Title
Resolution Calling Public Hearing Regarding the Proposed Issuance by the Ann Arbor Housing Commission of Tax-Exempt Bonds (Dr. Willis C. Patterson Project)
Memorandum
This resolution calls a public hearing regarding the proposed issuance by the Ann Arbor Housing Commission (the “Housing Commission”) of one or more series of tax-exempt qualified 501(c)(3) bonds in a maximum aggregate principal amount not to exceed eighteen million dollars ($18,000,000) (the “Bonds”) for the benefit of Ann Arbor Housing Development Corporation, a Michigan nonprofit corporation (AAHDC).
AAHDC, as a nonprofit corporation qualified under Section 501(c)(3) of the Internal Revenue Code of 1988, as amended (the “Code”), is an eligible borrower of tax-exempt bond proceeds. Bonds issued for the benefit of the AAHDC would be “qualified 501(c)(3) bonds,” a category of “private activity bonds” under the Code.
The bond proceeds are expected to be loaned to AAHDC, and used to defray the cost of purchasing, acquiring, owning, improving, furnishing, equipping, and financing an approximately 114-unit multifamily residential rental housing facility known as AVIA Lofts, located at 800 Victors Way in Ann Arbor (the “Project”). The Project is intended to preserve and provide long-term low- and moderate-income rental housing subject to applicable affordability restrictions.
Due to the nature of the Bonds to be issued, certain procedural requirements and approvals are required of the City pursuant to the Code, before the Housing Commission can approve the issuance of the Bonds. Specifically, to fulfill the public approval requirements of Section 147(f) of the Code with respect to the Bonds, a public hearing must be held by the City, and notice of the public hearing must be published at least 7 calendar days in advance of the hearing. The hearing provides interested persons a reasonable opportunity to comment on the proposed issuance of the Bonds, the nature and location of the Project, and the proposed use of bond proceeds. City Council may later consider approval of the Bonds solely for purposes of the public approval requirements of Section 147(f) of the Code and the Treasury Regulations thereunder.
The Ann Arbor Housing Commission is authorized to issue taxable and tax-exempt bonds under Act 18 of the Public Acts of Michigan of 1933 (Ex. Sess.), as amended (“Act 18”). The Bonds are expected to be limited obligations of the Housing Commission, payable from loan repayments made by AAHDC and from funds, accounts, and collateral pledged under the bond documents. The limited obligation nature of the Bonds is also consistent with Act 18, which provides that notes, bonds, or other obligations or claims against a housing project are not debts or charges against the city or village and do not create individual liability for members of the housing commission for official acts, and will not obligate the City to pay debt service on the Bonds.
City Council’s action in calling the public hearing does not make the City the issuer of the Bonds, does not constitute approval of the Bonds as City debt, does not pledge City funds or credit to repayment of the Bonds, and does not obligate the City to pay debt service.
Staff
Prepared by: Jennifer Hall, Executive Director, AAHC
Reviewed by: Michelle Landis, Senior Assistant City Attorney
Approved by: Milton Dohoney Jr, City Administrator
Body
CITY COUNCIL
OF THE
CITY OF ANN ARBOR
RESOLUTION CALLING PUBLIC HEARING REGARDING THE PROPOSED ISSUANCE BY THE ANN ARBOR HOUSING COMMISSION OF
TAX-EXEMPT BONDS
(DR. WILLIS C. PATTERSON PROJECT)
Minutes of a regular meeting of the City Council of the City of Ann Arbor, County of Washtenaw, Michigan (the “City Council”) held on the 6th day of July, 2026, at [7:00] o’clock p.m. Eastern Time.
PRESENT: Councilmembers ____________;
ABSENT: Councilmember _____________.
The following preamble and resolution were offered by Councilmember ________ and supported by Councilmember _____________.
WHEREAS, the City of Ann Arbor, County of Washtenaw, State of Michigan (the “City”) has been advised that the Ann Arbor Housing Commission (the “Housing Commission”) proposes to issue one or more series of tax-exempt bonds in the aggregate principal amount of not to exceed Eighteen Million Dollars ($18,000,000) (the “Bonds”), the proceeds of which are expected to be loaned to Ann Arbor Housing Development Corporation, a Michigan nonprofit corporation and tax-exempt charitable organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, (the “Borrower”); and
WHEREAS, the proceeds of the Bonds are expected to be used to finance, refinance, or reimburse a portion of the costs of acquiring, owning, improving, furnishing, equipping, financing, refinancing, and paying related reserves, escrows, costs of issuance, and other transaction costs with respect to an approximately 114-unit multifamily residential rental housing facility known as AVIA Lofts, located at 800 Victors Way, Ann Arbor, Michigan 48103 (the “Project”); and
WHEREAS, the Project is expected to be owned and operated by the Borrower, or a related nonprofit affiliate of the Borrower, and used as a multifamily residential rental housing facility, including units reserved for occupancy by households meeting applicable federal income restrictions and additional units intended to serve moderate-income households, in each case in accordance with applicable federal tax requirements and related regulatory restrictions, all in furtherance of the Borrower’s charitable purposes; and
WHEREAS, Section 147(f) of the Code requires public notice and public approval of the Bonds before the Bonds may be issued as tax-exempt qualified 501(c)(3) bonds, and for purposes of the public approval requirements of the Code and the Treasury Regulations thereunder, the City Council is being asked to approve the issuance of the Bonds solely for federal tax purposes; and
WHEREAS, before City Council may consider such approval, interested persons must be provided reasonable public notice and a reasonable opportunity to express their views regarding the proposed issuance of the Bonds and the location and nature of the Project; and
WHEREAS, the City Council desires to call a public hearing regarding the proposed issuance of the Bonds and to authorize the posting of notice of such public hearing in accordance with Section 147(f) of the Code and the Treasury Regulations thereunder.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. A public hearing regarding the proposed issuance of the Bonds by the Housing Commission shall be held by the City Council on July 20, 2026, at 7:00 p.m., Michigan Time, in the City Hall Council Chamber, 2nd floor of the Guy C. Larcom, Jr. Municipal Building, 301 E. Huron Street, Ann Arbor, Michigan, or as soon thereafter as such matter may be heard.
2. The public hearing shall provide an opportunity for interested persons to express their views on the proposed issuance of the Bonds, the nature and location of the Project, and the proposed use of Bond proceeds. Written comments will be accepted by the City Council, but must be received by the City Clerk’s office on or before the date and time of the hearing.
3. The City Clerk is hereby authorized and directed to post a notice of the public hearing on the City’s website at least seven (7) calendar days before the date set for the public hearing, as required by the public approval requirements of the Code.
4. The notice of public hearing shall be posted in substantially the form attached to this resolution as Exhibit A, with such changes as may be approved by the City Attorney’s Office, the City Clerk, the Housing Commission’s bond counsel, or other appropriate City officials, provided that such changes are consistent with the public approval requirements of Section 147(f) of the Code and the Treasury Regulations thereunder.
6. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution are rescinded.
IN FAVOR: Councilmember ;
AGAINST: Councilmember
RESOLUTION DECLARED ADOPTED.
_________________
Jacqueline Beaudry
City Clerk
I hereby certify that the foregoing is a true and complete copy of a resolution adopted at a regular meeting of the City Council of the City of Ann Arbor, Michigan, held on July __, 2026, the original of which is on file in my office. Public notice of said meeting was given pursuant to and in compliance with Act No. 267 of the Michigan Public Acts of 1976, as amended.
__________________
Jacqueline Beaudry
City Clerk
Dated: _________________