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Rental Analysis
Rental Analysis
The Summit will contain a total of 20 units, with 9 units being reserved for affordable housing. The 9 affordable housing units are designated for people earning up to 60% of the area median income (AMI), and will remain affordable for the entire lifespan of the building.
Out of the total 20 units, 6 units will be studios (comprising 30% of total units), 8 units will be 1-bedroom (40%), 4 units will be 2-bedroom (20%), and 2 units will be 3-bedroom (20%). Studios will take 20% of the building footprint, 1-bedroom will take 37% of the building footprint, 25% for 2-bedroom, and 17% for 3-bedroom.
Out of the total 20 units, 6 units will be studios (comprising 30% of total units), 8 units will be 1-bedroom (40%), 4 units will be 2-bedroom (20%), and 2 units will be 3-bedroom (20%). Studios will take 20% of the building footprint, 1-bedroom will take 37% of the building footprint, 25% for 2-bedroom, and 17% for 3-bedroom.
For market-rate apartments, monthly average rents range from $1,285 for a studio to $2,612 for a 3-bedroom. For affordable housing units, monthly rents range from $1,047 for a studio to $1,262 for a 2-bedroom. The average market-rate rent is based on averaging the current rents of comparable properties within a 1 mile radius of The Summit. The affordable housing monthly rent is based on Washtenaw's County's 2022 Fair Market Rent, as published by HUD.
Ann Arbor's housing market will support the estimated rent. The city's 2.8% vacancy rate indicates that housing demand is very strong. Furthermore, according to Washtenaw County's Housing Affordability and Economic Equity Analysis, Ann Arbor needs to add 2,797 non-student affordable rental units in the next 20 years, or 140 affordable rental units annually to keep up with population growth and housing demand.
Ann Arbor's housing market will support the estimated rent. The city's 2.8% vacancy rate indicates that housing demand is very strong. Furthermore, according to Washtenaw County's Housing Affordability and Economic Equity Analysis, Ann Arbor needs to add 2,797 non-student affordable rental units in the next 20 years, or 140 affordable rental units annually to keep up with population growth and housing demand.
Funding and Development Sources
Funding and Development Sources
Additional capital is necessary to fund the construction of The Summit. Site conditions disqualify The Summit from using LIHTC, and will primarily finance the site through state and local means. The following sources will be utilized:
Construction and Secondary Loans
Developer fee deferral
ARPA/MSHDA Missing Middle Housing Program
Ann Arbor Affordable Housing Fund and fee reductions
Federal Solar Tax Credits
DTE Renewable Energy Distributive Generation Program
Ann Arbor and Washtenaw County Community Development Block Grant (CDBG) funding for public infrastructure (e.g. sidewalk, curb, green space)
Creative Washtenaw mini grant for public art
Once stabilized, market rate rents will help subsidize affordable units
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