Title
Resolution to Approve the Marijuana Excise Tax Rebate Fund 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 Marijuana Excise Tax Rebate 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 (the “Grant Agreement”).
The City of Ann Arbor FY25 budget includes revenue from the State of Michigan’s Marijuana Excise Tax Rebate (the “Rebate”) in the amount of $1,075,000.00 to be allocated to the AAHC. The proposed Grant Agreement seeks to grant $1,075,000.00 from the Rebate to the AAHDC (“Grant Funds”).
Pursuant to the Grant Agreement and the approved City budget for fiscal years 2025, the AAHDC will use the Grant Funds as follows:
- $75,000 - Support of the community space at 121 Catherine Street.
- $250,000 - Eviction prevention, including direct payments for back-owed rent, court fees and associated costs for households in danger of losing their housing due to back-owed rent.
- $250,000 - Low-income youth services. This amount will be used to pay for the services of local non-profits that provide the type of services described in the budget amendments and related to restorative and alternative strategies for public safety and community.
- $500,000 - Trauma-informed supportive services including case management services prioritizing individuals impacted by the criminal legal system with tenant-based housing choice vouchers, including returning citizens, to provide a range of supportive services, including but not limited to, mental health counseling, peer support groups, substance abuse treatment, life skills training, financial counseling, educational opportunities, transportation assistance, legal assistance, housing advocacy, health care coordination, and case management services, from providers trained in trauma-informed care.
The AAHDC may use up to $50,000.00 of the $1,000,000.00 (5%) budgeted for its administrative costs related to providing eviction prevention, low-income youth services, and trauma-informed case management.
The AAHDC financials will continue to be included in the AAHC audit and provided for the City’s audit. The AAHDC will provide a mid-year report to City Council and City Administration on or before February 5, 2025, detailing which agencies received funding, the amount of funding, the scope of services provided, and six-month expenditures for each agency. In addition, the AAHC will respond to the City with any requested detailed financial reporting related to the expenditure of the Grant at any time.
Staff
Prepared by: Marti Praschan, Chief Financial Officer
Reviewed by: Michelle Landis, Assistant City Attorney
Jennifer Hall, Executive Director, Ann Arbor Housing Commission
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The approved City Budget for fiscal year 2025 includes $1,075,000.00 in State Marijuana Excise Tax Rebate revenue allocated to the Ann Arbor Housing Commission (“AAHC”);
Whereas, The Ann Arbor Housing Development Corporation (“AAHDC”) is a Michigan non-profit corporation, whose sole member is the AAHC.
Whereas, The proposed Grant Agreement grants $1,075,000.00 to the Ann Arbor Housing Development Corporation (“AAHDC”) enabling the AAHDC to use the grant funds to directly pay invoices for goods and services for the purposes specified in the budget; and
Whereas, The expenditures pursuant to the Grant Agreement shall be in accord with the specified permissible uses articulated in Resolution #R-21-098 of March 15, 2021, for such purposes specifically related to restorative and alternative strategies for public safety and community support;
RESOLVED, That the City Council approve the Marijuana Excise Tax Rebate Fund Grant Agreement Between the City of Ann Arbor, the Ann Arbor Housing Commission, and the Ann Arbor Housing Development Corporation granting $1,075,000.00 to the AAHDC (“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; and
RESOLVED, That the City Administrator be authorized to take any necessary action to implement this resolution.