Category: Press Release

Award winning month for Michigan Community Capital 

Two national awards and one statewide award name Michigan Community Capital as recipient in May 2023

FOR IMMEDIATE RELEASE 
Thursday, June 1, 2023 

LANSING, MICH. – May was a monumental month for Michigan Community Capital (MCC) who accepted three awards from two industry organizations. Two (2) New Markets Tax Credit (NMTC) investments led to receiving the Real Estate QLICI of the Year and Small Business QLICI of the Year designation from the 2023 Novogradac Journal of Tax Credits Community Development QLICIs of the Year. Additionally, MCC’s Lofts on Rowe development received the 2023 Tax Credit Award from the Michigan Historic Preservation Network (MHPN).

For 18 years, Michigan Community Capital (formally Michigan Magnet Fund) has invested in transformational community development projects across the state of Michigan that create housing, jobs and access to fresh food through NMTC allocations. Since the organization’s inception, MCC has worked to advance these projects using the best tools possible, even if it means creating new tools or wearing new hats.

Starting in 2018, MCC has taken its lending and investment know-how and began development of projects starting with Cadillac Lofts. As of today, nine (9) properties developed and/or co-developed by MCC has led to investing more than $89 million in Michigan communities, creating 421 new residential units and 68 new permanent jobs, and activating almost 350,000 square feet of indoor real estate.

Being a community development lender has helped Michigan Community Capital become a diligent and lean developer, and their development experience has also influenced their lending and investment approach.

“We are honored to be recognized by our partners and friends at MHPN, and proud to be recognized nationally by Novogradac Journal of Tax Credits,” said Eric Hanna, president and CEO of Michigan Community Capital. “The MCC team works very hard to deliver projects that communities need, whether as a lender, developer, investor, or insurer. We are grateful to both organizations for recognizing our work and the impact it has on the communities we serve.” 

Lofts on Rowe in Ludington, Michigan

2023 Michigan Historic Preservation Network Tax Credit Award 

Lofts on Rowe 

Michigan Community Capital’s development, Lofts on Rowe, was named the winner of a 2023 Tax Credit Award from the Michigan Historic Preservation Network (MHPN), and the award was presented in-person on Friday, May 12 at the 2023 MHPN Annual Conference on Mackinac Island.

After sitting vacant for nearly 30 years, the 1892-brick building fronting a full city block on the edge of a residential neighborhood just north of Ludington’s downtown was rehabilitated into 67 residential units. The building housed a series of manufacturing businesses, including Carrom wooden games and Haskell Canoe Company, and served as the headquarters for the Civilian Conservation Corps Camp Ludington in the 1930s.

The building’s industrial character is featured in the exposed interior brickwork and original wood beams. Amenities available to residents include a fitness room, bike storage, and on-site parking, and the ground level offers a commercial suite for local small businesses.

Utilizing historic tax credits, the $14-million project revitalized a long abandoned and neglected historic building in the heart of the neighborhood, giving the city and region a historic asset that will serve residents and community members for decades to come.

Michigan Community Capital served as the developer on the Lofts on Rowe project, and additional partners included Michigan Economic Development Corporation, Pennies from Heaven Foundation, PNC Bank, West Shore Bank, the City of Ludington and Mason County.

Two awards from the 2023 Novogradac Journal of Tax Credits Community Development QLICIs of the Year Awards named Michigan Community Capital. 

Real Estate QLICI of the Year 

The Freelon at Sugar Hill 

The Freelon at Sugar Hill is an inclusive community for all Detroiters, reinforcing urban vitality in Midtown Detroit’s Sugar Hill Arts District. The $35-million project co-developed by the Preservation of Affordable Housing (POAH) and Develop Detroit, replaced a vacant lot across the street from the John D. Dingell VA Medical Center with 68 apartments, 11,900 square feet of retail space, and a 160-space parking garage. Of the 20 affordable housing units, 14 were created for veterans served by the U.S. Department of Housing and Urban Development’s HUD-VASH program through the Dingell VA Center. Another six apartments are set aside for those earning up to 80 percent of area median income. The mixed-use building supports inclusive growth within the historic district as a cultural, commercial, and residential destination. 

