Emergence of a New Growth

Avenues to Affordability | 1

G r e a t L a k e s C a p i t a l F u n d | V o l u m e 1 6 | I s s u e 1 | 2 0 0 9

Emergenceof a

GrowthNew

2 | Great Lakes Capital Fund

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Presidentʼs 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

Do No Harm ............................................... 16

Community & Business Services ..................... 17

Harvesting Leadership .................................. 18

Consulting Services ...................................... 19

Real Estate Services .....................................20

Events & Happenings ................................... 21

Advertiser Index ..........................................23

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PRESIDENT’S NOTEThe last twelve months have brought more than their

share of heartburn, stress, and sleepless nights. The entire affordable housing and community devel-opment 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 corpora-

tions 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 infrastruc-ture, our Board of Directors instructed us to accelerate our organization’s diversifica-tion 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 cre-ate stable, healthy, vibrant sustainable communities through the allo-cation of capital. Which meant the exist-ing business model had to be dismantled and rebuilt. It was similar to taking a toolbox and turning it up-side down to dump

GOVERNING BOARDJames M. Hammond III, ChairIndiana Association of Rehabilitation Facilities

Marsha A. Kreucher, Vice ChairCommunity Action Agency

Michael J. Taylor, Secretary/TreasurerNational City CDC

James S. BernackiComerica Bank

Wendell JohnsThe NHP Foundation

R. Wayne KoehlerFifth Third CDC

William C. PerkinsWisconsin Partnership for HousingDevelopment, Inc.

Thomas TracyHunter Chase

Paul J. WeaverFederal Home Loan Bank of Indianapolis

CORPORATE OFFICERSMark S. McDaniel, President & CEOChristopher C. Cox, CFOJames L. Logue III, COOJennifer A. Everhart, Executive Vice PresidentRick Laber, Executive Vice President

This magazine is published quarterly by the Great Lakes Capi-tal Fund (GLCF) to provide readers with information on the Low Income Housing Tax Credit and other community de-velopment resources.This publication is copyrighted. The re-production 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/DesignMary McDaniel, CMP • Alternative Solutions, LLC 517.333.8217 • [email protected] Travis • Ink Ideas Graphic Design, LLC517.625.0835 • [email protected] Office1000 S. Washington, Suite 200Lansing, MI 48910 Phone 517.482.8555Detroit Office1906 25th StreetDetroit, MI 48216 Phone 313.841.3751Indianapolis Office320 N. Meridian St., Suite 1011Indianapolis, IN 46204 Phone 317.423.8880Madison Office16 N. Carroll Street, Suite 300Madison, WI 53703-2716 Phone 608.209.7821Willowbrook Office7223 South Route 83, PMB 227Willowbrook, IL 60527


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 forc-es to make those assessments and produce vi-

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 Develop-ment 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

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 partner-ships, 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 maga-zine will give an overview of all the elements

of Great Lake Capital Fund’s reorganiza-tion. We are very open to hear from you, the reader, what your thoughts are regard-ing 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 un-believable 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!

PRESIDENT’S NOTE

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T he enormous challenges to the fi nancial markets, the banking system and the nation’s economy have

placed a great deal of stress on the real estate industry and on the af-fordable housing industry in par-ticular. While we saw the changes in the tax credit market begin to aff ect 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 fi -nancial markets late last year accel-erated our response to the changing investment landscape. Recogniz-ing that we will likely continue to experience unpredictable fi nancial markets in the months to come, and that these diffi cult 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 frame-work. A key component of the orga-nizational change included the for-malization of the Capital Group. Working from the GLCF mission of supporting healthy, vibrant and sustainable communities by meeting their capital needs, we recognized the diffi culties GLCF would face in rais-ing capital over the near term. While


ORGANIZATIONAL CHART

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 dedi-cation of substantially more staff resources. And with a broader product focus (includ-ing an expanded loan program; sustainable energy opportunities; Community Develop-ment Financial Institution funding oppor-tunities; 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 “re-tail” marketing effort. The Capital Group will support all GLCF

business activities and will have responsibility for the identification and education of poten-tial 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 Invest-ment 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 -

Targeted Investment Goal $30 Million• Wisconsin Community Fund - Targeted

Investment Goal $15 Million• Illinois Community Fund - Targeted In-

vestment Goal $15 Million

Other Capital Group fund raising initia-tives for 2009:

