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File #: 11-1440    Version: 1 Name: 11/10/11 AA City Apts Affordable Housing Covenent
Type: Resolution Status: Passed
File created: 11/10/2011 In control: City Council
On agenda: 11/10/2011 Final action: 11/10/2011
Enactment date: 11/10/2011 Enactment #: R-11-484
Title: Resolution to Approve the City of Ann Arbor Affordable Housing Covenant for Ann Arbor City Apartments
Attachments: 1. AACA Affordable Housing Covenant.pdf
Title
Resolution to Approve the City of Ann Arbor Affordable Housing Covenant for Ann Arbor City Apartments
Memorandum
Attached for your review and action is a resolution to approve the Ann Arbor City Apartments Affordable Housing Covenant (“Covenant”). The Covenant is required by the Option Agreement, as amended, regarding the development of land by Village Green Residential Properties, LLC. Village Green will assign their interest in the land to a new entity, Ann Arbor City Apartments, LLC (“Developer”) consistent with the terms of the Option Agreement.

The Covenant has been drafted to implement the requirements of the PUD Zoning for City Apartments that requires 10% of the residential rental units, but not less than 16 of the units be permanently affordable to lower income households, as defined in Chapter 55 of Ann Arbor City Code. The affordable units are also required by the Option Agreement. The zoning and Option Agreement require that these units be affordable to households up to 80% of AMI.

The Downtown Development Authority, as part of the approval of the Parking Agreement for the project, agreed to pay $100,000 per unit, for up to four of the 80% AMI rental units to be made affordable at the 60% AMI level. The Covenant incorporates this term and provides standards for the 60% AMI units if the Developer chooses to include these units in the project.

The Covenant requires tenants to be income certified by the City prior to leasing an affordable unit, which will be made available by the Developer at the HUD Fair Market Rent level. (Any rental units that will be made available for households up to 60% of AMI will rent for 75% of the HUD Fair Market Rent level.) The Developer also will be required to provide annual reports to the City regarding compliance with the Covenant.

Under the terms of the Covenant, all of the affordable rental units will be of the same size and appearance as the market-rate units, have the same finishes as the market-rate un...

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