Title
Resolution Authorizing Issuance of 2026 Capital Improvement Bonds for the 350 S. Fifth Avenue Affordable Housing Development (Not to Exceed $35,000,000.00) (Limited Tax General Obligation - Taxable) (6 Votes Roll Call)
Memorandum
This resolution requests City Council approval for the issuance of 2026 Capital Improvement Bonds (Limited Tax General Obligation - Taxable) in the maximum principal amount of $35,000,000.00 for purposes of financing costs to develop affordable housing at 350 S. Fifth Avenue (the "Bonds").
The Ann Arbor Housing Commission, through its 501(c)(3), the Ann Arbor Housing Development Corporation, is co-developing the property at 350 S. 5th Avenue with developer Related Midwest. The project is a twenty-story, mixed-use building located in the heart of downtown Ann Arbor. It will feature 329 units that will be targeted to low-income households (up to 80% of the Area Median Income) along with ground-floor retail and the expansion of the Blake Transit Center. One residential unit may need to be converted to office space depending on the needs of the fist-floor commercial tenant. The building will be all electric and net-zero ready, utilizing state-of-the art building technology to deliver strong environmental performance. A new permanent restrictive covenant will be recorded, which will require the greater of 100 units or 40% of the units to be restricted to households at 60% AMI or less.
The $215,000,000.00 (Two Hundred Fifteen Million Dollars) project includes support of the Michigan State Housing Development Authority ("MSHDA") in $100,000,000.00 (One Hundred Million Dollars) in tax exempt bonds; associated low-income housing tax credits; HOME financing; Washtenaw County Brownfield Redevelopment Authority funds, and no more than $35,000,000.00 (Thirty-Five Million Dollars) in city-issued bond proceeds.
The City of Ann Arbor will be responsible for repayment of the Bond proceeds, interest, and other related issuance costs through...
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