First National Bank of Michigan Announces Investment in Fund to Develop Affordable Housing in Michigan Communities
December 16, 2020
Source: Deb Lang
Job Title: Marketing Director
First National Bank of Michigan (FNBM) has announced a $1,000,000 investment to support affordable housing development in partnership with Cinnaire and the Michigan Bankers Association Service Corporation (MBASC). The investments are part of First National Bank of Michigan's commitment to expanding access to high-quality affordable housing, a key driver of economic mobility and family stability.
"FNBM has partnered with Cinnaire over the past 14 years in several of these investments supporting the communities we serve," said Dan Bitzer, FNBM CEO.
Cinnaire and MBASC recently announced the closing of the partnerships sixth affordable housing investment fund - the largest fund in its joint history - generating $16 million to support the development and rehabilitation of nine apartment communities across Michigan. These developments will provide more than 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. First National Bank of Michigan has invested in all 6 equity funds sponsored by Cinnaire and MBASC as part of the company's overall commitment to investing in the people and the communities they serve.
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 MSHDAs long-time partners, said Gary Heidel," MSHDA acting executive director. MSHDA is the allocating agency for federal housing tax credits in Michigan.
"Tax credit investing allows banks to do well by doing good," said Tom Edmiston, Cinnaire Senior Vice President, Business Development. "Our partnership with the MBASC has supported thousands of affordable housing units across Michigan, creating positive impact for hundreds of 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. We look forward to working with First National Bank of Michigan to ensure Michigan residents have access to safe, affordable housing."
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 every day" stated Jill Verscheure, MBASC Vice President. "This year, Michigan banks, including First National Bank of Michigan stepped up in an even larger way during the financial hardships of the pandemic exemplifying their unwavering compassion for Michigan residents in need. Thank you, First National Bank of Michigan, 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 senior 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).
Cinnaire is a non-profit financial partner that supports community and economic revitalization initiatives through creative investments, loans, and development services. Since 1993, Cinnaire has invested $4.7 billion to develop 811 housing communities in 10 states, providing 49,700 affordable apartment homes for more than 100,000 individuals and families and has provided community development loans to support the creation/retention of more than 187,000 square feet of commercial, mixed-use, and community space. In its mission to change lives and transform neighborhoods into thriving communities, Cinnaire has helped to create or retain over 76,000 jobs and spurt $7.9 billion in economic impact. www.cinnaire.com
About the Michigan Bankers Association 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 and improve their competitive position and increase their profitability. https://www.mibankers.com