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File #: 19-2126    Version: 1 Name: 11/18/19 Affordable Housing Financial Feasibility City Property - - Development of Industrial
Type: Resolution Status: Passed
File created: 11/18/2019 In control: City Council
On agenda: 11/18/2019 Final action: 11/18/2019
Enactment date: 11/18/2019 Enactment #: R-19-516
Title: Resolution to Direct the Ann Arbor Housing Commission to Pursue Affordable Housing Development of 2000 S. Industrial
Related files: 19-0531, 19-0605, 19-2023, 19-0451, 19-0450
Title
Resolution to Direct the Ann Arbor Housing Commission to Pursue Affordable Housing Development of 2000 S. Industrial
Memorandum
On April 1, 2019, Ann Arbor City Council adopted Resolution R-19-138 directing the City Administrator to collaborate with the Ann Arbor Housing Commission (AAHC) to provide coordinated analysis on the feasibility of city-owned properties as potential locations for affordable housing. This resolution incorporated previous resolutions R-19-110, R-19-111 and R-19-116.

Jennifer Hall, Executive Director of the Ann Arbor Housing Commission led the analysis along with support from a staff team and several contractors to determine the feasibility for 11 sites including review of land use and zoning, environmental conditions, financial resources, site -specific costs, and overall risk among other factors. The analysis, three potential portfolio scenarios, and next step recommendations were presented to City Council at the Nov.18, 2019 City Council meeting.

Through the analysis, 2000 S. Industrial has the potential to add 50-165 affordable housing units in addition to Ann Arbor Housing Commission offices/maintenance facilities. The property is in an excellent location near public transportation, grocery stores, pharmacy, jobs and other local services. However, due to the close proximity of the railroad line, traditional federal and state funding sources such as Low-Income Housing Tax Credits and HOME funds would be ineligible. LIHTC and other federal funding enables deep subsidies for households at 60% AMI or less.

Consequently, the feasibility analysis included the option of developing the property as a limited equity cooperative for households primarily at 80% of Area Median Income (AMI) or less. The cooperative model is not the same cooperative model common in Ann Arbor such as Arrowwood, Forest Hills and University Townhomes. Those cooperatives were built more than 40 years ago with federally financed mortgages at a time when co...

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