Title
Resolution to Approve a Payment in Lieu of Taxes (PILOT) for Courthouse Square Apartments - 100 S. Fourth Avenue, Ann Arbor, MI 48104
Memorandum
A2 Courthouse Square Limited Dividend Housing Association, LLC ("Courthouse Square") is the property owner of Courthouse Square Apartment, a 116-unit affordable rental development for seniors located at 100 S. Fourth Avenue.
Courthouse Square currently has a PILOT in place with the City of Ann Arbor (the "City") under which it pays an annual service charge of four percent (4%) of the contract rents of the preceding calendar year. The 4% service charge is based on a stipulation within the City's original PILOT ordinance that addresses housing exclusively for elderly persons.
When the City amended its PILOT ordinance on February 21, 2023 (Enactment #ORD-23-06), it removed the reference to housing projects for the elderly, in part because all such qualifying projects in the City also qualify for a PILOT based on the income status of their residents.
Courthouse Square requests to amend their existing PILOT with the City to replace the annual service change of 4% of contract rents with an annual service charge of one dollar ($1) per unit.
Staff
Prepared By: Tara Cohen, OCED Housing & Infrastructure Manager
Reviewed By: Derek Delacourt, Community Services Area Administrator
Approved By: Milton Dohoney Jr., City Administrator
Body
Whereas, A2 Courthouse Square Limited Dividend Housing Association, LLC, or "Courthouse Square," is the owner of a 116-unit affordable rental development for seniors at 100 S. Fourth Avenue in the City of Ann Arbor, referred to as the "Courthouse Square Project;"
Whereas, Courthouse Square has received Low Income Housing Tax Credits (LIHTC) from the Michigan State Housing Development Authority (MSHDA) for the Courthouse Square Project;
Whereas, City Council has approved an amendment to Chapter 19 of City Code that took effect June 7, 2023; and
Whereas, City Council has determi...
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