First National Bank of Michigan is making a $1 million investment to support affordable housing development in partnership with Cinnaire and the Michigan Bankers Association Service Corporation.
The investments, announced last week, are part of First National Bank of Michigan’s (FNBM) commitment to expanding access to high-quality affordable housing, a key driver of economic mobility and family stability, the bank said.
“FNBM has partnered with Cinnaire over the past 14 years in several of these investments supporting the communities we serve,” said Dan Bitzer, the bank’s CEO.
As the Business Journal reported Dec. 7, Cinnaire and MBASC recently announced the closing of the partnership’s sixth affordable housing investment fund — the largest fund in its joint history — generating $16 million to support the development and rehabilitation of nine apartment communities across Michigan. These developments will provide more than 915 units of affordable housing to local communities, including at least eight affordable apartment communities, including Brentwood Apartments in Belding (50 units), Cliffview Apartments in Rochester Hills (126 senior units), Greenbriar Apartments in Greenville (40 units), Lake Superior Village in Marquette (116 units), Meadow Ridge Apartments in Marlette (24 senior units), Scottish Pines in Alma (24 senior units), Village at LaFranier Woods in Traverse City/Garfield Township (115 senior units) and Mt. Vernon Apartments in Lansing (140 units).
Since 2010, Cinnaire and MBASC have partnered to create five previous low-income housing tax credit equity funds raising more than $58 million. In that decade, the partners raised $74 million from 27 community banks, helping to finance the new construction or rehabilitation of 52 apartment communities, creating nearly 4,000 affordable housing units in 41 cities and small towns across Michigan. These investments resulted in more than $700 million in economic impact, including the creation and retention of 3,700 jobs.
First National Bank of Michigan invested in all six equity funds sponsored by Cinnaire and MBASC.
In return for their equity investments, the banks receive federal tax credits, along with other tax benefits. In addition to reducing their corporate federal income taxes, banks benefit from positive Community Reinvestment Act consideration from regulators.
“Making a difference in Michigan communities is what our community bankers do with passion every day,” said Jill Verscheure, MBASC vice president. “This year, Michigan banks, including First National Bank of Michigan, stepped up in an even larger way during the financial hardships of the pandemic, exemplifying their unwavering compassion for Michigan’s residents in need. Thank you, First National Bank of Michigan, for improving the lives of so many through the generous equity investments.”