Title
Resolution to Approve a Grant Agreement between the City of Ann Arbor as Grantor and Avalon Housing as Grantee for $100,000.00 to Improve Energy Efficiency at Stimson Apartments ($100,000.00)
Memorandum
In early 2024, the Ann Arbor Office of Sustainability and Innovations (“OSI”) supported Avalon Housing in submitting a grant application to the Michigan State Housing and Development Authority (“MSHDA”) MI Neighborhood Program to improve the accessibility and energy efficiency at Stimson Apartments (“Stimson”). Stimson is comprised of 23 rental units spread across six buildings. There are 18 one-bedroom units and five two-bedroom garden apartments in the complex. Currently, all units at Stimson are occupied by households below 60% Area Media Income (“AMI”).
Per its grant application, Avalon Housing will “be making improvements that will have a big impact on the accessibility and energy efficiency of our 23-unit property, Stimson Apartments. We will install energy-efficient electric heat pumps for heating/cooling all units, which will lead to lower utility bills and increased resident comfort. The units currently have gas forced-air furnaces for heating and window AC units for cooling… We will also perform accessibility improvements, such as widening interior doorways and installing ramps, handrails, and/or zero-step entries to some units. With this funding, we will also be able to take care of some needed maintenance by installing new roofs throughout the property.”
A match was required for Avalon Housing to be eligible to apply for the MSHDA MI Neighborhood Program. Because of its commitment to sustainability improvements, OSI offered to provide $100,000.00 in matching funds, largely to support the transition to heat pumps and other embedded energy efficiency improvements as outlined in Avalon Housing’s grant application.
In total, Avalon Housing applied for and was awarded $590,000.00 from the MSHDA MI Neighborhood Program, contingent upon receiving $100,000.00 in matching funds from the City.
Before City Council is a resolution granting Avalon Housing $100,000.00 to be used to improve energy efficiency and decarbonization efforts at Stimson Apartments.
Budget/FiscalImpact: Budget is available in the existing Office of Sustainability and Innovations Fiscal Year 2025 budget to support this request.
Staff
Prepared by: Missy Stults, Sustainability and Innovations Director
Reviewed by: Valerie Jackson, Assistant City Attorney
Reviewed by: Kim Buselmeier, Interim Chief Financial Officer
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, Avalon Housing has made a commitment to improve the sustainability of their units in a way that improves health, safety, and affordability;
Whereas, In 2024, Avalon Housing submitted a grant application to the Michigan State Housing and Development Authority MI Neighborhood Program to make accessibility and energy efficiency improvements at its 23-unit property, Stimson Apartments;
Whereas, Avalon Housing coordinated its grant application with the Office of Sustainability and Innovations, which led to the inclusion of energy efficiency and appliance electrification actions into the final application;
Whereas, The energy efficiency and appliance electrification actions Avalon Housing included in its grant application strongly align with the goals in the City’s A2ZERO Carbon Neutrality Plan and ongoing work to achieve net zero energy affordable housing units throughout the City;
Whereas, The Michigan State Housing and Development Authority MI Neighborhood Program requires applicants to secure match funding from a local community partner;
Whereas, The Office of Sustainability and Innovations offered to provide Avalon Housing with $100,000.00 in matching funds, largely to support the transition to heat pumps and other embedded energy efficiency improvements as outlined in Avalon Housing’s grant application;
Whereas, Avalon Housing was awarded $590,000.00 from the Michigan State Housing and Development Authority MI Neighborhood Program, contingent upon receiving $100,000.00 in matching funds from the City; and
Whereas, The Office of Sustainability and Innovations has funds available in its Fiscal Year 2025 budget to help support community sustainability projects;
RESOLVED, That City Council approve a grant agreement between the City of Ann Arbor and Avalon Housing for $100,000.00 to support energy efficiency and electrification improvements at Stimson Apartments as outlined in Avalon Housing’s successful grant application to the Michigan State Housing and Development Agency’s MI Neighborhood Program;
RESOLVED, That these funds come from the Office of Sustainability and Innovations Fiscal Year 2025 budget;
RESOLVED, That the Mayor and City Clerk are authorized to sign the Grant Agreement after approval as to substance by the City Administrator and approval as to form by the City Attorney; and
RESOLVED, That the City Administrator is authorized to take all appropriate actions to implement this resolution, including signing all necessary documents and agreements.