• Residential and Commercial Lending• Community Development Financial In-

stitution (CDFI)• New Market Tax Credits• Historic Tax Credits• Renewable and Sustainable Energy• Triple Bottom Line Fund• Art of Leadership

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

http://www.capfund.net


G reat Lakes Capital Fund is es-sentially a community develop-ment finance organization. We raise capital, allocate financial

capital, and manage human capital and ser-vices. It is just that simple, but yet very pow-erful in achieving our mission of supporting healthy, vibrant, and sustainable communities through the creation of capital The Capital Allocation Group allocates fi-nancial 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 ser-vices for quite some time, but this area will grow with additional sources of funding. As

Cultivating Powerful CommunitiesCapital Allocation Group Expands Products

Year 15 approaches for many LIHTC proper-ties, 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 develop-ing 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 provid-ing 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

by Rick Laber, Executive Vice President,Capital Allocation

Group

provides hope to communities!

Contact To learn more about our Capital Al-location Group, con-tact Rick Laber at (517) 364-8920 or [email protected].


Helping Shovel Ready Projects

by Tom Edmiston, Senior Vice PresidentCapital Group

Since 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 sup-port 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 mil-lion NMTC application. If we’re successful in getting an allocation, we’ll be able to invest in high profile de-velopments across the states of Illinois, Indiana, Michi-gan 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 un-spent allocations. We’ll perform this brokerage service alongside our consulting partner, Strategic Develop-ment Solutions (which received NMTC allocations in two recent funding cycles). For our NMTC application, we assembled a top-notch 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

• Ben Applegate, JD, Principal, Applegate Thorne-Thomsen, Chicago, Illinois

• Dana Bourland, VP of Green Initiatives, En-terprise 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), Madi-son, Wisconsin

• Sharon Legenza, JD, Executive Director, Hous-ing Action Illinois, Chicago, Illinois

• Sid Smith, President and CEO, Smith Equities Corp, Mt. Pleasant, Michigan

• Teig Whaley-Smith, JD, Owner, Community De-velopment Advocates, LLC, Milwaukee, Wisconsin

Historic Tax Credits andBrownfield Credits The Cap Fund has typically channeled Federal His-toric 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


targeted revitalization area. We’re brokering certificated state tax credits to corporate in-vestors. These credits can be converted into a certificate (i.e. a commodity) that can be sold to an investor without the need for the inves-tor to participate as an owner in the real es-tate 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 commu-nities while reducing their state tax liability in the process. Bank investors are able to get the added benefit of a favorable review with the in-vestment section of their CRA exam.

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

its 16 year track record in brokering and asset managing Housing Tax Credits; and it has ex-panded its services to broker a broad array of tax credits. This enables us to:

• Generate more investment opportuni-ties for corporations

• Bring more capital to high priority community projects, and

• Create more jobs and shopping oppor-tunities 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 informa-tion about a project that could use this source of financing, contact Tom Edmiston at (517) 364-8907 or [email protected].

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Great Lakes Capital Fund, Strategic De-velopment Solutions and Economic Innova-tion International, Inc. (collectively the “Fund Development Team”) are building a $100 mil-lion Triple Bottom Line (TBL) private equity investment fund targeted at improving com-munities in low- to moderate-income areas of the Great Lakes region.

The Fund Development Team is currently working with government leaders, stakehold-ers 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

• 2nd Bottom Line: Jobs and economic opportunity in low- and moderate-in-come communities

• 3rd Bottom Line: Sustainable, green buildings that reduce resource con-sumption

• Revitalizes low–to moderate–income communities through job and wealth

creation• Generates critical tax revenues from

newly-productive properties• Converts abandoned or under utilized

properties • Cleans up and re-uses blighted and con-

taminated 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 es-tate 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.

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 mod-erate- income neighborhoods. Projects will include retail, office, light industrial, housing and mixed-use developments. Investments in these real estate projects are anticipated to

provide increased diversification for an inves-tor’s real estate portfolio. The Fund will invest in real estate projects with sustainable, or “green,” targets and assist developers in reach-ing sustainability goals. The Fund Development Team is col-laborating with green building expert John-son 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 invest-ments, New Market Tax Credits, Historic Tax Credits, etc.) on a deal-by-deal basis, as needed, to fill gap financing needs on high-impact investments.

