City of Ann Arbor - File #: 20-1145

• File #: 20-1145
• Version: 1
• Name: AAHC $375,000 to AAAHC for property acquisition and property management
• Type: Resolution
• Status: Filed
• File created: 8/16/2020
• In control: Housing Commission
• On agenda: 8/19/2020
• Final action: 8/19/2020
• Title: Resolution to Approve up to $375,000 for the Acquisition & Renovation of Lurie Terrace by the Ann Arbor Affordable Housing Corporation, an Affiliated Non-profit Entity of the Ann Arbor Housing Commission, and Approve a Property Management Agreement

Date	Ver.	Action By	Action	Result
8/19/2020	1	Housing Commission	Approved by the Commission	Pass

Title
Resolution to Approve up to $375,000 for the Acquisition & Renovation of Lurie Terrace by the Ann Arbor Affordable Housing Corporation, an Affiliated Non-profit Entity of the Ann Arbor Housing Commission, and Approve a Property Management Agreement
Memorandum
The non-profit entity Senior Citizen Housing of Ann Arbor (SCHAA), owns and manages Lurie Terrace, comprised of 2 separate buildings on the same site. The Lurie Terrace tower portion is an 8-story 132-unit apartment tower built in 1964. A 4-unit 2-story building built in 1950 is adjacent to the tower for a total of 136 apartments reserved for senior households aged 62 years or older. The tower property was originally built and financed through a HUD Section 202 program for seniors. The property has continuously provided below market-rate rental housing for seniors since 1964. There are 84 efficiencies, 46 1-bdr and six 2-bdr apartments ranging from $431/mo to $1,246/mo.

The board of SCHAA reached out to the City of Ann Arbor and the Ann Arbor Housing Commission to purchase the property and continue to operate it as below-market rental housing for seniors. The Ann Arbor Housing Commission (AAHC), as the affordable housing entity for the City, created a new non-profit entity called the Ann Arbor Affordable Housing Corporation (AAAHC), to acquire and continue to manage the property as below-market rate rental housing for seniors aged 62 and older.

Lurie Terrace has never had and does not currently have any regulatory requirements related to income or rent restrictions. The AAAHC will execute a deed restriction that does the following: limits the age of residents to 62 years or older, limit the income of new tenants (40% of all tenants will be limited to 60% of Area Median Income or less and 60% of all tenants will be limited to 80% of Area Median Income or less), and grandfather in all existing tenants regardless of income. The AAHC will continue the tenancy of all the residents upon acquisition at t...