Title
Resolution Approving a Grant to the Ann Arbor Housing Development Corporation to Support Construction of Affordable Housing at 350 S. Fifth Avenue
Memo
The Ann Arbor Housing Commission has requested that the DDA Board provide a $500,000 grant from its Housing Fund to assist in meeting a local funding requirement for construction of an affordable housing development at 350 S. Fifth Ave.
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). This project meets the requirements set forth in the ordinance and the DDA’s Housing Fund has capacity to provide the requested amount. The Housing Fund has a $613,000 balance in FY26 with an additional transfer scheduled in FY27 of $427,000.
This request has been reviewed by the DDA Executive Committee, Dec. 3, 2025, and was further reviewed and discussed at a DDA Board Work Session on January 21, 2026.
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 through its Housing Fund;
Whereas, The Ann Arbor Housing Commission (AAHC) is the largest administrator of affordable housing in the City of Ann Arbor and Washtenaw County;
Whereas, The AAHC works with its associated Ann Arbor Housing Development Corporation (AAHDC), which is a 501c3 created by the AAHC in 1979, to serve as the development, grant, and services nonprofit for non-federally funded projects;
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 AAHDC, in partnership with Related Midwest, is developing a 20-story building at 350 S. Fifth Ave. featuring 330 residential units with 50% of the units reserved as affordable for households with an income below the 60% AMI threshold established by City Ordinance;
Whereas, The financing of the project is complex with a multitude of funding sources including a required $40,000,000 in local funding;
Whereas, The Ann Arbor Housing Commission has requested that the DDA Board provide a $500,000 grant to assist in meeting this local funding requirement;
Whereas, The Executive Committee has reviewed this request and the availability of funds in the Housing Budget and additional review was done at the January 2026 DDA Board Work Session;
RESOLVED, The DDA Board approves a $500,000 grant from its Housing Fund to the AAHDC to support the affordable housing development at 350 S. Fifth Ave;
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 coordinate the timing