Title
Resolution to Approve the Certifications for 2072 Garden Circle Streamlined RAD Conversion
Memorandum
The AAHC owns a single-family home at 2072 Garden Circle, Ann Arbor MI, that was acquired through HUD's Turnkey III lease to ownership program. The Turnkey III program no longer exists and the families that have lived in this home have not been able to purchase the property. The AAHC will dispose of the property through the Streamlined RAD Conversion for Small PHAs process. The property will be retained by the AAHC by ground leasing the property for $1 to a wholly owned subsidiary of the AAHC, Colonial Oaks, LLC. Colonial Oaks currently includes 49 former public housing units that were converted to project-based vouchers under the RAD program.
The existing tenant may continue to live at the property with a project-based voucher or move with a tenant-based voucher. The existing tenant intends to remain at the property after conversion. Staff held the first mandatory resident meeting on March 10, 2023. The RAD application was submitted to HUD on May 5, 2023.
In lieu of a capital needs assessment, Streamlined RAD Conversion requires certifications from the PHA Board that they are satisfied with the following:
1. The PHA has assessed the property for any exigent health & safety hazards and, if applicable, has completed any necessary repairs.
2. The PHA has provided the Owner with the lead-related records and the Owner has agreed to evaluate and control lead-based paint hazards.
3. The property can be sustained for 20 years as decent, safe, and sanitary housing at the published RAD contract rents.
a. The public housing program revenues are erratic and unpredictable. The operating subsidy and capital funding is dependent on Congress and the President and is always insufficient when the tenant is extremely low-income. The Garden Circle family's income has fluctuated up and down as household members have moved in and out and as their total family income has chang...
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