Title
Resolution Approving a Grant to the Ann Arbor Housing Development Corporation to Provide Funding for a Fire Suppression System at Baker Commons
Memorandum
Background: The DDA’s Housing Fund was established to help support the creation of affordable housing units and to preserve existing affordable units in the downtown area. City of Ann Arbor Ordinance, Section 1:156(e), adopted in 2013 and amended in 2020, establishes a minimum amount of Tax Increment Financing (TIF) be set aside annually in the DDA Housing Fund and restricts those funds to the support of affordable housing to residents with incomes at or below 60% of the Area Median Income (AMI).
Overview: The Ann Arbor Housing Commission (AAHC) is requesting $650,000 from the DDA Affordable Housing Fund to assist with installing a $892,647 fire suppression system in all the apartments at Baker Commons at 106 Packard, which is within the DDA district. This project is compliant with the DDA’s Housing Fund restrictions.
Prepared by: Sara McCallum and Maura Thomson
Body
Whereas, The Ann Arbor Downtown Development Authority (DDA) is a catalyst for strengthening economic vibrancy and quality of life in the downtown area, and to meet its mission, the DDA has supported a variety of downtown affordable housing projects, including projects which serve residents earning below 60% of Area Median Income;
Whereas, The Ann Arbor Housing Commission (AAHC) works with its associated Ann Arbor Housing Development Corporation (AAHDC), which is an “instrumentality” of the AAHC created in 1979, to serve as the development, grant, and services nonprofit for non-federally funded projects;
Whereas, Baker Commons has 64 apartments, and 94% of its tenants have extremely low incomes (below 30% AMI) and 6% are very low income (below 50% AMI), and the DDA’s investments enable the building to remain available as a vital downtown affordable housing option;
Whereas, City of Ann Arbor Ordinance, Section 1:156(e), adopted in 2013 and amended in 2020, establishes a minimum amount of Tax Increment Financing (TIF) be set aside annually in its Housing Fund and restricts those funds to the support of affordable housing to residents with incomes at or below 60% of the Area Median Income (AMI), and this project is compliant with that restriction;
Whereas, The DDA Housing Fund currently has an anticipated budget capacity of $721,000 for grants in FY2025;
Whereas, The Ann Arbor Housing Commission has requested that the DDA Board provide a $650,000 grant to support the installation of a Fire Suppression System at Baker Commons;
Whereas, The Executive Committee has reviewed and recommends approval of this request;
RESOLVED, The DDA Board approves a grant from its Housing Fund to the AAHDC for a Fire Suppression System at their Baker Commons property, in an amount not to exceed $650,000;
RESOLVED, The DDA Board authorizes the DDA Executive Director to execute a Grant Agreement with the AAHC reflecting the terms outlined in this resolution;
RESOLVED, The DDA Board authorizes the DDA Accounting Director to release grant funds to the AAHDC on a reimbursement basis, subject to review and acceptance of invoices for actual work performed.