Tag: Press Release

MCC Awarded $60 Million in New Markets Tax Credit Allocation

Allocation will support projects in low-income census tracts within the State of Michigan

FOR IMMEDIATE RELEASE
October 31, 2022

LANSING, Mich. – Michigan Community Capital (MCC) is pleased to announce their award of $60 million in New Markets Tax Credit (NMTC) allocation from the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) on Friday, October 28. For the second annual funding round in a row, MCC has been awarded the highest allocation amount available which is reflective of MCC’s track record for deploying New Markets Tax Credits into impactful and transformative projects in rural and urban communities throughout Michigan.

“We are proud to continue to partner with the Michigan Economic Development Corporation and S. B. Friedman & Associates to attract valuable federal resources to support Michigan,” said President and CEO of Michigan Community Capital, Eric Hanna. “We look forward to working together to deploy these valuable federal resources to support underserved communities in Michigan.”

“These resources are an investment in Michigan and our future, and I’m proud to support the programs that have provided this funding – which are proven to be successful job creators and economic drivers,” said Michigan Senator Gary Peters. “We need to continue to invest in communities across our state and make sure all Michiganders have the tools they need to succeed no matter where they live.”

With this latest award, MCC will provided much need financing to projects located in historically disinvested communities throughout the state of Michigan. Allocation will be directed to projects prioritizing:

Creating or expanding healthy food access
Developing mixed-use, mixed-income housing in low-income areas of opportunity
Supporting skilled training programs and/or expanding services for low-income families
Generating living-wage jobs through manufacturing or community-based projects

Since 2005, Michigan Community Capital has received $380 million in New Markets Tax Credit allocations and has remained the only Community Development Entity deploying efforts solely in Michigan at a state-wide level. To date, MCC has invested NMTC allocations into 35 projects across the state resulting in over 6,900 full-time jobs created or retained, more than 700 housing units established, and the development of 1.9 million square feet of commercial, retail, and industrial space.

To learn more about Michigan Community Capital’s impact or would like to explore leveraging New Markets Tax Credit for your project, click here.

To learn more about the New Markets Tax Credit Program visit www.cdfifund.gov/nmtc.

CDFI Fund Press Release

About Michigan Community CapitalMichigan 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 $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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Dakkota Integrated Systems Expand with New Markets Tax Credits

Michigan Community Capital supports Dakkota Integrated Systems’ $45-million manufacturing expansion with $8.3 million in New Market Tax Credits

FOR IMMEDIATE RELEASE

JULY 22, 2021

LANSING, Mich. – Dakkota Integrated Systems will continue facility expansions with assistance from a New Markets Tax Credit (NMTC) allocation from Michigan Community Capital (MCC). The project supports the complex assembly of the Instrument Panels for Stellantis Jeep Grand Cherokee at both the Detroit Assembly Complex Mack and Jefferson North Assembly, which are both locally built. The expansion, which started in 2020, will create 300,000 square feet of manufacturing space at the former site of Kettering High School.

The project will create 473 new full-time equivalent jobs in a census tract where 55.7% of the population falls below the poverty line. 446 of these jobs are accessible to people with less than a four-year degree. Benefits for these positions include health insurance, 401K contribution, paid vacation time, short- and long-term disability, job training tuition reimbursement, and education for personal finances, all of which will greatly benefit the families of these new workers.

“We are appreciative to Michigan Community Capital, the local community, Chase Bank and our other financial partners for supporting Dakkota’s expansion in Detroit,” said Gary Caldwell, Chief Financial Officer at Dakkota Integrated Systems. “The New Markets Tax Credit enhances our mission to create sustainable job opportunities in underrepresented communities for many years to come. It will allow us to achieve our goal of creating high-quality products for our customers at competitive pricing and profitability, which is critical to our success and allows us to achieve a winning environment for all.”

New Markets Tax Credits are a federal subsidy tool administered by the U.S Department of Treasury designed to attract capital to projects that support low- and moderate-income households and communities. MCC is the only Community Development Entity (CDE) that deploys this resource solely throughout the entire State of Michigan. Since the organization’s formation in 2004, MCC has secured a total of $255 million 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 including mixed-income housing and commercial businesses that benefit low-income households.

