HomeMy WebLinkAboutResolutions - 2024.10.10 - 41510
AGENDA ITEM: Housing Trust Fund - Vester Flat Mixed-Income Housing Development Project in
the City of Ferndale
DEPARTMENT: Health & Human Services - Neighborhood and Housing Development
MEETING: Board of Commissioners
DATE: Thursday, October 10, 2024 7:10 PM - Click to View Agenda
ITEM SUMMARY SHEET
COMMITTEE REPORT TO BOARD
Resolution #2024-4502
Motion to approve the Vester Flats mixed-income housing development in the City of Ferndale
recommended by the Housing Trust Fund Board in the amount not to exceed $3,000,000 using
American Rescue Plan Act - Local Fiscal Recovery Funds.
ITEM CATEGORY SPONSORED BY
Resolution Penny Luebs
INTRODUCTION AND BACKGROUND
Vester PropCo., LLC, (Applicant) a limited liability company whose members include affiliates of
Common Sail Group, Walters Group, and Sturgeon Bay Partners, submitted an application
requesting $3,000,000 in gap funding for the development of Vester Flats (Development), a mixed-
income housing development with 72 mixed-income rental units, of which, 100% of the units will be
income restricted and reserved for households earning between 50% and 120% of the area median
income to be located at 141 Vester Avenue, Ferndale, MI, and ground floor community retail space
and is located approximately 300 feet to high frequency public transportation along Woodward
Avenue.
County staff reviewed and scored Vester PropCo., LLC's Vester Flats application and recommended
a Housing Trust Fund investment in an amount not to exceed $3,000,000 of American Rescue Plan
Act - Local Fiscal Recovery Funds (ARPA - LFRF). The development will represent an
approximately $22,000,000 investment in affordable/workforce housing in Oakland County using
Housing Trust Funds and private financial sources.
On August 21, 2024, the Housing Trust Fund Board approved a resolution recommending an
investment in an amount not to exceed $3,000,000 of LFRF funds to the Oakland County Board of
Commissioners for the Vester Flats mixed-income housing development.
The County shall enter into agreements with Vester PropCo., LLC, or a-be-determined entity, to
effectuate the transfer of Housing Trust Funds to the Development, subject to review by Risk
Management and Corporation Counsel.
POLICY ANALYSIS
The Board authorized the creation of the Housing Trust Fund by Miscellaneous Resolution #22-135
and authorized a one-time Fiscal Year 2022 appropriation in the amount of $5,000,000 in American
Rescue Plan Act – State and Local Fiscal Recovery Funds (SLFRF) and a one-time Fiscal Year
2023 appropriation in the amount of $13,000,000 in SLFRF Funds for the Oakland County Housing
Trust Fund (Fund) to increase affordable or attainable rental and homeowner occupied housing
throughout Oakland County.
As of now, five projects have been approved in the total amount of $13,600,000:
On March 14, 2024:
• Presbyterian Village of Michigan Affordable Housing Development Project in the City of
Pontiac in the amount of $3,000,000 via resolution #2024-3725
• 111 Oneida “Missing Middle” Workforce Housing Development Project in the City of Pontiac
in the amount of $3,000,000 via resolution #2024-3811
• Westwood South Affordable Housing Development Project in the City of Pontiac in the
amount of $2,500,000 via resolution #2024-3812
2. On December 7, 2023:
• Royal Oak Cottages Project for Affordable Housing Development in the Charter Township of
Royal Oak in the amount $2,500,000 via resolution #2023-3530
• Wellspring Project for Affordable and Permanent Supportive Housing Development in the
City of Southfield in the amount of $2,600,000 via resolution #2023-3529
BUDGET AMENDMENT REQUIRED: No
Committee members can contact Barbara Winter, Policy and Fiscal Analysis Supervisor at
248.821.3065 or winterb@oakgov.com or the department contact persons listed for additional
information.
