An Introduction to Parkridge Homes and

the planned Strong Housing development

The Current Situation:

• The Ypsilanti Housing Commission owned and managed 198 Public Housing units

• All units are subsidized through the Public Housing program

Tenants pay either FLAT rent or INCOME-BASED rent.

• FLAT rent is an amount that does not change based on your income

• Option offered once per year, at time of Annual Recertification

• Can switch to INCOME-BASED rent due to hardship (cannot switch from INCOME-BASED to FLAT rent except at the time of

the Annual Recertification)

• INCOME-BASED rent is calculated based on your income and assets, greater of:

• 10% of your gross monthly income; OR

• 30% of your adjusted monthly income (deductions given for dependents, elderly/disabled households, childcare expenses

incurred allowing an adult to go to work or school, and medical expenses for elderly/disabled households)

The Current Situation:

• Units were built between the 1940s and early 1970s

• Units range in size from 0 bedrooms (studio/efficiency) to 4 bedrooms

• Units exist both in duplex units and townhouse/multi-family buildings (4-6 units/building)

• Units are scattered throughout the City of Ypsilanti (4 square miles)

0/1

Bedrooms:

442 Bedrooms:

74

3 Bedrooms:

62

4 Bedrooms:

18

3 Learning

Centers

2 Laundry

Rooms

1

Management

Office

The Current Situation:

• Public Housing has never been a fully funded program (estimated backlog as high as $32 billion)

•1976 HUD budget was $86.8 billion

•2012 HUD budget was $41.7 billion

• Most units are in terrible disrepairDecreased funding

Increased demand

Parkridge

Community

Center

YHC Offices

Closed entrance/dead

end

From here

(-)

To here

(+)

The Proposed Solution:

The Rental Assistance Demonstration (RAD) Program!

Converts units to Project Based Rental Assistance (PBRA) Contracts, administered by Multifamily Programs, which is a far more stable funding source.

The Proposed Solution:

The Rental Assistance Demonstration (RAD) Program!

Allows Public Housing Agencies (PHAs) to use low income housing tax credits (LIHTC), and other sources of financing, to fund large scale redevelopment of their current housing stock.

• Both Parkridge Homes and Strong Housing have been approved for RAD.

• Only Strong Housing has received tax credits. (still trying to get credits for Parkridge)

RAD approval comes from HUD

Tax Credit allocation given by MSHDA

How will this work?

Once the deal is closed (date is currently pending, hopefully within the next month):

1. Units moving forward in the development project will transfer ownership (to Strong

Future LDHA LP, ownership group consisting of YHC and Chesapeake Community Advisors, the developer).

2. Program will change from traditional Public Housing to a combination of LIHTC (IRS

program) and PBRA (HUD Multifamily program).

3. Construction will occur in four phases (residents will be temporarily relocated while their

units are being worked on).

4. Once construction is complete, and all residents are moved back to their permanent units, any

units that remain vacant will be leased to new tenants.

Plus: 2 New

Manageme

nt Offices! (potential 3rd if

Parkridge site

gets tax credits)