Ann Arbor Adopts Loan Forgiveness Policy
At its April 19, 2011 meeting, the Ann Arbor city council approved a policy that grants to the city administrator the authority to forgive certain loans made by the city on affordable housing units that have affordable housing covenants. The city administrator would need to determine that loan forgiveness is necessary to protect the long-term affordability of the housing, and that loan forgiveness would facilitate the transfer of ownership to other income-qualified purchasers.
The request to have such a policy came from the office of community development. It arose from two recent foreclosures on properties in Stone School Townhomes, one of three housing developments where the city currently has affordable housing covenants. The other two are Ashley Mews and Northside Glen.
When a property is foreclosed, the affordable housing covenant automatically terminates.
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] [Full Story]