Below is an extensive list of funding opportunities and programs dedicated to helping homeowners, small business owners, community organizations, and developers secure the financing needed to sustain their development and revitalize Detroit communities. Business Development
21st CENTURY JOBS FUND
This competitive award program funds growth for companies ready to create jobs in new economy sectors including life sciences, energy, defense, and advance manufacturing by helping diversify and grow Michigan’s high-tech economy by investing in basic research at universities and non-profit research institutions, applied research, university technology transfer and the commercialization of products, processes and services. The 21st Century Jobs Fund also invests funds in or alongside qualified equity funds, mezzanine funds and venture capital funds that will create or retain jobs in Michigan companies. To stimulate additional lending by financial institutions across the state, the 21st Century Jobs Fund creates commercial loan enhancement programs where a documented growth opportunity has been identified. To find out more information call the MEDC at 888.522.0103 or visit their website at http://www.michiganadvantage.org/Targeted-Initiatives/21st-Century-Jobs-Fund/Default.aspx
AMERICAN RECOVERY CAPITAL PROGRAM
The Small Business Administration’s (SBA) America’s Recovery Capital (ARC) Loan Program can provide up to $35,000 in short-term relief for viable small businesses facing immediate financial hardship to help ride out the current uncertain economic times and return to profitability. Each small business is limited to one ARC loan.
ARC loans will be offered by some SBA lenders for as long as funding is available or until September 30, 2010, whichever comes first. For more information visit: http://www.sba.gov/recovery/arcloanprogram/REC_WHATISARCLOAN.html ANCHOR DISTRICT CREDIT & ANCHOR JOBS CREDIT
The District Credit allows qualified anchor companies to claim a refundable credit against the state business tax when they convince qualified suppliers and customers to open, locate or expand near their facility. The Jobs Credit allows designated high-technology anchor companies to earn a state business tax credit based on the jobs created by qualified customers or suppliers that locate in Michigan as a result of the Anchor Company. To find out more information call the MEDC at 517.373.9808 or visit their website at http://www.michiganadvantage.org/Default.aspx CREATIVE CORRIDOR INCENTIVE FUND
The Detroit Economic Growth Corporation (DEGC) in collaboration with the Detroit Investment Fund and their economic development partners has developed the Creative Corridor Incentive Fund to assist in the attraction and retention of creative businesses to Detroit's Creative Corridor. The express purpose of this program is to create a dense cluster of knowledge-based businesses, and a talented, qualified workforce in this area. For more information call the DEGC at 313.963.2940. DETROIT COMMUNITY LOAN FUND
The Detroit Community Loan Fund is a private, for-profit fund that provides growth financing for companies located in the city of Detroit. The fund's focus is on companies that are unable to obtain financing from traditional sources. The loan amounts will average $75,000 to $100,000, and will be available for businesses that are less than five years old, have annual sales of less than $1 million and have less than 50 employees. The loans can be used for permanent workign capital for expansioin, equipment financing, accounts receivable financing, purchase order financing, business acquisition, marketing and sales expansion, new product development, physical plant expansion, improvements to manufacturing systems and real estate pre-development. For more information contact Shorebank Enterprise Detroit at: 313.886.2163.
DETROIT EMPOWERMENT ZONE
Midtown is within Detroit’s Empowerment Zone which provides tax incentives to induce commercial investment in distressed communities. Businesses located within the zone are eligible for a federal tax credit for up to 20% of $15,000 in wages per qualifying employee who resides in the Empowerment Zone. There is also a state property tax discount for improvements above existing valuation, and an increased federal tax deduction for depreciable property. An additional category of federal tax-exempt private activity bonds will also be available for financing purchases of business property and land. For more information, contact the U.S. Internal Revenue Service 800.829.1040; the State of Michigan, Department of Treasury, 800.487.7000; or the Detroit Empowerment Zone Executive Office, 313.872.8050.
DETROIT ENTREPRENEURSHIP INSTITUTE
Nationally recognized for its business and entrepreneurial training programs, the DEI offers a number of services including business consultants, computer and resource centers and a micro loan fund. A training course must be completed to be eligible to apply. For more information call 313.877.9060.
DETROIT MICRO-ENTERPRISE LOAN FUND
The Detroit Micro-enterprise Loan Fund is a nonprofit corporation that provides support for small businesses in their initial stage of development. The fund provides loans anywhere from $1,000 to $10,000 for businesses located in Detroit, Highland Park, and Hamtramck. The interest rate on the loans is prime plus 4%. In addition to loans, the Fund provides peer support for small businesses as well as linkages to other small business support within the community. For more information, call 313.263.4032 or visit: www.detroitmicroenterprisefund.com DETROIT URBAN RETAIL LOAN FUND (DURLF)
Created by the Detroit Investment Fund in partnership with the Michigan Economic Development Corporation, the DURFL is a revolving loan program. It's intended to address a significant deficit in the Detroit market in providing lending support to small and mid-sized, retail storefront businesses in targeted areas of Detroit’s Greater Downtown to include Midtown, Downtown, Riverfront, Eastern Market and Corktown. These include drycleaners/laundry facilities, boutique grocery stores, neighborhood services and small commercial businesses. Loans provided by the DURLF will range from as low as $50,000 to a maximum of $500,000 with a preferred range of $150,000 to $300,000. For more information call Mary King at 313.259.6368 or visit: www.detinvfund.com FAMILY TREE LOANS
Family Tree Loans is a group of financial, legal and title experts and licensed practioners. When an entrepreneur seeks a loan from family or friends to start a business, we facilitate the proper recommendations, documentation, underwriting assistance and recording of documents. We are facilitators, not lenders. You contact us when you decide to lend money to family or friends for their business endeavors, OR when you are determining whether to lend the money. For more information, visit www.FamilyTreeLoans.com
FAST TRAC
FastTrac is an award-winning, comprehensive package of entrepreneur-learning programs and materials that provides existing and aspiring entrepreneurs with key business insights and skills, leadership experiences, and valuable networking and mentoring opportunities needed to start, grow, and lead businesses. The program provides existing and aspiring entrepreneurs in non-academic environments. To find out more information call 313.879.5250 or visit their website at http://techtownwsu.org/category/fasttrac/ FIRST STEP FUNDS
This fund provides emerging and start-up service, product, and device and technology businesses led by management teams that have relevant experience and that have successfully completed a training program through a qualified regional business incubator/accelerator access to mico-loans. Micro-loan applications must be submitted by a qualified business incubator/accelerator representing the company as its sponsor. Micro-loans range from $10,000 to $50,000. For more information call the Invest Detroit office at 313.259.6368 or view their website at www.detinvfund.com THE GREEN GROCERY PROJECT
The Green Grocer Project’s aim is to stimulate renewed investment in Detroit neighborhoods while providing improved fresh food access to Detroit residents. The program provides Detroit’s grocers with the tools needed to become successful, sustainable and competitive in the metro area grocery market.
