Title
Resolution to Approve the Release of Affordable Housing Covenants on the Condominium Units of 105 Ashley Mews and 166 Ashley Mews and Direct the City Administrator to Explore Sale of the Units to the Ann Arbor Community Land Trust (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 in or around 2001.
The City recorded Affordable Housing Covenants for each of the eight Ashley Mews affordable units to require the units to be sold at a restricted sale price to income-qualified buyers and require each owner to use their unit as their primary residence.
In April 2025 City Council approved the purchase of 166 Ashley Mews under the City’s first right of refusal due to the owner’s noncompliance with the Covenant. In November 2025 the City approved the purchase of 105 Ashley Mews under the City’s first right of refusal due to the owner’s noncompliance with the Covenant.
Staff have identified numerous challenges with administering the Ashley Mews units for affordable housing. Due to significant mortgage down payment requirements and high monthly HOA fees, the units are unaffordable for most individuals who meet the income requirements of 80% AMI. Further, the units require significant City resources to monitor and enforce compliance.
Staff recommend releasing the Affordable Housing Covenant on the two City-owned units so the City can explore sale of the units to the Ann Arbor Community Land Trust (A2CLT), a local nonprofit developer, for one dollar. It is anticipated that A2CLT will sell the units at market rate and use all profits to advance their affordable housing work within the City of Ann Arbor.
The attached resolution approves the City’s release of the covenants on the two properties and authorizes the Administrator’s office to continue exploring the sale of these properties to A2CLT to support their affordab...
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