Title
Resolution to Approve the Purchase of Property at 6 Park View Place for Affordable Housing by the Ann Arbor Housing Development Corporation
Memorandum
The Ann Arbor Housing Development Corporation (AAHDC), a Michigan nonprofit corporation whose sole member is the Ann Arbor Housing Commission (AAHC), is requesting City Council approval to acquire a market rate property at 6 Park View Place for the purpose of developing it as affordable housing. The property will be acquired by the AAHDC. The amount paid for the property will be $1,100,000.00 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.
The AAHDC has entered into a Purchase Agreement with Ken’s Properties LLC. This property is a 5-unit acquisition of a market rate property the AAHDC will acquire initially through a 2-year land contract with the current owner. The AAHDC will secure financing to purchase the property after 2 years because the AAHDC does not have sufficient time and resources to secure financing fast enough to close on the property through traditional affordable housing financing by November 30, 2026. All of the existing residents will be grandfathered in until they move out, regardless of income. All vacant units will be converted to affordable for households at 60% AMI or less. When the AAHDC acquires the property, a deed restriction will be executed that ensures that all 5 units will be affordable to households whose income is 60% of the Area Median Income or less when the units turnover.
The appraised value is $1,100,000.00 for Tax Parcel Number 09-09-29-215-067.
Commencing at an iron pipe in the West line of Chapin Street 175.52 Northeasterly, measured along the Westerly line of Chapin Street, from the center line of West Huron Street; thence deflecting 107 degrees 4 minutes to the left, 66.25 feet to an iron pipe; thence Northerly along a line marking a Northeast angle of 80 de...
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