The Technical Assistance Program is designed to assist participating grocers in addressing the myriad of operational and store development needs that they encounter on a daily basis.
The Funding Assistance Program helps qualified grocers access financing for their improvement projects through either the Green Grocer Project’s loan program or other programs available in the community.
The Grocer Clearinghouse Program is staffed with professionals well versed in permitting, zoning, site selection, funding options and a multitude of other tools to benefit business. Staff members can be grocers’ one-stop-shop, and connection to the resources to move their business forward. For more information call 313.237.4628 or send an email to greengrocer@degc.org.
MICHIGAN INTERFAITH TRUST FUND SMALL BUSINESS LOANS
The Michigan Interfaith Trust Fund offers low interested loans to small businesses in the state of Michigan to promote community economic development. These businesses generally do not qualify for conventional bank loans. Some examples include: day care centers, florists, restaurants, cyber cafés, and lawn services. The loans may be used of a variety of purposes including acquisition, construction or renovation of buildings, inventory, cash flow to fun planned business expansion, pre-development costs, and to purchase land. To find out more information call Michigan Interfaith Trust Fund at 313.964.7300 or visit their website at www.interfaithtrust.org/
MICHIGAN INTERFAITH TRUST FUND TECHNICAL ASSISTANCE
Michigan Interfaith Trust Fund enhances its loan productes, dvelops future borrowers, and generates operating income through the provision of technical assistance. This support is provided in a variety of areas including organizational devleopmetn, strategic and business planning, board development and training, project development, and financial packaging. To find out more information call Michigan Interfaith Trust Fund at 313.964.7300 or visit their website at www.interfaithtrust.org
MICHIGAN SMALL BUSINESS DEVELOPMENT AND TECHNOLOGY CENTER
The Michigan Small Business & Technology Development CenterTM (MI-SBTDCTM) enhances Michigan's economic well-being by providing counseling, training, research and advocacy for new ventures, existing small businesses and innovative technology companies. With offices statewide, the MI-SBTDC positively impacts the economy by strengthening existing companies, creating new jobs, retaining existing jobs, and assisting companies in defining their path to success. For more information, visit http://www.gvsu.edu/misbtdc/index.cfm?id=9D6DCCBD-CC47-0832-CF3A9B2A8CCA3FE7.
NEW PERSONAL PROPERTY EXEMPTION
The New Personal Property Exemption affords a 100% property tax exemption for specific businesses located within eligible distressed communities. This exemption is for all new personal property placed in a district that has been established by the local unit of government. The local unit of government determines the number of years granted and may grant any number of years for the exemption. Applications are filed, reviewed and approved by the local unit of government, but are also subject to review at the State level by the Property Services Division and the State Tax Commission. The State Treasurer, with the written concurrence of the President of the Michigan Strategic Fund, is responsible for final approval. Exemptions are not effective until approved by the State Treasurer. For more information visit: http://www.michigan.gov/taxes/0,1607,7-238-43535_53197-213182--,00.html
SHOREBANK ENTERPRISE DETROIT (SED)
SED is a nonprofit 501(c)3 community development organization assisting residents buying their first homes, making loans to small businesses and providing real estate development planning. Shorebank Enterprise is a Detroit affiliate of Shorebank Corporation, whose mission is to increase economic opportunities in traditionally underserved urban and rural communities. SED has five new loan programs:
- "Late Stage" Pre-Development Loans: these loans bridge the gap between the early stages of predevelopment
and the stage where the project could qualify for preconstruction or construction financing.
- Small Business Loans: these loans are used for most business purposes such as working, capital, equipment financing, A/R financing, business acquisition, sales expansion, etc.
- Pre-Construction Loans: these loans are used after "soft cost" predevelopment investments or loans and before a project qualifies for construction finance.
- Contractor Lines of Credit: lines of credit for contractors are tied to a specific contract or purchase order.
- Facade Building Improvement Loans: these loans are used for cosmetic, structural and energy-efficiency building upgrades in neighborhood commercial districts.
For more information call 313.886.2163.
