FOR IMMEDIATE RELEASE-1 PAGE
Ann Arbor Area Chamber of Commerce
Contact: Brandt Coultas, Director of Government Affairs
(734) 214-0101, brandt@annarborchamber.org

CITY OF ANN ARBOR RAISES AFFORDABLE HOUSING FEE BY FIFTY PERCENT

FEBRUARY 21, 2006—The Ann Arbor Area Chamber of Commerce believes the recent hike in affordable housing fees by the City of Ann Arbor sends the wrong message to businesses. 

When the City of Ann Arbor first instituted a cash-in-lieu affordable housing policy in 2004, the Ann Arbor Area Chamber of Commerce  praised  the City Council for creating a cash-in-lieu option. The Chamber also asked for a consistent policy: 

“If the City is committed to having a cash-in-lieu policy, it must be clearly defined and narrowly interpreted.  City Council should include the cash-in-lieu amount and a cap on any annual increase within the PUD ordinance.  Revisiting the cash-in-lieu contribution amount on an annual basis could effectively change the rules mid-stream and potentially impose additional financial burdens on developers who have planned projects based on a previous formula.”

      (Official Chamber Policy, Board of Directors, 2004)

Consistency went out the window at the City Council meeting on January 23.  The City raised the fee 50% from $60,000/unit to $89,000/unit.  A project with 100 units either includes 15 affordable housing units or pays $1,335,000 to the City’s affordable housing trust fund.  

“The business community is willing to contribute its fair share to the Ann Arbor community, but $89,000 a unit to the City’s Affordable Housing Trust Fund is excessive,” said Sabrina Keeley, President & CEO of the Ann Arbor Area Chamber of Commerce.  “Raising a fee 50% overnight sends a clear message to the business community: we do not care if you do business here, and that’s the wrong message to send.”

The Ann Arbor Area Chamber of Commerce is the largest business organization in Washtenaw County. The mission of the Ann Arbor Area Chamber is to support our members by promoting commerce in the greater Ann Arbor area through business advocacy and leadership in economic, political and educational development. Membership means: access to health care; advocacy; benefits & cost savings; connections; and exposure for business. 

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