Title
Resolution to Establish the 2026 Affordable Housing CI Bonds Fund and Appropriate Funding ($35,000,000.00) (8 Votes Required)
Memorandum
Attached for your review and consideration is a resolution to establish a new fund to account for the bond proceeds associated with the 350 S. Fifth Ave., Affordable Housing Project. City Council authorized the issuance of General Obligation bonds as one of the funding sources for the project.
The project is planned to be a twenty-story, mixed-use building featuring 330 units that will be targeted to low and moderate-income households (up to 80% of the Area Median Income) along with ground-floor retail and the expansion of the Blake Transit Center. The building will be all electric and net-zero ready, utilizing state-of-the-art building technology to deliver strong environmental performance.
The bonds sold at competitive sale on April 21, 2026 are secured by the City’s pledge of its limited tax full faith and credit. The City of Ann Arbor will be responsible for repayment of the Bond proceeds, interest, and other related issuance costs through a portion of the City’s Affordable Housing Millage.
Budget/Fiscal Impact: The bond proceeds will be deposited in the newly created fund for the purposes of the construction of the project and account for the use of the proceeds.
Staff
Prepared by: Marti Praschan, Chief Financial Officer
Reviewed by: Michelle Landis, Senior Assistant City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, During the March 16, 2026, City Council meeting, City Council approved #R-26-106, which authorized the issuance of Capital Improvement Bonds (Limited Tax General Obligation) (Taxable) for the 350 S. Fifth Ave., Affordable Housing Project;
Whereas, On April 21, 2026 the Capital Improvement Bonds were competitively sold and the bond proceeds are to be delivered to the City; and
Whereas, It is necessary to track the disposition of the bond proceeds;
RESOLVED, That City Council approves the establishment of the 2026 Affordable Housing CI Bonds Fund and appropriates $35,000,000.00 to the expenditure budget of the 2026 Affordable Housing CI Bonds Fund with the source of revenue being the bond proceeds from the sale of the bond;
RESOLVED, That all amounts herein are without regard to fiscal year; and
RESOLVED, That City Council authorize the City Administrator to take the necessary actions to implement this resolution.