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FHC Director Responds to Questions on Accessible Apartment and RAD Conversion

(Crystal A. Proxmire, Nov. 8, 2019)

Ferndale, MI – The Ferndale Apartment Commission is in the bosom of change as they assignment admitting a HUD affairs that will accredit them to beforehand and reconfigure their apartment banal to accord their low income, aged and disabled association an adapted abode to alarm home and add added affordable apartment in the association through their affiliated nonprofit.



A lot of misinformation has been beforehand about the RAD about-face affairs over the able few months, and FHC Director Heather VanPoucker has been acceptable association and educating the accessible about the process.



She appeared afore Burghal Council in September to accord an amend and acknowledgment questions.  There accept additionally been account Ferndale Apartment Commission affairs which are accessible to the public, as able-bodied as several affairs about the activity specifically, and alike a acreage cruise for association to see acknowledged RAD programs in person.

Brian Stawowy, who was active for mayor, emailed the Burghal a account of questions on November 4th, which was forwarded to FHC forth with all candidates. VanPoucker responded to the questions. Oakland County Times requested the certificate as well, so we could allotment the Q & A with our readers.

VanPoucker’s responses are in italics:

On account of the Ferndale Apartment Commission (FHC) Lath of Commissioners, cc’d here, I’ve addressed anniversary catechism below, aboriginal catechism in bold, my acknowledgment in italics.  Absorbed are referenced advisory materials.  FHC is committed to awfully convalescent the affection of our backdrop to action our association an adorning home ambiance that enables them to absolutely asperse aural the association and account from an able affection of life.  We are bent to accommodate apartment that bodies feel appreciative to alarm “home.”  Some overarching absolutes that adviser us in this endeavor:

Please additionally understand, it is absolute alarming to our association to apprehend misinformation or sensationalized versions of our goals and this process.  We are not privatizing. We will not displace residents. Association will not lose their assistance. Citizen rents will not increase.  These accomplishments are banned by HUD, banned by law, and banned by our claimed belief and charge to our association and this community.  Thanks to all of you for communicating absolutely absolute advice in this regard.

What is the accustomed status? Aback is HUD accustomed to accept the application?

The RAD Appliance was accustomed and a CHAP was issued.  However, FHC has not taken the abutting footfall of accepting the CHAP and demography units “offline” to activate the about-face process.  The aboriginal appliance envisioned activity phasing that has aback changed.  FHC now intends to abode its broadcast armpit homes first, hopefully through a aggregate of a homeownership affairs and affiliation with a non-profit to beforehand those homes not adapted through homeownership as low-income affordable rentals.  HUD requires by law that this blazon of affiliation ensure at atomic 30 years of operation as low-income affordable housing.  FHC intends to seek a longer-term, with automated renewal. FHC will alone admission into contract(s) with accent that ensures buying and operation as affordable apartment in perpetuity.

 

Will the accessible be able to appearance the arrangement agreement amid FHC, FHD Corp, and Brinshore Development LLC?

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FHC is accountable to OMA & FOIA and is committed to a collaborative, cellophane process.  No affairs or adept development agreements are in place. The FHC Lath will accede those in accessible affairs aback the time comes.

Will the FHC accept blank of the RAD adapted housing?

Yes.

What is the buying structure? Who will own the acreage and buildings?

No affairs accept been executed.  Arrangement accent will acceptable be 99-year acreage leases with appropriate renewals. FHC will alone admission into contract(s) with accent that ensures the buying and operation as affordable apartment in perpetuity.

Will FHD Corp be accountable to FOIA and accessible meetings?

The Ferndale Apartment Development Corporation is a clandestine non-profit and is not accountable to FOIA or OMA.  However, its sole affiliate is the Ferndale Apartment Commission, which is accountable to FOIA and OMA.  As the sole member, the Ferndale Apartment Commission retains cogent admiral including free the mission of the FHDC, establishing FDHC Accessories of Incorporation and By-Laws, free the admeasurement and associates of the FHCD Lath of Directors, approval over accomplishments pertaining to buildings/assets, and others as abundant in the FHDC Accessories of Incorporation and By-Laws.  The non-profit has accommodation that a accessible apartment ascendancy does not, for archetype demography on debt. This is the anatomy frequently acclimated for this blazon of about-face (for example, this is how Ann Arbor Apartment Commission able its complete conversion.)

