Letter from J.T. Mackey to Jason Hoskins, March 5, 2024
Summary
In this letter dated March 5, 2024, J.T. Mackey, Director of Policy, Research & Advocacy at Cinnaire, writes to Chair Jason Hoskins and members of the Committee on Economic Development and Small Business in support of SB 417 and urges its passage. The letter describes Cinnaire as a nonprofit Community Development Financial Institution and tax credit syndicator that has invested more than $5 billion over thirty years. It cites a 2022 presentation by R. Wade Norris of Norris George & Ostrow PLLC stating that Michigan is the only state to require credit enhancement for all tax-exempt multifamily private activity bonds. It says SB 417 may increase the number of housing projects approved under MSHDA's bonding authority.
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“Letter from J.T. Mackey to Jason Hoskins, March 5, 2024.”
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\ feinnaire ADVANCING COMMUNITIES CINNAIRE.COM March 5, 2024 The Honorable Jason Hoskins Committee on Economic Development and Small Business, Chair Michigan House of Representatives Lansing, MI 48909 Chair Hoskins and members of the House Standing Committee on Economic Development and Small Business, On behalf of Cinnaire, thank you for holding today’s hearing on SB 417 and considering new ways to support the development of affordable housing. We greatly appreciate your leadership on housing issues and value the committee’s attention to this proposal. We offer our support for SB 417 and urge its passage by this Committee. Cinnaire is a nonprofit, mission-driven Community Development Financial Institution (CDFl) and tax credit syndicator with a long history of raising investments and lending capital for affordable housing and community developments across the state of Michigan. Over thirty years, Cinnaire has invested more than $5 billion in equity, loans, and other financial resources in the communities we serve. In addition to raising capital, we strive to be a flexible partner for our communities by leveraging our expertise, often providing co-development and technical assistance for our borrowers. At Cinnaire, we are driven by our purpose to invest in people and places to transform lives through equitable financial and development solutions. During the Michigan Housing Council’s 2022 fall conference, attendees heard a presentation on bond financing best practices from R. Wade Norris, Esq of Norris George & Ostrow PLLC, a law firm specializing in tax-exempt municipal bond finance. To his knowledge, Michigan is the only state to require credit enhancement for all tax- exempt multifamily private activity bonds. The presentation noted that multifamily housing bond private- placements emerged in the late 1990s and are considered one of the safest categories of nonrecourse commercial real estate loans. According to R. Wade Norris, private placements offer many benefits including lower financing costs, flexibility for terms, and faster loan underwriting among other benefits. SB 417 is an important step to improving how multifamily housing is financed in Michigan and may increase the number of housing projects approved under MSHDA’s bonding authority. This legislation is the type of solution we need as we collectively work to increase Michigan’s housing stock and address housing affordability. Thank you for your leadership on SB 417. We greatly value your attention to this issue and look forward to working with you on important policies to further invest in affordable housing and help redevelop and revitalize our neighborhoods. Please do not hesitate to reach me should you have any questions at jmackey@cinnaire.com. Sincerely, J.T. Mackey Director — Policy, Research & Advocacy Cinnaire Lansing | Corporate Headquarters 1118 South Washington Avenue Lansing, Michigan 48910 517 482 8555 Detroit 2111 Woodward Avenue, Suite 600 Detroit, Michigan 48201 313 841 3751 Grand Rapids 100 César E. Chavez Avenue, Suite 202 Grand Rapids, Michigan 49503 616 272 7880 Chicago 225 West Washington Street, Suite 1350 Chicago, Illinois 60606 312 957 7283 Milwaukee 231 E. Buffalo Street, Suite 302 Milwaukee, Wisconsin 53202 517 482 8555 Indianapolis 320 North Meridian, Suite 516 Indianapolis, Indiana 46204 317 423 8880 Madison 10 East Doty Street, Suite 617 Madison, Wisconsin 53703 608 234 5291 Wilmington 100 West 10th Street, Suite 502 Wilmington, Delaware 19801 302 655 1420
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