Going Green by Cinnaire

Great Lakes Capital Fund

Vo l u m e 17

Issue 1

2010

GOING GREEN

Utilizing Today’s Incentive Programs to Enhance Tomorrow’s Opportunities Avenues to Affordability

Rio Vista Sr. Apartments - Bagley Housing/CSI Support & Dev. Ferndale Building/Detroit Branch Library - Southwest Housing

Sumby Senior Housing - VOA

SER CASA Academy - Bagley Housing

Lithuanian Hall-Southwest Housing

Vernor Scotten-LaSed

Building with our Partners Since 1962

Detroit and Pontiac

(313) 297-6724

. (248) 334-2470

See mor e at: www.obriencc.com 2

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. New Construction . Historical Rehabilitation . Renovations . Multi - Family . Mixed Use . General Contractors . Construction Managers . Design-Build

President始s Note ............................................5

Growth in a New Cleaner Economy ................6

Community Action Agencies ......................... 10

Tale of Two Developers ................................ 12

Keeping Affordable Housing Affordable ....... 14

Money Left on the Table? ............................. 18

Energy Upgrades .........................................20

Events & Happenings ...................................23

Advertiser Index ..........................................25

Avenues to Affordability

Great Lakes Capital Fund

GOVERNING BOARD

PRESIDENT’S NOTE

James M. Hammond III, Chair Indiana Association of Rehabilitation Facilities Marsha A. Kreucher, Vice Chair Community Action Agency Michael J. Taylor, Secretary/Treasurer National City CDC James S. Bernacki Comerica Bank Wendell Johns The NHP Foundation R. Wayne Koehler Fifth Third CDC William C. Perkins Wisconsin Partnership for Housing Development, Inc. Thomas Tracy Hunter Chase Paul J. Weaver Federal Home Loan Bank of Indianapolis

CORPORATE OFFICERS Mark S. McDaniel, President & CEO Christopher C. Cox, CFO James L. Logue III, COO Jennifer A. Everhart, Executive Vice President Rick Laber, Executive Vice President This magazine is published quarterly by the Great Lakes Capital Fund (GLCF) to provide readers with information on the Low Income Housing Tax Credit and other community development resources.This publication is copyrighted. The reproduction of Avenues to Affordability is prohibited by law. For additional copies, comments, concerns or to be added to the mailing list, please contact the Great Lakes Capital Fund office at 517.482.8555 or visit www.capfund.net. Editorial, Advertising and Layout/Design Mary McDaniel, CMP • Alternative Solutions, LLC 517.333.8217 • mcdaniel64@comcast.net Graphics Melissa Travis • Ink Ideas Graphic Design, LLC 517.625.0835 • jmtravis@tds.net Lansing Office 1000 S. Washington, Suite 200 Lansing, MI 48910 Phone 517.482.8555 Detroit Office 1906 25th Street Detroit, MI 48216 Phone 313.841.3751 Indianapolis Office 320 N. Meridian St., Suite 1011 Indianapolis, IN 46204 Phone 317.423.8880 Madison Office 16 N. Carroll Street, Suite 300 Madison, WI 53703-2716 Phone 608.209.7821 Willowbrook Office 7223 South Route 83, PMB 227 Willowbrook, IL 60527

GO GREEN! GO GREEN! GO GREEN! GO GREEN! GO GREEN! GO GREEN! GO GREEN! GO GREEN! Avenues to Affordability

Prospects For Growth In A New, Cleaner Economy by Breanna Camarillo In past decades, only a small minority of environmentalists argued that states should invest in clean technologies, and until recently, many leaders thought sustainability would come at the cost of the economy. However, in recent years, not only has that notion been unraveled, but completely reversed, with the entire world now investing in clean energy as a move toward a “new economy,” that we now know brings with it the possibility of mil-

waste disposal, and other support activities. Induced impacts result from changes in discretionary spending by employees in the direct and indirect businesses and, in this particular case, by electricity consumers.” “Because energy is a practical necessity for modern life, and is a critically important input for manufacturing and commercial activity, the net eﬀect of policy changes should be of the utmost importance to policy makers”, said Mr. Stanton. “Ideally, policy makers should base their

struction jobs and move from project to project; (2) Supports more jobs per unit of energy produced in operations and maintenance; (3) Fuel imports can be avoided, and using indigenous fuels or avoiding fuel costs altogether (via energy eﬃciency, hydroelectric, solar, and wind technologies), helps stem the ﬂow of dollars out of the state economy that would otherwise be used to import fuel; (4) Supports discretionary spending

“Because energy is a practical necessity for modern life, and is a critically important input for manufacturing and commercial activity, the net effect of policy changes should be of the utmost importance to policy makers.” — Tom Stanton lions of dollars in profits and jobs. According to Tom Stanton at the Michigan Economic Development Authority, energy efficiency services delivered directly from related companies brought in about $3.5 billion nationally a year in 2006, and have grown at a rate of about 22 percent or more annually. “Researchers studying economic and employment impacts typically categorize separately the direct, indirect, and induced effects associated with changes in the economy”, he said. “With electric power, for example, direct impacts are in the businesses engaged in building and operating generation, transmission, and distribution systems. Indirect impacts occur in related businesses that are upstream and downstream from the core activities. For example, the indirect impacts occur in those businesses that supply the direct sectors with raw materials and parts, 6

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decisions on comprehensive analyses of the combined effects of impacts in all of the major sectors of the economy, taking into account both gains and losses. Fortunately, economic and employment impacts of energy policy changes have been studied extensively for many years. Such studies typically use economic input-output modeling to identify effects on state’s economies.” Mr. Stanton said large numbers of studies about the economic and employment impact of energy technology choices have found that energy efficiency and renewable resources produce more jobs and greater economic multiplier effects nationally, growing the economy in five main ways: (1) Supports construction jobs per unit of energy produced, and the jobs tend to be filled by local laborers, as opposed to migrant workers who do specialized con-

by consumers and engenders more induced local employment and economic multiplier effects, compared to spending on utility bills; and (5) Supports manufacturing of energy efficiency and renewable energy equipment; typically supports more local employment and economic benefits, compared to spending on traditional central station utility power plants and utility transmission and distribution system equipment. Factors (3), (4), and (5) are especially important for states like Michigan and Indiana and others that import most or all the fuels used in the state and have a large potential for in-state manufacturing of various advanced energy technology components. Probably very few people are more attuned to the benefits of clean technologies than contractors hired by communities to

