Emergence of a New Growth

Great Lakes Capital Fund

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Vo l u m e 16

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Issue 1

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2009

Emergence of a

New

Growth

Avenues to Affordability

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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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Great Lakes Capital Fund

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

President始s Note ............................................5 Emergence of a New Growth .........................7 Cultivating Powerful Communities ....................9 Helping Shovel Ready Projects ...................... 10 Green with Equity ........................................ 12 Reinvigorated Lending .................................. 14 Real Estate Organization .............................. 15

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Do No Harm ............................................... 16 Community & Business Services ..................... 17 Harvesting Leadership .................................. 18

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Consulting Services ...................................... 19 Real Estate Services .....................................20 Events & Happenings ................................... 21 Advertiser Index ..........................................23

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GOVERNING BOARD 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

PRESIDENT’S NOTE The last twelve months have brought more than their share of heartburn, stress, and sleepless nights. The entire affordable housing and community development industry has been hit with historical changes and impacts to its business models. The collapse of the capital markets and subsequent economic declines across the country caught most by surprise. Complacency had seeped into most organizations, due to the long growth period and excesses in the economy. Many of those corporations that allowed complacency to become the culture have perished or exist in a form that is unable to provide the programs, services, and financial services they were accustomed to.

I’m very happy to report that the Great Lakes Capital Fund is not a victim of the current economic upheaval. The Fund got its first wakeup call that things were going to change in late 2005. At a time when returns were below 4 percent and tax credit pricing was at record highs of 98 cents to over one dollar, two of our major investors informed us that they were cutting back their investments in 2006. The Fund was one of the first to get this message in the country.

As I have said over recent months, we were the proverbial “canary in the coal mine.”

Upon hearing of the cut back, the current unsustainable IRR, and pricing infrastructure, our Board of Directors instructed us to accelerate our organization’s diversification plans in 2006 and 2007. As a result of this direction, we communicated to anyone that was willing to listen, that a major change was coming in corporate investment strategies. Many will recall the Fund took a lot of heat for the message, including being referred to as Chicken Little and self serving. Honestly, what happened in the fall of 2008 with the collapse of Wall Street and near collapse of the banking system caught us by surprise. As a result, in October we convened a retreat of our executive team to strategize how to best react to the situation. Our goal was to remain viable and relevant. It was a very difficult period of discussion. But, when we looked back to the roots of our creation, it became clear what our mission is and what we had to do.

We had to maintain the mission to create stable, healthy, vibrant sustainable communities through the allocation of capital. Which meant the existing business model had to be dismantled and rebuilt. It was similar to taking a toolbox and turning it upside down to dump

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PRESIDENT’S NOTE everything out and assessing what tools were still viable and which ones may be outdated and ineffective. Over the next few months, the entire staff of GLCF participated in task forces to make those assessments and produce vi-

each of our states in our footprint including most recently growth into Upstate New York with a Community Fund. Many of the funds have been targeted to be partnerships with a state banking trade association.

If there has ever been a time for partnerships, flexibility, and collaboration, it is now. able business plans for existing and new lines of business. With all of those plans, we then rebuilt the Fund organizationally to be the most effective, efficient Community Development Finance Corporation in the Midwest. In February, the Board of Directors approved the new plan and it went into effect on March 1.

Many of you have seen the positive results of it already. Most importantly, our capital raising efforts are already showing results. One of the signature efforts of our capital raising group is the creation of State Community Funds in

If there has ever been a time for partnerships, flexibility, and collaboration, it is now.

The Fund is committed to doing everything in its power to help our partners get through this difficult period. It will take innovation and cooperation at all levels of the industry to get through this. We are committed to that end so the residents of our states can have stable healthy communities to live in.

This edition of our first web based magazine will give an overview of all the elements

of Great Lake Capital Fund’s reorganization. We are very open to hear from you, the reader, what your thoughts are regarding it. This includes any ideas of things we may have missed the mark on. We have more challenging times ahead of us and if there are ways you think we can be more effective, we want to hear it.

I am so thankful for the visionary and committed staff we have at the Fund. In a time of stress, fear, and a lot of unknowns, each member of the staff has shown unbelievable commitment and conviction to the Funds mission. It is why, when we emerge from this current down time, Great Lakes Capital Fund will have seen growth and new opportunities that will make us stronger and more viable for the future. To my team, I say YOU ARE THE BEST!

