Changes to public housing – proposals and requests to the City of Ypsilanti

1. Changes to public housing – proposals and requests to the City of Ypsilanti January 21, 2014

2. Overview of RAD program and Financing • Change in Ownership • Ownership structure • Change in PILOT • 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 Reading • Approval Contingencies • 4. Questions

3. 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

4. Current City of Ypsilanti PROPERTY TAXES PILOT Ypsilanti Housing Commission Ypsilanti Washtenaw Housing Corp. Scattered Sites Parkridge Investor Entity YHC Parkview, Inc. YHC Hamilton Crossing, Inc. Investor Entity Chesapeake Subsidiary Chesapeake Subsidiary Hamilton Crossing LDHA Phase I Limited Partnership Revision Phase II Limited Partnership

5. Proposed City of Ypsilanti Ypsilanti Housing Commission PILOT PROPERTY TAXES PURCHASE Ypsilanti Washtenaw Housing Corp. YHC Parkview, Inc. YHC Hamilton Crossing, Inc. YHC-Strong Future, LLC YHC-New Parkridge, LLC C I C I C I C I Revision Phase II Limited Partnership Hamilton Crossing LDHA Phase I Limited Partnership Strong Future LDHA Limited Partnership New Parkridge LDHA Limited Partnership

6. 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).

7. First of two proposals – Parkridge Homes

8. 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

9. Second of two proposals – Scattered Site Development Goals for 2014

10. 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

11. 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

12. Questions?