CONTACT
Kyle Hines, Housing Trust Fund Manager
ITEM REVIEW TRACKING
Aaron Snover, Board of Commissioners Created/Initiated - 10/10/2024
AGENDA DEADLINE: 10/20/2024 7:10 PM
ATTACHMENTS
1. Vester Flats HTF Resolution - signed
2. HTF 10.01.24 PHS Committee Presentation
COMMITTEE TRACKING
2024-10-01 Public Health & Safety - Recommend to Board
2024-10-10 Full Board - Adopt
Motioned by: Commissioner Penny Luebs
Seconded by: Commissioner Robert Hoffman
Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen
Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia
Gershenson, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay Raman, Ann
Erickson Gault (17)
No: None (0)
Abstain: None (0)
Absent: William Miller III, Linnie Taylor (2)
Passed
OAKLAND TOGETHER HOUSING TRUST FUND
August 21, 2024
Resolution: #2024-004
Recommendation of Funding
Chair and Members of the Oakland Together Housing Trust Fund Board:
WHEREAS Oakland County has a need of 11,582 additional units of affordable housing
needing to be created over the next decade; and
WHEREAS of the more than 150,000 renters in Oakland County, 41.4% are cost burdened,
paying more than 30% of their income in rent; and
WHEREAS the average wait for a Housing Choice Voucher in Oakland County is 26 months;
and
WHEREAS the Oakland County Board of Commissioners authorized the creation of the
Housing Trust Fund by Miscellaneous Resolution #22 -135; and
WHEREAS the Oakland County Board of Commissioners authorize d a one-time Fiscal Year
2022 appropriation in the amount of $5,000,000 in American Rescue Plan Act – State and Local
Fiscal Recovery Funds (SLFRF) and a one-time Fiscal Year 2023 appropriation in the amount of
$13,000,000 in SLFRF Funds for the Oakland County Housing Trust Fund (Fund) to increase
affordable or attainable rental and homeowner occupied housing throughout Oakland County ;
and
WHEREAS the Fund approved and released a Notice of Funding Availability and Application on
September 20, 2023, to receive applications requesting SLFRF funding; and
WHEREAS Vester PropCo., LLC, a limited liability company whose members include affiliates
of Common Sail Group, Walters Group, and Sturgeon Bay Partners , submitted an application
requesting $3,000,000 in gap funding for the development of Vester Flats, a mixed-income
housing development to be located at 141 Vester Avenue, Ferndale, MI (Development); and
WHEREAS the Development will include 72 mixed -income rental units, of which, 100% of the
units will be income restricted and reserved for households earning between 50% of the area
median income (AMI) and 120% AMI ; and
WHEREAS the Development will include ground floor community retail space and is located
approximately 300 feet to high frequency public transportation along Woodward Avenue; and
WHEREAS the Development will represent an approximately $22,000,000 investment into
affordable/workforce housing in Oakland County using SLFRF Funds and private financial
sources; and
WHEREAS County staff reviewed and scored the Development’s application and recommend
an investment in an amount not to exceed $3,000,000 of gap funding for the Development; and
WHEREAS the County shall enter into agreements with Vester PropCo., LLC, or a to be
determined entity, to effectuate the transfer of SLFRF Funds to the Development, subject to
review by Risk Management and Corporation Counsel; and
WHEREAS any Fund investment over $1,500,000 requires approval of the Oakland County
Board of Commissioners by adopted resolution.
NOW THEREFORE BE IT RESOLVED that the Oakland Together Housing Trust Fund
recommends that the Oakland County Board of Commissioners adopt a resolution approving
and authorizing an investment of SLFRF funds for Vester Flats , a mixed-income housing
development, in an amount not to exceed $3,000,000.
BE IT FURTHER RESOLVED that the SLFRF funds are subject to the availability of SLFRF
funds and must be committed to the Development through written contract with Vester PropCo.,
LLC, or a to be determined entity, by December 31, 2024, and expended by September 30,
2026.
__________________________ __________________________
Kyle Hines, Chairperson Sarah Pounds, Secretary
Sarah Pounds (Aug 27, 2024 12:06 EDT)
Vester Flats HTF Resolution
Final Audit Report 2024-08-27
Created:2024-08-27
By:Kyle Hines (hinesk@oakgov.com)
Status:Signed
Transaction ID:CBJCHBCAABAApnrNWuGAs0Y0_Z4-AFOY1Xp1x486uRW1
"Vester Flats HTF Resolution" History
Document created by Kyle Hines (hinesk@oakgov.com)
2024-08-27 - 4:01:42 PM GMT- IP address: 12.43.11.115
Document e-signed by Kyle Hines (hinesk@oakgov.com)
Signature Date: 2024-08-27 - 4:02:26 PM GMT - Time Source: server- IP address: 12.43.11.115
Document emailed to sarahbethpounds@gmail.com for signature
2024-08-27 - 4:02:32 PM GMT
Email viewed by sarahbethpounds@gmail.com
2024-08-27 - 4:05:31 PM GMT- IP address: 64.233.172.129
Signer sarahbethpounds@gmail.com entered name at signing as Sarah Pounds
2024-08-27 - 4:06:10 PM GMT- IP address: 96.75.57.21
Document e-signed by Sarah Pounds (sarahbethpounds@gmail.com)
Signature Date: 2024-08-27 - 4:06:12 PM GMT - Time Source: server- IP address: 96.75.57.21
Agreement completed.