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Great Lakes Capital Fund

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he enormous challenges to the financial markets, the banking system and the nation’s economy have placed a great deal of stress on the real estate industry and on the affordable housing industry in particular. While we saw the changes in the tax credit market begin to affect the Great Lakes region nearly two years ago with the withdrawal of Fannie Mae and Freddie Mac from the housing tax credit investment market, the near collapse of the financial markets late last year accelerated our response to the changing investment landscape. Recognizing that we will likely continue to experience unpredictable financial markets in the months to come, and that these difficult economic times require an organization with the ability to make quick adjustments to new business opportunities, GLCF has made a number of structural changes to its organizational framework. A key component of the organizational change included the formalization of the Capital Group.

Working from the GLCF mission of supporting healthy, vibrant and sustainable communities by meeting their capital needs, we recognized the difficulties GLCF would face in raising capital over the near term. While Avenues to Affordability

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capital raising responsibilities historically have rested with a few senior staff members, the new reality of the capital markets requires a different approach necessitating the dedication of substantially more staff resources.

And with a broader product focus (including an expanded loan program; sustainable energy opportunities; Community Development Financial Institution funding opportunities; triple bottom line funds; and our planned expansion of the New Market Tax Credit program geography) it was clear that our capital raising plan needed to transition from a “wholesale” marketing effort to a “retail” marketing effort.

The Capital Group will support all GLCF

business activities and will have responsibility for the identification and education of potential new investors, as well as strengthening our relationships with current and past investors.

The Capital Groups fund raising effort for housing tax credits for 2009 will focus on the following funds: • V Diamond Fund - Targeted Investment Goal $100 Million • Regional Fund - Targeted Investment Goal $60 Million • Indiana Community Fund - Targeted Investment Goal $15 Million • Michigan Community Fund - Targeted Investment Goal $15 Million • Upstate New York Community Fund -

ORGANIZATIONAL CHART To review a larger copy of the organizational chart, visit www.capfund.net.

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Targeted Investment Goal $30 Million • Wisconsin Community Fund - Targeted Investment Goal $15 Million • Illinois Community Fund - Targeted Investment Goal $15 Million Other Capital Group fund raising initiatives for 2009: • Residential and Commercial Lending • Community Development Financial Institution (CDFI) • New Market Tax Credits • Historic Tax Credits • Renewable and Sustainable Energy • Triple Bottom Line Fund • Art of Leadership

Cultivating Powerful Communities Capital Allocation Group Expands Products

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reat Lakes Capital Fund is essentially a community development finance organization. We raise capital, allocate financial capital, and manage human capital and services. It is just that simple, but yet very powerful in achieving our mission of supporting healthy, vibrant, and sustainable communities through the creation of capital The Capital Allocation Group allocates financial capital. This is accomplished through five major activities: • Tax Credit Investing led by Tom Edmiston • Private Equity Capital led by Dennis Quinn • Mortgage Services led by Jerome Sullivan • Real Estate Organization led by Keith Broadnax • Sustainable Communities led by Ed Bobinchak In the past we have placed a significant emphasis on the LIHTC program, but have been working in these other areas as well. In order to have the kind of holistic impact that is powerful in communities, it is time to bring all of these products to bear.

While we continue to work in the LIHTC arena, we are expanding our efforts in New Markets Tax Credits and brokering state credits. We have been providing lending services for quite some time, but this area will grow with additional sources of funding. As

Year 15 approaches for many LIHTC properties, there have been and will be accelerating opportunities to help reposition properties.

Sustainable Communities efforts envision multiple opportunities to go “green” through sources of funds deployed as equity and loans, along with “green” consulting. Private equity is a newer initiative and will be key to developing jobs.

As you read on about these initiatives, you will find that the Great Lakes Capital Fund is positioned to be a power house in providing jobs and housing in an environmentally friendly way.

I hope you catch the vision and can see yourself wanting to be part of something that

provides hope to communities!

Contact To learn more about our Capital Allocation Group, contact Rick Laber at (517) 364-8920 or rlaber@capfund.net.

by Rick Laber, Executive Vice President, Capital Allocation Group Avenues to Affordability

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Helping Shovel Ready Projects

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ince 2005, we have been involved in New Markets Tax Credits through our affiliation with the Michigan Magnet Fund. The Cap Fund has served as the fund manager, asset manager and compliance manager for MMF which channeled $60 million of NMTC investment to support key developments across the state, creating and/or retaining 2,500 jobs and supporting nearly $300 million in development activity.