SMART START
SmartStart, TechTown's business development program, helps companies accelerate growth and manage issues like product development, marketing, funding and basic business operations for each company to maximize revenue growth and profitability. Clients work closely with TechTown staff and an array of business consultants and service providers to create and execute a detailed strategy for growth. For more information and an application, visit http://techtownwsu.org/business/smartstart.php
SMART ZONES
SmartZones provide district geographical locations where technology-based firms, entrepreneurs and researchers locate in close proximity to all of the community assets that assist in their endeavors. SmartZone technology clusters promote resource collaborations between universities, industry, research organizations, government and other community institutions, growing technology-based businesses and jobs. New and emerging businesses in SmartZone technology clusters are primarily focused on commercializing ideas, patents and other opportunities surrounding corporate, university or private research institute research and development efforts. To find out more information call the MEDC at 888.522.0103 or visit their website at http://www.michiganadvantage.org/Default.aspx
TECHTOWN
TechTown is a business incubator that provides startup businesses with the resources needed to be successful. It has attracted or helped create more than 120 growth-minded companies in the Detroit area and continues to help entrepreneurs who are creating jobs, and building centers of excellence in emerging industries like life sciences, alternative energy and advanced engineering. For more information call TechTown at 313.879.5250 or view their website at http://techtownwsu.org/
UNIVERSITY CULTURAL CENTER ASSOCIATION (UCCA) FACADE GRANT AND BUILDING LOAN PROGRAM
The UCCA is offering 50% matching grants up to $50,000 for facades of commercial buildings along Woodward Ave. between I-75 and I-94. A companion program, the Building Improvement Loan Program offers loans at two points below prime/five year terms for commercial buildings on Woodward between I-75 and I-94. For more information call: 313.577.5088
U.S. SMALL BUSINESS ADMINISTRATION
SBA 504 - This loan is available to small and medium sized businesses where the financing will help companies create jobs, export their product or service, retain jobs, and expand business ownership opportunities. Eligible projects include: land and building acquisition; new construction of buildings; building expansion or additions; leasehold improvements; and machinery and equipment. The SBA 504 Loan Program has a low, down payment of 10%, fixed interest rates and longer terms on SBA’s portion of projects for real estate financing and 10 years for equipment financing. For more information, call the Michigan SBA office at: 313.226.6075. WAYNE COUNTY, URBAN LOAN FUND
The purpose of the Wayne County Revolving Loan Fund is to address teh most critical financing gaps for small businesses in teh County and to create jobs. The Revolving Loan Fund will target projects that promote development in distressed communities or the expansion of minority businesses. Eligible projects include: land and building acquisition; leasehold improvements; machinery and equipment; working capital in conjunction with one of the above; and projects that create or retain the Urban Loan Fund. The business applying for the loan must invest at least 10% of the project cost. For more information, call Joan Broffie at 313.224.0820.
WAYNE STATE UNIVERSITY CENTER FOR URBAN STUDIES
For a complete listing of all resources for small business assistance and financing request Detroit Small Business Handbook to Resources, call Center for Urban Studies, 313.577.2208, visit web site at www.cus.wayne.edu.
Brownfield Development
BROWNFIELD ASSESSMENT GRANT
The Detroit/Wayne County Port Authority in partnership with the Southwest Detroit Environmental Vision, was able to secure $400,000 in Brownfield Assessment grants, from thh U.S. Environomental Protection Agency. This grant money is able to fund environmental due diligence work required in property transactions throughout most of southwest Detroit. Property survey, title and inventory work, Phase I & II investigations, and Baseline Assessments are all applicable through this grant, and by working with the DWCPA and SDEV. For more information contact 313.331.3842 or visit www.portdetroit.com BROWNFIELD REDEVELOPMENT
Brownfield incentives are available to promote the redevelopment of contaminated, blighted or obsolete properties. Tax Increment Financing and Michigan Business Tax Credits are available to spur private development and investment in Brownfield sites and blighted downtowns. To find out more information call the MEDC at 517.373.9808 or visit their website at http://www.michiganadvantage.org/Default.aspx CITY OF DETROIT BROWNFIELD REDEVELOPMENT AUTHORITY
The Detroit Brownfield Redevelopment Authority (DBRA) was established in order to promote the revitalization of environmentally distressed areas, or brownfields, within the city of Detroit. The DBRA approves two types of brownfield redevelopment plans. Brownfield Redevelopment Authority Tax Increment Financing allows municipalities to implement brownfield redevelopment financing plans to capture state and local property taxes that result from the increased value of the redeveloped parcel. The Brownfield Investment Single Business Tax Credit applies a 10% Single Business Tax Credit to the cost of the redevelopment of a brownfield site. This includes demolition of an abandoned property, construction, or renovation of buildings on an eligible property, and site improvements. For more information contact the Detroit Economic Growth Corporation at 313.963.2940.
