14 Michigan Banks Generate $16 Million to Develop Affordable Housing in Michigan Communities

Cinnaire and MBA Service Corporation 2020 Community Fund is Largest Joint Fund Yet 

Cinnaire and the Michigan Bankers Association Service Corporation (MBASC) recently announced the closing of the partnership’s sixth affordable housing investment fund – the largest fund in its joint history – generating $16 million to support the development and rehabilitation of at least eight apartment communities across Michigan. These developments will provide 915 units of affordable housing to local communities. Since 2010, Cinnaire and MBASC have partnered to create five previous Low Income Housing Tax Credit (LIHTC) equity funds raising more than $58 million.

The fourteen banks investing in the 2020 Michigan Community Fund each demonstrate a firm commitment to investing in the people and the communities they serve. The 2020 Michigan Community Fund participants include Bank of Ann Arbor, Dearborn Federal Savings Bank, Eaton Community Bank, First National Bank of Michigan, Independent Bank, Lake Osceola State Bank, Level One Bank, Macatawa Bank, Mercantile Bank, Range Bank, Sturgis Bank & Trust, United Bank of Michigan, West Michigan Community Bank and West Shore Bank.

“Tax credit investing allows banks to do well by doing good,” said Tom Edmiston, Cinnaire Senior Vice President. “Our partnership with the MBASC has supported the development or rehabilitation of 4,000 units of affordable housing across Michigan, creating positive impact for families, seniors and people with special needs. At a time when one in four households struggle to pay rent, preserving and developing affordable housing is more important than ever.”

In return for their equity investments, the banks receive federal tax credits along with other tax benefits. In addition to reducing their corporate federal income taxes, banks benefit from positive CRA consideration from regulators.

“Affordable housing is a cornerstone of diverse, thriving communities, so I am pleased to see so many community banks investing in this industry through Cinnaire and MBASC – two of MSHDA’s long-time partners,” said Gary Heidel, MSHDA acting executive director. MSHDA is the allocating agency for federal housing tax credits in Michigan.

Over the past 10 years, Cinnaire and the MBASC have raised $74 million from 27 community banks, helping to finance the new construction or rehabilitation of 52 apartment communities creating nearly 4,000 affordable housing units in 41 cities and small towns across Michigan. These investments resulted in more than $700 million in economic impact, including the creation and retention of 3,700 jobs.

“Making a difference in Michigan communities is what our community bankers do with passion everyday,” said Jill Verscheure, MBASC Vice President. “This year, Michigan banks, stepped up in an even larger way during the financial hardships of the pandemic exemplifying their unwavering compassion for Michigan’s residents in need. Thank you, Michigan banks, for improving the lives of so many through the generous equity investments.”

This sixth investment fund co-sponsored by Cinnaire and MBASC will support at least eight affordable apartment communities, including: Brentwood Apartments in Belding (50 units); Cliffview Apartments in Rochester Hills (126 senior units); Greenbriar Apartments in Greenville (40 units); Lake Superior Village in Marquette (116 units); Meadow Ridge Apartments in Marlette (24 seniors units); Scottish Pines in Alma (24 senior units); Village at LaFranier Woods in Traverse City/Garfield Township (115 senior units), and Mt. Vernon Apartments in Lansing (140 units).

About the Michigan Bankers Association Service Corporation 

The Michigan Bankers Association Service Corporation (MBASC) is a wholly owned subsidiary of MBA. The mission of MBASC is to develop, maintain, and provide access to quality products and services that will benefit MBA member banks and improve their competitive position and increase their profitability. https://www.mibankers.com

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