Title
Resolution to Amend the Neighborhood Stabilization Program (NSP) Budget by adding $24,135 in Program Income, and Allocate $33,292.00 to Avalon Housing Inc. or an Affiliated Ownership Entity for the Demolition of 718, 722, and 724 North Main ($33,292.00 NSP Funds) (8 Votes Required)
Memorandum
Attached for your review and approval is a resolution to amend the Neighborhood Stabilization Program (NSP) budget by adding $24,135.00 in program income, and allocate $33,292.00 to Avalon Housing Inc. or an affiliated ownership entity for the demolition of 718, 722, and 724 North Main.
The City of Ann Arbor was allocated $850,000.00 in NSP funds from MSHDA. The City received $24,135.00 in program income from the owner of a house that was demolished. The City used NSP funds to demolish the house and the City put a lien on the property. The owner repaid the demolition costs in full. The budget needs to be increased by $24,135.00 to $874,135.00.
In addition, a NSP homeowner acquisition and rehabilitation project was completed under budget by $11,750.00. Community Development recommends that Council budget and allocate the program income and leftover acquisition and rehabilitation funds for the demolition of 718, 722, and 724 North Main, which are all part of the redevelopment of the site as Near North Apartments for a total of $33,292.00. The remaining $2,593.00 will be allocated to Community Development for administration.
Budget
Current Budget $850,000.00
Plus Program Income $24,135.00
New Budget $874,135.00
Unallocated Funds
Program Income $24,135.00
Remainder of Acq & Rehab $11,750.00
TOTAL $35.885.00
Recommended Allocation
Demolition 718, 722 & 724 N Main $33,292.00
Administration $2,593.00
TOTAL $35,885.00
Community Development recommends that Council allocate $33,292.00in NSP funds as a 0% interest, deferred payment 35-year loan that will be forgiven after 35 years to Avalon Housing Inc., or an affiliated ownership entity to ...
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