Title
Resolution to Select Equity Investor, Construction Loan and Permanent Mortgage Loan for Swift Lane
Memorandum
The Ann Arbor Housing Commission ("AAHC") is redeveloping Swift Lane located at 3401-3405 Platt Road and 3451-3457 Platt Road ("Platt Site") and 1520 White Street ("White/State/Henry Site"). The properties are currently public housing and will be converted to project-based vouchers under the HUD Rental Assistance Demonstration ("RAD") program. The White/State/Henry site currently has twenty-eight units which will be demolished. The new construction there will include thirty-two units and a community room. The Platt Site has six existing residential units that will be demolished and replaced with the new construction of thirty-two new residential units and a community room.
The project has received site plan approval for both sites from the City of Ann Arbor and is currently working with the Department of Housing and Urban Development's Rental Assistance Demonstration (RAD) conversion team to comply with their various closing requirements. The AAHC is partnering with Norstar Development USA, L.P., ("Norstar") Norstar Building Corporation, Mitchell and Mouat Architects (Platt Site) and Fusco Shaffer Pappas, Inc. (White/State/Henry site) to redevelop the property. Norstar applied for low income housing tax credits in October 2017 whereby the Michigan State Housing Development Authority (MSHDA) A granted a 9% LIHTC award to the redevelopment.
AAHC is public body corporate that cannot utilize tax credits and therefore must form a limited partnership with a limited tax credit equity investor partner through a limited dividend housing association entity as required by both MSHDA and the Internal Revenue Service. Norstar has solicited proposals from equity investors and Norstar recommended that the AAHC select Regions Affordable Housing LLC (formerly known as First Sterling Financial, Inc.) ("Regions") based on the favorable terms of the proposal as o...
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