“Dakkota Integrated Systems has continued to take its role as a corporate citizen very seriously, has been thoughtful about its compensation and hiring practices, and is truly demonstrating a commitment to ‘walking the walk’ by focusing on hiring Detroiters,” said Eric Hanna, President and CEO of Michigan Community Capital. “Those practices, which allow Detroiters to invest in themselves, are ultimately the key to giving the people of Detroit agency over their future. We could not be prouder of Dakkota, and we look forward to working with them and with companies like them in the future.”

Chase is investing $2,743,650 in New Markets Tax Credits into the project.

“We’re thrilled to work with Michigan Community Capital, Invest Detroit, and Dakkota Integrated Systems on their facility expansion, which will bring jobs to the Detroit community,” said James Simmons, Executive Director, Community Development Banking, Chase. “Through New Markets Tax Credit investments, we continue to support the building and revitalization of communities where we live and work.”

Invest Detroit is serving as a separate Community Development Entity in the project allocating $1,750,000 in New Markets Tax Credits.

“Invest Detroit’s mission is to support projects that create jobs and build a better future for all Detroiters,” said Senior Vice President of Lending, Marcia Ventura. “That’s why we are thrilled to partner with Michigan Community Capital, Chase Community Banking, the City of Detroit, the Michigan Economic Development Corporation, and Hunting Bank in a collaborative effort to bring this important project to Detroit. The Dakkota manufacturing facility is a job-creator for Detroiters. Partnering with Detroit at Work, they have already placed 109 city residents in full-time, high-quality positions. Collaboration makes these projects happen and is the key to a bright economic future for Detroit and our residents.”

About Dakkota Integrated Systems, LLC

Dakkota Integrated Systems was founded in 2001 to supply assembly and sequencing services for the original equipment manufacturer (OEM) automotive market. Specific products include suspensions, instrument panels, overhead systems, center consoles, cooling modules, bumper & grills, and general sequencing. The Company is headquartered in Michigan and has 14 operational locations, including out-of-state facilities in Ohio, Kentucky, Illinois, and Windsor, ON. The Company excels at providing “just-in-time” products to support auto manufacturing. Various levels of technology are employed including automation, robotics, scanning and sophisticated data collection with analysis in order to provide a high level of repetitive quality and integrity of the Company’s products/services. This has allowed the Company to continue to grow and support the livelihood of its more than 1,000 Michigan employees and more than 2,350 team members worldwide

About Michigan Community Capital

Michigan Community Capital (MCC) is a non-profit diversified Public Private Partnership that supports the mission 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 US Treasury certified Community Development Financial Institution (CDFI) and a certified Community Development Entity (CDE). MCC has successfully attracted federal New Markets Tax Credits, supported over $900 million in project financing and helped to create over 750 housing units and over 950,000-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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Construction underway on Grand Haven’s newest neighborhood

FOR IMMEDIATE RELEASE

MAY 17, 2021

LANSING , Mich. – Grand Haven’s newest neighborhood in the city limits broke ground earlier this month. The 30 single-family home development named Robinson Landing, will address an identified housing need by offering new construction homes priced from $139,900 to $279,900.

“This project is responding to a housing crisis we are seeing across the state,” said Marilyn Crowley, Vice President of Investment for Michigan Community Capital. “With construction prices skyrocketing and a large number of buyers, we are seeing a shortage of housing that is priced affordably for the majority of Michigan’s workforce. It took many partners to bring this project together, and we’re excited to see the result come to life.”

Housing Next, an Ottawa County based non-profit and housing advocate, commissioned a housing study in December of 2018 that identified moderately priced housing as a high-level need in Ottawa County. The report outlines significant growth in households earning an annual income between $40,000 and $74,000 that outpaces the housing supply.

“We are pleased to provide support for a project that is breaking down barriers to housing affordability and availability,” Housing Next Executive Director Ryan Kilpatrick said. “This innovative and transformative project – with owner-occupied units priced below $180,000 – is exactly what we need right now to help solve our region’s workforce housing crunch. Our communities have greater economic prosperity and job growth when families can find affordable housing.”

Formerly owned by the City of Grand Haven, the 7.5-acre parcel on Comstock Street will allow residents easy access to downtown. The project site was transferred from the City to the Ottawa County Land Bank in November 2020. Michigan Community Capital purchased the land at a reduced price of $32,000 earlier this year to encourage affordability of the neighborhood development.

“This project is a model for non-profit/governmental cooperation,” said Pat McGinnis, City Manager of City of Grand Haven. “When we all put our full toolbox into play, we can create attainable workforce housing in Ottawa County. The Brownfield Redevelopment Authority, Housing Next, Ottawa County, BlueWest Properties, Michigan Community Capital, Ottawa County Land Bank, Grand Haven Charter Township and the City of Grand Haven all put this on the front burner and made it a reality. There’s surely more to come.”

