Title
Resolution to Approve the FY27 Ann Arbor Housing Commission Agency-Wide Operating Budget
Memorandum
The Housing Commission’s fiscal year begins July 1st and ends June 30th of each year; and the Commission has prepared an initial Ann Arbor Housing Commission operating budget for FY27 (July 1, 2026 thru June 30, 2027).
The proposed budget document includes all of the HUD program cost centers for the AAHC on the left side of the budget spreadsheet (in light blue background). The budget also includes the AAHC’s affiliated business entities on the right side of the budget sheet. The AAHDC (in darker blue background), Lurie Terrace, Siller Terrace and Colonial Oaks (with yellow background) are affiliated entities. AAHDC’s financial results are consolidated into the AAHC’s audit, but the other affiliated entities (Lurie Terrace, Siller Terrace and Colonial Oaks, as well as all of the tax credit properties called Maple Tower, River Run, West Arbor, Swift Lane and the new Dunbar Tower property (with green background) are audited separately as separate legal entities.
• The Ann Arbor Housing Development Corporation (AAHDC) is a separate legal entity from the AAHC and the AAHDC Board must adopt the AAHDC budget. HUD considers the AAHDC an affiliated business entity of the AAHC so it is included in the AAHC budget and audit even though it also must file a 990 as a separate 501c3.
• The AAHDC budget includes $3.7 million of Affordable Housing Millage, $1.2 million of County Mental Health Millage, $300,000 of Marijuana Rebate funding, $400,000 in Opioid Settlement funds, about $1 million in developer fees, $5 million in development reimbursement expenses, $375,000 in investment income as well as miscellaneous grant funding from HUD and MEDC for a total of $18.3 million.
• Colonial Oaks and Siller Terrace are wholly owned by AAHDC. They are audited separately but are included as disregarded entities in AAHDC’s Form 990.
• The Ann Arbor Affordable Housing Corporation, DBA Lurie Terrace, is a separate legal entity from the AAHC and the AAAHC Board must adopt the AAAHC budget. Since AAAHC is a separate business entity, it is audited separately of the AAHC and files a 990 as a separate 501(c)(3).
• The federal government has adopted the federal FY26 budget for the Section 8 programs, which cover July to Dec 2026 of the AAHC’s budget. This budget reflects the budget information provided by HUD. The federal FY27 budget covering January to June 2026 has not been adopted as of May 17, 2026.
• The Board already approved the tax credit properties Maple Tower, River Run, West Arbor and Swift Lane budgets at a separate board meeting because their fiscal year differs from AAHC’s and is January to December. Dunbar Tower is the new development at 121 Catherine St. It is also a tax credit property and is fully occupied as of May 2026 and its budget will be adopted annually with the other LIHTC properties.
• The cash-flow from the tax credit properties are restricted. Most of the cash-flow will go to the AAHDC, however, not until after the audit is complete for these properties. The cash-flow will be distributed as agreed to in the development agreements with the equity investors.
Staff
Created by: Ulli Raak, Finance Director, Ann Arbor Housing Commission
Approved by: Jennifer Hall, Executive Director, Ann Arbor Housing Commission
Body
WHEREAS, the Housing Commission’s fiscal year begins July 1st and ends June 30th of each year; and
WHEREAS, the Commission has prepared an initial agency wide operating budget for FY27 (July 1, 2026 thru June 30, 2027); and
WHEREAS, the Commission staff is presenting this budget to the Board of Commissioners for its review prior to the start of FY27; and
WHEREAS, the Commission staff has prepared such budget by estimating revenues and expenses based on current year-to-date actual financial data for the previous 12 months and historical financial data; and
WHEREAS, the Commission staff will be preparing monthly agency wide financial reports for the Board comparing year-to-date actuals to budget and also intends to revise the budget as needed; and
NOW THEREFORE BE IT RESOLVED, that the Ann Arbor Housing Commission Board approve the Ann Arbor Housing Commission’s Agency Wide FY27 operating budget as attached hereto.