MCC provided $6 million in NMTC allocation in partnership with PNC Bank, Building America CDE, and Cinnaire.

Small Business QLICI of the Year 

Detroit Food Commons 

The Detroit Food Commons is a new-construction development on the southeast corner of Woodward Avenue and Euclid Street in Detroit’s North End neighborhood. The two-story, 31,000-square-foot building will house the Detroit People’s Food Co-op – a community-owned grocery selling healthy, locally sourced food, a deli and bakery, and a neighborhood café – on the first floor. The second floor will house four teaching kitchens, a banquet hall/community meeting space and office spaces for nonprofit organizational use. 

Located within a CDFI-qualified severely distressed census tract, the ground-level grocery will provide healthy, affordable options to more than 31,000 low–income community members and over 19,000 food desert residents within a 1.5-mile trade radius. 

The nearly $20-million project spearheaded by non-profits Detroit Black Community Food Security Network (DBCFSN) and Develop Detroit (DDI) received $7 million in New Markets Tax Credits allocation from Michigan Community Capital in partnership with New Markets Support Company, and U.S. Bancorp Impact Finance.  

The Novogradac Journal of Tax Credits Community Development QLICIs of the Year Awards recognize community development entities (CDEs) that made exceptional qualified low-income community investments (QLICIs) in the past year. The in-person award ceremony will be held at 9 am Eastern, Thursday, June 8, at the Fairmont Washington, D.C. Georgetown, during the Novogradac 2023 Spring New Markets Tax Credit Conference. 

About Michigan Community Capital 

Michigan Community Capital (MCC) is a non-profit diversified public-private partnership that supports the missions of the Michigan Economic Development Corporation (MEDC) and the Michigan State Housing Development Authority (MSHDA) by aggregating capital and facilitating the financing and development of low-income and attainable housing, and the redevelopment of complex brownfield sites within the State of Michigan. MCC is a U.S. Treasury certified Community Development Financial Institution (CDFI) and the only Community Development Entity (CDE) that deploys this resource solely throughout the entire State of Michigan. Over its 18-year history, MCC has supported over $1.2 billion in project financing, successfully attracted $380 million in federal New Markets Tax Credits, and helped to create over 1,350 housing units, 1.3 million square feet of commercial, retail and industrial space to facilitate job creation and expansion and insures over 22,000 affordable multifamily doors. MCC provides products in four key pillars: housing equity, bridge and gap lending, New Markets Tax Credits, and property insurance for Low-Income Housing Tax Credit projects. 

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ALDI Coming to Two Rural Michigan Communities 

FOR IMMEDIATE RELEASE
April 28, 2023

Iron Mountain and Sturgis soon to welcome ALDI Grocery

LANSING, Mich. – ALDI Inc. is investing approximately $9.5 million to bring two new locations to rural communities in Michigan. A former Kroger location will be renovated at 811 S Centerville Road in Sturgis, and a new facility will be constructed at 2025 South Stephenson Avenue in Iron Mountain. Each store will be approximately 18,000 square feet and will feature a range of products including fresh meat and seafood, organic produce, and pantry essentials. The developments are being supported with a $7 million New Markets Tax Credit allocation from Michigan Community Capital.

ALDI Inc. is a leader in the supermarket retailing industry that offers discounted healthy groceries to customers in nearly 2,200 stores in 38 states. ALDI focuses on the groceries commonly purchased by shoppers, primarily under its exclusive brands, and is committed to providing customers with the highest quality products at the lowest possible prices.  ALDI strives to reduce the company’s impact on the environment through energy efficient store design, including state-of-the-art lighting and refrigeration systems that have reduced energy features and environmentally friendly building materials.

ALDI will bring full-service grocery stores to Sturgis and Iron Mountain, both rural Michigan communities where increased affordable, fresh food is greatly needed due to high rates of food insecurity resulting from barriers to access (e.g., lack of transportation, rising food costs, etc.). Approximately 18 new full-time equivalent positions will be created to support the new stores. All positions will be accessible to individuals without a four-year degree and will pay a living wage.

