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Homeowner Covenant Units
Some units in the City of Ann Arbor have covenants or deed restrictions, requiring them to be affordable over a period of time. Find information about the units, their locations, requirements, applications and other materials.
How the Covenant Units Work
A covenant agreement was placed on property with the City of Ann Arbor during the development process. The purpose of the covenant agreement is to preserve affordability within the City of Ann Arbor. These units are considered "affordable units" as the unit sale price is listed at a lower price than the market rate.
There are currently no units available for purchase.
Locations
- Ashley Mews
Downtown Ann Arbor Brownstone & Loft Condo Living
564 S Main Street
Ann Arbor, MI 48104 - Northside Glen Condominiums
Popular Northside Ann Arbor Condo
S Knightbridge
Ann Arbor, MI 48105 - Stone School Townhomes
Stone School Road Between I-94 and Ellsworth
Stone School Circle
Ann Arbor, MI 48108
General Requirements
The homebuyer must meet all of the following guidelines:
- Income does not exceed the area median income for the unit the homebuyer is purchasing. View limits (PDF).
- Must be pre-approved for a mortgage.
- A conflict of interest cannot exist which has a connection to the decision regarding funding and allocation for our department program.
- Must be the homeowner(s) primary residence as indicated on the homestead property affidavit. Homestead status is verified annually.
- Report all income and assets. Our office does not re-certify the homebuyer’s income and assets annually, only during the initial process):
- Affordability: The information is reviewed to determine the homebuyer meets the income qualification and can “afford” the unit. The homebuyer must be able to pay for the mortgage, taxes, insurance, condo association fees and current debt without exceeding our ratios.
- Housing guidelines state the front-end ratio cannot exceed 32% and the back-end ratio cannot excel 42% for all condo purchases.
- Further information on asset limits ($25,000) can be found on page 54 of the Housing Program Guidelines
Applying For A Covenant Unit
The homebuyer submits an offer to purchase the unit to the seller’s agent. In addition, the homebuyer must submit the following to our office:
- Homebuyer Application Packet (PDF)
- "Conflict of Interest" Form
- Copy of signed/executed purchase agreement
- Copy of the loan application and pre-approval letter
- Six weeks of consecutive pay stubs
- Copy of previous year income tax return, with W-2s
- Two months of bank statements
- Proof of completing HUD approved pre-purchase homebuyer education course