In 2009, the Cap Fund submitted its own $125 million NMTC application. If we’re successful in getting an allocation, we’ll be able to invest in high profile developments across the states of Illinois, Indiana, Michigan and Wisconsin. We’ll learn about the status of our application this fall. In the meantime, we’ll help several developers with “shovel ready” projects access NMTCs from organizations across the country that have unspent allocations. We’ll perform this brokerage service alongside our consulting partner, Strategic Development Solutions (which received NMTC allocations in two recent funding cycles).

For our NMTC application, we assembled a topnotch group of individuals to serve on the Advisory Board for our subsidiary, CapFund New Markets LLC. They include: • Allan Hooper, Economic Development Director, Consumers Energy, Jackson, Michigan

by Tom Edmiston, Senior Vice President Capital Group

• Ben Applegate, JD, Principal, Applegate ThorneThomsen, Chicago, Illinois • Dana Bourland, VP of Green Initiatives, Enterprise Community Partners, Inc., Columbia, Maryland • Dave Armstrong, President/CEO, GreenStone Farm Credit Services, East Lansing, Michigan • David Miller, CEO, Hoosier Uplands Economic Development Corp., Orleans, Indiana • Joe Alamillo, President, NSP Consultants, LLC, Hammond, Indiana • Mary Patoka, President & CEO, CAP Services, Stevens Point, Wisconsin • Salli Martyniak, President, Forward Community Investments (formerly The Dane Fund), Madison, Wisconsin • Sharon Legenza, JD, Executive Director, Housing Action Illinois, Chicago, Illinois • Sid Smith, President and CEO, Smith Equities Corp, Mt. Pleasant, Michigan • Teig Whaley-Smith, JD, Owner, Community Development Advocates, LLC, Milwaukee, Wisconsin

Historic Tax Credits and Brownfield Credits The Cap Fund has typically channeled Federal Historic Tax Credits to investors who are making LIHTC or NMTC investments in registered historic landmark projects. We’re now brokering a broader range of tax credits to a larger pool of investor and our work is no longer limited to developments receiving LIHTC or NMTC investments.

We’re able to broker Historic Tax Credits and Brownfield Credits for any project that meets our charitable purpose of eliminating slum and blight in a 10

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targeted revitalization area. We’re brokering certificated state tax credits to corporate investors. These credits can be converted into a certificate (i.e. a commodity) that can be sold to an investor without the need for the investor to participate as an owner in the real estate development. This enables us to support the redevelopment of abandoned or obsolete properties.

By brokering State Historic and Brownfield Tax Credits, we help investors support high priority housing and economic development initiatives in low-income or distressed communities while reducing their state tax liability in the process. Bank investors are able to get the added benefit of a favorable review with the investment section of their CRA exam.

In Summary Great Lakes Capital Fund’s tax credit investing division has built upon the strength of

its 16 year track record in brokering and asset managing Housing Tax Credits; and it has expanded its services to broker a broad array of tax credits. This enables us to: • Generate more investment opportunities for corporations • Bring more capital to high priority community projects, and • Create more jobs and shopping opportunities in low-income communities... making them more healthy, vibrant and sustainable.

We encourage our corporate partners to“Take Credit for Investing in Great Places to Live”!

Contact To learn more about our Great Lakes Tax Credit Investing products or provide information about a project that could use this source of financing, contact Tom Edmiston at (517) 364-8907 or tEdmiston@capfund.net.

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������������������������ ����������������������������� Audits | Cost Certifications | Tax Returns ���������������������������������������������������������������������� ��������������������������������������������������������������

Godfrey Hammel, Danneels & Company, P.C. Certified Public Accountants & Business Consultants

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Green with Equity Great Lakes Capital Fund, Strategic Development Solutions and Economic Innovation International, Inc. (collectively the “Fund Development Team”) are building a $100 million Triple Bottom Line (TBL) private equity investment fund targeted at improving communities in low- to moderate-income areas of the Great Lakes region.

• 2nd Bottom Line: Jobs and economic opportunity in low- and moderate-income communities • 3rd Bottom Line: Sustainable, green buildings that reduce resource consumption • Revitalizes low–to moderate–income communities through job and wealth

The Great Lakes Private Equity Fund I will provide both equity capital and technical resources to real estate developers seeking to finance real estate projects in low- to moderate- income neighborhoods. Projects will include retail, office, light industrial, housing and mixed-use developments. Investments in these real estate projects are anticipated to

The Fund will invest in real estate projects with sustainable, or “green,” targets and assist developers in reaching sustainability goals.

