Title
To Approve a Procurement Policy for Non-Federal Funds and Non-Public AAHC Affiliated Entities
Memorandum
The Ann Arbor Housing Commission's Purchasing Policy details its policies and procedures for the management of its procurement of goods and services. As a public entity that utilizes federal funds, the AAHC must comply with federal, state and local laws related to public entities and federal funds. As the AAHC redevelops its properties and develops new properties, a greater percentage of its funding is not federal funding and is not required to follow federal procurement regulations.
Non-federal funds include Voucher Housing Assistance Payments (HAP), Voucher Administrative Fees, tenant rent, City general funds and other local funds. The AAHC is currently following the same procurement regulations whether the funds are federal or not, which is causing additional bureaucratic requirements, inefficiencies and delays. Attached is a proposed procurement policy that removes most federal requirements from non-federal funds, which includes most procurement activities by AAHC non-public non-profit entities (Ann Arbor Affordable Housing Corporation and Ann Arbor Housing Development Corporation) as well as general and limited partnerships related to Low-Income Housing Tax Credit funded properties.
The AAHC is the ground lessor and property manager of its properties, but all invoices are paid by and contracts are signed with the limited partnership (Swift Lane LDHA, LP, West Arbor LDHA, LP, Maple Tower Ann Arbor LDHA, LP, and River Run Ann Arbor LDHA, LP) for those properties.
The most significant changes to the new and additional procurement policy compared to the current AAHC procurement policy is that:
1) Petty cash increased from $50 to $100
2) Micro-purchase (1 reasonable quote) is $75,000 instead of $10,000. This change significantly impacts the AAHC's ability to procure construction/renovation/trades contracts because there is a dearth of contractors ...
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