Title
Resolution to Approve the Ann Arbor Affordable Housing Millage Fund Grant Agreement Between the City of Ann Arbor, the Ann Arbor Housing Commission, and the Ann Arbor Housing Development Corporation
Memorandum
Attached for consideration is a resolution authorizing execution of the Ann Arbor Affordable Housing Millage Fund Grant Agreement Between the City of Ann Arbor, the Ann Arbor Housing Commission (AAHC), and the Ann Arbor Housing Development Corporation (AAHDC), a Michigan non-profit corporation, whose sole member is the AAHC (the "Grant Agreement").
On November 3, 2020, the voters of the City approved a millage to annually levy a tax of up to one mill on all taxable real and personal property in the City for the purpose of building, maintaining, and acquiring new affordable housing units ("Millage"). Revenues and expenditures from the Millage were included in the FY22, F23, and FY24 budgets as adopted by the City, within the AAHC's budget line item. The Millage has generated approximately $6.3 million to $7.2 million per year for each fiscal year. In FY22, FY23 and FY24, the AAHC proposed a budget to the City Administrator and City Council that included expenditures for staffing costs, IT costs, affordable housing expenditures and affordable housing services expenditures. FY24 also included a municipal service charge.
The proposed Grant Agreement would change administration of the Millage to reduce duplicative processes, while maintaining accountability. The Grant Agreement grants revenue from the Millage to the AAHDC and outlines the roles and responsibilities of administration of the Millage, including compliance with the City's charter language below:
SECTION 8.25. In addition to any other amount which the City is authorized to raise by general tax upon real and personal property by this Charter or any other provision of law, the City shall, in 2021 through 2041, annually levy a tax of up to one mill on all taxable real and personal property s...
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