Title
Resolution to Approve a Payment in Lieu of Taxes (PILOT) for Union at A2 - 2050 Commerce Drive
Memorandum
The Annex Group (or an affiliated entity as required by funding sources), will be acquiring and developing the property at 2050 Commerce Drive as further described in the attached resolution for the purpose of building 250 affordable homes, with an average household income at or below 60% of the Area Median Income (AMI).
The Annex Group will apply for Low Income Housing Tax Credits (LIHTC) from the Michigan State Housing Development Authority (MSHDA) which would result in a mortgage on the property.
This resolution is contingent upon City Council's approval at second reading (scheduled for February 21, 2023) of an amendment to Chapter 19 of City Code that extends tax exemptions to include housing projects for persons and families earning up to 80% of Area Median Income with a project average of 60% of Area Median Income.
City Council approved the original 2050 Commerce Drive site plan on June 4, 2018.
Staff have reviewed this housing project and determined that if approved by MSHDA, it will be eligible for tax exemption under the amended Chapter 19 of City Code.
Staff
Prepared By: Brett Lenart, Planning Manager
Reviewed By: Derek Delacourt, Community Services Area Administrator
Approved By: Milton Dohoney Jr., City Administrator
Body
Whereas, The Annex Group (or an affiliated entity as required by funding sources), will be acquiring and building approximately 250 affordable homes at 2050 Commerce Drive in the City of Ann Arbor;
Whereas, The Annex Group has applied for Low Income Housing Tax Credits (LIHTC) from the Michigan State Housing Development Authority (MSHDA) for the entire project;
Whereas, City Council has approved an amendment to Chapter 19 of City Code that will take effect upon publication thereof;
Whereas, City Council has determined prospectively that, under the amended Chapter 19 of City Code, the Union at A2 - 2050 Commerc...
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