The Fund Development Team is currently working with government leaders, stakeholders and developers throughout the region to identify those areas that would benefit from direct investment into impactful community and economic development projects.

Benefits to Investors • 1st Bottom Line: Risk-adjusted market rates of return

by Dennis Quinn, Senior Vice President, Private Equity Investing

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creation • Generates critical tax revenues from newly-productive properties • Converts abandoned or under utilized properties • Cleans up and re-uses blighted and contaminated properties

Why the Great Lakes Private Equity Fund I? Many low- to moderate-income areas in the Great Lakes region lack the investment capital needed to develop impactful real estate development projects. To date, the Great Lakes region has not significantly benefited from Triple Bottom Line Funds, with much of the $15 billion industry focused on the West Coast and the Northeast.

provide increased diversification for an investor’s real estate portfolio. The Fund will invest in real estate projects with sustainable, or “green,” targets and assist developers in reaching sustainability goals.

The Fund Development Team is collaborating with green building expert Johnson Controls, Inc. to provide environmental sustainability advice and strategies to the Fund’s developers.

The Fund will also have the ability to seek alternative below-market financing (e.g., foundation program related investments, New Market Tax Credits, Historic Tax Credits, etc.) on a deal-by-deal basis, as needed, to fill gap financing needs on highimpact investments.

The Fund Development Team The Fund Development Team brings together significant breadth and depth of experience in real estate development and finance.

Great Lakes Capital Fund (GLCF) is a real estate investment firm that has focused historically on affordable housing and economic development projects. GLCF has invested over $1 billion in 400 properties

across Illinois, Indiana, Michigan and Wisconsin. These investments have resulted in 20,000 homes and 200,000 square feet of commercial space.

Strategic Development Solutions and Economic Innovation International, Inc. have raised and/or developed more than $2 billion in Double and Triple Bottom Line private equity funds across the U.S.

Contact To learn more about our Great Lakes Private Equity Fund I or provide information about a project that could use this source of financing, contact Dennis Quinn at (313) 841-3751 or dquinn@capfund. net or Alison Paige at (310) 914-5333 or ap@sdsgroup.com.

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Reinvigorated Lending Capital Fund Services Creates More User Friendly Programs

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reat Lakes Capital Fund has offered mortgage lending, acquisition lending, and pre-development lending for many years. These products are delivered through our sister company, Capital Fund Services (CFS). To help our development partners in these turbulent and challenging times, these programs have been reinvigorated and made as user friendly as possible.

1) Permanent mortgage lending.

Standard LIHTC underwriting of 90% LTV and 1.20x DSC with an 18 year term and a 30 year amortization.

These loans are offered on both an immediate and a forward commitment basis.

2) Acquisition lending. This program is intended to help developers that need to buy a property before lining up permanent equity and financing.

LTV will generally be up to 80% with loan terms of one year. In addition to providing loan funds, Great Lakes can consult with developers with potential structures to ensure that acquisition basis is maintained on LIHTC properties.

3) Green/Energy efficiency lend-

ing. This is an exciting new endeavor for CFS and Great Lakes. These are loans designed to help owners pay for energy improvements at properties with the loan being paid back from the energy savings generated by the rehab work. CFS has a stable of consultants available to help property owners evaluate the potential savings achievable from making energy improvements.

4) CFS still offers pre-development lending to qualified development companies. CFS is looking for developers with healthy balance sheets that have viable development projects that need a little more time prior to final close.

5) In another new product, CFS is seeking Community Development Corporation status with the SBA. This designation will increase our ability to offer small business loans. Stay tuned for additional details later in 2009.

Contact Please call your Great Lakes Capital Fund contact to inquire how a CFS loan can help keep your project moving forward to a successful close. You may also contact: Jerome Sullivan at (608) 209-7821 or jsullivan@capfund.net.

by Jerome Sullivan, Senior Vice President, Real Estate Lending

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Real Estate Organization

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he Real Estate Organization explores a number of business opportunities that position properties for future syndication, preserve affordable housing and/or dispose of limited partner interests. This is accomplished through the following initiatives: • Acquire and hold properties for the short-term (under one-year) and longterm (three years or more) based upon strategies unique to each property.

• Find opportunities to partner with non-related development companies to purchase existing projects and serve as a co-General Partner.

• Develop disposition plans for properties that are approaching Year 15.

