Title
RESOLUTION DECLARING OFFICIAL INTENT TO ISSUE BONDS, AUTHORIZING PRELIMINARY ACTIONS IN CONNECTION WITH THE PROPOSED FINANCING OF THE DR. WILLIS C. PATTERSON PROJECT, REQUESTING CITY COUNCIL TEFRA APPROVAL, AND AUTHORIZING REIMBURSEMENT OF CERTAIN EXPENDITURES
Memorandum
The Ann Arbor Housing Commission (AAHC) seeks approval to borrow funds via a tax exempt bond conduit through the issuance of Senior A 501(c)(3) tax-exempt Bond debt for the acquisition and purchase of an affordable housing project located at 800 Victors Way (the "Project"), Tax Parcel Number 09-12-09-201-016.
The property will be acquired by a wholly owned subsidiary of the Ann Arbor Housing Development Corporation organized as a disregarded entity known as Dr. Willis C. Patterson, Building LLC and the amount paid for the property will be the lessor of (i) $14,200,000.00 or, (ii) the appraised value, plus all applicable development and closing costs.
This property is a 114-unit acquisition and rehab of a market rate property the AAHDC will acquire primarily with the use of 501(c)(3) tax exempt bonds sold by the Ann Arbor Housing Commission. All of the units will be converted to affordable for households at 80% AMI or less and a minimum of 40% of the units will be affordable to households at 60% AMI, as required by statute. The deed will include a restriction that ensures that at least 40% of the units will be affordable to households whose income is 60% of the Area Median Income or less.
Staff
Prepared by: Banu Basaran, Bond Counsel Dykema
Approved by: Jennifer Hall, Executive Director Ann Arbor Housing Commission
Body
WHEREAS, the Commission is a housing commission created by the City of Ann Arbor, Michigan (the "City") pursuant to Act 18 of the Public Acts of Michigan of 1933 (Ex. Sess.), as amended ("Act 18");
WHEREAS, the Commission has been authorized under the City Code to act as a borrower for purposes of issuing bonds or notes under Act 18 and exercising the powers conferr...
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