Title
Resolution to Approve the Release of Affordable Housing Covenants on the Condominium Units of 105 Ashley Mews and 166 Ashley Mews and Direct the City Administrator to Explore Sale of the Units to the Ann Arbor Community Land Trust (8 Votes Required)
Memorandum
Eight owner-occupied units within the Ashley Mews Condominium project were set aside as affordable as part of the Ashley Mews Planned Unit Development zoning approvals in or around 2001.
The City recorded Affordable Housing Covenants for each of the eight Ashley Mews affordable units to require the units to be sold at a restricted sale price to income-qualified buyers and require each owner to use their unit as their primary residence.
In April 2025 City Council approved the purchase of 166 Ashley Mews under the City’s first right of refusal due to the owner’s noncompliance with the Covenant. In November 2025 the City approved the purchase of 105 Ashley Mews under the City’s first right of refusal due to the owner’s noncompliance with the Covenant.
Staff have identified numerous challenges with administering the Ashley Mews units for affordable housing. Due to significant mortgage down payment requirements and high monthly HOA fees, the units are unaffordable for most individuals who meet the income requirements of 80% AMI. Further, the units require significant City resources to monitor and enforce compliance.
Staff recommend releasing the Affordable Housing Covenant on the two City-owned units so the City can explore sale of the units to the Ann Arbor Community Land Trust (A2CLT), a local nonprofit developer, for one dollar. It is anticipated that A2CLT will sell the units at market rate and use all profits to advance their affordable housing work within the City of Ann Arbor.
The attached resolution approves the City’s release of the covenants on the two properties and authorizes the Administrator’s office to continue exploring the sale of these properties to A2CLT to support their affordable housing projects. This includes authorization for the City Administrator to negotiate purchase and sale agreements for the two properties along with a separate agreement with A2CLT to ensure the proceeds from the sale are used for development of affordable housing in the City. The City Administrator will then present these agreements to Council for final approval.
Staff
Prepared by: Mariah Walton, Deputy City Administrator
Reviewed by: Nicole Vargas, Assistant City Attorney
Body
Whereas, The City recorded an Affordable Housing Covenant on the following two properties in the Ashley Mews Condominium (the “Ashley Mews units”):
105 Ashley Mews, Ann Arbor, Michigan (Parcel ID: 09-09-29-411-055)
166 Ashley Mews, Ann Arbor, Michigan (Parcel ID: 09-09-29-411-090)
Whereas, The City exercised its right of first refusal and purchased the Ashley Mews units due to owner noncompliance with the Affordable Housing Covenants for a total cost of approximately $257,000;
Whereas, The Ashley Mews units have not been an effective means of providing affordable housing, and the City’s goals of increasing the supply of affordable housing would be better served by working with a nonprofit developer to allow the Ashley Mews units to be sold at market rate with profits applied to new affordable and/or workforce housing projects in the city of Ann Arbor; and
Whereas, The Ann Arbor Community Land Trust (A2CLT) is a local nonprofit developer that provides affordable and workforce housing that has expressed interest in purchasing and reselling the units to further their development goals;
RESOLVED, That City Council directs the City Administrator to explore sale of the Ashley Mews units to A2CLT, including authorization to negotiate a purchase and sale agreement with a sale price of one dollar ($1.00) for each unit, and an agreement with A2CLT to ensure profits are used to support their development of affordable housing, and present the agreements to Council for consideration;
RESOLVED, That City Council approves the release of the Affordable Housing Covenants on the 166 Ashley Mews and 105 Ashley Mews;
RESOLVED, That the Mayor and City Clerk are authorized and directed to sign the covenant release documents after approval by the City Administrator and City Attorney;
and
RESOLVED, That the City Administrator is authorized to take all necessary actions to implement this resolution.
Sponsored by: Mayor Taylor and Councilmembers Eyer, Radina, Watson, and Ghazi-Edwin.