Regarding Near North
Conversation about Near North is heating up as we proceed through the planning process.
Here is a letter from Michael Appel, Avalon Housing Executive Director, regarding our involvement with the project.
Dear Avalon Friends:
As Near North—Avalon’s joint N. Main St. development with Three Oaks Group—moves through the planning approval process, we want to share with you our thoughts on the public discussion around the project, as well as how this initiative advances Avalon’s work.
Like every new construction project, Near North alters the landscape. It offers a new group of residents access to our community and contributes to the ever-changing feel of Ann Arbor. It advances development goals, including both identified housing needs of our community and strengthened operations for Avalon. These are some of the reasons that Avalon takes the process for securing approval of this Planned Unit Development (PUD) so seriously. With our partners, we have engaged in a discussion with neighborhood residents. And while we have not resolved all areas under discussion, we believe the Near North project advances many of this community’s and Avalon’s goals.
Affordability: Reflecting Avalon’s ongoing commitment to those least served by the private housing market, Near North sets a high and unprecedented standard for the provision of affordable units within a Central Area PUD.
· 100% of the units are affordable. Avalon’s participation along with zoning and financing commitments guarantees that this continues in perpetuity.
· All units are affordable to households with incomes no higher than 50% of the Area Median Income. This equals $33,000 for a 2-person household—representing the wages of downtown service workers or entry-level employees at the University or U-M Hospital.
· One-third of the units utilize Section 8 rent subsidies to create affordability to persons with significantly lower incomes—those who have been homeless or those with a disability.
The North Main Corridor: The discussion also revolves around the character of this stretch of N. Main St. and the appropriateness of multi-family housing at this location. With its mixture of uses, zoning and building design, this is exactly the kind of location that makes sense for mid-density multi-family residential use—neither the high rise, high density zoning found just a few blocks south within the downtown district, nor the lower density that predominates in the surrounding residential neighborhoods. North Main St.’s higher traffic count and role as northern entryway to Ann Arbor make it the right location for well designed apartments.
Integrated Neighborhoods/Integrated Density: A healthy community integrates multi-family housing—particularly affordable units—into areas with lower density residential uses. By placing the denser housing on the major thoroughfare, the adjacent residential neighborhoods share in the City’s development goals while preserving the lower density character interior to the neighborhood. North Central—historically a center for the African American community and a neighborhood with relatively lower housing costs and income—has seen a dramatic drop in racial diversity in recent decades and a parallel increase in incomes relative to Ann Arbor as a whole. Near North can be part of our community’s balanced efforts to promote stable and diverse neighborhoods.
Strengthening Avalon: Near North is part of a thoughtful and planned decision by Avalon to advance our mission and strengthen our operations. Dedicating a portion of the units to supportive housing—Avalon’s historical focus—while integrating those units into a workforce housing project allows Near North to operate with less ongoing subsidy while allowing Avalon to meet additional housing goals of our community. Near North contributes to a key focus of Avalon’s growth—developing a sustainable business model.
Three Oaks Partnership: This is the second time that Avalon has partnered with a private developer to further our mission. Each party brings valuable resources. Three Oaks Group brings land ownership, a strong development team, experience with debt financing and investments, and the necessary venture capital to move the project forward; Avalon brings experience with affordable housing finance, relationships throughout the affordable housing funding community, tax credit property management experience and a clear mission that is focused on Ann Arbor’s housing needs. This partnership combines the private sector’s ability to compete in the Ann Arbor real estate market with the non-profit sector’s ability to buffer tenants from rising housing and land costs going forward.
Thoughtful Design: By building with the slope, Near North’s design assures that our buildings are not higher than existing, adjacent residential structures outside the PUD. It also reflects the scale of the smaller structures around it by breaking up its mass into smaller sections, by creating a varied façade with both differing setbacks and tiered heights. (As a larger building, it can not replicate the surrounding scale, but it does recognize the difference and respond in its design.) As with other Avalon developments, Near North supports community building and neighborhood relationships. In balancing these concerns, Near North provides scale and character that respect existing conditions without locking in uniformity and locking out affordability.
Avalon is eager to engage our supporters and the wider community in this exciting opportunity to expand the supply of affordable housing while strengthening our role as a leader in the provision of quality, permanent affordable and supportive housing. We invite you to tell us what you think. Together with Three Oaks Group, we have created a website specific to the Near North project, www.nearnorthannarbor.org. We invite you to take a look. And feel free to contact us directly as well.
Sincerely,
Michael Appel
Executive Director Development and Finance