Michigan Magnet Fund Closes 10 Projects
The Michigan Magnet Fund has closed 10 New Market Tax Credit Project by allocating $60.0 million of its Qualified Equity Investment.

The projects are in 6 cities and include:
1. Clear Water - Grand Rapids a $6.7 Million investment in this historic rehab of the former Water Works building into an office complex. This is Fifth third Bank investment into the MMF and includes brownfield tax credits in addition to the national and state historic tax credits.
2. 920 Cherry St. - Grand Rapids is a $5.8 million investment is the historic rehab of the former Orphanage buidling into the headquarters of the nonprofit Inner City Christian Foundation, a leader in affordable housing development in Grand Rapids. The development is part of a larger privately developed residential project, The project also uses historic tax credits, Brownfield and state historic SBT tax credits. An additional TIF has been approved for the residential development.
3. 500 Block - Flint is a $5.4 million investment into the rhehabilitation of these former downtown buildings into a mixed use development. This was a complex project using HUD 108 financing from the city, old building (10%) tax credits, brownfield and state historic SBT tax credits, and a BEDI grant.
4. Book Cadillac - Detroit is a $10 million qualified equity investment into this $185 million historic rehabilitation of this grand hotel. The MMF investment made it possible for National City Bank to invest $28.0 million in purcahsing the losses from the donation of the facade easement to a Conservancy group.
5. East Forest Arts Project - Detroit is a $3.6 Million into this arts orientated historic rehabilitation development in the city's cultural center. The African-American Art Gallery owner is the qualified low income business receiving the MMF investment. It uses a HUD 108 loan as part of the leveraged investment to National City Bank's NMTC driven equity investment and obtained a brownfield SBT tax credit in addition to the state and federal historic tax credits.
6. Pere Marquette - Bay City is a $5 million investment by the MMF into this historic rehabilitation of the former railroad station into the City Convention Offices. This project in addition to national and state historic tax credits, obtained state brownfield SBT tax credits. MMF obtained a leveraged loan from a local foundation to leverage the new market tax credit equity investment by Fifth Third Bank.
7. Harbor Shores - Benton Harbor is a $8.6 million investment into a land developement company that is redevloping over 250 acres of land in Benton harbor and as part of total 500 acre, $86 million land development. National City Bank provided the equity investment leveraged by a loan from the Whirlpool Corporation. The investment is being used to acquire the land and put in the infrastructure.
8. Bicycle Factory - Grand Rapids is a $4 million investment into a historic rehabilitation and transformation of this former factory into a mixed use facility. Fifth Third Bank is the QEI investor in MMF. However, within one week of the closing the building was completely destroyed by the largest fire ever seen in the City. It is presently being restructured from a historic rehabilitation to a larger new construction. We expect to know the feasibility of the change by June, 2007.
9. Studio One - Detroit is a $5 million investment by Fifth Third Bank in the MMF toward this $18 million project toward a mixed use development in the City's Cultural Center and will provide 128 market rate apartments on land leased from Wayne State University. This project closed in May, 2007. It also has a state brownfield tax credit.
10. Woodard Station Lofts
Owosso is a $5 million investment using debt leveraged by a loan from Huntington Bank and new market tax credit equity from Fifth Third Bank into the MMF. This project is located in a low income rural community and will receive state and national historic tax credits, state brownfield tax credits in addition to the new market tax credits.

For more details and pictures go to the following mmf1.org link. In keeping with MMF's underwriting criteria none of the projects would have been financed but for the MMF investment.

Bogdan Shows International Gospel Church Forum the Money

Detroit Housing Moves Foward Aggressively
The Detroit Housing Commission has become the largest housing developer in Southeast Michigan. Before the end of this year, it will have over 1200 units of housing under contract with developers.

Under the leadership of its Development director, Bob Hunt and his hardworking staff have selected the developer to produce 494 mixed income rental units at its Gardenview Estates development and the City has started the construction of the total infrastructure for this 139 acre subdivision. The Boys / Girls Club will open in May, 2007 to service the entire neighborhood. The City Council has approved the planned district for the first two phases of the rental housing.

RFQ Hits Street
The Gardenview RFQ for the 424 unit for-sale component has hit the street and will be seeking a land developer who will use local builders to build and sell new mixed income housing - approx-imately 1/3 of the buyers will be eligible for subsidies based on income. If everything come together, the DHC will kick of the development with a dramatic Homearama next year in partnership with the Buidling Industry Association of Southeast Michigan. Anyone interested in presenting a proposal should contact Jeff Bond at (313) 877-8643 or e-mailing bondj@dhcmi.org. . 

In addition, DHC has reached agreement with a Developer to replace the former Jeffries East Project which will be demolished this year. This mixed-income, 180 unit project will make a dramatic change to a neighborhood that has been the city's skid row and has been going through a significant transition north of the development area. The City is determined to make sure the development impacts beyond its borders.

