This recommendation has been approved!
Our goal is to have a citywide housing inventory mix of 70% market rate and 30% affordable housing. This should include a mix of homeownership and rental opportunities that accommodate various household sizes, abilities and needs.
Affordable Housing Fund
We want to address the income gaps and long-term equity issues in the city. To do this, we proposed establishing an Affordable Housing Fund.
Check out the original proposed policy here.
The resolution was adopted March 6, 2018.
Check out the Resolution here.
A nonprofit will be created, called the City of Grand Rapids Affordable Housing Fund (the Fund).
The Affordable Housing Fund will invest in creating and preserving affordable housing units - both owned and rented. We recommended appointing an Affordable Housing Fund board to:
- Provide recommendations for policy changes to support affordable housing programs
- Allocate funding within the City Commission's priorities to applicants
- Manage the application, allocation and reporting processes for Affordable Housing Fund monies
The City Commission will establish the Fund's purpose and set the policy and parameters for spending.
Affordable Housing Fund Board of Directors
The Affordable Housing Fund board of directors will be comprised of 9 directors:
- 4 directors appointed by the Housing Commission
- 4 directors appointed by the City Commission
- 1 Board Chairperson appointed by the Housing Commission, subject to City Commission approval
The Board will decide how to spend fund resources and make other mission related decisions.
The Board of Directors will establish an Advisory Committee. The Advisory Committee will include representatives from:
- For-profit and non-profit developers
- Financial institutions
- Residents of affordable housing
- Others whose talents and experiences would be beneficial to the Advisory Committee
The Advisory Committee won't have decision making authority, but will provide advice and insights to the Board of Directors.
The City, the Housing Commission and the Fund will all be held accountable to a Management Agreement. The initial term of this agreement is 3 years. It may continue year-to-year after the first 3 years unless it's terminated.
The Housing Commission staff will implement the activities the Board of Directors approves. If necessary, they'll also enter agreements with third parties to complete this work.
The Housing Commission won't be compensated for these services. They'll need to render a monthly statement of accounting to the Board of Directors.