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 FY26 budget includes revenue from the State of Michigan’s Marijuana Excise Tax Rebate in the amount of $776,000.00 (the “Rebate”). The proposed Grant Agreement seeks to grant the full Rebate amount of $776,000.00 to the AAHDC (“Grant Funds”).
Pursuant to the Grant Agreement and the approved City budget for fiscal years 2026, the AAHDC will use the Grant Funds as follows:
- $75,000 - Support of the community space at 121 Catherine Street.
- $136,000 - 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.
- $565,000 - Rising Hope Housing Program, including trauma-informed eviction prevention, housing stabilization, and other flexible, needs-based supports for returning citizens and individuals impacted by the criminal legal system, essential and dignity-supporting services and items, including but not limited to housing assistance, car repairs, transportation costs, childcare necessities, diapers and care seats, utility assistance, debt relief, legal advocacy, mental and behavioral health services, peer support, and case management, provided they support the overall stability and reintegration of returning citizens and their families
The AAHDC may use up to $35,050.00 of the $701,000.00 (5%) budgeted for its administrative costs related to providing eviction prevention and Rising Hope Program support.
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, 2026, 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, Senior 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 2026 includes $776,000.00 in State Marijuana Excise Tax Rebate revenue allocated to the Ann Arbor Housing Commission;
Whereas, The proposed Grant Agreement grants the full $776,000.00 to the 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 $776,000.00 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.