Title
Resolution to Approve the Sale of Avalon Housing, Inc.’s Property at 1675 &1677 Broadway to Dawn Farm for Continued Use as Affordable Housing (8 Votes Required)
Memorandum
In 2007 the City of Ann Arbor awarded Avalon Second Nonprofit Housing Corporation (“Avalon”) $355,000.00 in HOME funds to acquire and rehabilitate four units of affordable housing at 1675-1677 Broadway Street, Ann Arbor (the “Project”) (R-07-480). The City awarded the Project an additional $20,000.00 in HOME funds in 2009, and the City and Avalon entered into a Housing Affordability Agreement to ensure Avalon’s use of the funds to set aside the affordable units for individuals at or below 50% of the Area Median Income for a 99-year affordability period. (R-09-249). Additionally the City placed mortgages on the property to secure the HOME funds as 0% interest, 99-year deferred payment loans.
Avalon completed the acquisition and rehabilitation on or around 2009 and has owned and operated the Project as affordable housing since that time. However, Avalon has determined that the Project and location is no longer a good fit for their clients and they wish to sell to Dawn Farm, a local nonprofit, for continued use as affordable housing. Dawn Farm intends to use the Project within their transitional sober living program, and will continue to ensure that units are rented to individuals at or below 50% of the Area Median Income.
Attached for Council approval is a resolution that would transfer the existing loans to Dawn Farm and release Avalon from the loan obligations, and approve the execution of a new affordability agreement with Dawn Farm to ensure the continued use of the Project for affordable housing for the remainder of the 99-year affordability period.
Washtenaw County is also working with Avalon and Dawn Farm to release Avalon of the affordability agreement and obligations related to the County’s previous award of $70,000 in CDBG funds. Dawn Farm has agreed to assume responsibilit...
Click here for full text