The Board of the Michigan State Housing Development Authority approved financing for Avalon Housing’s project at 206 N. Washington St. in Ypsilanti at its meeting on June 20, 2024.
The board approved a bond-financed construction loan of nearly $5.8 million, and two permanent loans subsidized by federal sources totaling more than $3.3 million.
“This development continues Avalon’s work to ensure that people have a safe and affordable place to live, feel meaningfully embedded in the community, and are supported in the ways they need,” said Avalon Housing Executive Director Aaron Cooper.
The project involves tearing down the existing building, and replacing it with 22 one-bedroom apartments:
- 8 of the units will be supportive housing units targeted to households that are at or below 30% of the Area Median Income (AMI) (with 6 of the units further targeted to the most vulnerable supportive housing populations, including households who are chronically homeless). These units will benefit from Project-based Vouchers assuring that residents pay a rent equal to 30% of their income.
- The remaining 14 units will be targeted to households that are at or below 60%, 50% and 40% AMI. Anticipated rent for all of these units is $675/month.
- 5 of the units will be accessible for people with disabilities.
Residents will be eligible to receive a wide variety of one-on-one support services to help them maintain housing stability and avoid eviction and a return to homelessness. These include case management; 24/7 crisis support; primary medical care support; medication management and transportation to critical appointments; and peer support programs.
Other resources dedicated to the $11.1 million project include $773,000 in housing subsidy and $727,000 in Brownfield funding provided by Washtenaw County, over $4.28 million in equity provided through the Low Income Housing Tax Credit (LIHTC) program, a Payment in Lieu of Taxes provided by the City of Ypsilanti, a $400,000 Affordable Housing Program grant, and additional funds invested by Avalon Housing.
Construction is scheduled to begin in the fall of 2024 with completion a year later.
The project continues Avalon’s growth over the past several years, including the Hickory Way buildings on Maple Road in Ann Arbor, and Hilltop View in Dexter. Avalon has projects under construction at the Grove at Veridian on Platt Road and, with the Ann Arbor Housing Commission, Dunbar Tower on Catherine Street, both in Ann Arbor.
“Our mission is to build healthy, safe and inclusive supportive housing communities in Washtenaw County as a long-term solution to homelessness, and we’re seeing incredibly positive impacts,” said Wendy Carty-Saxon, Avalon Housing Director of Real Estate Development. “For example, Washtenaw County saw a 31 percent decrease in chronic homelessness when Hickory Way opened in 2021. We currently own and manage 29 sites across Ann Arbor, Chelsea and Dexter, and will be adding approximately 150 affordable apartments in Washtenaw County over the next few years.”