Housing Commission seeks staff and notes HUD funding uncertainty as development leasing begins

Jennifer Hall, director of the Ann Arbor Housing Commission, briefed council March 24 on the commission’s operating budget, development pipeline and federal funding risks.

Hall said the commission’s operating budget is roughly $48 million annually with about $28 million coming from HUD. She said operating staff are needed in advance of several developments coming online so property management, leasing, maintenance and grant administration functions are covered; the city fronts payroll costs and is reimbursed by the commission’s revenues.

Hall listed development projects that will be leasing up: Dunbar Tower’s community center (opening summer 2026), Avalon, Viridian and Grover Bridal (leasing up this summer), and the Annex Group project (a $3 million loan was provided for the Union at A Squared, with leasing scheduled to begin next June). She said development‑side staff will be paid from the commission’s rents and grants, not the general fund, although the city temporarily fronts payroll.

On federal funding Hall said HUD allocations that support tenant‑based and project‑based rental assistance have been surprising stable and in some cases have increased in recent continuing resolution funding. Still, she said the commission must be conservative about leasing from waiting lists because reductions in HUD funding would result in tenants losing subsidies; those most recently leased would be first affected.

Hall also flagged broader development market risks: construction material price volatility, tariffs and uncertainty in tax credit equity markets and IRA credit reimbursements. Hall said the commission is initiating local storytelling and outreach including a documentary follow‑up and a local film about the homeless response system.

Hall answered council questions and said department staffing requests would be offset by new revenues tied to projects coming online.