Green with Equity

by Dennis Quinn, Senior Vice President, Private Equity Investing

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

in reaching sustainability goals.


The Fund Development Team The Fund Development Team brings to-gether significant breadth and depth of expe-rience 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 eco-nomic development projects. GLCF has invested over $1 billion in 400 properties

across Illinois, Indiana, Michigan and Wis-consin. 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 eq-uity funds across the U.S.

Contact To learn more about our Great Lakes Private Equity Fund I or provide informa-tion about a project that could use this source of financing, contact Dennis Quinn at (313) 841-3751 or [email protected] or Alison Paige at (310) 914-5333 or [email protected].

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Great Lakes Capital Fund has offered mortgage lending, acquisition lending, and pre-devel-

opment lending for many years. These products are delivered through our sister company, Capital Fund Services (CFS). To help our development part-ners in these turbulent and challenging times, these programs have been rein-vigorated 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 im-mediate and a forward commitment basis. 2) Acquisition lending. This pro-gram is intended to help developers that need to buy a property before lin-ing 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 prop-erties. 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 eval-uate the potential savings achievable from making energy improvements. 4) CFS still offers pre-develop-ment lending to qualified develop-ment companies. CFS is looking for developers with healthy balance sheets that have viable development projects that need a little more time prior to fi-nal 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 Capi-tal 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 [email protected].

by Jerome Sullivan, Senior Vice President, Real Estate Lending

ReinvigoratedLendingCapital Fund Services Creates More User Friendly Programs


T he Real Estate Organization ex-plores a number of business oppor-tunities that position properties for future syndication, preserve afford-

able housing and/or dispose of limited part-ner interests. This is accomplished through the following initiatives:

• Acquire and hold properties for the short-term (under one-year) and long-term (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 proper-ties that are approaching Year 15.

There are a number of LIHTC develop-ments 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 develop-ments even more difficult. We identify these properties and consider acquiring the Gen-eral 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 final-ize take-out financing. These projects should have good initial cash flow. We may hold

by Keith Broadnax, Vice President, Real Estate Organization

some properties for three years or more as cir-cumstances 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 acqui-sition 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-

Real Estate Organizationing options at our disposal such as our Pre-Development Lending Program, Triple Bot-tom Line Funds, NMTC Fund, and LIHTC Funds. We are developing action plans for dis-position 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, con-tact Keith Broadnax at (608) 347-1094 or [email protected].

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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 physi-cians for two millennia, it is only

slowly working its way into the world of community de-

velopment: Do our develop-ment 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-renew-

able energy sources? Do they promote the

building of c o m m u -nity and a healthy

interaction with nature? Do they incor-

porate technologies and practices that minimize each project’s carbon-footprint?

The Great Lakes Capital Fund commitment to Sus-tainable Communities explicitly focuses on these ques-tions. It brings into sharp focus principles that have guided our work since 1993, through our community planning work, our review of construction specifica-tions 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 develop-ers “Do no harm.” These specific approaches are being

by Ed Bobinchak, Vice President, Sustainable Communities

Do No Harm:taken:

1. Sustainable Community Guidance. Ed Bo-binchak, Vice President Sustainable Communi-ties is certified as a LEED Accredited Profession-al. He is working with all GLCF staff to ensure that they have access to “green” professionals and can provide advice and assistance to promote sus-tainable development.

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

3. Sustainable Lending. GLCF is in the process of identifying sources for loans for sustainable de-velopment. 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 in-creased 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 invest-ments will be leveraged through CDFI fund-ing and the New Markets Tax Credit programs. Equity investments in renewable energy through wind, solar, and bio-mass conversion are also be-ing planned.

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

Contact 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 [email protected].

Our Sustainable Communities Program Provides Resources for Community Developers


Community & Business Services provides services that support community development and Great Lakes Capital Fund’s mis-

sion of creating healthy, vibrant and sustain-able communities. We do this by providing services that complement, enrich and empow-er 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 ef-forts provide a means to support partners who, for one reason or another, do not have the ability to perform certain real estate relat-ed 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 construc-tion inspections. Please read more about our new efforts in the pages that follow. We strive to be creative

by Jennifer Everhart, Executive Vice President, Community

& Business Services

Community & Business Servicesin 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 accom-plish our mission of improving our communi-ties and the lives of our residents.