accelerate their move toward a greener way of life. Loch McCabe, president of Shepherd Advisors, www.shepherdadvisors.com, since he began his company in 2000 is one such example. He said he works with businesses and communities that know they are ready to take a leap toward a cleaner existence but aren’t sure how to lessen their carbon footprint. McCabe said because the goal of each client varies widely, once he discovers whether they simply want to change out a few light bulbs and update appliances, or enter into a more complex upgrade and perhaps even switch to using alternative energy, he helps them decide their priorities. Many times, he said, clients decide which energy conservation or alternative energy project to undertake by the payback period; the shorter payback periods usually come first, and then clients can do more expensive projects with the money saved from those less expensive changes. The process not only helps identify energy waste but helps leaders prioritize,” he said. As an example of McCabe’s recent work, in Wyandotte, Michigan, he helped the city distribute compact fluorescent light bulbs through local hardware stores, handing out more than 80,000 fluorescents to homeowners who traded in less energy efficient bulbs. He also helped the city by finding ways to reduce and subsidize the cost for a dozen small businesses to upgrade their lighting to more energy efficient lighting and helped secure funding for a 10-kilowatt photovoltaic system (solar panels) for the local school. While the solar panels only provide enough energy to supplement traditional energy sources, they are able to help reduce the city’s dependence on fossil fuels, he said. In another Michigan community, he’s helping officials get through the request for proposal (RFP) process to replace older furnaces, windows, doors, floors, light bulbs, and increase installation. Mc-

Tree Trench from Country Trace, Palmyra, IN – Great Lakes Capital Fund is the investor in this project. This tree trench is a green way to both retain water and then discharge it to the storm system clean. The trees/plants shown are special varieties that tolerate drought AND have root systems that soak up a lot of water. They are planted in this trench which has special soils and a large rock base. Storm water run off drains into one side of this tree trench, where it soaks down into the trench. The plant/tree roots soak up a lot of the water too. Remaining water is ﬁltered through the rocks and let out a drain pipe the other side into the rest of the storm water system. This is much prettier, much greener than a dry detention pond and it never needs mowing, etc.

Cabe said he also helps plan for energy eﬃciency upgrades to their buildings, engage certiﬁed energy auditors to do an energy audit, which helps identify which upgrades to make and in which buildings based on which use an excessive amount of energy.

Especially with federal stimulus funds, $17 of which the state most recently received in January to go to communities for their ‘green’ project plans, the demand for his services is steadily increasing, he said. While local leaders tend to enter into the process with caution, as they would Avenues to Affordability

with anything that is new and involves spending money, McCabe said, he hasn’t run into a lot of bureaucracy. He added: “more and more people are agreeing that the economy and environment can coexist without damage to one another.” “Communities are generally excited about this,” McCabe said. “At the same time, many proceed slowly and deliberately.” He said increasingly even utility companies, which stand to lose money to energy saving choices or alternative energy sources, are also becoming open to helping communities become more energy efﬁcient. The reason, McCabe said, is probably a blend of government mandates in several states that require alternative energy standards and public pressure, which has people becoming more demanding of environmentally friendly options. However, while the future for clean energy and conservation looks bright, there are still two major hurdles, said McCabe.

Because the country was built with the assumption of cheap, plentiful energy, conserving energy requires changing the way we live. “The biggest impediment to becoming more independent is a combination of lack of awareness and willingness, he said. We are spread out. We don’t really live in villages anymore. If you really want to use less energy you have to make different choices than you did before. It takes commitment.” However, McCabe said, there is good news: communities are becoming increasingly comfortable with the belief that they can become more energy efficient without sacrificing their lifestyles, something he is witness to with every phone call from a new community asking him how it can go green. Many state leaders have heeded the call of what they call often call the “new economy” and haven’t waited to secure an advantage by luck. Instead, in places such as Wisconsin, Michigan and New York, to name a few, lawmakers have set timelines

by which utility companies must begin providing a percentage of their fuel from alternative energy sources. The mandates range from 10 percent alternative energy guidelines to the most aggressive among Midwestern states, in New York, where Governor David Paterson has called for a 45 percent renewable standard by 2015. Leaders say the standards position their states to oﬀer the alternative energy industry a guaranteed and steady demand for their products, and therefore a guaranteed proﬁt. With that reasoning, the state with the highest standard stands to gain the largest competitive edge in the sustainability and renewable energy markets. Paterson spelled his mission out in his January 6th State of the State address. “So, to pull this all together, we are going to need an economic plan that actually suits the issues of our times and provides the jobs that New Yorkers seek. No longer can we say all roads lead to New York. For, in

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the end, we are going to need the innovations, the ideas, and ingenuity to be there as well. This will be a New Economy jobs program that will focus on the clean energy and high-tech growth jobs of tomorrow. This program will be sustainable. It will be one that we will all be proud of because it will be open and it will be transparent. To develop this program, we went all around the State, seeking out business leaders that would give us advice in all communities, he said. “We have come back with three aggressive initiatives targeted for growth industries, such as clean energy.” This, combined with our “45 by 15” energy plan and a $25 million investment in a new technological fund for entrepreneurs, will create the kind of encouragement for capital investment, will spur innovation, and create tens of thousands of jobs to go along with the 50,000 jobs that will be realized from our great energy plan, which converts electric use to clean and renewable energy sources. New York’s governor also spoke of his state’s university partnerships and using them to capitalize on the existence of the five largest patent-holding research companies in the country. Also, the effort we are making for sustainable communities, with thousands of housing stock laying dormant in cities like Buffalo, Rochester, and Syracuse” said Mr. Paterson. “We will develop that housing stock into affordable housing — starting with Buffalo, which right now has 23,000 vacant units.” We are poised to lead this economy, and we shall lead,” he said But several other state leaders also think their advantages will make them the leaders in the green economy. In Michigan, for example, where there is also an aggressive renewable standard at 25 percent, state experts hope to use its water and wind generation possibilities from its unique geography, along with its early start in battery technology and history in manufacturing to build an in-

dustry around the renewable energy and clean technology markets. The energy industry — production, delivery, and consumption — is an integral part of Michigan’s economy, responsible for significant employment in our state. Energy policy changes and the resultant investments in the affected sectors and changes in energy costs to consumers have significant impacts on most if not all of the state’s businesses, said Stanton, from the M.E.D.C. Because of plentiful forestry resources and work with research universities, the state is also making research strides in cellulosic biomass from the waste products in crops. Michigan’s extensive forest resources and long history of leadership in the primary and secondary forest products industries give our state a head start on development,” Stanton said. “Michigan is already home to important manufac-

turers of wood harvesting and wood fuel processing equipment, and researchers at Michigan universities are doing cutting edge work on biofuels production and processing.” In Indiana, biomass with anaerobic digesters are making waves, while many communities in the state are exploring whether switching to wind power could be both productive and money-saving. Elijah Welch, assistant district engineer at Richmond Sanitary District, in Richmond, Indiana, said his city contracted with a company called Johnson Controls to retroﬁt boilers at the city’s wastewater treatment facility so they could go from using natural gas to methane. While the project is small for now, saving about 100,000 to 125,000 cubic feet a year in natural gas by using human waste as methane, it has po(continued on page 24)

