Cinnaire and Michigan Bankers Association established an equity fund for low-income seniors, families and residents with disabilities
Cinnaire (Cinnaire) and Michigan Bankers Association Service Corporation (MBASC) recently closed its third equity fund, bringing $13 million to support the development and rehabilitation of 11 different apartment communities across the state, providing 774 units of quality, safe and affordable housing for lower income residents.
According to Dennis Koons, 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 taxes, encourage high quality, affordable housing for community residents; and also receive Community Reinvestment Act credit. It really is a win-win for bankers’ bottom lines and their communities, too.”
Thirteen banks in Michigan generated a combined $13 million to create low-income housing, including:
Bank of Ann Arbor
First National Bank of Michigan
County National Bank
Lake-Osceola State Bank
Level One Bank
Southern Michigan Bank & Trust
Sturgis Bank and Trust Company
United Bank of Michigan
West Shore Bank
“Chemical Bank has invested in several equity funds sponsored by Cinnaire and MBA because they provide tangible benefits to the communities we serve,” commented David Ramaker, CEO. “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 in exchange for federal Low Income Housing Tax Credits. 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’s really changed my life. 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.”
About Michigan Bankers Association
The Michigan Bankers Association (MBA), the voice of the banking industry since 1887, consists of Michigan financial institutions with more than 2,300 branches located throughout the state. The MBA promotes strong communities and economic activity in Michigan by advancing a positive business environment. MBA assists banks by offering products and services to reduce expenses and increase profitability through the strength of the association. For more information, visit www.mibankers.com
About MBA Service Corporation
The MBA 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, improve their competitive position and increase their profitability. For more information, please visit: www.mibankers.com/products