At its June 20, 2011 meeting, the Ann Arbor city council established a policy under which liens can be subordinated and city loans forgiven, in the interest of perserving affordable housing.
Key elements of the policy: at least one city or county lien will be maintained on the property; liens with federal affordability restrictions will be in the highest lien position possible; liens that do not have federal affordability restrictions will be discharged if needed to facilitate reinvestment of outside funding; the city administrator is authorized to approve lien subordinations and lien discharges.
The city council had discussed a specific case related to the forgiveness of loans and subordination of liens at its May 16, 2011 meeting. The context there was the appropriation of funds for the demolition of houses to prepare for construction of the Near North affordable housing project, located on the east side of North Main Street between Kingsley and Summit.
This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron. A more detailed report will follow: [link]