There are a number of LIHTC developments that are nearing the end of their 15-year compliance period. There are also a number of General Partners that would like to sell their interests but are unable due to the high exit taxes that must be paid upon the sale of these properties. To add to this, declining prices for LIHTC’s has made exiting these developments even more difficult. We identify these properties and consider acquiring the General Partner interests through a bargain sale, with the ultimate goal of resyndicating the development within one year and preserving the housing as affordable. The holding period allows the developer to re-position or finalize take-out financing. These projects should have good initial cash flow. We may hold

some properties for three years or more as circumstances warrant. We also look at market rate developments in suburban communities with the goal of providing needed affordable housing in these communities. A number of in-house financing options, such as an acquisition lending program to acquire the interests in these properties are available.

GLCF considers investing in non-related development companies. We evaluate the role that is most beneficial to GLCF and the communities in which it works to determine if our role will be solely as a co-developer or as part of the ownership structure. We have a number of in-house development and financ-

ing options at our disposal such as our PreDevelopment Lending Program, Triple Bottom Line Funds, NMTC Fund, and LIHTC Funds.

We are developing action plans for disposition of LIHTC properties after year 15.

Through this analysis we will have a multitude of options when determining exit strategies.

Contact To learn more about our Great Lakes Real Estate Organization or how we can help you reposition your property, contact Keith Broadnax at (608) 347-1094 or kbroadnax@capfund.net.

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Do No Harm:

Our Sustainable Communities Program Provides Resources for Community Developers

In the First Century, the Roman physician Galen (129-210 A.D.) stated that among the guiding principles for physicians the “First” is to “Do no harm.” Although that principle has been adopted by responsible physicians for two millennia, it is only slowly working its way into the world of community development: Do our development projects enhance the welfare of the people who use them or live in them? Do they protect the natural environment in which they are situated? Are they built with locally produced, rapidly renewable materials? Do they responsibly manage use of water and non-renewable energy sources? Do they promote the building of community and a healthy interaction with nature? Do they incorporate technologies and practices that minimize each project’s carbon-footprint?

The Great Lakes Capital Fund commitment to Sustainable Communities explicitly focuses on these questions. It brings into sharp focus principles that have guided our work since 1993, through our community planning work, our review of construction specifications and design and through our participation in the Green Communities program. Going forward, these questions of sustainability will be incorporated into the underwriting of all of our loans and investments.

As a new business line, Sustainable Communities also provides resources to help community developers “Do no harm.” These specific approaches are being

taken: 1. Sustainable Community Guidance. Ed Bobinchak, Vice President Sustainable Communities is certified as a LEED Accredited Professional. He is working with all GLCF staff to ensure that they have access to “green” professionals and can provide advice and assistance to promote sustainable development.

2. Sustainable Consulting Contracts. GLCF has also applied for technical assistance contracts with Enterprise Green Communities, Michigan State Housing Development Authority and Indiana Housing and Community Development Authority. GLCF will also pursue such contracts in other states, so that it can participate in sustainable design and assist with plan review and performance testing.

3. Sustainable Lending. GLCF is in the process of identifying sources for loans for sustainable development. Though still being developed, these loans are intended to leverage additional upgrade in buildings or the purchase of renewable energy technologies. In either case, terms of the loan would be based on cash flow generated by the increased efficiencies or energy off-sets.

4. Sustainable Investing. Private Equity Capital for sustainable development is one criterion for the GLCF Triple Bottom Line Fund. Other investments will be leveraged through CDFI funding and the New Markets Tax Credit programs.

Equity investments in renewable energy through wind, solar, and bio-mass conversion are also being planned.

Through these initiatives, Sustainable Communities plans to provide the resources necessary to allow all GLCF community development efforts to be highly efficient, healthy, durable and to have a positive impact on the environment.

Contact

by Ed Bobinchak, Vice President, Sustainable Communities

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To learn more about our Sustainable Communities initiatives or provide information about a project that could use this source of financing, contact Ed Bobinchak at (313) 319-9013 or ebobinchak@capfund.net.

Community & Business Services

by Jennifer Everhart, Executive Vice President, Community & Business Services

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ommunity & Business Services provides services that support community development and Great Lakes Capital Fund’s mission of creating healthy, vibrant and sustainable communities. We do this by providing services that complement, enrich and empower our partners, which in turn, enables them to succeed in their community development and revitalization efforts. We accomplish this through three major activities: • Community Leadership led by Denise Stein • Consulting Services led by Victor Vasquez • Real Estate Services led by Steve Smith While a major part of our work involves real estate development or financing, we are focusing on a more comprehensive approach to that work. We have long supported youth leadership initiatives, recognizing that our youth are truly our hope for the future. Our work in Community Leadership now expands beyond youth, to impact whole communities.

