07/31/2018

Avalon Housing awarded tax credits for Hickory Way Apartments

Ann Arbor, MI – Avalon Housing has received a conditional reservation of tax credits from the Michigan State Housing Development Authority (MSHDA) for 34 new units of affordable housing at Hickory Way Apartments, 1110 and 1132 South Maple Road in Ann Arbor. This award is for the first phase of development. When both phases are complete, the property will include 70 units in two three-story buildings with elevators and no-step entries to ensure visitability for all units.

Says Aubrey Patiño, Avalon’s Executive Director, “At a time when we’re facing a critical shortage of affordable housing in Ann Arbor, receiving these tax credits is incredibly welcome news. Avalon Housing is excited to begin Phase One of the Hickory Way project. We believe that every one of our neighbors deserves a permanent home.
Avalon will continue to advocate for affordable housing in our community, and we’ll strive to find and create these housing opportunities wherever we can.”

Avalon received site plan and zoning approval for the 70-unit development in March of 2017. Funding for the project has already been approved by Washtenaw County and the City of Ann Arbor. National Equity Fund will serve as the Low Income Housing Tax Credit Syndicator. Additional funding includes a construction loan from Old National Bank and a permanent loan from Chelsea State Bank. The Corporation for Supportive Housing (CSH) provided an acquisition bridge loan.

Avalon will be requesting project-based rent vouchers for the supportive housing units through MSHDA. Avalon has also received a commitment of six Veterans Administration Supportive Housing (VASH) units though the VA. Through these vouchers, contract rents can be set at fair market rental rates while retaining affordability for low- and extremely low-income households, who pay 30% of their income as tenant rent.

All of the units will be affordable housing, for households up to 50%-60% of Area Media Income (AMI). Half of the units will be further targeted at 30% of AMI and designated as supportive housing. Phase One is expected to start in 2019, with occupancy starting in 2020. Avalon will apply for low-income tax credits for Phase Two, with the remaining 36 units, in October 2018.
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Avalon Housing, Inc. is a community-based organization created in 1992 as a long-term solution to homelessness. Avalon develops, owns and manages supportive housing for over 750 of Washtenaw County’s lowest-income residents, including 200 children. We serve people who have been chronically homeless and who have behavioral and physical health challenges, including mental illness and substance use. To learn more, visit avalonhousing.org.

Contact:
Marcia Luke-van Dijk (734) 663-5858 x 228
mluke-vandijk@avalonhousing.org

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