Title
Resolution to Grant $50,000.00 from the Ann Arbor Affordable Housing Fund to Avalon Housing to Support the Acquisition and Rehabilitation of 815, 821 Gott Street
Memorandum
Avalon Housing is requesting $50,000 for the acquisition and rehabilitation of 815, 821 Gott Street. These two adjacent structures each have three-units, providing six new affordable units (one efficiency, four one-bedrooms, and one two-bedroom unit) in the City of Ann Arbor.
Avalon is planning to combine Ann Arbor Affordable Housing Funds with local HUD HOME Funds, Federal Home Loan Bank Affordable Housing Program Funds, and private debt to support this project. The total project is anticipated at $1,005,515 or $167,000 per unit. The proposed $50,000 would comprise approximately 5% of this budget at a rate of $8,333 in Ann Arbor Affordable Housing Funds per unit.
Avalon intends to target 2 of the units for households at or below 30% Area Median Income (AMI) ($17,750 for an individual) and the remaining units will be targeted to households at or below 50% AMI ($29,550 for an individual). While other funds may require different periods of affordability, a minimum period of 15 years is recommended for the Ann Arbor Affordable Housing Fund investment. Avalon has always and will continue to accept households with housing choice vouchers for units. Additionally, Avalon provides extensive supportive services to all residents.
The addition of additional affordable housing units is recommended in the adopted Housing Affordability and Economic Equity Analysis of 2015, the City's Master Plan, and Sustainability Framework. Support of this development is consistent with the goals articulated in these plans.
The Housing and Human Services Advisory Board reviewed the proposed application for funds and recommends that the City Council approve the project award of $50,000 to Avalon Housing, with the condition that the project is successful in receipt of HUD HOME funds through th...
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