OBSOLETE PROPERTY TAX ABATEMENT
The purpose of this program is to redevelop functionally obsolete or blighted buildings. Once approved, the city allows an assessment of property taxes at their current value prior to rehabilitation for up to twelve years. For more information contact the Detroit Economic Growth Corporation at 313.963.2940. Commerical Real Estate
BLOOMFIELD FINANCIAL SERVICES, INC. (BFS)
BFS is a unique commercial mortgage banking firm; originating long-term mortgages for existing commercial properties, as well as placing both construction/permanent and open-ended construction loans. For more information visit: http://realproperty-investors.com/ COMMERCIAL REHABILITATION ACT EXEMPTION
The Commercial Rehibilitation Act affords a tax incentive for the rehabilitiation of commercial property for the primary purpose and use of a commercial business or multi-family residential facility. The property must be located within an established Commercial Rehabilitation District. Exemptions are approved for a term of 1-10 years, as determined by the local unit of government. The property taxes are based upon the previous year's (prior to rehabilitation) taxable value. The taxable value is frozen for the duration of the certificate. Applications are filed, reviewed and approved by the local unit of government, but are also subject to review at the State level by the Property Services Division. The State Tax Commission (STC) is responsible for final approval and issuance of certificates. Exemptions are not effective until approved by the STC. For more information, visit: http://www.michigan.gov/taxes/0,1607,7-238-43535_53197-222387--,00.html DETROIT INVESTMENT FUND
A source of private sector financing designed to be a catalyst for investment in Detroit. The DIF finances qualified commercial projects to stimulate economic development and job creation. Financing is considered for established, well-managed, growth-oriented companies that are expanding their operations or are willing to relocate to Detroit. The DIF provides loans which leverage owner equity so that the contemplated transaction will merit traditional financing. Generally, loans range from $500,000 and $2 million. For more information call the Invest Detroit office at 313.259.6368 or view their website at www.detinvfund.com INVEST DETROIT CDE
Invest Detroit CDE supports the development of commercial and mixed-use real estate in Detroit by expanding the availability, affordability, and access to commercial capital. Invest Detroit CDE makes loans and investments in businesses and commercial and residential real estate projects to finance land development, vertical development of mixed-use, office, retail, and industrial development projects. The program attracts private businesses and development by offering tax credits worth 39 percent of the value of the investment claimable over seven years. For more information call the Invest Detroit office at 313.259.6368 or view their website at www.detinvfund.com INVESTMENT TAX CREDITS
Investment Tax Credits are available for substantial commercial rehabilitation to buildings constructed before 1935. A 10% tax credit on rehab costs can be claimed against Federal income tax liability. For more information talk to your accountant.
MICHIGAN INTERFAITH TRUST FUND MIXED USE LOANS
The Michigan Interfaith Trust Fund offers one-stop financing to developers of mixed use projects that involved both commercial and residential space. To find out more information call Michigan Interfaith Trust Fund at 313.964.7300 or visit their website at www.interfaithtrust.org/
NEW MARKETS TAX CREDIT PROGRAM
The NMTC Program permits individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in Community Development Entities (CDEs). The credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. Substantially all of the taxpayer's investment must in turn be used by the CDE to make qualified investments in low-income communities. Successful applicants are selected only after a competitive application and rigorous review process that is administered by the CDFI Fund. For more information visit: http://www.cdfifund.gov/ OBSOLETE PROPERTY REHABILITATION ACT EXEMPTION
The Obsolete Property Rehabilitation Act (OPRA) provides property tax exemptions for commercial and commercial housing properties that are rehabilitated and meet the requirements of the Act. Properties must meet eligibility requirements including a statement of obsolescence by the local assessor. The property must be located in an established Obsolete Property Rehabilitiation District. Exemptions are approved for a term of 1-12 years as determined by the local unit of government. The property taxes for the rehabilitated property are based on the previous year's (prior to rehabilitation) taxable value. The taxable value is frozen for the duration of the exemption. Additionally, the State Treasurer may approve reductions of half of the school operating and state education taxes for a period not to exceed 6 years for 25 applications annually. Applications are filed, reviewed and approved by the local unit of government, but are also subject to review at the State level by the Property Services Division. The State Tax Commission (STC) is responsible for final approval and issuance of OPRA certificates. Exemptions are not effective until approved by the STC. For more information visit: http://www.michigan.gov/taxes/0,1607,7-238-43535_53197-213177--,00.html PREDEVELOPMENT FUNDS
The Predevelopment Funds provides predevelopment loans that are typically not available through traditional financing sources at the early stages of the development process. The loan programs are designed to promote development of commercial, residential and mixed-use projects in targeted areas of Detroit by assisting both individual developers and community organizations. Generally, these loans are considered to assist with costs related to completing a predevelopment package to pursue traditional financing, i.e. land acquisitions, purchase options, title work, feasibility and planning options, environmental studies, construction work necessary to preserve structural integrity, etc. Loans generally range from $50,000 to $200,000. For more information call the Invest Detroit office at 313.259.6368 or view their website at www.detinvfund.com REAL ESTATE ASSISTANCE FUND
The Real Estate Assistance Fund (REAF) was established to help gain control of property that is crucial to development in the city of Detroit, and to address pre-development needs. This program provides assistance in the form of loans, with interest rates that are below market. REAF does not compete with traditional financial institutions, as funds for land acquisition, options, and predevelopment are not readily available through these institutions. For more information, contact Detroit Renaissance, 313.259.5400.
SHOREBANK ENTERPRISE DETROIT (SED)
SED is a nonprofit 501(c)3 community development organization assisting residents buying their first homes, making loans to small businesses and providing real estate development planning. Shorebank Enterprise is a Detroit affiliate of Shorebank Corporation, whose mission is to increase economic opportunities in traditionally underserved urban and rural communities. SED has five new loan programs:
- "Late Stage" Pre-Development Loans: these loans bridge the gap between the early stages of predevelopment
and the stage where the project could qualify for preconstruction or construction financing.
- Small Business Loans: these loans are used for most business purposes such as working, capital, equipment financing, A/R financing, business acquisition, sales expansion, etc.
- Pre-Construction Loans: these loans are used after "soft cost" predevelopment investments or loans and before a project qualifies for construction finance.
- Contractor Lines of Credit: lines of credit for contractors are tied to a specific contract or purchase order.
- Facade Building Improvement Loans: these loans are used for cosmetic, structural and energy-efficiency building upgrades in neighborhood commercial districts.
For more information call 313.886.2091.
Economic Development
COMMUNITY FOUNDATION OF S.E. MICHIGAN WOODWARD COORIDOR LOAN FUND
The Community Foundation of Southeast Michigan provided the funds for an economic development loan fund that gives loans to projects that reinvest in the lower Woodward Avenue corridor in the City of Detroit. Loans from this fund are made primarily to small businesses and nonprofit organizations that are located in the lower Woodward Avenue corridor and are providing much needed products and services to this neighborhood. To find out more information call Michigan Interfaith Trust Fund at 313.964.7300 or visit their website at www.interfaithtrust.org/ DETROIT LISC
Detroit LISC is a program area of the Local Initiatives Support Corporation. LISC provides technical assistance, grants, loans, and training, to help in the creation of affordable housing, commercial, industrial and community facilities, businesses and jobs in low and moderate income communities. For more information, call LISC at 313.596.8222.
