Neighborhoods and Community Coalition Testimony, Helen Lehman

Summary

Testimony of Helen Lehman, Executive Director of New Development Corporation in Grand Rapids, to the House Commerce and Tourism Committee on September 2, 2020, for the Neighborhoods and Community Coalition. Lehman asks the committee to support House Bills 5820-5821, saying the organization could use the pilot project to leverage new private dollars and build homes on three vacant lots. The testimony states that the HOME funds administered by the City of Grand Rapids are at the same level as in 1992 and that federal funding is largely earmarked for rental housing. An attached letter dated 31 August 2020 states that the corporation has purchased and rehabilitated more than 50 homes for sale to low and moderate-income homebuyers.

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Neighborhoods and Community Coalition Testimony
House Commerce and Tourism Committee * September 2, 2020

Helen Lehman, Executive Director,
New Development Corporation
Grand Rapids, MI

Good morning. | am Helen Lehman, the Executive
Director of New Development Corporation, a place-
based nonprofit organization working exclusively on
the north end of Grand Rapids. Our Board of
Directors is comprised 100% of neighbors and we
have been doing our single-family acquisition,
development, and resale homeownership program for more than 20 years.

We leverage borrowed funds from our banking partners with HOME? funds, which
are federal funds administered by the City of Grand Rapids or occasionally, the
Michigan State Housing Development Authority (MSHDA). That funding for the
City is presently at the same level of funding we had in 1992. It is not enough to
even begin to touch the affordable housing crisis we are currently experiencing.
Federal funding is largely earmarked for rental housing, not the wealth-building
single family homes that make up the majority of Michigan housing.

As a place-based nonprofit organization, we know our neighborhocds well and
enjoy the wisdom of our neighbors, many of whom have purchased New
Development Corp houses. We now have three vacant lots - as shown in this
handout - that could be utilized for affordable housing if the money was available.
It simply is not... but this legislation could change that. New Development Corp.
can utilize this pilot project to leverage new private dollars, closing the gap
between resources we have and what we need to establish a family home on
these lots. Please vote to support House Bills 5820-5821. Give us a chance to
leverage other money and encourage new investments in our neighborhoods.
It is an opportunity for a small place based nonprofit organization like ours to
accelerate development in the neighborhoods we cherish.

1 The HOME Investment Partnerships Program (HOME} provides formula grants to States and localities that
communities use - often in partnership with local nonprofit groups - to fund a wide range of activities including
building, buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental
assistance to low-income people. HOME is the iargest Federal block grant to state and focal governments designed
exclusively to create affordable housing for low-income households.
Neighborhoods and Community Coalition Testimony
House Commerce and Tourism Committee * September 2, 2020
Neighborhoods and Community Coalition Testimony
House Commerce and Tourism Committee * September 2, 2020
Neighborhoods and Community Coalition Testimony
House Commerce and Tourism Committee * September 2, 2020

Be

or
Now Development Cerperation
203 Comier Street, NF

$16.361-7 509 ph

DEVELOPMENT CORP. 616,381 2575 {x

31 August 2020

Chairman Sieve Marino

House Commerce and Tourism Committee
788 House Office Building

Lansing Mi 48933

Deo Representative Marino:

This letier is written with enthusiastic support for HB-5820 and 582? as a means of new
invesiment in our neighborhoods.

Our support of these bills for place-based nonprofits doing work like ours & based on solid
evidence of the importance of neighbor-criven community development work. We have
purchased and rehabilitated more than 50 homes for sale to jow and moderate-income
homebuyers. This work creates wealth for homebuyers, builds sofe and affordable housing
and offers stability io neighborhoods. The funding for projects like ours is Emited. We don't
build multi-family housing and we cannot therefore ufiize Low Income Housing Tax Credits.
While that funding is an important tool, it doesn't do anything for the 90% of Michigan
housing that comes in the form of single-family detached housing. We need new and
crealive funding such as this. Existing funding, despite the willingness of our banking partners
fa invest, are simply nol enough.

The funding tradiiionally used for single family homeownership work comes in the form af
federal HOME funds administered by the Cify of Grand Rapids. This fiscal year matches the
HOME funding that the city received in 1992-ncar two decades ago!

Tne neighborhoods we serve in the north end of Grand Rapids, will be able to Ml our vacan}
lois with quality affordable housing. We will continue to cbote housing of the leac-based
paint that is poisoning our children. Piease move these bilis forward and help us provide our
neighbors with quailty and afferclable housing.

On behalf of the Board of Directors,


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