Council approves city purchase and resale plan for one affordable unit at 105 Ashley Muse

The Ann Arbor City Council approved CA 8, authorizing the city to exercise a right of first refusal to purchase and resell an affordable unit at 105 Ashley Muse after a city investigation found the owner was not using the unit as a primary residence.

Attorney Vargas, representing the Office of Community and Economic Development, told the council that eight owner-occupied units at Ashley Muse are subject to recorded restrictive covenants that require sale at a restricted price and that purchasers be income-qualified at 80% of area median income (AMI) or lower and use the home as their primary residence. Vargas said the office conducted investigations into three units this year, located and contacted owners and determined that the 105 Ashley Muse unit appeared to be out of compliance with the primary-residency requirement.

"We do believe that the most efficient way to get this unit back into the hands of an affordable unit owner is for the city to go ahead and make the purchase and then resell it to an income eligible purchaser," Vargas said. Council members asked clarifying questions about enforcement and timeline; Vargas described the process as time intensive when owners are difficult to locate or are outside the city or state.

The council voted to approve the consent-agenda item (CA 8) after discussion; the action was recorded as approved with 11 council members present, satisfying the eight-vote requirement described in the meeting.

Why it matters: The decision is an example of the city using covenant enforcement and its right of first refusal to preserve deed-restricted affordable units when owners appear to be out of compliance with occupancy requirements.

What—s next: Staff will proceed with the purchase and subsequent resale consistent with covenant terms and income-qualification rules.