WE FIGURE OUT THE BOTTOM LINE AND ALL THE LINES HOVERING PRECARIOUSLY ABOVE IT. We’re certified public accountants. We’re also experts in affordable senior housing. And cost segregation. And historic incentives for brownfield redevelopment areas. So, no line item and no expenditure in your ledger are safe from our fine-toothed comb. Offices throughout the Great Lakes Region Robert Edwards 517.336.7460 Linda Yudasz 248.375.7247 plantemoran.com

CPAs / Business Advisors

THRIVE. Avenues to Affordability

Community Action Agencies: A Partner In Conservation A third prong to the private/public partnership toward going green is community action agencies. These nonproﬁt groups are involved in almost every aspect of conservation and especially weatherization, but their primary focus is to receive and distribute federal weatherization funds, train energy conservation professionals and refer low-income residents to developers, energy companies and others who want to work toward making housing more energy eﬃcient. Wisconsin, which is current-

Front view of Spicewood Garden, LEED Silver Certiﬁed in Sheridan, IN

Great Lakes Capital Fund

ly ranked third in the nation for the number of homes weatherized so far, has kept its community action agencies busy. That state and many others plan to use federal money to double, triple or even quadruple their past efforts toward weatherization. By making homes more energy efficient in extreme climates and focusing on the highest energy users first, weatherization has helped residents save 25 – 30 percent in household energy costs, said Mary Patoka, President and CEO of CAP Services, Inc., a community action agency in Stevens Point, Wisconsin. CAP Services, which

serves ﬁve counties in Wisconsin, not only funnels weatherization money into the community, but also has taken on a contract of its own to weatherize 379 housing units by June of this year. The group received $1.43 million in American Recovery and Reinvestment Act funds (also known as stimulus funds) out of the $145 million total weatherization funds awarded in Wisconsin. Also relying on about $1.93 million in other state and federal funds, the group has completed 23 units as of February, and has 89 more projects in progress or completed but awaiting inspection or other ﬁnal details. While Patoka is optimistic that her

agency will fulﬁll its contract, it wasn’t without a few challenges. The biggest issue in Wisconsin and many other states has been “the red tape” in receiving stimulus money. For example, in Wisconsin many CAA’s couldn’t access stimulus funds because their workers weren’t paid the prevailing wage required by the AARA act. To keep on track, many agencies began weatherization eﬀorts in the summer by tapping into state and other funding sources and then started receiving stimulus funding by the fall, Patoka said. Dave Menzer, with INCAA (Indiana’s

CAAs: Vital Referral Source When community action agencies aren’t directly working with utility companies to increase energy efﬁciency in homes, they act as a vital source of referrals for independent contractors who have contracts with the utility companies. For example, Timothy Celovsky, an energy consultant with Clear Result in Okemos, Michigan, www. clearresult.com, works with two major utility providers to replace older, energy wasting refrigerators with Energy Star approved models. He works with community action agencies to determine who qualiﬁes for and who needs a new refrigerator. Celovsky said he chose to upgrade refrigerators because everyone has them, they last an average of 20 years, and use an immense amount of energy if they are outdated. He has installed approximately 2,500 refrigerators since he began the project last summer and each new appliance saves 300 – 500 kilowatts per hour per year. This initiative has been primarily funded by utility companies at a cost of about $1.8 million. In some cases, landlords share in the costs.

statewide association for community action agencies) said his state’s greatest hurdle with stimulus funding has been to streamline programs so he can help triple the number of units Indiana has historically weatherized, while maintaining the quality of work, training and certiﬁcation programs community action agencies oversee. As an example of the increased workload facing agencies, before the stimulus package, the Hoosier State weatherized about 3,000 residences a year, but Indiana plans to weatherize roughly 20,000 homes over the next two to three years using federal stimulus funds, said Menzer, the team leader of Utility Programs with INCAA, www.incaastimulus.org. He said weatherization is targeted to low-income residents who earn up to 200% of the federal poverty level. He estimated the upgrades will save the aver-

age household about 20% on heating and 10% on electric costs annually. While Indiana has focused the majority of its energy conservation efforts on homeowners, rental properties can qualify for weatherization if most of the tenants in the building meet the federal income guidelines. In those cases, the CAA and the landlords usually develop a cost sharing agreement for the upgrades and agencies often require an agreement from property owners to limit rent increases for a set period of time. Menzer also works with seven different utility companies to replace outdated energy guzzling fixtures and appliances inside the home because the same people who need weatherization also qualify and would probably benefit from a more efficient furnace, lighting and other conservation upgrades to help them save even more money.

Work With a Leader For over 50 years, the qualified professionals of Gordon Advisors have provided specialized tax, auditing and consulting services to some of the largest developers, contractors and management companies in the state. Services include business planning, cost certification and low income housing tax credit compliance. To obtain additional information on the services we provide, contact our team of professionals at (248) 952-0200. Kevin E. Klein, CPA, M.S.F. – kek@gordoncpa.com Alan S. Kristall, CPA, CFP – ask@gordoncpa.com Alan R. Steinberg, CPA – ars@gordoncpa.com Cynthia S. Sobran, CPA, M.S.T. – css@gordoncpa.com 1301 W. Long Lake Rd, Suite 200 Troy, MI 48098 t: 248.952.0200 · f: 248.952.0290 www.gordoncpa.com Avenues to Affordability

Tale of Two Developers: Goals For Greener Communities by Breanna Camarillo

While leaders from the Great Lakes states for several years have been studying different ways to improve the energy-performance of their properties, with the help of government incentives, mandates and grants, more developers are now starting to invest in new energy products or build communities with energy and water sustainability in mind. Two such companies, American Community Developers, Inc. in Detroit, Michigan and Milestone Ventures based in Indianapolis, Indiana, both Great Lakes Capital Fund partners, in some ways have much in common. They both work in affordable housing and the leaders of both corporations said all of their projects are “green,” with varying levels of investment in sustainability at each property depending on the budget and demand. Both have gotten funding from LIHTC financing, HUD/FHA financing, OMHAR/ OAHP mark-to-market full restructurings, Mark-to-Market “lite” transactions, and Tax Exempt Bond financing, and also have secured other sources of funds/loans for their properties including syndication of Historic Tax Credits, HOME Loans, Section 241 Rehab Loans, Federal Home Loan Bank Grants/Loans, HUD Drug Elimination Grants, Weatherization Grants and various city and state agency trust funds. Both developers also focus primarily on using high efficiency appliances such as low-flow toilets and energy saving light bulbs, Both say that until more cost effective and realistic alternative sources are available, finding ways to 12

