Affordable Units
Affordable Target Demographics
Within the Ann Arbor Market, the AMI currently is $117,800, thus placing all who make less than $82,460 as credible for Affordable Housing developments. However, Summit Pointe will focus on providing housing for Individuals making less than $70,680 a year to increase equity in the community. This price point will allow for groups such as teachers, nurses, and government workers (See Market Study) to afford to live closer to downtown Ann Arbor without shelling out the majority of their paycheck.
Affordable Tax Credits
While Summit Pointe will not be eligible for LIHTC credits, the city of Ann Arbor does offer tax incentives for the property if a proportion of the units cater to individuals making less than 60% AMI. While Summit Pointe does not qualify for the Affordable Housing Millage, it is eligible to receive DDA funding in the form of TIF (Tax Increment Financing). This TIF funding, traditionally used in development zones, is utilized by fixing a tax rate at a specific amount in order to minimize operating costs, thus making affordable housing deals more fiscally sound. Summit Pointe will hope to flex one of these DDA TIFs by selling it to a local bank (typical selloff ratio of .9:1) in order to cover the cost basis for the sustainable projects intended for the site, such as VAWTs and Solar Panels (See Proforma for exact assumptions).
Affordable Unit Rent
Following the logic of creating an affordable product for individuals making less than 60% AMI per year, Summit Pointe will provide 11 studio apartments for the Ann Arbor Market, each around 600SF. These large studio apartments will be large enough for two individuals to live together, which under the Ann Arbor Community Engagement Survey justifies a rent of $1,280 a month. However, Summit Pointe will offer these units at $1,200 a month in order to even further promote equity and inclusion within the Ann Arbor community.
