Title
Resolution to Amend the Housing Affordability Agreement for Stimson Apartments to Raise the Income Cap on Two Units
Memorandum
Provided for Council approval is an amendment to the Housing Affordability Agreement for Stimson Apartments, located at 1613 White Street and 800 through 838 Stimson Avenue, Ann Arbor, to allow two of the twenty-three units to be rented to households with incomes up to 80% AMI. The remaining twenty-one units will continue to be rented to households with incomes no greater than 60% AMI.
Avalon Housing Inc. (“Avalon”) owns the Stimson Apartments, which it operates as low-income rental housing. City Council has approved a total of $380,180.00 in HUD HOME Investment Program (HOME) funds and $245,000.00 in Community Development Block Grant (CDBG) funds as 0% interest, 30-year deferred loans for Avalon’s purchase and rehab of the Apartments (R -512-44-94; R-182-5-95). The federal compliance period for both the HOME and CDBG funds has expired.
In conjunction with the HUD and CDBG funding, the City entered into a Housing Affordability Agreement with Avalon which requires all twenty-three units to be rented to households with incomes at or below 60% AMI, with at least six units set aside as very low-income with rent rates not to exceed the Low HOME rent rate. The City affordability period runs for thirty years and will end on or about June 12, 2036.
Avalon is currently in discussions to sell a separate affordable housing project and desires to maintain responsible support for the current residents of that project through relocation. Avalon requests that two units at Stimson Apartments are made available to households with incomes up to 80% AMI to allow for relocation of current Avalon residents who will no longer qualify under the 60% AMI requirement.
Staff
Prepared by: Nicole Vargas, Assistant City Attorney
Reviewed by: Derek Delacourt, Community Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City has provided Avalon $380,180.00 in HOME funds and $245,000.00 in CDBG funds as 0% interest, deferred payment loans for a 30-year term, to allow Avalon to purchase and rehabilitate Stimson Apartments for the purpose of providing low-income rental housing;
Whereas, On June 13, 2006 the City and Avalon entered into a Housing Affordability Agreement with a term of thirty years, requiring all twenty-three units to be rented to households at or below 60% AMI;
Whereas, Avalon requests to amend the Affordable Housing Agreement to allow two units at Stimson Apartments to be rented to households with incomes up to 80% AMI, which will provide Avalon flexibility to accommodate residents who may otherwise be displaced from their current affordable housing; and
Whereas, The remaining twenty-one units will continue to be restricted to households with incomes up to 60% AMI, with six of those units further designated as very low-income with rent rates that will not exceed the Low HOME rent rate;
RESOLVED, That City Council approve an amendment to the Housing Affordability Agreement, substantially in the form attached;
RESOLVED, That the Mayor and City Clerk are authorized and directed to sign the Housing Affordability Agreement amendment after approval by the City Attorney and City Administrator; and
RESOLVED, That the City Administrator is authorized to take all appropriate administrative actions to implement this Resolution, including execution of all appropriate documents.