Title
Resolution to Amend FY 2014 Budget to Transfer $600,000 from the Ann Arbor Housing Trust Fund to the Ann Arbor Housing Commission, for the Rehabilitation of Phase I LIHTC Properties and to Approve the Affordable Housing Agreement (8 Votes Required)
Memorandum
Attached for your review and approval is a resolution to allocate $600,000 in Ann Arbor Housing Trust Funds (AAHTF) to the Ann Arbor Housing Commission (Commission) or an affiliated entity to rehabilitate 251 units of affordable housing for low-income individuals at Miller Manor, Maple Meadows, Green-Baxter Court, Hikone, and Baker Commons. The Commission is converting the property from Public Housing to Project Based Vouchers under the Rental Assistance Demonstration (RAD) program. The redevelopment funding includes Low Income Housing Tax Credits (LIHTC), Ann Arbor DDA funds, CDBG, AAHTF, and a bank loan.
The Internal Revenue Service (IRS) requires the Commission or an affiliated entity to form a limited partnership or limited liability company with a LIHTC equity investor in order to finance the redevelopment of these properties with LIHTC. The AAHC is forming a limited partnership with Redstone Equity Partners. The Commission has requested that City Council approve the transfer of ownership of these properties to the Commission under a separate resolution. The Commission will own the land and the Commission will execute a long-term land lease with the limited partnership for the improvements (buildings).
Under the RAD program, all existing households, in good standing with their lease, will retain their housing after the units are converted under the RAD program. After the conversion, all new tenants will have household income at 50% of the Area Median Income or less with at least 70% of the households having an income of 30% AMI or less. The majority of tenants are disabled and/or elderly. As the property managers, the Commission will be responsible for the tenant intake, lease-up, compl...
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