DETROIT/WAYNE COUNTY PORT AUTHORITY ECONOMIC DEVELOPMENT PROGRAM
This program provides pre-development grant assistance in the following ways:
* Financial and technical assistance available for environmental due diligence
* Facilitates partnerships with City of Detroit and Wayne County
* Grant funding for Phase I, Phase II, BEA, Brownfield Plans and other financial incentive and tax credit programs offered by the State of Michigan (no match required)
This program also offers unique and creative financing capabilities:
* Facilitates public and private capital investment projects
* Synthetic leasing (off-balance sheet financing) -- allows publicly traded companies, or constituent units of government, to strengthen their balance sheets and financial ratios
* Capital operating and synthetic lease options available with renewable option/balloon
* DWCPA can enter into contracts as lessee or lessor
* Rates can be tied very closely to debt service, preventing typical developer "mark up"
* Client maintains control of construction decisions and operations
* 100% debt financed
* Possible for the "private partner" to capture depreciation through the asset
* Not a debt of any constituent unit (City of Detroit, Wayne County), nor a pledge of credit
* Help corporations incorporate favorable financial ratios, maintain good credit, borrowing capacities
This program offers a streamlined approval process, from immediate issuance of bonds -- no voter approval required (payable solely by revenues) -- to quick and "more corporate" decision-making. For more information visit www.portdetroit.com or call 313.331.3842
MICHIGAN ECONOMIC GROWTH AUTHORITY (MEGA)
The Michigan Economic Development Corporation (MEDC) created the Michigan Economic Growth Authority (MEGA) Program, which offers job creation tax credits to attract projects to Michigan. In addition to standard MEGA tax credits, “High Tech” MEGA tax credits specifically support the growth and attraction of high technology industries. To find out more information call the MEDC at 888.522.0103 or visit their website at http://www.michiganadvantage.org/Default.aspx MICHIGAN INTERFAITH TRUST FUND NON-PROFIT FACILITY LOANS
The Michigan Interfaith Trust Fund makes loans to non-profit organization to acquire, build or renovate facilities to be used for delivery of services to low to moderate income people. To find out more information call Michigan Interfaith Trust Fund at 313.964.7300 or visit their website at www.interfaithtrust.org/ NAIMARK FUND
This loan fund provides loans to businesses and nonprofit organizations throughout the State of Michigan for both housing and economic development activities. To find out more information call Michigan Interfaith Trust Fund at 313.964.7300 or visit their website at www.interfaithtrust.org/ SECTION 108 LOAN GUARANTEE PROGRAM, ECONOMIC DEVELOPMENT INITIATIVE AND BROWNFIELD ECONOMIC DEVELOPMENT INITIATIVE
Section 108 is the loan guarantee provision of the Community Development Block Grant (CDBG) program. The program allows local governments to transform a small portion of their CDBG funds into federally guaranteed loans large enough to pursue physical and economic revitalization project that can renew entire neighborhoods. Loan commitments are often paired with Economic Development Initiative (EDI) or Brownfield Economic Development Initiative (BEDI) grants, which can be used to pay predevelopment costs of a Section 108-funded project. They can also be used as a loan loss reserve (in lieu of CDBG) to write-down interest rates, or to establish a debt services reserve. For more information visit: http://www.hud.gov/offices/cpd/communitydevelopment/programs/108/
Historic Preservation
COMBINED FEDERAL AND STATE TAX CREDITS
These tax credits are available to owners of properties that are individually qualified to participate in both the Federal and State programs. Properties must have a depreciable end use; the rehabilitation must meet the Federal and State expenditure thresholds; and must be certified by both the National Park Service and the State Historic Preservation Office. The basic State combined credit is a 5% credit in addition to the 20% Federal credit. The state also offers an up to 15% Enhanced credit and Special Consideration credit in addition to the 5% basic credit. Enhanced and Special Consideration credits are only available on a limited basis and are awarded competitively. For more information, contact the SHPO at 517.373.1630. Downloadable guidelines and forms, and links to relevant websites can be found at: http://www.michigan.gov/mshda/0,1607,7-141-54317_18873_18887-57846--,00.html FEDERAL INCOME TAX CREDITS
This tax credit is available for owners of National Register-listed income-producing properties who rehabilitate their properties. The projects must be certified by the National Park Service, in consultation with the State Historic Preservation Office. For more information, contact the SHPO at 517.373.1630. Downloadable guidelines and forms, and links to relevant websites can be found at: http://www.michigan.gov/mshda/0,1607,7-141-54317_18873_18887-54165--,00.html
HISTORIC PRESERVATION FUND
This fund is a grant program that distributes 10% of all funds received annually by the State Historic Preservation Office from the National Park Service. The grant recipients must be a designated Certified Local Government (CLG) and must provide 40% of the total project cost as matching share. For more information, contact the SHPO at 517.373.1630 or visit: http://www.michigan.gov/mshda/0,1607,7-141-54317_21884---,00.html STATE BUSINESS TAX CREDITS AND STATE INCOME TAX CREDITS
These tax credits are available for owners of historic properties who complete rehabilitation work. The properties, depending on their community's size, must be listed in the State Register, the National Register, or be included in a locally protected historic district. For more information, contact the SHPO at 517.373.1630. Downloadable guidelines and forms, and links to relevant websites can be found at: http://www.michigan.gov/mshda/0,1607,7-141-54317_18873-211483--,00.html
Housing Development
AFL-CIO HOUSING INVESTMENT TRUST FUND
The AFL-CIO Housing Investment Trust Fund is a pooled pension fund that invests in affordable housing developments throughout the United States. Founded in 1965, this program has provided retirement security for union members through the investment of union pension funds in housing, while addressing the country's affordable housing needs. For more information on the Trust's financing program, please call and ask to speak with the Multifamily Finance Department, contact 202.331.8055 or visit http://www.aflcio-hit.com/wmspage.cfm?parm1=628