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save energy and therefore emitting fewer pollutants from coal or natural gas, are the most viable options to reduce their carbon footprint. However, that is where the major similarities end. For example, A.C.D. buys older buildings and rehabs them, replacing the single pane windows, paint, furnaces and other inefficient fixtures that are often present with the best grade high efficiency products. Its business model is to retain ownership of its properties, which it hires management firms to oversee. Milestone, in contrast, acts as a contractor for senior, family and other housing types and proposes green updates to owners that have a fixed budget they need to stick to. In this case, not all of the sustainability features Milestone proposes will make it into each community because of the costs they add. There’s no question that sustainability features increase costs, but how much depends on how green the project gets; for instance geothermal heating costs about $10,000 per unit compared to $2,000 for traditional heating, but the average cost for all sustainability features at Milestone is about 15 percent, said Carla Naum, one of the founders of Milestone. While Naum and Gerald Krueger, A.C.D. president, both agreed that they’ve seen a decrease in maintenance costs for appliances such as tankless water heaters, in many cases savings go into residents’ pockets because they pay their own utilities. This leaves some developers to wonder why they should spend more on environmental friendly changes if they don’t get the added savings. The reasoning behind A.C.D. and Milestone’s pursuits is yet another difference between the two developers. One is motivated by deep-rooted principles and the other was

prompted into action by simple logic. Naum said her company began its efficiency efforts because “it just makes sense in the long run” financially for residents that don’t have a lot discretionary income to decrease their energy and water costs. “We have one pool of money,” she said. “We could use it to put in prettier things or we could use it to go green.” Krueger said that he has been “going green long before it was fashionable.” He said that while it costs more, for example, to buy the most energy efficient heating system or to purchase low V.O.C. (volatile organic compound) emitting paints, sealants and other products, his company simply has a commitment to do the right thing by protecting the environment. “In general we don’t look at the payback period because it’s an initiative we’ve taken on as a company,” he said.“We are doing our civic duty.” Investing in quality products that are up to the latest standards and long lasting also makes good business sense, added Krueger, since he’s not likely to do any major upgrades for the next 15 to 20 years. He said he would endorse any sustainability feature except LED lighting, which he uses only in outdoor signs. While LED technology is safer than fluorescent lighting, which contains mercury -- a problem that will likely surface eventually -- until the cost decreases, Krueger said it doesn’t make sense to use it throughout housing projects. Naum, who said her number one focus is finding ways to become more energy efficient, meets that goal by taking simple steps such as using dual flush toilets, which use .8 gallons of water to an average toilet’s 1.3 gallons. However, they are

programmable to use up to 1.6 gallons if a different lever is pushed when the user needs a full flush. While Milestone can’t always fit the most advanced systems into the budget for each project, Naum said small measures such as installing insulation in excess of government regulations are just as important as buying more flashy, state of the art features. That’s not to say Milestone isn’t taking some innovative steps. From the rain gardens the company often uses, which consist of native plantings to filter out impurities from oil spills and other toxic runoff that would ultimately go into ground water, to the completion of Indiana’s first LEED certified affordable housing project in Sheridan, Indiana in the fall of 2009, Naum said Milestone is poised to continue exploring new technologies. Her dream project if money weren’t an issue? She said she’d put geothermal heating in more units and would like to investigate further the benefits and costs of solar

panels that look like regular shingles, set to go onto the market from Dow in the summer. As for Krueger at A.C.D., he got started in sustainability by saving water, when a company came to him with a new type of toilet that had a flapper system for water savings and low flow heads on faucets. He said he was skeptical when the company said the water savings would more than offset the costs from the more expensive toilets, which is when they made him a deal he couldn’t refuse. Instead of asking him for an investment upfront, the company agreed to let him install the toilets and then took its payment out of the savings from the water bill. When Krueger saw the savings, which he called significant, he said that really got him thinking about what else he could be doing to save water and eventually led to energy efficient improvements and other techniques to improve the air quality in the home and recycle waste from construction.

“The savings in the water bill from the new toilets and faucet heads really woke us up to the savings around,” he said. “We implemented standards into each of our rehabs moving forward. We are constantly working to find the best new things out there.” Some other technologies and products A.C.D. takes advantage of include Green Label carpeting, mold-resistant surfaces in wet areas, Energy Star compliant appliances, light bulbs and fixtures, walkable neighborhoods, which connect developments with the neighborhood via sidewalks and public transportation, and native landscaping that requires little or no irrigation. With A.C.D.’s high goals for itself, including that it chooses the most energy efficient appliances even though they often cost more higher and that all of its housing will be at least 30 percent more efficient than traditional complexes after they are (continued on page 24)

Milestone Ventures vs. American Community Developers Compare and contrast American Community Developers, Inc., and Milestone Ventures, both Capital Fund partners. ACD, located in Detroit, Michigan, began in 1980 for the primary purpose of acquiring, developing, constructing, and managing aﬀordable housing. The company is a parent corporation to St. Clair Construction Company, which specializes in apartment rehabilitation and has 22 employees in its home oﬃce. Milestone, on the other hand, opened its doors in the summer of 2000, and has completed only 41 projects to date, mostly rural. The company, located in Indianapolis, Indiana, has four employees. The tables below summarize the companies’ current portfolios: Sources: www.milestoneinc

Milestone Ventures Category

American Community Developers

No. of Properties

No. of Units

Total Portfolio

540

LIHTC

104

HOME

516

FHLB-AHP

382

Foundation Funds

179

Trust

New Construction Rehabilitation

Category

No. of Properties

No. of Units

Total Units

Total Portfolio

7,150

100%

LIHTC

5,762

74%

HUD/FHA Financing

6,392

90%

Tax Exempt Bond Fin.