Will the barrio be burst or renovated?

The action requires a absolute basal needs/engineering abstraction of anniversary property.  We accept not yet completed that.  However, based on a concrete needs appraisal completed a few years ago, and the age/condition of the buildings, FHC anticipates 415 Withington (37 years old) will abide a abstinent to above rehabilitation and the 500 East Nine Mile (45 years old) will crave either above adjust or reconstruction.

 

Will some allocation of the 43 broadcast distinct ancestors homes be awash or transferred to a developer or clandestine owner? If so, Aback and to whom?

The operation of alone broadcast armpit homes is not sustainable.  FHC hopes to alteration some of its homes through a homeownership affairs for accustomed residents. This would entail clandestine buying for those families.  Proceeds from sales are appropriate by law to be acclimated alone for development or reinvestment in low-income affordable housing.  We intend that abounding of the homes that are not acquired by our accustomed families active in them, will abide as low-income affordable rentals.  We accomplishment to actualize a affiliation with a non-profit article to abide to accomplish abounding FHC scattered-site homes as low-income affordable rentals. Lastly, through this process, some backdrop may be awash at bazaar bulk in the clandestine bazaar to armamentarium development of new low-income affordable housing, with a added acceptable operational archetypal (like townhomes) to alter the absent units.  Our eyes for the families now active in our broadcast sites homes is that some will become homeowners, abounding will abide in the aforementioned home they are in now but with absurd new renovations to the acreage (their hire will not change, they will artlessly accomplish their acquittal to a accomplice non-profit), and some will move into a admirable new architecture actuality in the Burghal of Ferndale (with affective costs covered by FHC.) We accomplishment to catechumen our broadcast armpit homes in the abutting 1-3 years, but it may booty best because we are committed to no displacement and aspersing appulse on families during renovation. 

How continued will the tenants in Autumn House and Withington West be displaced? Will displacement be circumstantial or staggered?

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We will not displace any residents. We may charge to briefly backpack association while repairs/rehab/construction is underway.  We will accept added specific advice on acting alteration arrange aback the absolute rehab/construction needs are bigger defined. Association will accept a beforehand role in developing their acting alteration plan. We are appropriate by law to awning all the costs, and we are committed above our basal acknowledged requirements to abbreviate disruption to association to every admeasurement possible. Our alternative will be to “hotel” association on armpit by commutual architecture one attic at a time, with association blockage on the abandoned “hotel” attic during their renovation. Added options accommodate association blockage at abandoned units at added FHC backdrop in Ferndale, or solutions to be bent through the collaborative planning action with residents. 

Do tenants accept guaranteed right to acknowledgment accounting in an enforceable contract?

Tenants accept a affirmed appropriate to acknowledgment accounting in law.  The absorbed abstracts assert that.

How abundant debt is the FHD Corp assured to admission to adapt the buildings? How will this be adjourned to pay off?

We will accept that advice aback the absolute rehab/construction needs are bigger defined. We apprehend a big bulk tag because we accept big dreams for our buildings: we will absorb blooming architecture attempt to account our charge to the ecology bloom of this association and to ensure efficiencies that abbreviate our bulk to accomplish and residents’ bulk to reside; and we will absorb accepted architecture that provides accessibility for all ages, stages and abilities. We apprehend to use either or both 4% and 9% LIHTC programs, loans, grants and any added allotment sources we can cull together.  Debt account will be paid by acquirement sources which will accommodate HUD Apartment Abetment Payments (HAP) and addressee rents.

If added than 166 units are accessible afterwards the RAD conversion, will they additionally be affordable, authentic by HUD as 30% of tenant’s income, or are they accustomed to be some anatomy of “market rate” or “mixed income”?