CHARTER ONE BANK HOMEBUILDER LOAN PROGRAMS
Charter One has a number of programs that are tailored to meet the needs of local developers. They include revolving line of credit, acquisition and development and individual builder spec loans. Charter One also offers programs to help first time home buyers and low to moderate home purchasers. The PNCH "Got a Yes" program offers no closing costs, no PMI on refinances, $2,000 rebate on purchases only, 5% minimum down payment. For information contact Thomas Strausser at 248.901.1341. CONSTRUCTION/PERMANENT LOAN PROGRAM FOR MULTIFAMILY HOUSING
Under this program, the Trust provides fixed-rate combined construction and permanent financing for market-rate and affordable multifamily housing. Loan sizes starts at $3 million with a term life of up to 30 years. For more information contact 202.331.8055 or visit www.aflcio-hit.com CONSUMER TAX ASSISTANCE LOAN FUND (CTALF)
Created through a generous contribution from Comerica Bank and J.P. Morgan Chase, the Tax Assistance Loan Fund provided loans to residents of the City of Detroit facing foreclosure due to unpaid property taxes on their personal residence. To find out more information call Michigan Interfaith Trust Fund at 313.964.7300 or visit their website at www.interfaithtrust.org/
FANNIE MAE
The Fannie Mae, American Communities Fund is dedicated to investing in neighborhoods that lack adequate access to equity capital for the development of affordable housing and related facilities. Investments will be structured to meet the transaction’s capital needs. For example, financial support can be provided as equity, participating second mortgages, mezzanine debt, or bridge financing. Funding can be used for initial working capital, land acquisition, or other project needs. The fund may participate as a general or limited partner, a member of a limited liability company, or a stockholder in a corporation, depending on the ownership entity. For more information, call 800.732.6643.
FEDERAL HOUSING ADMINISTRATION NEW CONSTRUCTION/SUB-REHAB LOAN PROGRAM
The New Construction/Sub-Rehab Program is a combination construction and permanent loan program for new construction and substantial rehabilitation of affordable and market rate apartment communities. To find out more information contact St. James Capital, L.L.C at 248.290.2200 or visit www.sjcap.com.
FEDERAL HOUSING ADMINISTRATION REFINANCING LOAN PROGRAM
The Federal Housing Administration Refinancing Program offers fixed rate permanent refinancing for existing apartment communities with HUD insured mortgages and HUD Section 202 Direct Loans including moderate rehab and improvements. To find out more information contact St. James Capital, L.L.C at 248.290.2200 or visit www.sjcap.com.
FEDERAL HOUSING ADMINISTRATION ACQUISITIONS LOAN PROGRAM
The Federal Housing Administration Acquisitions Loan Program offers fixed rate permanent financing for the acquisition of refinancing of existing apartment communities with at least three years of operating history. To find out more information contact St. James Capital, LLC at 248.290.2200 or visit www.sjcap.com. FHA-INSURED CONSTRUCTION AND PERMANENT LOAN PROGRAM
The Trust provides construction and permanent mortgage loan financing for the new construction or substantial rehabilitation of multifamily/senior housing projects and healthcare facilities that are insured by FHA. Both market-rate and affordable multifamily housing, senior housing, nursing and intermediate care facilities that qualify under the appropriate FHA mortgage loan program are eligible for Trust financing. For more information call 202.331.8055 or visit www.aflcio-hit.com FOWARD COMMITMENT PERMANENT LOAN PROGRAM FOR MULTIFAMILY HOUSING
Under this program, the Trust provides a forward commitment of the permanent loan. The loan is originated by a Fannie Mae or Freddie Mac lender and then securitized. The Trust purchases teh mortgage-backed security based on a pre-determined fixed-rate or spread. The loan size starts at $3 million with a term life of up to 30 years. For more information call 202.331.8055 or visit www.aflcio-hit.com GREAT LAKES CAPITAL FUND FOR HOUSING (GLCFH)
The GLCFH helps responsible corporations invest in affordable housing and community econoimc development activities. GLCF raises capital from corporations and financial instituations, and invests these resources into real estate development partnerships. The partnerships receive essential equity for their developments. The investors receive a competitive internal rate of return on their investment through tax benefits; and the community receives high quality, affordably-priced housing and/or commercial developments that generate social and economic benefits for area residents. For more information call 517.482.8555. HELPING HARDEST HIT HOMEOWNERS
The Michigan State Housing Development Authority (MSHDA) was approved by the U.S. Department of Treasury to distribute $154.5 million in federal funds beginning July 12, 2010. This money should help more tha 17,000 Michigan households avoid foreclosure. The plan is designed to provide: + Mortgage payment assistance for homeowners currenlty receiving unemployment compensation
+ Rescue funds for homeowners who have fallen behind in their mortgage payments due to no fault of their own and who have overcome this obstacle, and
+ Federal matching funds for principal reductions for homeowners who can no longer afford their mortgage payments as a result of reduced income. For more information, contact Mary Lou Keenon in the MSHDA Communications Office at 517-373-0011 or visit: http://www.michigan.gov/mshda/0,1607,7-141--235359--,00.html HISTORIC BRUSH PARK FACADE EASEMENT PROGRAM
The Historic Brush Park Facade Easement Program is funded through a City of Detroit’s Community Development Block Grant. The program is designed to facilitate the rehabilitation of historic homes. Owners of eligible owner-occupied houses (or those houses to be occupied by owners upon becoming habitable) and investors, in exchange for a forgivable loan, must agree to donate a perpetual facade easement to the Brush Park Development Corporation (BPDC), a non-profit organization. The program requires that homeowners renovate their homes to “minimum housing quality standards”, as defined by HUD. Since program funds can be used for the exterior renovation only, other funds must be contributed by the owner to provide matching dollars. The easement is donated to the BPDC to serve as a protection against future demolition or deterioration of the facade. The easement donation is intended to cover the exterior elements of the building only. For more information, contact the City of Detroit, Planning and Development, 313.224.6380.
