Title
Resolution to Allocate $415,000.00 in HOME Funds to Avalon Second Nonprofit Housing Corporation for the Acquisition and Rehabilitation of 819 Third St and to Approve the Affordable Housing Covenant ($415,000.00 HOME Funds)
Memorandum
Attached for your review and approval is a resolution to allocate $415,000 in HOME Funds to Avalon Second Nonprofit Housing Corporation to acquire and rehabilitate 6 units of permanent affordable housing for chronically homeless individuals. The total budget is $1,000,000. The request for City funds constitutes 41% of the total project costs. Avalon has secured $500,000 from the Michigan State Housing Development Authority (MSHDA), $25,000 from Washtenaw County and is requesting $60,000.00 from the City of Ann Arbor DDA.
Avalon will own and manage the property and Catholic Social Services will provide supportive services. Tenants will be referred by the Shelter Association of Washtenaw County and the PORT Team. As the property managers, Avalon will screen the tenants. 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 and are considered a special needs population. 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 as part of their 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 the HOME program regulations. The City’s affordability period will be 99-years, c...
Click here for full text