For over 50 years, the qualified professionals of GordonAdvisors 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. – [email protected] Alan S. Kristall, CPA, CFP – [email protected]

Alan R. Steinberg, CPA – [email protected] Cynthia S. Sobran, CPA, M.S.T. – [email protected]

Work With a Leader

1301 W. Long Lake Rd, Suite 200 Troy, MI 48098

t: 248.952.0200 · f: 248.952.0290 www.gordoncpa.com

Medallion Management, Inc.

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Medallion Management, Inc.834 King Highway Suite 100

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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 part-ners and property managers to offer leadership development programs to our residents. Gen-eral 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 curricu-lum 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 [email protected].

Great Lakes Capital Fund’s Com-munity 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 sup-port 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 lead-ership 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 com-munity and find opportunities to lead com-

by Denise Stein, Vice President, Community Leadership

Harvesting Leadership

1000 SOUTH WASHINGTON AVENUE, SUITE 101

LANS ING, MICHIGAN 48910-1647

w w w . c e d a m . i n f o

VOICE 517.485.3588

FAX 517.485.3043

[email protected]

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.

Join Us Today!

Training ■ Advocacy ■ Education ■ Networking

http://www.cedam.info


Great Lakes Capital Fund cur-rently provides consulting, technical assistance and train-ing services to our partners. We

are able to offer help with LIHTC applica-tions and Placed in Service applications, as well as other funding applications, training on LIHTC compliance, budget and financial management training, bookkeeping and pre-audit evaluation, and tax credit training cus-tomized for audit firms. Our Green Consulting Services provide technical assistance in the review of building and site plans to incorporate beneficial envi-ronmental and carbon reduction features, and potentially the provision of financial resources that facilitate the investment needed to incor-porate these features. For more information about this please refer to our activities in Sus-tainable Communities. We are also offering third party services such as underwriting and asset management for our investors or state housing finance au-thorities. We currently provide third party compliance services to investors, and are look-ing 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

Consulting Servicesing for both our development partners and non-development partners. We have developed a loan program with local units of governments and local founda-tions utilizing the Neighborhood Stabiliza-tion Program. Our program leverages the federal resources to impact a larger number of homes. We are now able to take our experi-ence 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, con-tact Victor Vasquez at (517) 364-8917 or [email protected].

WE FIGURE OUT THEBOTTOM LINE ANDALL THE LINESHOVERINGPRECARIOUSLYABOVE IT.We’re certified public accountants. We’re also expertsin affordable senior housing. And cost segregation.And historic incentives for brownfield redevelopmentareas. So, no line item and no expenditure in yourledger are safe from our fine-toothed comb.

Offices throughout the Great Lakes RegionRobert Edwards 517.336.7460Linda Yudasz 248.375.7247plantemoran.com

CPAs / Business Advisors

THRIVE.

http://www.plantemoran.com


A s lending services and invest-ing becomes more competitive, forward thinking organizations have formed strategic partner-

ships within the industry that create multiple revenue streams for the parent organization. Great Lakes Capital Fund is looking to cre-ate 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 forma-tion it has proven to be a service and financial asset to the Great Lakes Capital Fund and

by Steve Smith, Vice President, Real Estate Services

Real Estate Servicesour partners that we serve. We are now offer-ing construction management and inspection services which complement our title and dis-bursement services. CFT has developed a relationship with the Ingham County Land Bank and is provid-ing 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 opportu-nities 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

other business related insurance and real es-tate brokerage.

Contact To learn more about our Real Estate Ser-vices or to request a quote for title services, contact Steve Smith at (517) 364-8933 or [email protected].

A R I Z O N A I L L I N O I S M I C H I G A N W A S H I N G T O N D C

© 2009 Clark Hill PLC

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

http://www.clarkhill.com


ART of Leadership Nominated forGovernor’s Award

Th e ART of Leadership Foundation has been selected as a fi nal-ist for Governor Granholm’s Outstanding Mentoring Program Award. Th is year’s celebration was held on June 18 at the Governor’s Lansing Residence, hosted by Governor Granholm and First Gentleman Dan Mulhern. Th e award is a special way the governor acknowledges and honors the outstanding eff orts of Michigan’s volunteers. Th e 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 offi ce.

