Title
Resolution to Approve the Purchase of Property at 6 Park View Place for Affordable Housing by the Ann Arbor Housing Development Corporation
Memorandum
The Ann Arbor Housing Development Corporation (AAHDC), a Michigan nonprofit corporation whose sole member is the Ann Arbor Housing Commission (AAHC), is requesting City Council approval to acquire a market rate property at 6 Park View Place for the purpose of developing it as affordable housing. The property will be acquired by the AAHDC. The amount paid for the property will be $1,100,000.00 plus all applicable development and closing costs. City Council must approve the acquisition under Chapter 8, Section 1:209(3) of the Ann Arbor City Code.
The AAHDC has entered into a Purchase Agreement with Ken’s Properties LLC. This property is a 5-unit acquisition of a market rate property the AAHDC will acquire initially through a 2-year land contract with the current owner. The AAHDC will secure financing to purchase the property after 2 years because the AAHDC does not have sufficient time and resources to secure financing fast enough to close on the property through traditional affordable housing financing by November 30, 2026. All of the existing residents will be grandfathered in until they move out, regardless of income. All vacant units will be converted to affordable for households at 60% AMI or less. When the AAHDC acquires the property, a deed restriction will be executed that ensures that all 5 units will be affordable to households whose income is 60% of the Area Median Income or less when the units turnover.
The appraised value is $1,100,000.00 for Tax Parcel Number 09-09-29-215-067.
Commencing at an iron pipe in the West line of Chapin Street 175.52 Northeasterly, measured along the Westerly line of Chapin Street, from the center line of West Huron Street; thence deflecting 107 degrees 4 minutes to the left, 66.25 feet to an iron pipe; thence Northerly along a line marking a Northeast angle of 80 degrees 43 minutes with the last described course, 125.33 feet to an iron pipe for a PLACE OF BEGINNING; and running thence West in a line making a Northwest angle of 99 degrees 11 minutes with the course last described, 126.12 feet to the center line of Park View Place; thence Northerly, deflecting 91 degrees 55 minutes to the right, along the center line of Park View Place and its extension Northerly, 86.27 feet to the Northeast corner of land sold to Alfred J. Mayer; thence deflecting 97 degrees 47 minutes to the right, 135 feet; thence Southwesterly 64.45 feet to the PLACE OF BEGINNING. being a part of the Northwest 1/4 of Section 29, Town 2 South, Range 6 East, City of Ann Arbor, Washtenaw County, Michigan.
Together with and subject to the right of way for use in common with others over Park View Place as disclosed by instruments recorded in Liber 239, Page 174, in Liber 257, Page 371, in Liber 270, Page 193, in Liber 281, Page 164, in Liber 291, Page 118, in Liber 294, Page 48, and in Liber 630, Page 195, Washtenaw County Records.
This resolution is intended to comply with City Code Chapter 8 Section 1:209.
Budget/Fiscal Impact: No Funding/Budget Impact
Staff
Prepared by: Jennifer Hall, Executive Director, Ann Arbor Housing Commission
Reviewed by: Marti Praschan, Chief Financial Officer
Reviewed by: Chris Frost, Senior Assistant City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The AAHC requests the City authorize the Ann Arbor Housing Development Corporation (AAHDC), a Michigan non-profit corporation, whose sole member is the AAHC, to purchase 6 Park View Place through a 2-year land contract which will convert to an acquisition after 2 years, to meet the City’s affordable housing goals and advance the development process;
RESOLVED, That City Council approves the acquisition and purchase of the property commonly known as 6 Park View Place by the Ann Arbor Housing Development Corporation for the appraised value of $1,100,000.00, plus all applicable development and closing costs, as required by Chapter 8, Section 1:209(3) of Ann Arbor City Code; and
RESOLVED, That the City Administrator and City Attorney are authorized to take all appropriate actions to implement this resolution, including review and approval of ancillary documents, instruments, and agreements related to the transaction.