996

HUD Section 8

5,775

92%

282

Family Population

4,134

66%

2,112

Senior Population

2,112

34%

Avenues to Affordability

Keeping Affordable Housing Affordable Everyone is being stressed by the current economic troubles and there are few areas in which we can do anything about it. However, building owners can make a major impact on their costs and their profit margins by working on energy efficiency and conservation. Much is being done to improve the efficiency in new construction, but there are many opportunities for cost savings in existing buildings. Some of these are related to basic maintenance tasks such as replacing burned out bulbs with compact fluorescents or asking maintenance staff to empty lint filters in clothes dryers every time they walk past a common laundry room. Others require some forethought such as ordering MERV-10 filters for the HVAC units rather than standard-use filters. Still others will take a few dollars but will have immediate pay-back—such

as having maintenance staff install water-saving shower heads and faucet aerators whenever they make service calls to any apartment or including caulking and air-sealing in the routine maintenance of each building. See the attached list for additional “easy” fixes. Such simple and inexpensive steps will directly impact utility costs, but they will also help reduce operating costs because many of these efficient products are better engineered and are more durable than standard products. Although some of these “upgrades” will reduce utility costs for the tenants rather than for the property, they can still contribute to occupant stability by reducing household costs. Energy-saving improvements can also improve the comfort of tenants and reduce complaints and maintenance calls. And, of course, it is the right thing to do! (continued on page 16)

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Basic Measures for Energy Efficiency We are hearing a lot lately about the importance of Energy Efficiency. Clearly, there is a universal recognition that a large amount of energy and money can be saved through basic measures. However, it may be helpful to have some suggestions that are easy implemented in multi-family buildings: 1. Upgrade lighting. This is especially important in common areas where lights are left on 24 hours per day or exterior uses where lights are on from dusk to dawn: a. Replace Exit lights with LED fixtures—this minimizes both energy use and maintenance costs because the life expectancy of the LED fixtures is 10 to 20 years with no maintenance beyond cleaning. Change 50w incandescent sign to 2w LED sign ($36), savings per year = $35 b. Replace T-12 fluorescent fixtures with T-8 fluorescent fixtures in hallways and common rooms. T-8 fixtures use electronic starters rather than magnetic starters and use less energy while at the same time not needing as much maintenance. Change 2-40wT-12 fluorescent to 2-32w T-8 ($61), savings per year = $12 per 24hr/day/fixture Change 2-40wT-12 fluorescent to 2-32w T-8 ($61), savings per year = $6 per 12hr/day/fixture Change 2-40wT-12 fluorescent to 2-32w T-8 ($61), savings per year = $3 per 6hr/day/fixture c. In living units, install CFLs in ceiling fixtures, especially in rooms where they will be left “on” for more than 20 minutes at a time. Even if the tenants pay their own electricity, the reduced maintenance costs to replace burned-out bulbs will quickly pay for the CFLs. Change 60w incandescent bulb to 32w CFL light ($12), savings per year = $6.52 per CFL/4 hr/day d. In exterior fixtures, make sure that the timer or photoelectric sensor is working properly. Make sure that every exterior light is connected to one or the other. Replace any incandescent fixtures and consider replacing mercury or sodium vapor lights with LED fixtures (i.e. have a policy to replace any fixture at the time of maintenance if an outside service company needs to be called for repairs) Replace 350w Sodium with 120w LED ($2400) saving per year = $80 2. Furnace Filters and air conditioning—Replace HVAC with MERV 10 rated pleated filters. These will improve indoor air quality and only need replacement once per year. On a seasonal basis, lubricate any pumps or fans, if possible. Vacuum dirt

and clean around vent openings and from air conditioning condensing units. 3. Upgrade laundry rooms to front-loading washers and dryers. These should be available from appliance leasing companies and the combined water and energy savings will immediately pay for any up-charges for the equipment. Vacuum clean exhaust ducts on dryers once per year. Encourage tenants to clean lint filters after every load but maintenance staff should also check at least daily. 4. Upgrade faucet aerators to ½ gallon to 1.5 gallon per minute fittings. Upgrade shower heads to 1.5 or 1.75 gallons per minute. Even if this is not done wholesale, there should be a maintenance policy that the upgrades are made whenever a service-call is necessary. 5. Air-Sealing—stop air leakage from ductwork, exterior wall joints, window and door openings: a. Annually, inspect the exterior of the building(s) for cracks, holes, open joints, loose boards. Cable, telephone installers and contractors will have made multiple holes since last year. Caulk and refasten as necessary b. Renew caulking at the trim around all windows and doors. c. Adjust or replace weather-stripping on doors and windows if a piece of paper can be easily drawn through the closed window or door. d. Seal any ducts in unheated attics or crawl-spaces. Repair or replace any damaged sheetmetal and secure joints with screws. Do not use “duck” tape! Use a liquid mastic to seal joints on all sides of the duct. Even small changes matter: Reducing air leakage by 10% can save $66 per year per apartment. Cost averages 10 cents per Square Foot of floor area. 6. Insulation—Check insulation where visible in attics and crawl spaces. Maintenance staff can level out uneven “blown-in” insulation, but (especially where fiberglass insulation was originally used) consider adding six to ten inches of Cellulose on top of the existing: the relatively heavy Cellulose will hold the fiberglass in place and will increase the heat resistance by an R-4 per inch. Pay-back for heat loss is long (over 10yrs) but impact on COMFORT is great and thermostats will get turned down. Cost averages $1.63 per Square Foot of insulated area. (continued on page 17) Avenues to Affordability

(contintued from page 14) However, beyond these simple, inexpensive measures, there is usually much more that can be done. To ﬁnd out what, several steps should be taken: 1. Know utility costs. Monitor the

$5000 and will provide a laundry list of potential improvements along with estimated costs and projected savings. Such audits can help you plan immediate upgrades and to schedule for longer-range improvements. 3. Use your Replacement Reserve

have it “commissioned” by a third party to verify that it is installed and adjusted correctly and that the system is “balanced” for comfort and efficiency throughout the building. 5. Use maintenance staff. Simply asking maintenance staff where efficiency

Simply asking maintenance staff where efﬁciency can be improved can provide insights into building operations. common-area costs for water/sewer, gas and electricity and track them from year to year. Compare these costs-per-unit in each building to others in your portfolio or to other buildings managed by your property manager. This will help you prioritize the buildings for upgrades. 2. Hire an energy auditor. A certiﬁed energy audit will usually cost less than

Great Lakes Capital Fund

wisely. When upgrading appliances, select Energy Star. When replacing fans and motors, consider variable frequency motors. When replacing windows, spend the extra dollars to get units with a lower Uvalue and insist that they are foamed-inplace during installation. 4. Verify equipment performance. After new HVAC equipment is installed,

can be improved can provide insights into building operations. Make sure that maintenance procedures are written down and available in a binder in each building. Insist on training and orientation to these procedures for every new staﬀ member. Another resource to tap into is your local Community Action Program (CAP) Agency. The American Reinvestment and

