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Avalon Housing gets green light to begin work on affordable housing units in Ann Arbor

Hickory Way Apartments made possible by state tax credits

Courtesy: Avalon Housing
Courtesy: Avalon Housing

ANN ARBOR – The Michigan State Housing Development Authority has awarded local nonprofit Avalon Housing a conditional reservation of tax credits to begin work on 34 new affordable housing units on the west side.

With the first phase of Hickory Way Apartments complete, Avalon plans to apply for low-income tax credits for phase two in October.

When both phases are complete, Hickory Way Apartments will consist of 70 units at 1110 and 1132 South Maple Road in two three-story buildings.

"At a time when we’re facing a critical shortage of affordable housing in Ann Arbor, receiving these tax credits is incredibly welcome news," Avalon Executive Director Aubrey Patiño said in a press release. "Avalon Housing is excited to begin Phase One of the Hickory Way project. We believe that every one of our neighbors deserves a permanent home. Avalon will continue to advocate for affordable housing in our community, and we’ll strive to find and create these housing opportunities wherever we can."

Read: Avalon Housing: The organization ending homelessness in Ann Arbor, Washtenaw County

In March 2017, Avalon received zoning and site plan approval for the development. The city of Ann Arbor and Washtenaw County have approved funding for the project. Additional funding includes a permanent loan from Chelsea State Bank and a construction loan from Old National Bank. An acquisition bridge loan has been provided by the Corporation for Supportive Housing.

According to the press release: 

"Avalon will be requesting project-based rent vouchers for the supportive housing units through MSHDA.  Avalon has also received a commitment of six Veterans Administration Supportive Housing (VASH) units though the VA. Through these vouchers, contract rents can be set at fair market rental rates while retaining affordability for low- and extremely low-income households, who pay 30% of their income as tenant rent.

"All of the units will be affordable housing, for households up to 50%-60% of Area Median Income. Half of the units will be further targeted at 30% of AMI and designated as supportive housing."

Phase one is forecast to start in 2019, with occupancy starting in 2020.  

About Avalon Housing

Avalon Housing Inc. is a community-based organization created in 1992 as a long-term solution to homelessness. Avalon develops, owns and manages supportive housing for over 750 of Washtenaw County’s lowest-income residents, including 200 children. It serves people who have been chronically homeless and who have behavioral and physical health challenges, including mental illness and substance use. To learn more, visit avalonhousing.org


About the Author:

Meredith has worked for WDIV since August 2017 and was voted one of Washtenaw County's best journalists in 2019 by eCurrent's readers. She covers the community of Ann Arbor and has a Master's degree in International Broadcast Journalism from City University London, UK.