Our consulting and technical assistance efforts provide a means to support partners who, for one reason or another, do not have the ability to perform certain real estate related functions themselves—they are venturing into a new product and need training or they have decided it is beneficial to contract out for services rather than hiring the staff to do so themselves. Our title company is providing a broader range of services including construction inspections.

Please read more about our new efforts in the pages that follow. We strive to be creative

in developing new products and services that support you, our partners. I encourage you to contact us if you have ideas of additional ways we can help, so that collectively, we can accomplish our mission of improving our communities and the lives of our residents.

Contact To learn more about our Community and Business Services, contact Jennifer Everhart at (517) 364-8911 or jeverhart@capfund.net.

We are a family of companies serving the needs of families.

•MANAGEMENT •DEVELOPMENT •CONSTRUCTION •CONSULTING

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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

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Harvesting Leadership

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reat Lakes Capital Fund’s Community Leadership efforts will empower, educate, and support all people in our communities to create visions for the future for themselves and for their communities. We will help our residents to have the knowledge, ability, and means to pursue their visions, and to unite for the purpose of creating cultures that support the success and satisfaction of each of the community’s members. We will work with people from all parts of the communities, including youth, families and residents, local businesses, non-profit organizations, GLCF partners, and others.

We have developed and are delivering leadership programs for a variety of groups within our communities. The programs teach the skills of effective leadership, management, and coaching as well as incorporate the concepts of integrity, accountability, and teamwork into each participant’s life. Participants will expand their view of their roles as members of a community and find opportunities to lead com-

by Denise Stein, Vice President, Community Leadership

munity members to a shared vision for the future.

The Art of Leadership is a program for students in 6th grade through high school.

It follows the school year, and includes an overnight retreat, biweekly coaching sessions at school, and a year-end community service project. The students apply all the leadership skills they’ve learned throughout the year to plan and implement the community service project, which furthers their vision for their future.

We are partnering with our general partners and property managers to offer leadership development programs to our residents. General partners may select residents to attend summer Community Leadership Academies, where participants learn the same leadership skills as our Art of Leadership students, but in a camp setting. Coaching sessions continue at each housing community throughout the year.

We’re writing a new leadership curriculum for parents of children in Head Start programs. These programs will be delivered through local Community Action Agencies across our footprint.

Contact To learn more about our Community Leadership initiatives, contact Denise Stein at (517) 364-8915 or ddstein@capfund.net.

1000 S O U T H W A S H I N G T O N A V E N U E , S U I T E 101 L A N S I N G , M I C H I G A N 48910-1647

www.cedam.info

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517.485.3588

FAX

517.485.3043

staff@cedam.info

CEDAM is a nonprofit tax-exempt organization. We are a voluntary association of community development corporations (CDCs), individuals, and other organizations interested in promoting and expanding community-based housing and economic development across the state of Michigan.

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Advocacy

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Education

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Networking

Consulting Services

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reat Lakes Capital Fund currently provides consulting, technical assistance and training services to our partners. We are able to offer help with LIHTC applications and Placed in Service applications, as well as other funding applications, training on LIHTC compliance, budget and financial management training, bookkeeping and preaudit evaluation, and tax credit training customized for audit firms.

Our Green Consulting Services provide technical assistance in the review of building and site plans to incorporate beneficial environmental and carbon reduction features, and potentially the provision of financial resources that facilitate the investment needed to incorporate these features. For more information about this please refer to our activities in Sustainable Communities.

We are also offering third party services such as underwriting and asset management for our investors or state housing finance authorities. We currently provide third party compliance services to investors, and are looking to expand that to property management firms and our housing authorities. We can also provide asset management services for New Market Tax Credit developments.

We’re exploring expanding our services to include real estate workouts to investors with direct LIHTC investments that do not have adequate asset management resources to manage a workout. Turnover of property management staff also creates an ongoing need for marketing and leasing services train-

by Victor Vasquez, Vice President, Consulting Services

ing for both our development partners and non-development partners.

We have developed a loan program with local units of governments and local foundations utilizing the Neighborhood Stabilization Program. Our program leverages the federal resources to impact a larger number of homes. We are now able to take our experience with this program and provide technical assistance to other local units of government who want to pursue a similar program.

