The process may be a bit complicated, but the end result will be better quality living spaces for public housing residents in Ann Arbor, including better energy efficiency and the use of green products to lower utility bills and reduce health issues. Earlier this month, the
Ann Arbor Housing Commission (AAHC) moved closer to making these renovations with a U.S. Department of Housing and Urban Development (HUD) program known as RAD, or the
rental assistance demonstration program by selecting Norstar Development USA as a private sector partner for the project.
A 2009 Physical Needs Assessment determined that more than $40,000 in capital investment per unit is needed for AAHC units over the next 15 years. According to AAHC Executive Director Jennifer Hall, public housing residents won't be the only benefactors of the much-needed upgrades.
"The City will benefit because it will support the local economy by providing $15 to $20 million in construction work, professional services and tenant jobs," she says. "The neighborhoods will benefit because these units will be an asset to the neighborhood once they are completely renovated."
In order to make the investment possible, the AAHC must first convert their operating subsidy source from a HUD public housing budget to a HUD project-based voucher budget. While this won't change the amount tenants pay for their housing, it will provide a more stable source of rent subsidies.
"Public Housing is severely limited in the type of funding it can secure for capital improvements," she says, "and changing to project based vouchers will enable the Housing Commission to secure the funding it needs to maintain its units."
Ultimately, that funding will come from the sale of Low Income Housing Tax Credits, through the Michigan State Housing Development Authority, which AAHC will earn, but will not need to use, as they are a tax-exempt organization.
To complete the plan successfully, the AAHC must secure funding within one year and finish renovations within three years.
Source: Jennifer Hall, AAHC Executive Director
Writer: Natalie Burg
Enjoy this story?
Sign up for free solutions-based reporting in your inbox each week.