“Michigan Community Capital is committed to leveraging our tools to bring healthy fresh food to underserved communities in Michigan,” said Eric Hanna, president and CEO at Michigan Community Capital. “Iron Mountain and Sturgis have both identified bringing more grocery options to their community as a high priority, and we are proud to partner with ALDI as they expand their footprint into Michigan rural markets.”

New Markets Tax Credits are a federal subsidy tool administered by the U.S Department of Treasury and designed to attract capital to projects that support low- and moderate-income households and communities. Michigan Community Capital (MCC) is the only Community Development Entity (CDE) that deploys this resource entirely in the state of Michigan. Since the organization’s formation in 2005, MCC has secured a total of $380  million dollars in tax credit allocation through competitive rounds to support Michigan businesses and communities. MCC uses NMTC’s to support job creation, access to healthy food, and mixed-use projects that include mixed-income housing and commercial businesses that benefit low-income households.

PNC Investment Partners is serving as the New Markets Tax Credit investor on this project.

For more information on ALDI Inc., visit aldi.us.

About Michigan Community Capital

Michigan Community Capital (MCC) is a non-profit diversified public-private partnership that supports the missions of the Michigan Economic Development Corporation (MEDC) and the Michigan State Housing Development Authority (MSHDA) by aggregating capital and facilitating the financing and development of low-income and attainable housing, and the redevelopment of complex brownfield sites within the State of Michigan. MCC is a U.S. Treasury certified Community Development Financial Institution (CDFI) and the only Community Development Entity (CDE) that deploys this resource solely throughout the entire State of Michigan. Over its 16-year history, MCC has supported over $1 billion in project financing, successfully attracted $320 million in federal New Markets Tax Credits, and helped to create over 750 housing units and 1.3 million square feet of commercial, retail and industrial space to facilitate job creation and expansion. MCC provides products in four key pillars: housing equity, bridge and gap lending, New Markets Tax Credits, and property insurance for Low-Income Housing Tax Credit projects.

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Mel Trotter Ministries Creating New Opportunities in Grand Rapids 

FOR IMMEDIATE RELEASE
April 27, 2023

Michigan Community Capital invests New Markets Tax Credits into multi-site development

LANSING, Mich. – Mel Trotter Ministries (MTM) and its subsidiary, Next Step of West Michigan, have been selected to receive New Markets Tax Credits (NMTC) from Michigan Community Capital (MCC), Chase, Consortium America, and Cinnaire. The tax credits will support a multi-site development which includes two buildings at the Next Step campus on Garden Street SE in Grand Rapids, as well as renovations at the MTM mission.

Mel Trotter will receive nearly $5.7 million toward its project goal to build a new 15,000-square-foot manufacturing training center in conjunction with a local manufacturer, as well as expand the existing training center and add workforce development apartments.

“We are extremely grateful for the assistance from MCC,” said Gordon Oosting, chief financial officer of Mel Trotter Ministries. “We often say that we cannot do this work alone, and this is one more testament to what can happen through muti-pronged involvement. The New Markets Tax Credits provide an important source of funds for investment in the areas we are serving.”

The project will help people living in poverty achieve economic stability through access to employment and complementary resources. The new 15,000-square-foot manufacturing facility will be located at 130 Garden Street SE in Grand Rapids. It will be utilized for construction and workforce development training. A section of the building will be leased to Jireh Metal Products, a minority-owned tier one supplier to furniture, automotive and hardware industries. It will include a job training program that will operate in conjunction with Next Step’s workforce development program. A two-story, 20,000-square-foot building, located at 101 Garden Street SE, will be renovated into a mixed-use facility with 10 transitional workforce housing units on the upper floor, and space on the first floor for Next Step of West Michigan’s skilled job training program, construction employment offices and community space.

MCC’s NMTC allocation also supported the recently completed renovation of Mel Trotter’s existing 47,000-square-foot facility located at 225 Commerce Avenue SW. The renovation and expansion of the mission includes 116 units of transitional housing, 400 emergency shelter beds with guest common areas, and dedicated space for supportive services to guests including a variety of healthcare services and social services.

