Title
Resolution Directing City Staff to Conduct Community Engagement Around Affordable Housing Development Options for 353 S Main
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. R-19-138 incorporated previous resolutions R-19-110, R-19-111, and R-19-116.
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.
City Council approved the following resolutions at the November 18, 2019 meeting to give direction to staff on the next steps for each of these sites:
R-19-514 to develop 121 E Catherine
R-19-515 to develop 404 N Ashley
R-19-516 to develop 2000 S. Industrial
R-19-517 to conduct community engagement for the parking lots on Ashley/William and First/William
R-19-518 to conduct community engagement for 721 N Main
R-19-519 to conduct community engagement for 3432-3440 Platt and 3435-3443 Springbrook
R-19-520 to hire an architect to conduct further study of 1510 E. Stadium
R-19-521 adding 353 S. Main to the feasibility analysis
A feasibility analysis was conducted for 353 S. Main and the site is highly recommended for affordable housing. The site is eligible for HUD funding, is in the DDA district and will score competitively on a Low-Income Housing Tax Credit Application. The site is modest in size and would support 30-50 units under D1 zoning. The housing can be built above first floor commercial.
Staff are recommending that the SmithGroup continue the community engagement process for the following downtown properties: 353 S Main, 121 E Catherine, 721 N Main, and the parking lots on the corner of Ashley/William and First/William.
Staff have requested funding from the DDA to conduct this community engagement as well as a downtown parking study and a housing market analysis. The DDA passed a resolution to fund the Community Engagement process for 353 S Main, 121 E Catherine, 721 N Main and the parking lots on the corner of Ashley/William and First/William. The DDA resolution included funding for a downtown parking study and downtown housing market study. The DDA funds were contingent upon changes to the City DDA Ordinance (Title 1, Chapter 7, 1:156) removing the restriction that DDA Housing Funds be used for “housing affordable to residents with very low income (below 50% AMI)”. Please See companion ordinance amendment 20-0435 which requests that the income limit for units that are developed from 50% AMI to 60% AMI to match city council’s affordable housing goal. And to clarify that DDA housing funds can be used on studies, analysis or processes to support development of affordable housing can include a mixture of incomes such as doing a downtown housing market analysis. The market analysis will include 60% AMI but needs to analyze the range of incomes in the downtown.
Budget or Fiscal Impact: Funding for this contract will come from the existing FY20 budget of the DDA, pending approval of Ordinance amendment 20-0435.
Staff
Prepared by: Jennifer Hall, Executive Director Ann Arbor Housing Commission
Reviewed by: Tom Crawford, Acting City Administrator
Body
Whereas, 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; and
Whereas, The extensive analysis was completed and presented to City Council on November 18, 2019; and
Whereas, City Council added 353 S. Main to the analysis through R-19-521; and
Whereas, The analysis identified 353 S. Main as a site with high development potential which could include a mixed-use site;
RESOLVED, That City Council direct City Staff to work with the DDA to conduct community engagement around the development options for the 353 S. Main surface parking lots to determine the optimal development plan for this site in support of affordable housing in the City; and
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this resolution.