First Affordable Assisted Living Property Opens in Grand Rapids

Events and Happenings

Photo courtesy of People Place & Th ings Photographics

Heron Manor Assisted Living, located in Grand Rapids had its grand opening on June 26. It is the fi rst aff ordable assisted living resi-dence in the state of Michigan. Th e facility has been built to comply with all US Green Build and LEED –H Certifi cation requirements including a geothermo heating and cooling system.

GLCF Becomes Green CommunityTechnical Assistant Enterprise Green Communities selected Great Lakes Capital Fund as a Green Communities Technical Assistance provider based on our exceptional professional services qualifi cations in Michigan, Indiana, Wisconsin and Illinois. Enterprise selected TA providers with dem-onstrated expertise in the design, construction, rehabilitation, and op-erations of green aff ordable housing. Enterprise’s goal is to match specifi c green technical expertise to the most urgent development needs in order to increase overall building performance and maximize energy, water, and health savings for low-income residents In addition to being listed on the national registry, green technical assistance grants will be off ered to qualifi ed green af-fordable housing developers. Th is grant fund will encourage partici-pating developers to contract with approved TA providers in order to support on-site energy assessments, design review, construction mon-

itoring, performance evaluation, and resident and operations training in underserved communities.


AHTCC Congratulates Winners of the 15th Annual Charles L. Edson Awards We have been notifi ed by the Edson Award program that two of Great Lakes Capital Fund’s developments received honorable mention. We submitted fi ve applications and we were informed that 40 applica-tions were submitted from 19 states. To have two winners out of that number is fantastic. Th e winners from GLCF were Metropolitan/Ur-ban Housing, Honorable Mention – Teutonia Gardens, Milwaukee, WI; and Rural Housing, Honorable Mention – Independence Place, Linton, IN

Everhart Appointed TrusteeJennifer 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.

Crawford GraduatesAshlee Crawford graduated from Michigan State University on May 9, receiving her Bachelor of Science degree in Urban and Regional Plan-ning. Ashlee’s career goals focus on aligning her technical skills and knowledge with community revitalization eff orts in order to rebuild and sta-bilize 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 Cap-ital Fund properties were awarded:

• United House, 2500 W. Center St. Th is project is Milwaukee’s fi rst aff ordable, supportive housing for people with mental illness. Homeless individuals were trained to be part of the construction

team.• Teutonia Gardens, 2711 N. Teutonia Ave. Th is new development is respectful of sur-rounding structures and joins the neighbor-hood nicely.

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team.• Teutonia Gardens, 2711 N. Teutonia Ave. Th is new development is respectful of sur-rounding structures and joins the neighbor-hood nicely.

Broadnax Appointed to City of Madison’s Housing Committee

In March, Keith Broadnax was appointed to the City of Madison’s Housing Committee by the Mayor and Madison Common Council. Th e mission of the council is to encourage the devel-opment and preservation of aff ordable 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 direc-

tors for the Wisconsin Court Appointed Special Advocates Associa-tion. Th is is a Statewide Association that provides support children in the State’s Foster Care System. Th e association is dedicated to protect-ing kids who aren’t safe at home. CASA volunteers ensure that public and private systems in the community are eff ectively responsive to chil-dren’s needs by getting to know them and communicating important information to the judges overseeing their futures.

GLCF Hosts Guests from Mongolia

Ganbat Osor, Managing Director General, Financial Regulatory Com-mission of Mongolia and Kiwon Kang, Ph.D., Academic Advisor/Co-ordinator, VIPP, Visiting Assistant Professor, ISP, International Stud-ies and Programs met with GLCF CEO, Mark McDaniel to discuss issues pertaining to aff ordable housing and how our processes may work in Mongolia. Th ey are visiting the United states to learn. Th eir goal is to provide 4,000 units of aff ordable housing over the next 10 years. Conceptually, they didn’t have an idea of timeframes or possibili-ties. Th ey 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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Equal Housing Lender ��

http://www.michigan.gov/mshda


Great Lakes Capital Fund1000 S. Washington, Suite 200Lansing, MI 48910www.capfund.net

Detroit Free Press Flagstar Bank MarathonOctober 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.

http://www.freepmarathon.com

http://www.capfund.net

Emergence of a New Growth

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Transcript of Emergence of a New Growth