“We are pleased to support Mel Trotter Ministries in expanding their footprint and vital services in Grand Rapids,” said Eric Hanna, president and CEO at Michigan Community Capital. “This is an exciting project because it not only supports Mel Trotter’s work meeting the immediate needs of those experiencing homelessness, but it also supports the transition out of poverty through job training and employment.”

Michigan Community Capital has allocated $8 million in New Markets Tax Credits to this project. Chase provided a $2 million NMTC allocation and is the NMTC equity investor for the project. These NMTC allocations, along with allocations from Consortium and Cinnaire, have provided a net benefit to Mel Trotter of approximately $5.7 million.

“We’re proud to support Mel Trotter Ministries and Next Step with an NMTC equity investment that will provide many essential services to the Grand Rapids community including quality jobs and job training, stable housing, and afterschool services to children in the area,” said En Jung Kim, managing director, Chase Community Development Banking. “Through our NMTC platform, we remain committed to using this impactful financing tool to support continued investment and economic development across Michigan and the US.”

Consortium America 100, LLC provided $8 million in NMTC allocation to the project.

“The Mel Trotter Ministries and Next Step project will have a tremendous impact in the Grand Rapids community, and Consortium America is thrilled to be a part of it,” said a representative from Consortium America. “During our almost 20-year involvement in the NMTC program, providing investment to distressed communities across the United States, this project really stands out due to the level of services offered and the path it provides to its program participants to escape the cycle of poverty.”

Cinnaire provided a $5-million NMTC allocation to the project.

“This multi-site development reflects the alchemy possible when mission-driven partners join forces to create extraordinary opportunities for vulnerable communities,” said Cinnaire Senior Vice President, Public Funding, Peter Giles. “Cinnaire’s NMTC investments are focused on transformative projects supporting equitable communities. This project will provide housing stability while expanding economic opportunities through job training and employment, critical components to putting those who need us most on the path towards a better future. Cinnaire is proud to join our CDFI partners to support Mel Trotter Ministries as they embark on this impactful journey.”

For more information on Mel Trotter Ministries visit meltrotter.org

About Michigan Community Capital

Michigan Community Capital (MCC) is a non-profit diversified public-private partnership that supports the missions of the Michigan Economic Development Corporation (MEDC) and the Michigan State Housing Development Authority (MSHDA) by aggregating capital and facilitating the financing and development of low-income and attainable housing, and the redevelopment of complex brownfield sites within the State of Michigan. MCC is a U.S. Treasury certified Community Development Financial Institution (CDFI) and the only Community Development Entity (CDE) that deploys this resource solely throughout the entire State of Michigan. Over its 16-year history, MCC has supported over $1 billion in project financing, successfully attracted $320 million in federal New Markets Tax Credits, and helped to create over 750 housing units and 1.3 million square feet of commercial, retail and industrial space to facilitate job creation and expansion. MCC provides products in four key pillars: housing equity, bridge and gap lending, New Markets Tax Credits, and property insurance for Low-Income Housing Tax Credit projects.

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Mixed-Use YMCA Project will Revitalize Long-Vacant Property in Downtown Flint 

Michigan Community Capital invests New Markets Tax Credits into Flint development 

Rendering of the YMCA in Flint, Michigan. – January 4 2022
FOR IMMEDIATE RELEASE 
April 4, 2023 

LANSING, Mich. – Developers Uptown Reinvestment Corporation and HWD Harrison, Inc are undertaking an approximately $41-million, mixed-use, four-story development in downtown Flint with the support of $16 million in New Markets Tax Credit allocation from Michigan Community Capital (MCC). 

The project revitalizes a long-vacant, blighted property into a 115,000-square-foot building that will include a physical rehabilitation facility, more than 7,500 square feet of office space, 50 apartments, and a full-service, fully accessible YMCA. The new YMCA facility will offer a competitive lap pool, family splash pad, basketball court, exercise studios, running/walking track, locker rooms, community space, and after-school rooms. All 50 apartments will be located on the second through fifth floors, and 19 will be dedicated to households earning less than 80% of the area median income (AMI). 