Recovery Act legislation in 2009 provided a huge increase in funding for Weatherization. The CAP agencies will provide a certiﬁed energy audit and will install any measures that have a 1:1 savingsto-investment ratio. These will generally include weatherstripping, air-sealing, insulation, lighting upgrades and water conservation measures. These measures will generally be installed for free, though some counties require a contribution from the property owner. The “Final Rule” for the ARRA Weatherization Program was published by the Department of Energy on January 10, 2009. This rule makes it easier for most USDA and LIHTC projects to qualify for the weatherization program by including these income-restricted properties as eligible for weatherization without requiring individual household income veriﬁcation. The rule also suggests that states can consider the income restrictions, themselves, as evidence that rents will not

be increased because of the weatherization work and suggests that the improvement of comfort, health and safety for the tenants demonstrate that the benefits of weatherization inure primarily to the tenants. Prior to the final rule, multiple forms and covenants required by CAP agencies to satisfy these questions made it difficult for multi-family buildings to qualify. Finally, contact your local gas and electric utility for information on their “Energy Optimization” program. Some improvements such as water-conservation fixtures, set-back thermostats and lighting upgrades will be provided for free through the utilities. Other upgrades to building systems and common areas will require that the owner pay for the measures and then provide a cash rebate based on the type of equipment installed. The programs vary from one utility to another and they change each year, so keep an eye on the web site of the utility company serving your properties.

(contintued from page 15) 7. Variable Frequency Motors— replace conventional motors, fans and pumps with Variable Frequency motors and pumps. This will not be economical for unit-sized HVAC units but will save signiﬁcantly on whole-building systems. 8. Hot water heating—install dense-foam pipe insulation on both hot and cold pipes within 4 feet of each tank. If installing new Hot Water Tanks, install thermal traps on the Hot and Cold pipes at the heater. (Insulation of all exposed pipe would also help prevent mold and humidity.) Check water heater temperatures to be sure they are set to 110 degrees (medium). Consider installing an insulated jacket on tanks unless prohibited by manufacturer.

Count on Us. Count on More. For most people, it’s just a briefcase. For our clients, it’s a symbol of expertise, courage, and unwavering service. For Clark Hill attorneys and other professionals, it represents a toolkit of integrated resources, networks, and talented teams—all centered on anticipating and responding to your ever-changing business needs and challenges. With Clark Hill at your side, you can be assured that we will be there, always, when and where you need us, giving you the competitive edge to stay ahead and win in the marketplace.

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Avenues to Affordability

Money Left on the Table?

ver the next two years, over One Billion Dollars is allocated for free weatherization services in the areas served by Great Lakes Capital Fund. Much of this funding is from the American Recovery & Reinvestment Act (ARRA) which increased weatherization funding to almost 10 times what was allocated by Congress in 2008. Much of the weatherization work is being done by Community Action Agencies that were

Electric utility statutory or Public Utility Commission mandated energy savings targets: 2008 2009 2010 2011 2012 2013 2014 2015 Wisconsin* 0.7% 0.7% 0.7% 1% 1.25% 1.5% 1.75% 2% Illinois 0.2% 0.4% 0.6% 0.8% 1% 1.4% 1.8% 2% Michigan .3% .3% .5% .75% 1% 1% 1% 1% *.7% is calculated oﬀ cost savings goal. Higher amounts are proposed in current regulations

ify the work specs and the weatherization installations. Still, the federal guidelines say that 40% of the ARRA funding needs to be spent by the spring of 2010, or the

New York and Wisconsin have done. The ARRA regulations speciﬁcally allow the program to be used on any multi-family building where at least 66% of the tenants

These Energy Efficiency requirements have resulted in utility companies offering free energy upgrades or strong incentives for energy upgrades for households who meet the ARRA Weatherization income limits. accustomed to working with less funding in the past. While the CAP agencies are diligently working to increase the size of their staffs and the pool of subcontractors they use for energy audits and construction, the ramp-up has been slow. There has been uncertainty about regulations for the new Weatherization Program and states have experienced difficulty training and certifying inspectors who need to ver-

balance of the funding could be distributed to other areas. This could lead to a huge missed opportunity for aﬀordable housing in our states! One potential way to get the ARRA Weatherization money spent and at the same time reach a huge number of lowincome households is to establish special programs to weatherize Low Income Housing Tax Credit communities, as

meet low-income guidelines. Most states have accepted the ARRA limit of 200% of the Federal Poverty Rate (about $44,000 per year for a family of four); however, some, such as New York, have opted for a limit of 60% AMI. In buildings that are federally ﬁnanced or that have projectbased Section 8 subsidies, the tenants do not even need to have independent income veriﬁcation. These buildings are au-

Weatherization Funding by State State

2009 Weatherization Funding

New ARRA Weatherization Funding

Multi-Family Set-Aside

Wisconsin

$14,966,407

$141,502,133

$16,000,000

Illinois

$24,070,095

$242,526,619

Indiana

$12,342,276

$131,847,383

New York

$36,654,490

$394,686,513

Michigan

$25,949,859

$243,398,975

TOTAL

$113,985,136

$1,153,961,623

Great Lakes Capital Fund

$50,000,000

$66,000,000

tomatically eligible for the weatherization funding. Controlling utility costs is one of the keys to keeping housing truly affordable for lower income families. The rapid escalation of utility costs has resulted in lower cashflow for building owners and economic stress for many tenants leading to higher movership and rent delinquencies. If owners and management companies put in the time and effort necessary to encourage the tenants in their buildings to apply for the Weatherization Services and to work with the Weatherization Program subcontractors in their area, a significant dent can be made in the utility costs paid by the owners and the tenants. The result will be healthier, more comfortable and more affordable buildings for everyone. Check with the Community Action Agency that serves your community to apply for the weatherization services. All units will receive an energy-audit by a certified professional and the measures recommended by the audit should be installed for free. The most common weatherization measures include: • Weatherstripping windows and doors • Air sealing of cracks and holes • Installing a digital set-back thermostat • Installing water-saving shower heads and aerators • Installing additional insulation • Installing Compact Florescent Lights (CFLs) in the most-used light fixtures • Installing other measures that have a payback period of 10-years or less Don’t forget to check your local utility provider, too. Most states have mandates from their Public Utility Commissions to cut energy use by a specific amount each year: These Energy Efficiency requirements have resulted in utility companies offering free energy upgrades or strong incentives for energy upgrades for households who

meet the ARRA Weatherization income limits. Each utility has its own approach and programs are being rolled out on an on-going basis. In Michigan, DTE Energy provides income qualiﬁed tenants and homeowners with free thermostat upgrades, water conservation devices, and Compact

Florescent lights. Businesses can also take advantage of these free services. Consumers Energy provides these same upgrades and they also provide free Energy Star refrigerators for qualiﬁed households. Check the website of your local utility to see what is available.

