CHANGES TO PUBLIC HOUSING – PROPOSALS AND REQUESTS TO THE CITY OF YPSILANTIJanuary 21, 2014

1. Overview of RAD program and Financing• Change in Ownership• Ownership structure• Change in PILOT

2. Overview of Project Proposals – 2 projects• Parkridge Homes demolition and redevelopment• Scattered site housing rehabilitation

3. Process of City Council Approvals• Tonight’s vote• Second Reading1. Approval Contingencies

4. Questions

RAD program

HUD began the Rental Assistance Demonstration (RAD) program in 2012.

• As part of the program HUD will provide Project-based Section 8 vouchers that will stay with the developments and guarantee rents

• HUD will allow for Housing Commission properties that are part of this program to transfer to private ownership.

• Private ownership allows for private investment through Low-Income Housing Tax Credits and regular bank loans

• Change in ownership will require change in the PILOT (who is responsible for paying and how long)

• Ypsilanti Housing Commission

PILOTPROPERTY TAXES City of Ypsilanti

Ypsilanti HousingCommission

ParkridgeScattered SitesYpsilanti Washtenaw Housing Corp.

YHC Hamilton Crossing, Inc.

Chesapeake Subsidiary

InvestorEntity

Hamilton CrossingLDHA Phase I

Limited Partnership

YHC Parkview,Inc.

InvestorEntity

Revision Phase II Limited Partnership

Chesapeake Subsidiary

Current

PR

OP

ER

TY

TA

XE

S

City of Ypsilanti

Ypsilanti HousingCommission

Ypsilanti Washtenaw Housing Corp.

YHC Hamilton Crossing, Inc.

C

Hamilton Crossing

LDHA Phase I Limited

Partnership

YHC-Strong Future, LLC

YHC-New Parkridge, LLC

Strong Future LDHA Limited Partnership

New Parkridge LDHA Limited Partnership

I C I C I

PU

RC

HA

SE

YHC Parkview, Inc.

C

Revision Phase II Limited

Partnership

I

PIL

OT

Proposed

First of two proposals – Parkridge Homes

• Demolition of existing 80 units (20 block-style structures)

• Changes proposed to the street network • Armstrong Drive connects to First Avenue• Armstrong Court to connect west to First Court

• New residential units to orient to existing and proposed streets

• Majority of duplex/flat units, three 4-plexes and four townhomes (row-houses).

First of two proposals – Parkridge Homes

First of two proposals – Parkridge Homes Development Goals for 2014

Terms

• Property option cost $10

• Property to be purchased for $10

• Related PILOT to be same as current – 10% of shelter rents (rents without water, sewer, electric and gas utilities). Cable and phone service are not included.

• Parcel would be split and right-of-way dedicated to the city at the point of property transfer

• Contingencies include:– Acceptance into the RAD program (is preliminary at this time)– Approval of LIHTC and other financing

Second of two proposals – Scattered Site Development Goals for 2014

Second of two proposals – Scattered Site Development Goals for 2014

• Rehabilitation of rest of Ypsilanti Housing Commission residential stock

• Towner units to be combined reducing total by 6, to be absorbed by Parkridge Homes project

118-124 S GROVE ST Parcel ID: 11-11-09-170-023 (Hollow Creek)936-960 W MICHIGAN AVE Parcel ID: 11-11-39-145-029 (Paradise Manor)711-745 TOWNER ST Parcel ID: 11-11-10-267-003 314, 318 S ADAMS ST Parcel ID: 11-11-39-414-005111 and 113 BELL RD Parcel ID: 11-11-37-100-001610 and 614 FIRST AVE Parcel ID: 11-11-37-202-001881and 885 MADISON ST Parcel ID: 11-11-37-152-010719-733 MAUS AVE Parcel ID: 11-11-10-355-037951 and 955 MADISON ST Parcel ID: 11-11-37-153-007 1004-1016 MONROE ST Parcel ID: 11-11-37-201-001425 and 427 S WASHINGTON ST Parcel ID: 11-11-39-481-010101 -109 Bell Rd Parcel ID: 11-11-39-484-001

Second of two proposals – Scattered Site Development Goals for 2014

Terms

• Property option for $10

• Property to be purchased for $980,000 to be repaid through a long-term promissory note with an interest rate of 2 % with a 30-year term.

• Related PILOT to be same as current – 10% of shelter rents (rents without water, sewer, electric and gas utilities). Cable and phone service are not included.

• Contingencies include:– Acceptance into the RAD program (is preliminary at this time)– Approval of LIHTC and other financing

Questions?