Title
Resolution to Approve the Marijuana Excise Tax Rebate Funds and National Opioid Settlement Funds Grant Agreements Between the City of Ann Arbor, the Ann Arbor Housing Commission, and The Ann Arbor Housing Development Corporation
Memorandum
Attached for consideration is a resolution authorizing execution of the Marijuana Excise Tax Rebate and National Opioid Settlement Funds Grant Agreements between the City of Ann Arbor, the Ann Arbor Housing Commission (AAHC), and the Ann Arbor Housing Development Corporation (AAHDC), a Michigan non-profit corporation, whose sole member is the AAHC.
The City of Ann Arbor FY27 approved budget included allocations of the State of Michigan’s Marijuana Excise Tax Rebate funds in the amount of $375,000.00 and National Opioid Litigation Settlement Funds in the amount of $400,000.00. The proposed Grant Agreements seeks to grant the allocated amounts to the AAHDC.
Pursuant to the Grant Agreements and the approved City budget for fiscal year 2027, the AAHDC will use and/or disburse the Grant Funds as follows:
Marijuana Excise Tax Rebate Funds
• $75,000 - Support of the community space at 121 Catherine Street
• $300,000 - Rising Hope Housing Program
National Opioid Settlement Funds
• $400,000 - Rising Hope Housing Program
The AAHDC may use up to $15,000.00 of the $300,000.00 (5%) of the Marijuana Excise Tax Rebate Funds for its administrative costs related to providing Rising Hope Program Support. National Opioid Funds may not be used to cover any administrative costs incurred by either the Grantee or the Rising Hope Program in connection with the distribution, tracking, management, or use of funds.
Staff
Prepared by: Marti Praschan, Financial Services Area Administrator and CFO
Reviewed by: Michelle Landis, Senior Assistant City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The approved FY 2027 City of Ann Arbor budget includes allocations of the State of Michigan’s Marijuana Excise Tax Rebate funds ($375,000.00) and National Opioid Litigation Settlement Funds ($400,000.00);
Whereas, The proposed Grant Agreements grant $375,000 of State of Michigan’s Marijuana Excise Tax Rebate funds and $400,000.00 of National Opioid Litigation Settlement Funds to the AAHDC enabling the AAHDC to utilize the funds for the purposes specified in the budget;
Whereas, The expenditures pursuant to the Marijuana Excise Tax Rebate Agreement shall be in accord with the specified permissible uses articulated in Resolution #R-21-098 of March 15, 2021, for such purposes specifically related to restorative and alternative strategies for public safety and community support; and
Whereas, The expenditures pursuant to the National Opioid Settlement Funds Grant Agreement shall be used to support treatment of Opioid Use Disorder (OUD) and any co-occurring Substance Use Disorder or Mental Health (SUD/MH) conditions through evidence-based or evidence-informed programs or strategies, pursuant to the terms of the settlement agreements’ list of approved uses and core strategies, as well as the guidance published by the State of Michigan for said approved uses and strategies;
RESOLVED, That City Council approve the Marijuana Excise Tax Rebate Fund Grant Agreement between the City of Ann Arbor, the Ann Arbor Housing Commission, and the Ann Arbor Housing Development Corporation granting $375,000.00 of Marijuana Excise Tax Rebate Fund proceeds to the AAHDC;
RESOLVED, That City Council approve the National Opioid Settlement Funds Grant Agreement between the City of Ann Arbor, the Ann Arbor Housing Commission, and the Ann Arbor Housing Development Corporation granting $400,000.00 of National Opioid Settlement Fund to the AAHDC;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute both of the above-referenced Grant Agreements, consistent with this resolution, subject to approval as to substance by the City Administrator and approval as to form by the City Attorney; and
RESOLVED, That the City Administrator be authorized to take any necessary action to implement this resolution including: execution of any related additional agreements necessary to effectuate the terms of the Grant Agreements; execution of authorized renewals and amendments not exceeding the approved expenditure amount; and termination of the Grant Agreements as needed.