The project will cost $7.5 million over two phases. Last year, the Grand Haven Area Community Foundation approved a $1.5 million low-interest investment in MCC to encourage the creation of middle-income housing in Northwest Ottawa County.

“Solving the workforce housing crisis takes innovative thinking, and we believe this partnership with MCC is a key step to getting there,” said Hadley Streng, President of the Grand Haven Area Community Foundation. “We’ve been focused on supporting housing solutions for all income levels in our community for years, and it’s why we helped co-found Housing Next in 2017. We’re inspired by the collaboration of our partner organizations throughout Ottawa County that have brought us to this point.”

16 of the 30 homes in Robinson Landing will be in the Grand Haven Area Community Land Trust (CLT) program which is a shared-equity program allowing for lower home prices because the buyer is purchasing the home, not the land. The CLT retains ownership of the land and enters into a 99-year ground lease with the homeowner. The Grand Haven Area Community Land Trust was created by the City of Grand Haven and is managed by the Neighborhood Housing Services team.

“Neighborhood Housing Services is thrilled to be spearheading the creation of the Grand Haven Area Community Land Trust,” said Rhonda Kleyn, Neighborhood Housing Services Development Coordinator. “The organizing committee has been working for months to create an amazing program for this area. This type of shared equity homeownership program results in the purchase price being more affordable because the purchaser is only buying the home, not the land. The land will be leased from the CLT at a very low monthly cost. It’s likely the potential CLT buyers already rent or work in Grand Haven, and we are excited to work with them to purchase an affordable, newly built home. “

Homes in this program have income restrictions for buyers that target households with incomes between 60 and 80 percent of the area median income (AMI determined by Michigan State Housing Development Authority). Homes in the CLT program are priced at $139,900 for a 2-bedroom, 1-bathroom home; $159,900 for a 3-bedroom, 2-bathroom, home; and $179,900 for a 3-bedroom, 2.5-bathroom, two-story home. More detailed information about the homes offered and CLT program can be found at robinsonlandingmi.com.

The remaining 14 homes are not on a ground lease, do not have income restrictions and are considered as market-rate homes. These market-rate homes are priced at $239,900 for a 3-bedroom, 2-bathroom, ranch-style home; and $279,900 for a 3-bedroom, 2-bathroom, two-story home.

Built by The DK Design Group, all 30 homes will have identical high-quality finishes and construction that is slab-on-grade with wood-frame, stick-built framing. Stainless steel GE appliances are included in the sale price – a value of over $5,000 that includes a gas stove, dishwasher, garbage disposal, microwave, refrigerator, washer, and dryer.

Homeowners purchasing prior to the home’s construction deadline will be able to choose finishes from pre-selected options. These finish choices include cabinetry, countertops, flooring, and the exterior package with siding, stone veneer, entry door color, and asphalt shingles.

The project will be constructed in a two-phase process. The first phase will span 16 months and consist of site preparation and infrastructure to serve the entire site, as well as the construction of 15 homes. 8 of the 15 homes in the first phase will be in the Community Land Trust program. Once 75% of the homes in Phase I are sold, Phase II will begin.

BlueWest Properties, a West Michigan brokerage, is serving as the listing real estate company in the sale of the homes. Driven philanthropically to serve their community, the owner/broker has agreed to a reduced commission allowing home prices to remain low for buyers.

“The BlueWest Properties team is grateful to have been chosen to represent the City of Grand Haven’s first Community Land Trust development,” said Meghan Heritage, Owner and Broker at BlueWest Properties. “We know that affordable housing is a paramount part of a successful community, and as our company tagline states, ‘Better Real Estate for a Better Community.’ We are excited to once again put our hands to work to benefit the community.”

For more information about this project and homes offered, please visit robinsonlandingmi.com.

Michigan Community Capital (MCC) is a non-profit diversified Public Private Partnership that supports the mission 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 US Treasury certified Community Development Financial Institution (CDFI) and a certified Community Development Entity (CDE). MCC has successfully attracted federal New Market Tax Credits, supported over $900 million in project financing and helped to create over 750 housing units and over 950,000-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 Market Tax Credits and property insurance for Low Income Housing Tax Credit projects. For more information on MCC visit michigancommunitycapital.org.

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