Title
Resolution to Approve a $3,500,000 American Rescue Plan Act Subrecipient Grant for the Acquisition of 8 duplexes on Liberty, Virginia and Siller Terrace by the Ann Arbor Housing Development Corporation for Affordable Housing ($3,500,000.00) (8 Votes Required)
Memorandum
The Ann Arbor Housing Commission (AAHC), through its 501(c)(3) nonprofit corporation the Ann Arbor Housing Development Corporation (AAHDC), signed a purchase agreement to acquire 8 duplexes for the greater of $4,200,000 or the appraised value. The seller agreed to sell the apartments for the appraised value of $4,135,000, with contingencies.
The purchase includes 2 separate parcels: Parcel ID 09-09-30-401-09 (1474 W. Liberty, 1484 W. Liberty, and 528 Virginia Ave), and Parcel ID 09-09-30-401-11 (1540 Siller Terrace, 1550 Siller Terrace, 1560 Siller Terrace, 1570 Siller Terrace, and 1580 Siller Terrace). The parcels include seven (7) 2-bedroom duplexes and one (1) 3-bedroom duplex as well as two (2) garages (the "Property").
The AAHDC has until April 3, 2023 to complete the due diligence and remove the contingencies in the purchase agreement. The due diligence includes environmental testing (Asbestos containing materials, radon, and lead-based paint), inspections (general conditions, sewer, pests), survey and a baseline environmental assessment (BEA). The due diligence also requires both the AAHDC Board and Ann Arbor City Council to approve the acquisition. The acquisition is scheduled to close on April 6th.
The total development cost is $5,500,000, including closing costs and renovations. In addition to the $3,500,000 ARPA grant, the AAHDC has applied for a $2,000,000 loan from the Ann Arbor Area Community Foundation (AAACF) for the remainder of the development funds. The AAACF loan is intended to be a bridge loan, with interest only payments, until the AAHDC is able to secure a permanent loan or grant from other sources.
The Property is currently occupied as market-rate apartments ...
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