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33333 DEQUINDRE, SUITE B TROY, MICHIGAN 48083 248-589-1800 fax 248-589-1155 www.rolar inc.com

• Proven leader in the renovation industry • $100 million in rehab experience since 1990 • Experienced in occupied units with NO tenant loss • 4,000+ units renovated • 30+ major projects completed to date • On time / Under budget / No liens • Insured, licensed, bonded • In-house property maintenance for one-stop shopping • Referrals upon request GE NE R AL CON T R ACTORS CONST RUCT ION M ANAGE ME N T COMME RCIAL • R E SIDE N T IAL

Avenues to Affordability

Energy-Upgrades from DTE and Consumers Customers

tility Companies are now required to provide energy eﬃciency improvements to their customers, paid for by Utility Surcharge Funding which is on all electric and gas bills. Their program is intended to complement the CAP agencies’ Weatherization program, but does not run through the CAP agencies, nor needs to be coordinated with them. Owners or Management Companies can apply to DTE or Consumers Energy directly to get on their list. If the CAP agencies will do Weatherization later, that is preferred, but not required. The Detroit contact for this program is at 7140 W. Fort Street 313-297-1278. The Consumers Energy contact is Megan Atkinson, Project Coordinator at Consumers Energy Saving Solutions in Okemos,

Great Lakes Capital Fund

Michigan. She can be reached at (877) 607-0737. DTE and Consumers will accept copies of the rent rolls from LIHTC properties as evidence of income eligibility and automatically qualify multi-family buildings for their services. In 100% low-income buildings, the program will: 1. Provide energy-upgrade inspections to determine the measures that could be installed 2. upgrade common-area lighting and heating 3. in residential units, will install pipe insulation, shower-head and faucet replacements, and set-back thermostats 4. Also, stay in touch with the local utility to see if other upgrades are available. For instance, older refrigerators may

be eligible for replacement at no cost or at a radically reduced cost. For the common-area upgrades, owners are responsible for contracting out the work. Once work is competed, DTE inspects and authorizes payment either directly to the contractor or to the owner. For work inside apartments, the DTE Energy Multifamily Program would provide both material and labor. Material and labor is covered 100% except in mixed-income buildings. If less than 66% of the tenants are income-eligible (200% of Federal Poverty), there is a co-pay required from the owner: 15% co-pay for 24-hour per day use; 25% for 8-16-hour per day use or 35% for up to 8-hour per day use. The energy-upgrade inspections are not energy audits. Those would still need to be done by the CAP agencies before any additional Weatherization work is done. But the inspections will highlight additional energy upgrades needed that are not part of the program and may be part of future programs. Below is a breakdown of what is available to each unit from Consumers Energy. • 1 showerhead per bathroom – Maximum 3 bathrooms – Resident’s showerhead (whether “as is” with apartment or their own), it will be replaced with low-flow standard showerhead – If resident has their own handheld showerhead and it gives a reading above 1.5gpm, we will replace it with a low flow 1.5gpm handheld showerhead (chrome) • 1 bathroom faucet aerator per bathroom – Maximum 3 bathrooms • 1 kitchen faucet aerator with spray feature – See specification sheet with photo to explain spray feature

• Up to 4 CFL bulbs per unit – Existing 60-watt incandescent gets replaced with 13watt CFL – Existing 75-watt incandescent gets replaced with 20Watt CFL – Existing 100-watt incandescent gets replaced with 23Watt CFL Consumers does not remove existing fixtures from the unit entirely. They install the maximum amount of product possible (unless advised otherwise by resident or leasing office) and leave existing fixtures and bulbs in the unit to allow resident to switch back if they are unhappy with the new upgrade. Also, residents may decline installation of any and/or all products if they feel inclined to do so. Consumers Energy Saving Solutions can only work on Consumers Energy customer’s properties. Right now, they are working on properties that use Consumers Energy for gas AND electric but will be soon branching to those who use Consumers Energy for gas ONLY. Below is a list of the prescriptive measures and incentives available through the multi-family program. Keep in mind that these would only apply if the area in which they are being in-

stalled is billed on a residential rate. If it is billed on a commercial rate, incentives may diﬀer. The charts below should be used just as a general reference.

Electric Prescriptive Measures Common Area: 2’ and 3’ T8 Common Area: 4’ and 8’ T8 Common Area: 4’ T5 Common Area: T12 4ft de-lamping Common Area: Hard wired CFLs Common Area: LED exit signs Common Area: Controls Indoor Garage Lighting Outdoor Safety Lighting

$5.00 $8.00 $7.00 $5.00 $50.00 $30.00 (retroﬁt) $100.00 $200.00 $100.00

Gas Prescriptive Measures Boiler controls Steam traps Boiler tune-ups

$150.00 $50.00 $100.00

For more information, contact Megan Atkinson at Consumers Energy at (877) 607-0737.

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(continued from page 9) tential as a model for other communities, said Welch. He said at a retroﬁtting cost of $1,000 each, the changes made to the boilers will pay themselves back in about 10 months. Additionally, once all of them are running, the energy generated from the boilers will eventually heat them, as well as two buildings at the sanitary plant. Turning waste into energy not only has money-saving beneﬁts, Welch said, but it is environmentally friendly. Using a bacterial process, it separates environmentally harmful “sludge” from energy rich methane instead of burning down all of the waste and releasing the entire contents into the atmosphere. As for other alternative energy projects that have more potential for job growth, such as building and installing wind turbines and capturing geothermal heat, Welch said his state seems to be opening

(continued from page 13) done rehabbing them, the company could pursue certification. However, Krueger said he doesn’t pursue certifications because he believes some developers do so to raise awareness about their green efforts and to get recognition for them. He said he doesn’t need to advertise his efforts since people with low incomes don’t have many choices about where to live and he doesn’t think advertising that he has better paint or carpet makes a difference about whether they choose his housing, which fills up so fast there is a waiting list for all of A.C.D.’s projects. Because he doesn’t look to certify his projects, Krueger said he doesn’t need to hire LEED certiﬁed engineers or contractors on his projects but learns along with his project managers through the years. 22

Great Lakes Capital Fund

up to those possibilities especially in rural areas. When it comes to wind, he said in East Central Indiana, near the highest point of the state, he anticipates seeing many more wind turbines in place on farm land by 2011, which would beneﬁt not only the environment, and those who manufacture and maintain the turbines, but also the farmers who rent out the space. Though Indiana hasn’t yet oﬃcially gotten behind the green movement with a strict renewable energy standard from the governor or Legislature, Welch said it doesn’t seem to be for lack of support from its citizens. Welch said he hasn’t heard a lot of objection to wind, geothermal or cellulosic energy, but he is cautious about continued development in ethanol. While that industry has created a few thousand around the state, Welch thinks much of the research and development will disappear — and with them, jobs — after government incentives wane.