2024-08-27 - 4:06:12 PM GMT
OAKLAND TOGETHER HOUSING TRUST FUND
Approval of Vester Flats Mixed-Income Housing Development
Public Health & Safety Committee
October 1, 2024
1
Housing Trust Fund Activity to Date
2
•7 mixed-income housing developments fully approved by the Housing
Trust Fund Board and the Board of Commissioners
•518 total units of which 389 are reserved for residents earning
between 30% and 80% of the area median income (AMI) and below
•$15,600,000 total investment of ARPA-SLFRF funding and County
general funds
•Represents a total investment of over $132,000,000 into affordable,
attainable, and mixed income housing throughout the County
•In August, the HTF Board recommended to the BOC a $3M
investment for Vester Flats
HTF Projects Under Construction
3
•Walton Oaks, the first neuro-inclusive community in Oakland County, has started
site work on Walton Boulevard in Rochester Hills
•11 for-sale homes, 3 reserved for intellectually and developmentally disabled adults
•A groundbreaking ceremony was held September 25, 2024
HTF Projects Under Construction
4
•Westwood South, a 72-unit mixed-income multifamily development is vertical on 2
of the 3 buildings in Pontiac
•The first building is anticipated to receive a certificate of occupancy in Q1 of 2025
HTF Projects Closing by December 2024
5
•Previously approved projects closing by December 2024:
•Wellspring – 72 units reserved for residents in recovery from opioid addiction – Southfield
•Royal Oak Cottages – 32 scattered-site, single family rental homes – Royal Oak Township
•Oakland Woods – preservation & modernization of 216 senior affordable units – Pontiac
•111 Oneida – rehabilitation of a vacant, historic 50-unit workforce housing community – Pontiac
•Auburn Oaks – neuro-inclusive community with 24 units reserved for I/DD adults – Rochester Hills
Vester Flats
6
•72-unit mixed-income, mixed use development located at 141 Vester Ave in Ferndale
•100% of units reserved for 50%AMI to 120%AMI; 1,665 SF of community retail space
Vester Flats
7
•72-unit, mixed-income, mixed-use multifamily development located at 141 Golf
Avenue, Ferndale to be developed by Walters Group
•$22,500,000 Total Development Cost
•Housing Trust Fund Board recommended $3,000,000 in gap funding on August 21,
2024 - requires full BOC approval
•City of Ferndale to provide a PILOT and zoning change
•MEDC to provide a Community Revitalization Program (CRP) Loan
•Provides affordability in a community with rapidly increasing housing costs
•Transit-oriented development: 300 feet to a high-frequency bus stop on Woodward
Avenue @ 9 Mile
•Residents can ride SMART to Downtown Pontiac in 30-40 minutes with no changes
•Entire Woodward Corridor is accessible
•Walk Score: 91/100
Vester Flats
8
Vester Flats
9
Who We Are Serving
10
•In Oakland County, 2024 incomes were as follows:
•Based on HUD Income Limits for 2024
•Rental rates depend on unit size, family size, funding source – calculated based
on 30% of household income
•Units receiving vouchers will target even lower income households
2024 AMI 1 Person HH 2 Person HH 3 Person HH 4 Person HH
30%19,890$ $ 22,740 $ 25,590 $ 28,410
50%33,150$ $ 37,900 $ 42,650 $ 47,350
60%39,780$ $ 45,480 $ 51,180 $ 56,820
80%53,040$ $ 60,640 $ 68,240 $ 75,760
120%79,560$ $ 90,960 $ 102,360 $ 113,640
Who We Are Serving
11Source: Bureau of Labor Statistics for Oakland County
67,480.03$
75,680.40$
62,954.11$
63,082.89$
63,302.90$
63,928.41$
64,673.13$
47,744.01$
50,326.84$
50,939.53$
56,725.64$
62,173.70$
2023 Median Annual Income
24,985.09$
27,677.58$
Occupation
Recreational Protective Workers
Ambulance Drivers and Attendants, Non-EMT
28,111.53$
28,252.71$
28,302.38$
28,999.78$
30,681.92$
46,253.77$
47,653.53$
31,656.27$
34,137.62$
34,156.99$
35,815.60$
36,458.62$
36,762.38$
Security Guards
38,691.60$
38,983.44$
41,163.40$
43,240.88$
31,555.93$
Fast Food and Counter Workers
Cashiers
Childcare Workers
Home Health and Personal Care Aides
Maids and Housekeeping Cleaners
Paramedics
Library Technicians
Manufactured Building and Mobile Home Installers
Receptionists and Information Clerks
Waiters and Waitresses
Preschool Teachers
Nursing Assistants
Light Truck Drivers
Hairdressers, Hairstylists, and Cosmetologists
Laborers and Freight, Stock, and Material Movers
Assemblers and Fabricators
Substance Abuse and Mental Health Counselors
Plumbers, Pipefitters, and Steamfitters
Metal Workers and Plastic Workers
Construction Laborers
Machinists
Clinical Laboratory Technologists and Technicians
Social Workers, All Other
Kindergarten Teachers, Except Special Education
Middle School Teachers, Except Special Education
Paralegals and Legal Assistants
Carpenters
Elementary School Teachers, Except Special Education
Human Resources Specialists
Questions
12
•Khadija Walker-Fobbs
•Officer, Neighborhood & Housing Development Division
•Mobile: (248) 910-0816
•Email: walker-fobbsk@oakgov.com
•Kyle Hines
•Housing Trust Fund Manager
•Mobile: (248) 310-3532
•Email: hinesk@oakgov.com