The DHC is going through its selection of the developer for the 150 unit, mixed-income, 29 acre Charles Terrace Project - it is located on the city's eastside. The developer is expected to be under contract before the end of this year.

AAB Developpment Strategies, LLC and its joint venture partner has been under contract to the dHC to help support its initiatives.

R-31 NEWS
R-31 Closure Moves Slowly
Despite having almost $6.0 million in subsidies available to provide housing to the plaintiffs, the homeownership Program remains miered in lack of movement. The funds have been available for almost three years without much of it being used due to inaction by the parties. It is time for the plaintiffs to step up or to permit the City to move on AAB Development Strategies, LLC in partnership with the plaintiff representatives and City had pulled together the financing.

The one positive portion is that there are 60 single family units of Low Income Housing Tax Credit units by the Dziurman-Makino Development Team presently under construction on scattered sites throughout the City.

Approximately 10 owner occupied housing units are under construction in the Grand Haven neighborhood. leaving the funding for an additional 20 units available but not having any buyers.

Wayne County has agreed to release funding to build some model homes to kick off the 33 single-family scattered for-sale units. At this stage it is an open question as to whether there are any more plaintiff buyers?

HUD & R-31 Plaintiffs
Settle
Mike Barnhart announced that HUD has agreed to allocate 25 Section 8 vouchers to the plaintiffs to use whereever they want. Thus far, 17 vouchers have been given to the plaintiffs. They will be able to transfer them to the LIHTC Some of them are moiving into a Makino Development located on Mound in Detroit until they can move into the Hamtramck Housing. An additional 25 plaintiffs are being put on a waiting list. MSHDA is administering the contract for HUD.

Court Orders NEZ for
Scattered Sites
The City of Hamtramck and the plaintiffs have agreed and stipulated to a proposed Neighborhood Enterprise Zone for the HOME funded scattered site houses. 14 zones have been established to cover the 33 units. A rough outline is shown in the attached map. In addition, an NEZ annuity has been established for three units built by the Hamtramck CDC. $18,000 will be placed in an interest bearing account to reduce property taxes by approximately $1,715/year until the fund has been used up.

MMF Submits Application for 2008 NMTC Allocation
The Michigan Magnet Fund, using a team of Great Lakes Capital Fund, AAB Development Strategies, LLC and the Reznick Group submitted an application requesting a $102 million new market tax credit investment allocation. MMF is competing against 239 other Community Development Enti-ties requesting a total of $27.9 billion. $3.0 billion are available.

MMF received an allocation of $60 million in 2005. It has closed on $60 million and expects has close on all of the projects.

Michigan Backup
Several national CDE's indicated that Michigan was one of their seven highest priority state for their investment. It is projected that all other groups may together invest about $30 million in Michigan. They include:

National City Bank - $125 M
Consortium of America, Trammell Crow - $115 M
NCB Development Corp (Charter Schools & Health Care Facilities) - $54 M
Nonprofit Finance Fund - $20 M

These CDEs, although not listing Michigan as one of their seven highest priority states may be receptive to Michigan projects:
- ESIC - $105 M
- HEDC – National Development Council - $121 M
- LISC - $140 million
- Urban Research Park - $50 M

The complete list of CDE receiving a 4th Round allocation are shown herein. Any CDE with a national allocation may be a potential new market tax credit financing source.

AABDS Completes
Brownfield Plan for
Focus Hope
In partnership with AKT Peerless, AABDS prepared and obtained approval of a tax increment financing plan for its Michigan Bell Building and the surrounding neighborhood. The new HUD 202 Senior Development became the tax generator for the tif. It is little known that the city receives a tax reimbursement from the state for the "lost" taxes from a 202 development. That payment can be cpatured as part of a tif process.

AABDS Assists
AIMCO in Preparing LIHTC Apps
AIMCO, a national real estate development company called on AABDS to assist it in preparing five (5) LIHTC Preservation applications to rehabilitate sites scattered through the state.

AABDS Offers Data Base Design Services
Edwina Bogdan, Al's partner in life and business, is offering her services as an ACCESS Data Base Developer. Edwina has a lot of experience in developing databases that keep track of properties managed by a CDC. She has also done inventory systems, as well as market sales and projections, and can tie them together using access tables and Excel spread sheets as the data source. She creates easy to use input tables and reports, as per your specifications. See resume.

Community & Business Organizing
Part of getting anything done requires us to establish new organizations and get them financed. Bogdan has been involved in setting up well over a dozen such organizations and getting them financed. Look into Getting Organized.

Jim & Drew's Deli A Smash
Jarrett Eggers, who received immediate notoriety when he proposed to the elusive and gorgeous Alyssa ,Bogdan, opened a new Deli in Boulder, Colorado. The reviews were phenomenal. See for yourself. Jimmy and Drew's is the place to go in the southwest. Jarrett and his partner are a huge success.