Title
Resolution to Allocate $355,000 in HOME Funds to Avalon Second Nonprofit Housing Corporation for the Acquisition and Rehabilitation of 1675-1677 Broadway and to Approve the Affordable Housing Covenant ($355,000 HOME Funds)
Memorandum
Attached for your review and approval is a resolution to allocate $355,000 in HOME Funds to Avalon Second Nonprofit Housing Corporation to acquire and rehabilitate 4 units of permanent affordable housing for homeless survivors of domestic violence. The total budget is $780,000. The request for City funds constitutes 45% of the total project costs. Avalon has secured $360,000 from the Michigan State Housing Development Authority (MSHDA), $25,000 from Washtenaw County and $40,000 from the Federal Home Loan Bank.
Avalon will own and manage the property while Catholic Social Services and Safehouse Center will provide supportive services. Tenants will be referred by the Safehouse Center and screened by Avalon as the property managers. Avalon has acquired the property with a bridge loan while permanent financing is secured.
The project is consistent with the City’s Consolidated Strategy and Plan and the Blueprint to End Homelessness. The targeted tenants are extremely low income. The City Attorney’s office will review the legal and contractual documents to ensure that Avalon will comply with the requirements in the HOME regulations. It will be the responsibility of the Office of Community Development to monitor agency compliance with these regulations in accordance with annual HOME Program monitoring.
Consistent with HOME Program requirements, a mortgage and affordable housing covenant will be placed on the property to preserve the affordability of these units. The project will be ineligible for additional HOME funds for a minimum of 15 years as required by HOME program regulations. The City’s affordability period will be 99-years, consistent with previous projects. Consequently, Avalon will ensure that replacement res...
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