Title
Resolution to Approve an Affordable Housing Fund Grant Agreement with the Ann Arbor Housing Commission and Ann Arbor Housing Development Corporation, for a Pre-Development Sub-Grant to the Ann Arbor Community Land Trust for the Townie Homes Project, and Appropriate $100,000.00 (8 Votes Required)
Memorandum
This resolution is requested by the Ann Arbor Housing Commission (AAHC) to appropriate and grant $100,000.00 from the Ann Arbor Affordable Housing Fund to the Ann Arbor Housing Development Corporation (AAHDC) to sign a sub-grant agreement with the Ann Arbor Community Land Trust (AACLT) for pre-development expenses on scattered site properties in the “Townie Homes” development project in the City of Ann Arbor.
The Ann Arbor Affordable Housing Fund Guidelines allow a qualified non-profit to request a grant for eligible pre-development activities, on a quarterly rolling basis, if funds are available. Pre-development grants cannot exceed $100,000.00 per project. The AACLT applied for a grant of up to $100,000.00 to develop 26 homes on scattered sites in the “Townie Homes” development project. Eleven of the twenty-six homes will be set aside for households at 60% AMI or less, through deed restrictions. The AAHDC’s board reviewed and approved the application at its board meeting.
The addresses of the qualifying units within the project, which will be restricted to households at 60% AMI or less are: 225 S Wagner Road (2 units), 235 S. Wagner Road (2 units), 1535 S Maple Road (3 units), 1563 S. Maple Road (1 unit), 1567 S Maple Road (1 unit), and 1288 Jewett (2 units) (“Qualifying Units”).
The AAHDC will enter into a sub-grant agreement with the Ann Arbor Community Land Trust and will administer the funds in compliance with the Ann Arbor Affordable Housing Fund Guidelines. The Ann Arbor Community Land Trust will have 7 years to expend the funds. The AAHDC will ensure that funds will only pay for invoices for the Qualifying Units or, when an invoice applies to multiple units, a pro-rata portion of the invoice amount that relates to Qualifying Units.
Budget/Fiscal Impact: Funding is available in the fund balance of the Affordable Housing Fund. It is requested that the $100,000.00 be appropriated from the fund balance to the FY 2027 Affordable Housing Fund expenditure budget.
Staff
Prepared by: Jennifer Hall, Executive Director, Ann Arbor Housing Commission
Reviewed by: Marti Praschan, Chief Financial Officer
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The Ann Arbor Housing Commission requests an allocation of $100,000 from the Ann Arbor Affordable Housing Fund to subgrant to the Ann Arbor Community Land Trust for pre-development activities at scattered sites that will be deed restricted for households at 60% AMI or less; and
Whereas, Funding is available in the Ann Arbor Affordable Housing Fund;
RESOLVED, That City Council approves an Affordable Housing Fund Grant Agreement between the City of Ann Arbor, the Ann Arbor Housing Commission, and the Ann Arbor Housing Development Corporation for the pre-development expenses incurred by the Ann Arbor Community Land Trust in the amount of $100,000.00 for eligible pre-development activities at eligible properties (Grant Agreement);
RESOLVED, That the Mayor and City Clerk are authorized and directed to sign the Grant Agreement after approval by the City Administrator and City Attorney;
RESOLVED, That City Council appropriates $100,000.00 from the fund balance of the Affordable Housing Fund to the FY 2027 Ann Arbor Housing Commission expenditure budget in the Affordable Housing Fund;
RESOLVED, That all amounts herein are without regard to fiscal year; and
RESOLVED, That the City Administrator is authorized to take all appropriate actions to implement this resolution and the Grant Agreement, including the exercise of all determinations and authority delegated to the City under the Grant Agreement and the negotiation and execution of the recorded restriction and ancillary documents, instruments, and agreements.