Contact To learn more about our Consulting and Technical Assistance services or to request help with your development project, contact Victor Vasquez at (517) 364-8917 or vvasquez@capfund.net.

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

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Real Estate Services

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s lending services and investing becomes more competitive, forward thinking organizations have formed strategic partnerships within the industry that create multiple revenue streams for the parent organization.

Great Lakes Capital Fund is looking to create a more simplified “One Stop” approach for its customers by offering integrated services that complement our other business lines and products.

In June, 2006 Great Lakes Capital Fund formed Capital Fund Title Services (CFT) in response to the opportunity. CFT provides escrow and title services in the foot print of Great Lakes Capital Fund. Since its formation it has proven to be a service and financial asset to the Great Lakes Capital Fund and

our partners that we serve. We are now offering construction management and inspection services which complement our title and disbursement services.

CFT has developed a relationship with the Ingham County Land Bank and is providing title insurance services on its properties.

We hope to replicate this model with other land bank authorities in our footprint. With the re-emergence of the residential refinance market, CFT will also refocus its marketing efforts in that area to grow that share of the market.

GLCF will continue to explore opportunities to expand and diversify its Real Estate Services in the future, beyond the current business of title insurance. Opportunities for consideration include property, casualty and

by Steve Smith, Vice President, Real Estate Services

other business related insurance and real estate brokerage.

Contact To learn more about our Real Estate Services or to request a quote for title services, contact Steve Smith at (517) 364-8933 or ssmith@capfund.net.

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.

800.949.3124 | clarkhill.com

ARIZONA

© 2009 Clark Hill PLC

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ILLINOIS

MICHIGAN

WASHINGTON DC

Events and Happenings ART of Leadership Nominated for Governor’s Award

First Affordable Assisted Living Property Opens in Grand Rapids

The ART of Leadership Foundation has been selected as a finalist for Governor Granholm’s Outstanding Mentoring Program Award.

This year’s celebration was held on June 18 at the Governor’s Lansing Residence, hosted by Governor Granholm and First Gentleman Dan Mulhern. The award is a special way the governor acknowledges and honors the outstanding efforts of Michigan’s volunteers. The ART of Leadership is now a program under the Great Lakes Capital Fund. For more information on ART of Leadership, contact Denise Stein at the GLCF office.

Photo courtesy of People Place & Things Photographics

Heron Manor Assisted Living, located in Grand Rapids had its grand opening on June 26. It is the first affordable assisted living residence in the state of Michigan. The facility has been built to comply with all US Green Build and LEED –H Certification requirements including a geothermo heating and cooling system.

GLCF Becomes Green Community Technical Assistant Enterprise Green Communities selected Great Lakes Capital Fund as a Green Communities Technical Assistance provider based on our exceptional professional services qualifications in Michigan, Indiana, Wisconsin and Illinois. Enterprise selected TA providers with demonstrated expertise in the design, construction, rehabilitation, and operations of green affordable housing.

Enterprise’s goal is to match specific green technical expertise to the most urgent development needs in order to increase overall building performance and maximize energy, water, and health savings for lowincome residents In addition to being listed on the national registry, green technical assistance grants will be offered to qualified green affordable housing developers. This grant fund will encourage participating developers to contract with approved TA providers in order to support on-site energy assessments, design review, construction monitoring, performance evaluation, and resident and operations training in underserved communities.

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AHTCC Congratulates Winners of the 15th Annual Charles L. Edson Awards

Broadnax Appointed to City of Madison’s Housing Committee

We have been notified by the Edson Award program that two of Great Lakes Capital Fund’s developments received honorable mention.

We submitted five applications and we were informed that 40 applications were submitted from 19 states. To have two winners out of that number is fantastic. The winners from GLCF were Metropolitan/Urban Housing, Honorable Mention – Teutonia Gardens, Milwaukee, WI; and Rural Housing, Honorable Mention – Independence Place, Linton, IN

In March, Keith Broadnax was appointed to the City of Madison’s Housing Committee by the Mayor and Madison Common Council. The mission of the council is to encourage the development and preservation of affordable housing in the city of Madison; serve as focal point for housing issues, including landlord-tenant issues.

In April, Keith was elected to the board of directors for the Wisconsin Court Appointed Special Advocates Association. This is a Statewide Association that provides support children in the State’s Foster Care System. The association is dedicated to protecting kids who aren’t safe at home. CASA volunteers ensure that public and private systems in the community are effectively responsive to children’s needs by getting to know them and communicating important information to the judges overseeing their futures.