“We are honored to be partners in the Harrison Street Commons. Providing 50 high-quality, mixed-income housing units in the heart of Flint is part of the transformational change we strive for in our work,” said Development Coordinator at URC, Moses Timlin. “Through this development, we envision a more vibrant and resilient downtown with increased walkability, density, occupancy, and diversity of building uses.” 

Bringing additional foot traffic and economic activity to the area and serving as a catalyst for future development in Flint, the project is expected to generate a total capital investment of $41 million, bring over 10,000 unique program participants into the facility, and create or retain 51 full-time equivalent jobs. 

“Housing, entertainment and recreation are all critically important parts of a vibrant neighborhood. We are thrilled to see and support our partners in Flint as they work so intentionally to create a thriving, attractive and equitable downtown community,” said Eric Hanna, president and CEO of Michigan Community Capital. 

Magnet Lending Corporation, an affiliate of Michigan Community Capital, is supporting the project by way of a direct loan in the amount of $2.9 million. 

The project is being supported by a $1.5-million MCRP performance-based grant and a $5.5-million MCRP performance-based direct loan from the Michigan Economic Development Corporation (MEDC). 

“The YMCA project will not only revitalize long-vacant property on a key block in downtown Flint into a vibrant mixed-use development that will offer housing options and recreational amenities to area residents, but it will also bring additional foot traffic and economic activity to the area and serve as a catalyst for future development in Flint,” said MEDC Executive Vice President of Economic Development Incentives Michele Wildman. “At MEDC, we are committed to supporting transformative projects that help create vibrant, resilient communities as part of our efforts to create a holistic, people-first approach to economic development in Michigan. We’re pleased to work with our partners to support this project and look forward to seeing the additional investment it will encourage in other Flint neighborhoods.” 

PNC Bank, N.A. is serving as the New Markets Tax Credit investor and contributed $4 million of its own NMTC allocation to the financing of the project.  

“PNC is committed to working with organizations that seek to address pressing needs in communities across our footprint,” said David Gibson, senior vice president and manager of Specialty Tax Credit Investments for PNC Tax Credit Solutions. “With the addition of this mixed-use facility to the community, Flint residents will have access to new, high-quality housing, retail and lifestyle options.” 

The City of Flint is offering a 30-year payment in lieu of taxes at 10 percent, with an estimated value of more than $1.5 million.  

“The City’s Imagine Flint Master Plan calls for desirable, stable, and inclusive neighborhoods, with a range of affordable and attractive housing options available to a diverse population. This project is a great example of providing both quality affordable housing and recreational opportunities for all City of Flint residents. We are so proud to be partnering with so many public and private partners as we continue to move the city forward,” said Suzanne Wilcox, director of planning and development for the City of Flint. 

“We are excited to be a part of this unique project in the heart of Flint,” shared YMCA of Greater Flint CEO Shelly Hilton. “Many partners have collaborated to create a truly modern facility that will address the needs of Flint and Genesee County residents into the future.” 

For additional information on this project visit https://flintymca.com/buildingcommunity/.

About Michigan Community Capital  

Michigan Community Capital (MCC) is a non-profit diversified public-private partnership that supports the missions of the Michigan Economic Development Corporation (MEDC) and the Michigan State Housing Development Authority (MSHDA) by aggregating capital and facilitating the financing and development of low-income and attainable housing, and the redevelopment of complex brownfield sites within the State of Michigan. MCC is a U.S. Treasury certified Community Development Financial Institution (CDFI) and the only Community Development Entity (CDE) that deploys this resource solely throughout the entire State of Michigan. Over its 18-year history, MCC has supported over $1 billion in project financing, successfully attracted $380 million in federal New Markets Tax Credits, and helped to create over 750 housing units and 1.9 million square feet of commercial, retail and industrial space to facilitate job creation and expansion. MCC provides products in four key pillars: housing equity, bridge and gap lending, New Markets Tax Credits, and property insurance for Low-Income Housing Tax Credit projects. For more information on MCC visit michigancommunitycapital.org.   

