to implement this resolution.