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File #: 19-2128    Version: 1 Name: 11/18/19 Affordable Housing Financial Feasibility City Property - - Community Engagement 721 N Main
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-19-518
Title: Resolution to Direct the City Staff to Conduct Community Engagement Around Development Options for 721 N Main in Support of Affordable Housing in the City
Related files: 19-0605, 19-2023, 19-0450, 19-0451, 19-0531
Title
Resolution to Direct the City Staff to Conduct Community Engagement Around Development Options for 721 N Main in Support of Affordable Housing in the City
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.

As part of the analysis, it was determined that 721 N Main had numerous site challenges including close proximity to a railroad and a deed restriction prohibiting any development (including a parking lot) in the floodway and floodplain. As the vast majority of the site is in the floodway/floodplain, that portion of the site is best suited for green space. The northwest corner of the site that abuts W Summit street is the only portion of the site that is suitable for housing development and could include 25-35 units.

This site is not eligible for Low-Income Housing Tax Credit (LIHTC) or HUD funding, which makes it more difficult to develop as affordable housing.

Consequently, the 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...

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