Cinnaire and Michigan Bankers Association Service Corporation (MBASC) recently closed its fourth housing equity fund, generating $12.5 million to support the development and rehabilitation of 10 different apartment communities across the state, providing 669 units of quality, safe and affordable housing for lower income residents.
According to T. Rann Paynter, president & CEO of Michigan Bankers Association, “The Michigan Community Fund represents a tremendous financial opportunity for our members. We wholeheartedly support the initiative. By investing in housing credits, Michigan banks will reduce their federal corporate taxes, receive recognition for their Community Reinvestment Activities and support the production of high quality, affordably-priced apartments for low-income community residents.”
Twelve banks in Michigan generated a combined $12.5 million for the equity fund, including:
Bank of Ann Arbor
ChoiceOne Bank
Commercial Bank
County National Bank
Eaton Federal Savings
First National Bank of Michigan
Isabella Bank
Lake-Osceola State Bank
Level One Bank
Macatawa Bank
Mercantile Bank
United Bank of Michigan
“Isabella Bank has invested in several equity funds sponsored by Cinnaire and MBA because they provide tangible benefits to the communities we serve,” commented Dennis Angner, President & CFO of Isabella Bank Corp. “I have been impressed with the quality of design, construction and the economic benefit the various projects have brought to their respective communities. This is a product we’re proud to support through our investment.”
Bank Investments in Affordable Housing Generate Positive Results
In many communities it is difficult for lower income residents to find quality, affordably priced rental housing in a safe living environment. Those who work at lower wage jobs and those who have special needs can find it particularly difficult to find suitable housing at a price they can afford.
Take for example a young lady named Judy who remained in an abusive home for several years because she couldn’t afford a “decent” place to live. Her life changed for the better when she moved into a brand new apartment near her family which had been built with equity generated by banks investing in Housing Tax Credits through the housing equity fund. The equity reduced the amount of debt required to build the apartments. This, in turn, enabled the rents to be priced well-below the prevailing rents in the area.
“It has really changed my life,” stated Judy. “I now have a great place I can afford that’s within easy walking distance of my family, the grocery store and pharmacy, schools, my job downtown, the post office and the library. It doesn’t get much better than that.”
The 10 multifamily apartment communities being supported by this equity fund will generate $88 million of economic impact in Michigan and these developments will support 800 jobs (including construction-related jobs and those associated with the on-going operations of each apartment building).
About Cinnaire
Cinnaire is a Lansing-based full service community development financial partner that has been in operation for 24 years. It provides creative loans, equity investments and best-in-class services to its development partners. Cinnaire has generated $3.5 billion of investment in more than 700 developments which revitalize communities and provide safe, affordably-priced housing opportunities for low-income residents. www.cinnaire.com
