Title
Resolution to Exercise a Right of First Refusal to Purchase and Resell the Affordable Unit at 105 Ashley Mews and Appropriate Funds (8 Votes Required)
Memorandum
Eight owner-occupied units within the Ashley Mews Condominium project were set aside as affordable as part of the Ashley Mews Planned Unit Development zoning approvals.
The City recorded Affordable Housing Covenants for each of the eight Ashley Mews affordable units which require that the units are sold at a restricted sale price to income-qualified buyers.
The Covenant requires each owner of an affordable unit to use their unit as their primary residence and grants the City the right to enforce compliance. Where an owner is not in compliance, the City can buy back the affordable unit at the purchase price defined by the Covenant and resell to an income-qualified buyer.
The Office of Community and Economic Development manages these affordable units on behalf of the City, including identifying eligible income-qualified buyers and facilitating the transfer between buyer and seller when these units are sold.
Unit 9 of the Ashley Mews Condominium, commonly known as 105 Ashley Mews, Ann Arbor, Michigan, is an affordable unit restricted by an Affordable Housing Covenant. The owner no longer occupies the affordable unit as their primary residence. Staff recommends that the City enforce compliance and purchase the unit so it can be resold to an eligible buyer as identified by the Office of Community and Economic Development.
Budget/Fiscal Statement: This purchase of 105 Ashley Mews is not budgeted within the FY26 General Fund budget. It is recommended that the City utilize up to $150,000.00 of General Fund fund balance to purchase this property. The General Fund shall be made whole upon the sale of the property.
Staff
Prepared by: Nicole Vargas, Assistant City Attorney
Reviewed by: Derek Delacourt, Community Services Area Administrator
Approved by: Milton Dohoney Jr, City Administrator
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