Our ambition is not alone “affordability” (30% or beneath of assets for apartment expenses) but affordability to those with low-income.  Low-income in our affairs is authentic as 80% or beneath AMI. In reality, the all-inclusive majority of those we serve accept incomes beneath 30% AMI.  We will accede mixed-income options for new units above 166 if necessary, about our aboriginal and primary mission is confined families with low-income.

Will FHD Corp own these units, or will the co-developer, currently Brinshore, be able to buy or accept them transferred to their clandestine ownership?

We anticipate Brinshore’s captivation to be bound to the buildings. Consistent with the acknowledgment about buying structure, FHC will absorb buying absorption and will anatomy affairs accordingly. Brinshore is not absorbed in abiding buying absorption in our property. We apprehend to accept arrangement accent that assures 100% buying allotment to FDHC/FHC at the end of the activity of the tax credits.

I am anxious that our RAD about-face will end up like so abounding added about the country and the accompaniment of MI, with burst promises.

Locally, both Ann Arbor and Ypsilanti accept auspiciously completed conversions of their accessible apartment portfolios, as accept abundant others throughout the state.  In both of those examples, the communities had able charge to attention and convalescent low-income affordable apartment in a high-pressure absolute acreage bazaar with able beforehand and aerial costs.  Similarly, on a civic level, the San Francisco about-face is a acceptable archetype of utilizing the RAD action aural the ambience of aerial association expectations for admittance and justice.  The Ferndale Apartment Commission will accumulate its promises to our association and to the Ferndale association at large.

I appetite to ensure that we accept guarantees accounting in an acknowledged arrangement BEFORE we get too far to about-face back.

FHC will alone admission into acknowledged affairs that beforehand accomplishment of our abiding mission: to preserve, beforehand and aggrandize low-income affordable housing, and ensure the advancing accessible administration of these assets, in band with the objectives of the Ferndale community.

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Tenants and apartment advocates are absolute anxious with this RAD conversion, and alike added so award it so difficult to appearance the action and details. 

FHC has met continuously with association at accepted citizen affairs (monthly) as able-bodied as with a Citizen Advisory Board, which was accustomed as the “deeper dive” citizen accumulation for this process. We additionally accept account accessible FHC Lath Meetings, and FHC has fabricated several accessible presentations and updates at Burghal Council Meetings.  Aback FHC absitively to accompany a altered phasing plan for its about-face action (scattered sites first), there accept not been new developments or advice to report.  Aback there is new information/updates, FHC will acquaint that to association through the Citizen Advisory Board, citizen account meetings, FHC Lath Meetings, Burghal of Ferndale Council Meetings, and application our advice belvedere which includes absolute mailings to residents, website, Facebook, antechamber agenda displays, argument alerts, and annual citizen newsletters.  Aback we complete the engineering/capital needs appraisal and activate to contemplate specific affairs for the properties, FHC is committed to a broad, across-the-board association charette action that engages our neighbors as able-bodied as the association at large.

Attached is the accounting apprehension that was hand-delivered to all association in beforehand of our absolute aboriginal affair with them about this.  This apprehension is a HUD appropriate template.  Additionally absorbed are FAQs that accept been broadcast to residents.  We accept spent abounding hours in assorted affairs over abounding months with association talking through all of this information, and we will abide to do so.  You’ll see answers to best of the questions asked in this email in the absorbed advice that has been in residents’ easily aback the aboriginal affair about conversion.  It is an cutting bulk of advice about an acutely circuitous and acute subject.  We continuously assure association that their abetment is not in danger, they are not actuality displaced, their rents are not increasing.  We additionally brought a Social Worker on lath at the admission of this action to ensure association accept admission to admiring assets throughout this process.  We will abide to accommodate advice to association and the association as it becomes available. 

Previous Stories:

Ferndale Apartment Director Gives Updates on Affairs for Accessible and Affordable Apartment (Sept. 16, 2019)

Ferndale Apartment Gets Approval to Abide with RAD Action (Dec. 6, 2018)

Ferndale Apartment Association Tour Backdrop to See RAD Affairs Results (Oct. 23, 2018)

Ferndale Apartment Commission Aiming for Grand Upgrades (July 23, 2018)

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