Title
Resolution to Approve a Grant Agreement with the Ann Arbor Housing Commission and Ann Arbor Housing Development Corporation, Approve the Purchase of Property at 800 Victors Way for Affordable Housing, and Appropriate $1,200,000.00 (8 Votes Required)
Memorandum
This resolution is requested by the Ann Arbor Housing Commission (AAHC) to appropriate and grant $1,200,000.00 from the Ann Arbor Affordable Housing Fund to the Ann Arbor Housing Development Corporation (AAHDC) for the acquisition of an affordable housing project at 800 Victors Way in the City of Ann Arbor.
The Ann Arbor Housing Development Corporation Commission (AAHDC), a Michigan nonprofit whose sole member is the Ann Arbor Housing Commission (AAHC), is requesting City Council approval to acquire property commonly known as Avia Lofts located at 800 Victors Way in Ann Arbor, Michigan. The property will be acquired by a wholly owned subsidiary of the AAHDC 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. City Council must approve the acquisition under Chapter 8, Section 1:209(3) of the Ann Arbor City Code.
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.
An appraisal has been ordered. 800 Victors Way's 2026 SEV is $8,200,000 for Tax Parcel Number 09-12-09-201-016.
COM AT W 1/4 COR OF SECTION 9, T3S, R6E, TH N 1 DEG 40 MIN 20 SEC W 1078.28 FT, TH ALNG SLY ROW OF VICTOR WAY THE FOLLOWING FOUR COURSE...
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