Title
Resolution Approving a Housing Fund Grant to Avalon Housing for up to $391,300
Memorandum
Below for review and consideration is a resolution to support an up to $391,300 grant from the DDA Housing Fund to Avalon Housing. Avalon Housing submitted a request to the DDA on July 27, 2026, Avalon staff presented this request to the DDA Executive Committee on August 5, 2026, and provided a more detailed review of the request at the August 19, 2026 Board Work Session.
The request is as follows:
Repairs:
• 411 N. Ashley: porch, accessibility ramp, and bathroom renovation - $80,969, plus 10% contingency
• 522 S. Division: Fire escape, deck work and basement stabilization - $31,289, plus 10% contingency
• 211 E. Davis: Emergency sewer repair - $37,748.61
Rehabilitation:
• 211 E. Davis: Rehabilitation financing gap - $230,000
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, Avalon Housing has requested that the DDA provide an up to $161,300 grant from the Housing Fund for urgent repair needs at 522 E. Division St., 411 N. Ashley St., and 211 E. Davis St. and $230,000 to complete a financing plan for a substantial rehabilitation at 211 E. Davis St;
Whereas, 522 E. Division and 411 N. Ashley are located within the DDA District and 211 E. Davis within a quarter mile radius of the DDA District as allowed by DDA policy established in March 2009;
Whereas, the three properties are owned and managed by Avalon Housing, and include 27 housing units serving households below 50% of Area Median Income;
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);
Whereas, The DDA Housing Fund has capacity in its FY27 budget to meet this request, and has the ability established by DDA and City resolution to roll forward unspent grant dollars to better accommodate project timing;
Whereas, Avalon staff presented request at a DDA Executive Committee meeting on August 5, 2026 and at a DDA Board Work Session on August 19, 2026;
RESOLVED, The DDA approves an up to $161,300 grant from its Housing Fund to Avalon Housing for repairs at 522 E. Division St., 411 N. Ashley St., and 211 E. Davis St. and $230,000 to complete a financing plan for a substantial rehabilitation at 211 E. Davis St.
RESOLVED, The DDA Board authorizes the DDA Accounting Director to release grant funds to Avalon Housing on a reimbursement basis, subject to acceptance and review invoices for actual costs and other documentation as appropriate.