Naum agreed, saying much of what she’s learned about sustainability has been “on the job training.” She added that Milestone does get consultants’ help on projects that are destined for certification. These developers, while very different from one another, have both taken steps to build more sustainable communities, proving that any company, no matter its size, the role it plays in the developments once they are finished and the extent to which they can afford to make green investments can make a move toward sustainability. Their advice to anyone willing to learn more about how to build more environmentally friendly is to attend tradeshows and take continuing education classes, with Naum adding that talking to an expert engineer or contractor is a good way to find which options are most cost effective and efficient.

Most studies of policies that result in energy savings through efficiency programs and state-initiated policies toward a greener way of life show significant positive impacts due to changes in spending on utilities, increased jobs and increased energy efficiency, said Stanton. The general finding is that as much as half of the total positive impacts of energy policy changes result from energy consumers spending less on utility bills, thereby increasing the amount they have to spend on discretionary items. Similarly, most studies find gains to a state’s economy and the potential for thousands of jobs, especially in rural areas and states with strong manufacturing infrastructure. While Stanton said he thinks states should initiate more research to model conclusively the net economic and employment effects that will result from major increases in renewable and alternative energy, he said preliminary studies do suggest the results will be both positive and significant.

McCartney & Company, P.C. Certified Public Accountants

Specializing in services to real estate partnerships, including cost certifications, audits, low income housing credits, and tax preparation. Edward Rebman, CPA 517/347-5000 phone 517/347-5007 fax rebmaned@mcco-cpa.com www.mcco-cpa.com Okemos, Michigan

Events and Happenings Blue Ribbon Loft Apartments Wins Award Blue Ribbon Loft Apartments was recognized for overcoming significant obstacles and using innovative and replicable strategies to surmount its challenges. The 95-unit mixed-income apartment building with 69 available to income-qualified families and individuals making 50 to 60 percent of the area’s median income was nominated by Great Lakes Capital Fund. The project came to fruition after four years of attempts to revitalize a former Pabst Brewery, including overcoming extensive environmental hazards. Amenities include an indoor main street, a music studio, artists’ workspaces and galleries, business center, fitness facility, indoor parking, conference rooms and theater/presentation space.

Molland Joins GLCF Kara Molland joined Great Lakes Capital Fund in March 2010 as an Asset Manager, primarily serving clients in Wisconsin and Michigan. Prior to joining Great Lakes Capital Fund, Kara was an Associate Director at GE Real Estate where she was responsible for originating and underwriting commercial real estate loans. In addition, Kara has worked for National Equity Fund as an Asset Stabilization Manager. Kara graduated from the University ofWisconsin – Madison with a degree in Real Estate and Urban Land Economics.

Left to right: Jerry Krueger, President American Community Developers, Inc.; Jeff Supowit, Vice President ACD; Ed Bobincheck, Great Lakes Capital Fund; and Frank Carswell, Independent Management Services at Westland Meadows grand re-opening receiving Green Communities Award from Great Lakes Capital and Enterprise for green initiatives at Westland Meadows.

Westland Meadows Grand Re-Opening Westland Meadows Apartments, located in Kalamazoo, Michigan, was acquired by ACD in 2007, and in 2008 a major rehabilitation of the project was completed with the assistance of an award of LIHTCs through the Michigan State Housing Development Authority, and an award of a $100,000 grant through En-

terprise for meeting the criteria of their Green Communities program. The award pictured below was presented to Westland Meadows Apartments and American Community Developers, Inc. by Enterprise and its Michigan aﬃliate Great Lakes Capital Fund at the Westland Meadows Apartments grand opening on October 16, 2008.

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"We specialize in Non-Profit Consulting and Joint Ventures" Avenues to Affordability

Homeless Vets Earn a Silver Star Silver Star is a new 75-unit development that provides permanent supportive housing for homeless veterans. This precedent-setting development could not have been completed without the unique collaborative formed between the developer, Trilogy Development, and the Department of Veterans Aﬀairs, Battle Creek Veterans Aﬀairs Medical Center, VA Domiciliary, HRI of Kalamazoo County, Summit Pointe of Calhoun County, and Family Home Health Care Services. Another major partner is the Michigan State Housing Development Authority, which provided the low income housing tax credits, 75 project based vouchers and direct loans for the development. Additionally, Great Lakes Capital Fund purchased the tax credits, providing over $4.7 million of equity for the project. UnifiedRedTapeAd.qxd 9/25/09 4:31

Silver Star is located on the campus of the Veterans Administration in Battle Creek, Michigan. It is currently the only tax credit property to be built on VA land in the United States. This one-ofa-kind model maximizes the accessibility of supportive services to meet the needs of the veterans. In addition to the services provided by the VA, Summit Pointe and Family Home Care Services will also be providing medical care, employment training, case management, and other community outreach services. Tenants will pay 30% of their income towards rent. Unit amenities include refrigerators, stoves, garbage disposals, microwaves, and central air conditioners. Development amenities include a work-out room, movie-theater, and community room with kitchen. Common space for employment training programs is also included. 2007 point-in-time counts showed PM Page 1

that there were 122 veterans having both a long pattern of homelessness and a disability in Calhoun County. Nationally, the Department of Veterans Aﬀairs reports over 131,000 veterans are homeless.

Let our experts cut through your Section 42 Red Tape Why choose Unified Property Group to manage your affordable housing properties? With over 35 years experience in property management and 18 years as tax credit professionals, we will help your affordable properties achieve success by: �

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Providing program training to your site staff by our Registered Certified Affordable Housing Specialists Focusing on first year lease up and maintaining certification records Submitting yearly compliance reports Call us today to discuss Providing the most up-to-date Yardi software your management needs! Pre-approving all move-in files Offering technical and program support to your sites Specializing in Acquisitions and Rehabs Tax Credits, Home Funds, RAP, PRAC Section 8, 202, 236

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You’ve got a partner. Your MSHDA. Preventing foreclosure? We help. Resurrecting Main Streets? We’re there. Fixing up the neighborhood? Call us. Helping to build affordable housing? We’re on it. We’re working to bring Michigan back, with loans, housing programs, grants, and sound advice. If you’re interested in improving your home, your neighborhood or your community, you’ve got a partner. Your MSHDA. TTY 800.382.4568 Avenues to Affordability

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