Title
Resolution Approving a Grant to the Ann Arbor Housing Development Corporation to Provide Funding for a Fire Suppression System at Baker Commons
Memorandum
Background: The DDA's Housing Fund was established to help support the creation of affordable housing units and to preserve existing affordable units in the downtown area. City of Ann Arbor Ordinance, Section 1:156(e), adopted in 2013 and amended in 2020, establishes a minimum amount of Tax Increment Financing (TIF) be set aside annually in the DDA Housing Fund and restricts those funds to the support of affordable housing to residents with incomes at or below 60% of the Area Median Income (AMI).
Overview: The Ann Arbor Housing Commission (AAHC) is requesting $650,000 from the DDA Affordable Housing Fund to assist with installing a $892,647 fire suppression system in all the apartments at Baker Commons at 106 Packard, which is within the DDA district. This project is compliant with the DDA's Housing Fund restrictions.
Prepared by: Sara McCallum and Maura Thomson
Body
Whereas, The Ann Arbor Downtown Development Authority (DDA) is a catalyst for strengthening economic vibrancy and quality of life in the downtown area, and to meet its mission, the DDA has supported a variety of downtown affordable housing projects, including projects which serve residents earning below 60% of Area Median Income;
Whereas, The Ann Arbor Housing Commission (AAHC) works with its associated Ann Arbor Housing Development Corporation (AAHDC), which is an "instrumentality" of the AAHC created in 1979, to serve as the development, grant, and services nonprofit for non-federally funded projects;
Whereas, Baker Commons has 64 apartments, and 94% of its tenants have extremely low incomes (below 30% AMI) and 6% are very low income (below 50% AMI), and the DDA's investments enable the building to remain available as a vital downtown affordable housing option;
Whereas, City of Ann Arbor Ordinance, Section 1:156(e), adopte...
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