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LiveWell on Harrison Groundbreaking 5/4/23

New homes in Flint’s historic Carriage Town neighborhood

2024 Project Overview
WNEM TV5 – Published: Feb. 23, 2024 at 5:17 PM EST
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New homes under construction in Flint’s historic Carriage Town neighborhood

From vacant lots to vibrant community homes

Wednesday, March 8, 2023

Six new houses are being built in Flint’s Carriage Town neighborhood thanks to a coordinated effort between Michigan Community Capital (MCC) and Uptown Reinvestment Corporation (URC). This project will be some of the first new construction of homes in this historic neighborhood in nearly a century.

The homes, which are being developed by Flint Home Ownership Initiative, LLC, will be located on West 2nd Avenue between North Grand Traverse and Mason streets on three parcels owned by the Genesee County Land Bank Authority. By developing houses on these strategic parcels within the neighborhood, project partners strive to promote homeownership, generate long-term tax revenue for the city, help stabilize the local residential housing market, build on the neighborhood’s strong sense of community, and model sustainable finance structure for future investments in Carriage Town.

Carriage Town is a fantastic neighborhood in the city of Flint that has a rich history and community character. We are proud to bring additional homeownership opportunities at a variety of price points to continue investment in this unique district.

Marilyn Chrumka, VP of investments at Michigan Community Capital.

At 412 West Second Avenue, a small condo association is being developed on the 1/2-acre site. The two sets of duplexes (four homes in total) were designed to fit into the scale and character of the neighborhood.  Each 3-bedroom, 2-bathroom unit will be approximately 1,250 square feet and will feature a front porch, rear detached garage, and high-quality building materials. The condo association fee will cover common area maintenance, exterior home repairs, landscaping and snow removal.

“This project is a significant step forward for the Carriage Town neighborhood and the City of Flint. These six housing units are some of the first market-rate single-family homes built in Flint in nearly a decade. This public-private partnership aligned the unique resources of local, county, philanthropic, and federal stakeholders to provide safe and quality workforce housing. In addition, we are honored to work alongside neighborhood residents and organizational partners to contribute to the ongoing neighborhood investments in Carriage Town.”

Moses Timlin, MUPP, Development Coordinator at Uptown Reinvestment Corporation

Across the street, the vacant parcels at 417 and 427 West Second Avenue will each be redeveloped into a 1,500-square-foot, 3-bedroom, 2.5-bathroom, single-family home.

Thoughtful design on all of the homes reinforces the character of historic district through complementary new construction.

Construction materials include:

  • Slab on Grade Foundations
  • Wood frame, stick-built construction
  • Composite siding
  • Asphalt shingles
  • Anderson 100 Windows
  • Interior walls will be drywall & painted
  • Carpeted bedrooms
  • Luxury Vinyl Tile floor common areas
  • Quartz or granite Counters
  • Solid wood cabinets
  • Kitchen island 
  • Tile backsplash in kitchen
  • Stainless steel kitchen appliances
    • Gas stove
    • Dishwasher
    • Garbage disposal
    • Microwave above stove
    • Refrigerator
  • Fiberglass shower/tub
  • Washer/Dryer included
  • Duplexes come with single-car garage & two surfaced parking spaces
  • Single-family homes have garage add-on option for additional cost

This project is unique because it utilizes Brownfield Tax Increment Financing in partnership with the City of Flint to help offset the construction cost and the homes’ market-rate price. The project aims to be an example to encourage other investors to build new-construction homes on vacant lots in the city of Flint. In addition, the project showcases strong public-private partnerships by redeveloping Genesee County Land Bank Authority-owned parcels, which will be transferred to the private homebuyer upon sale. Lastly, this $2-million project uses a combination of public and private funding from the Community Development Finance Institution Fund, Charles Stewart Mott Foundation, URC and Michigan Community Capital.

This development could not be built without community support! The Carriage Town Historic Neighborhood Association provided valuable feedback and letters of support to obtain Historic District Commission and City Council Approval.

All six homes are anticipated to be listed for sale in January 2024 and are currently projected to range in price from $155,000 to $188,000.

For more information on this project, email info@livecarriagetown.com.