HOME FUNDS
The City of Detroit Home Investor Loan Program assists for-profit and not-for-profit developers to build rental units or purchase property to renovate for rental to low or very low income persons in the City of Detroit. Eligible uses for investor loan funds include acquisition of vacant properties, renovation and/or new construction, and reimbursement of soft costs which are reasonable and necessary. All rental units that are developed using HOME funds must meet the Affordable Rent and Occupancy Requirements of the program. The program requires that 20% of HOME assisted units must be reserved for occupancy by families at 50% or less of the Area Median Income (AMI). The balance of the HOME assisted units must be occupied by tenants with annual incomes of at least 60% of the AMI or less. For more information, call the City of Detroit, Planning & Development Dept., 313.224.6380.
LOWER WOODWARD HOUSING FUND (LWHF)
The LWHF provides gap financing through a revolving loan fund for the creation of new and renovated housing in a targeted area of Detroit’s downtown core. Financing is intended to stimulate investment in housing within converted commercial buildings and on infill parcels to bring residents into the downtown commercial uses. Loan size is determined by the needs and impact of the project along with the risk associated with the transaction, but not to exceed $2.5 million. For more information call the Invest Detroit office at 313.259.6368 or view their website at www.detinvfund.com GREAT LAKES CAPITAL FUND FOR HOUSING
The objective of the Michigan Capital Fund for Housing (MCFH) is to create quality, affordable housing for low-income individuals. MCFH uses limited partnerships allowing investors to capitalize on the Low Income Housing Tax Credit program, which promotes private investment in affordable housing by reducing federal tax liability and providing a competitive rate of return on investment. For more information contact the MCFH at 517.482.8555 or visit their website at http://www.capfund.net/.
MICHIGAN INTERFAITH TRUST FUND
The Michigan Housing Trust Fund (MITF) functions as a revolving loan fund for the purpose of increasing the supply of affordable housing in Michigan. MITF provides loans and technical assistance to community and faith-based nonprofits developing affordable housing. MHTF also partners with traditional financial institutions allowing developers to serve low and very low income families and individuals. For additional information call (517) 372-6001.
MICHIGAN INTERFAITH TRUST FUND AFFORDABLE HOUSING LOANS
The Trust Fund makes loans throughout Michigan for the development, acquisition, and preservation of affordable housing for low income people. Borrowers are primarily nonprofit organizations and eligible activities include single family homeownership, rental housing, and transitional housing. Loan funds can be used for predevelopment costs, acquisitions, construction, or short-term permanent financing. To find out more information call Michigan Interfaith Trust Fund at 313.964.7300 or visit their website at www.interfaithtrust.org/ MICHIGAN INTERFAITH TRUST FUND PRE-DEVELOPMENT LOANS
The Michigan Interfaith Trust Fund offers pre-development loans within the City of Detroit. Projects should increase the quantity of quality affordable housing for households with low and very-low incomes. To find out more information call Michigan Interfaith Trust Fund at 313.964.7300 or visit their website at www.interfaithtrust.org/ MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY
The Michigan State Housing Development Authority (MSHDA) operates a number of programs to finance new rental housing or renovation of existing buildings. MSHDA administers neighborhood preservation and low income tax credit programs. Eligible borrowers are non-profit housing corporations, housing co-operatives and limited dividend housing association limited partnerships. For more information, call the MSHDA office, 517.373.8370.
MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY CITIES PROMISE LOAN FUND
This loan program was capitalized through a grant from the Michigan State Housing Development Authority to provide economic development loans in the eight Cities of Promise, which include Detroit, Pontiac, Highland Park, Hamtramck, Flint, Saginaw, Benton Harbor, and Muskegon Heights. For more information, call the MSHDA office, 517.373.8370.
MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY PROPERTY IMPROVEMENT PROGRAM
This program offers low interest home improvement loans to single-family homeowners with low-to-moderate income (up to $65,000 or $74,750 in certain areas.) Eligible home improvements include furnaces, central air conditioning, insulation, siding, windows, solar water heating systems, roofs (repair or replacement), kitchen and bathroom remodeling, wall to wall carpeting, garage or carport (adding on or renovation), ramp installation, windmills for home power, and other permanent improvements to homes. The loans can be as low as $1,000 and up to $25,000 without equity in you home. With equity, you can borrow up to $50,000. MSHDA can amortize loans up to 20 years to make payments affordable. Interest rates are 4%, 6%, or 8%, depending on your income. There is no application fee, no points or annual fees, and no penalty for early payoff. Automatic payment available. For more information, go to www.michigan.gov/mshda, and click on the Home Improvement link. You can also call 517.373.8017 or email Jess Sobel at sobelj@michigan.gov
MSHDA DOWN PAYMENT ASSISTANCE PROGRAM
The Michigan State Housing Development Authority is offering a Down Payment Assistance Program to low-to-moderate income homebuyers. The program offers a zero-interest, non-amortizing loan with no monthly payments for up to $7,500 down payment assistance with a sales price no greater than $224,500 (household income limits may vary depending on location and family size). As part of the program the homebuyer must complete a homebuyer education class and at minimum contribute one percent of the sales price. For more information, please visit MSDHA’s down payment assistance site: http://www.michigan.gov/mshda/0,1607,7-141-45866_45870-175332--,00.html NAIMARK FUND
This loan fund provides loans to businesses and nonprofit organizations throughout the State of Michigan for both housing and economic development activities. To find out more information call Michigan Interfaith Trust Fund at 313.964.7300 or visit their website at www.interfaithtrust.org/ NATIONAL HOMEOWNERSHIP RETENTION PROGRAM
This loan modification program will result in permanent payment relief to borrowers who default early in their loan terms or after an interest rate reset, while committing more than $70 million to a relocation assistance program to help borrowers who are unable to retain their homes with relocation costs. For more information call 800.669.6607 or visit http://homeloanhelp.bankofamerica.com/en/nhrpfactsheet.html NEIGHBORHOOD ENTERPRISE ZONE
The State approved Public Act 147 allows Detroit to create Neighborhood Enterprise Zones (NEZ) where homeowners may receive tax relief on new homes or on new value added to existing homes. Within a zone, an owner of a newly constructed housing unit(s) will pay the full tax rate on the land, but only half the state average rate on the new unit. Owners of qualifying, existing housing may make major renovations without increasing the existing taxes for twelve years. Currently, three NEZ's exist in the Cultural Center in the following locations:
- NEZ bounded by Hendrie, Brush, Ferry and Woodward.
- NEZ roughly bounded by Ferry, I-75, alley south of Ferry and Brush.
- NEZ roughly bounded by Hancock, Cass, Selden and the Lodge Freeway.
For more information, call the City of Detroit Planning Department at 313.224.6225 .
SHOREBANK ENTERPRISE DETROIT (SED)
SED is a nonprofit 501(c)3 community development organization assisting residents buying their first homes, making loans to small businesses and providing real estate development planning. Shorebank Enterprise is a Detroit affiliate of Shorebank Corporation, whose mission is to increase economic opportunities in traditionally underserved urban and rural communities. SED has five new loan programs:
- "Late Stage" Pre-Development Loans: these loans bridge the gap between the early stages of predevelopment
and the stage where the project could qualify for preconstruction or construction financing.
- Small Business Loans: these loans are used for most business purposes such as working, capital, equipment financing, A/R financing, business acquisition, sales expansion, etc.
- Pre-Construction Loans: these loans are used after "soft cost" predevelopment investments or loans and before a project qualifies for construction finance.
- Contractor Lines of Credit: lines of credit for contractors are tied to a specific contract or purchase order.
- Facade Building Improvement Loans: these loans are used for cosmetic, structural and energy-efficiency building upgrades in neighborhood commercial districts.
For more information call 313.886.2091.
SUPPORTIVE HOUSING EXEMPTION
Certified eligible supportive housing property is exempt from the tax levied by a local school district for school operating purposes. Those interested in applying for a supportive housing exemption must be non-profit, scattered-site, single-family supportive housing property and must first obtain certification as a supportive housing project from the Michigan State Housing Development Authority (MSHDA). The MSHDA certification and Supportive Housing Exemption Affidavit must be presented to the local assessor in the municipality in which the supportive housing property is located. For more information visit http://www.michigan.gov/taxes/0,1607,7-238-43535_53197-231661--,00.html STATE HOUSING FINANCE AGENCY PROGRAM
In this program, the Trust invests in taxable bonds or loans issued by state or local housing financing agencies to finance affordable housing that involves new construction or substantial rehabilitation. The investments are structured through private placements at pre-determined rates. The loan size is up to $1 million with a term life of up to 40 years. For more information call 202.331.8055 or visit www.aflcio-hit.com TAX CREDIT BRIDGE LOAN INVESTMENT PROGRAM
Under this program the Trust will invest in insured or guaranteed loans that bridge investor payments to low income housing tax credit projects. Eligible projects are those that have been awarded low income hosuing tax credits, where the Trust is investing in the construction or permanent finacing. In additiona, the Trust will invest in bridge loans, on a case by casse basis, for projects that cannot support any other conventional debt. The loan size is up to $10 million term and with a term of up to seven years. For more information call 202.331.8055 or visit www.aflcio-hit.com WOODWARD CORRIDOR DEVELOPMENT FUND
The Woodward Corridor Development Fund was established to encourage the development of new and renovated, quality housing in Detroit’s Midtown. Initiatives that will be supported are development projects with a predominance of housing. Mixed use developments with an emphasis on housing and only a minor commercial component may also be considered. Uses of financing from the Fund may include, by way of example and not of limitation, pre-development activities (feasibility and planning studies, architectural and environmental plans, legal analysis and structuring), site improvements, renovation and new construction. For more information, contact 313.259.6368.
Sustainable Development
DTE SOLARCURRENTS
DTE has launched a pilot program called SolarCurrents which makes solar energy up to 50% more affordable for customers who purchase and install a solar photovoltaic (PV) system on their home or business. For more information and an application, visit http://www.dteenergy.com/solar
MICHIGAN RENAISSANCE ZONES
Renaissance Zones are virtually free of all state and local taxes for businesses located within their boundaries. There are over 150 geographic areas in Michigan that are designated as renaissance zones.
There are also industry specific zones for firms doing business in agricultural processing, renewable energy and forest products processing. To find out more information call the MEDC at 888.522.0103 or visit their website at http://www.michiganadvantage.org/Default.aspx |