Everhart Appointed Trustee Jennifer Everhart, Exectuive Vice President of Community and Business Services and Chief Underwriter, has been appointed Trustee of the Okemos Education Foundation. She resides in the Okemos Community and her two children attend Okemos Schools.

GLCF Hosts Guests from Mongolia

Crawford Graduates Ashlee Crawford graduated from Michigan State University on May 9, receiving her Bachelor of Science degree in Urban and Regional Planning. Ashlee’s career goals focus on aligning her technical skills and knowledge with community revitalization efforts in order to rebuild and stabilize communities within Michigan. She looks forward to joining the workforce full time and plans to pursue a Master’s degree in the future.

Milwaukee Mayor’s Design Awards 30 projects were honored by Mayor Tom Barrett for contributing to the urban landscape of Milwaukee. Barrett presented the Mayor’s Design Awards, for design excellence, as well as awards for historic preservation at a reception at the University of Wisconsin-Milwaukee’s School of Architecture and Urban Planning. Two of Great Lakes Capital Fund properties were awarded: • United House, 2500 W. Center St. This project is Milwaukee’s first affordable, supportive housing for people with mental illness.

Homeless individuals were trained to be part of the construction team.

• Teutonia Gardens, 2711 N. Teutonia Ave. This new development is respectful of surrounding structures and joins the neighborhood nicely.

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Ganbat Osor, Managing Director General, Financial Regulatory Commission of Mongolia and Kiwon Kang, Ph.D., Academic Advisor/Coordinator, VIPP, Visiting Assistant Professor, ISP, International Studies and Programs met with GLCF CEO, Mark McDaniel to discuss issues pertaining to affordable housing and how our processes may work in Mongolia. They are visiting the United states to learn. Their goal is to provide 4,000 units of affordable housing over the next 10 years. Conceptually, they didn’t have an idea of timeframes or possibilities. They were very impressed to learn the GLCF has provided over 30,000 units in 15 years.

ADVERTISER’S INDEX Building Consultants, Inc. ..........................................................................888.599.8551 ....................... www.buildingconsultantsinc.com ...............13 Clark Hill......................................................................................................800.949.3124 ....................... www.clarkhill.com ........................................20 Community Economic Development Association of Michigan.............517.485.3588 ....................... www.cedam.info ...........................................18 Con-Pro Corporation..................................................................................248.557.8121 ..................................................................................................9 Godfrey, Hammel, Danneels & Company, P.C. .......................................586.772.8100 ....................... www.ghdcpa.com .........................................11 Gordon Advisors, P.C..................................................................................248.952.0200 ....................... www.gordoncpa.com ....................................17 Loomis, Ewert, Parsley, Davis & Gotting, P.C..........................................517.482.2400 ....................... www.loomislaw.com .......................................6 McCartney & Company, P.C. .....................................................................517.347.5000 ....................... www.mcco-cpa.com .....................................11 Medallion Management ..............................................................................269.381.0350 ....................... www.medallionmgmt.com...........................17 Michigan State Housing Development Authority...................................517.373.6840 ....................... www.michigan.gov/mshda ..........................23 O’Brien Construction .................................................................................313.297.6724 ....................... www.obriencc.com .........................................2 Plante Moran................................................................................................517.336.7460 ....................... www.plantemoran.com ................................19 Rohde Construction Company, Inc. ..........................................................616.698.0880 ....................... www.rohdeconstruction.com ........................4 Rolar, Inc. ......................................................................................................248.589.1800 ....................... www.rolarinc.com .........................................15

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Detroit Free Press Flagstar Bank Marathon October 18, 2009 Join GLCF and the ART of Leadership Foundation in the Detroit Free Press Flagstar Bank Marathon and Run for the Future! It’s simple: 1. Assemble a Relay Team (3-5 members) or choose to run in the half or full marathon.

2. Register for the race at www.freepmarathon. com. Be sure to indicate that you are running for ART of Leadership (each team responsible for registration fee).

3. Have each team member complete a Team ALF registration form and send to ALF. 3. Raise at least $1,000 per relay team or $250 per half or full marathon runners.

4. Join us on October 18, 2009 to inspire vision and leadership in youth!

Each runner will receive a Team ALF t-shirt and 2 passes for ALF’s Finish Line Brunch from 10:00 a.m. to 1:00 p.m. Additional brunch passes are available for purchase.

Great Lakes Capital Fund 1000 S. Washington, Suite 200 Lansing, MI 48910 www.capfund.net

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