Title
Resolution to Approve Payment in Lieu of Taxes (PILOT) for the Affordable Housing Project at 2285 W. Liberty Street, Ann Arbor, MI 48103
Memorandum
TDP Ann Arbor Limited Dividend Housing Association I, Limited Partnership proposes building 343 units of affordable housing with an application for Low Income Housing Tax Credits (LIHTC). 100% of the units will serve households with an average income at or below 60% of the Area Median Income (AMI).
The proposed housing project makes the property eligible for a payment in lieu of taxes (PILOT) under Chapter 19 of City Code. TDP Ann Arbor Limited Dividend Housing Association I, Limited Partnership can receive points on their LIHTC application that increase the likelihood of receiving the tax credits if the City adopts a PILOT for the project.
Therefore, staff recommends that the City Council approve a PILOT for 2285 W. Liberty Street to support the development of 343 additional units of affordable housing in the City.
Staff
Prepared By: Michelle Bennett, City Planner
Reviewed By: Brett Lenart Planning Manager
Derek Delacourt, Community Services Area Administrator
Approved By: Milton Dohoney Jr., City Administrator
Body
Whereas, TDP Ann Arbor Limited Dividend Housing Association I, Limited Partnership is developing approximately 343 units of affordable housing;
Whereas, TDP Ann Arbor Limited Dividend Housing Association I, Limited Partnership will be applying for Low Income Housing Tax Credits (LIHTC) from the Michigan State Housing Development Authority (MSHDA); and
Whereas, City Council has determined prospectively that, under Chapter 19 of City Code, the affordable housing project at 2285 W. Liberty Street will be qualified for and should be granted a tax exemption and pay an annual service charge in lieu of taxes;
RESOLVED, That pursuant to Chapter 19, 1:651 of the Code of the City of Ann Arbor, the project shall pay a service charge equal to one dollar ($1.00) for the assisted units as provided by the Michigan State Housing Development Authority Act, said housing project being the following real property:
LAND IN THE CITY OF ANN ARBOR, WASHTENAW COUNTY, MI, DESCRIBED AS FOLLOWS: COMMENCING AT AN IRON PIPE IN THE CENTER LINE OF WEST LIBERTY STREET, 404 FEET NORTHEASTERLY FROM THE INTERSECTION OF THE CENTER LINE OF LIBERTY STREET AND THE WEST LINE OF SECTION 30, ANN ARBOR TOWNSHIP, WASHTENAW COUNTY, MICHIGAN; THENCE SOUTH PARALLEL TO THE WEST LINE OF THE SECTION, 626.1 FEET TO THE NORTH LINE OF J.M. SCHAEBERLE'S LAND; THENCE EAST DEFLECTING 90°19'20" TO THE LEFT AND IN THE NORTH LINE OF SAID LAND, 135 FEET TO AN IRON PIPE; THEN NORTH DEFLECTING 90°19' TO THE LEFT, 657.1 FEET TO AN IRON PIPE IN THE CENTERLINE OF LIBERTY STREET; THENCE SOUTHWESTERLY IN THE CENTER LINE OF WEST LIBERTY STREET 131.1 FEET TO THE PLACE OF BEGINNING, EXCEPTING THE NORTHERLY 45 FEET OF THE ABOVE DESCRIBED PARCEL, BEING A PART OF THE SW 1/4, SECTION 30, T2S, R6E, THE CITY OF ANN ARBOR.
AND
COMMENCING AT THE IRON PIPE IN THE CENTER LINE OF WEST LIBERTY STREET NORTHEASTERLY FROM THE INTERECTION OF SAID CENTER LINE WITH THE WEST LINE OF SECTION 30, T2S, R63, MERIDIAN OF MICHIGAN, THENCE NORTHEASTERLY IN THE CENTER OF SAID ROAD, 104 FEET TO AN IRON PIPE; THENCE SOUTH, PARALLEL TO THE WEST LINE OF SECTION 30, 626.1 FEET TO AN IRON PIPE IN THE NORTH LINE OF LAND CONVEYED TO THE LATE J. MARTIN SCHAEBERLE, BY DEED RECORDED IN LIBER 241, PAGE 550; THENCE WESTERLY, DEFLECTION 89°40'40" TO THE RIGHT IN THE NORTH LINE OF SAID J. MARTIN SCHAEBERLE'S LAND, 100.88 FEET TO AN IRON PIPE; THENCE NORTH, PARALLEL TO THE WEST LINE OF SECTION 30, 601.4 FEET TO THE PLACE OF BEGINNING, BEING A PART OF THE SOUTHWEST 1/4 OF SECTION 30, T2S, R63, THE CITY OF ANN ARBOR, EXCEPTING THE NORTHERLY 45 FEET OF THE ABOVE DESCRIBED PARCEL.
RESOLVED, That the tax exemption shall be effective on December 31st of the year in which the resolution is adopted, subject to receipt from the Michigan State Housing Development Authority of the “Notification to Local Assessor of Exemption” for the project;
RESOLVED, That this resolution shall remain in effect and shall not terminate so long as both (1) the housing project remains eligible for tax exemption under Chapter 19 of City Code and state and federal law, and (2) a state or federally-aided mortgage loan remains outstanding and unpaid on the housing project, as provided in Chapter 19 of City Code;
RESOLVED, That, notwithstanding the provisions of Section 15(a)(5) of the Michigan State Housing Development Act (MCL 125.1401 et seq.) to the contrary, a contract between the City of Ann Arbor and TDP Ann Arbor Limited Dividend Housing Association I, Limited Partnership or its affiliate, with the Michigan State Housing Development Authority as third party beneficiary under the contract, to provide this tax exemption and accept payments in lieu of taxes, is effectuated by adoption of this resolution;
RESOLVED, That the owner or operator of the housing project shall, upon request by the City, provide evidence to verify continuing eligibility for tax exemption under Chapter 19 of City Code; and
RESOLVED, That the City Administrator is authorized to take appropriate actions to implement this resolution.