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This month’s Borrowers’ & Burners’ (B&B) Luncheon at the Kellogg Hotel & Conference Center in East Lansing was another successful event. Each spring we take time to thank our new borrowers for allowing us to fulfill our own mission through their work. We also take a moment to show our appreciation to those who fully repaid their loans on-time during the previous year. It’s our way of welcoming new borrowers into the Trust Fund family and rewarding those who repaid their loans, helping to sustain the vital recycling of scarce capital.

“The spring luncheon is always a lot of fun,” said Trust Fund President/CEO Christine Coady. “We try to spice things up with a bit of levity to entertain our guests while sharing the work of the groups and individuals we support.”

For years the Trust Fund has capped off B&B luncheons with games like Concentration, Survivor and the Newlywed Game. This year attendants played Trust Fund Bingo. The games have always been a hit, and this year was no different.

Thanks again to everyone who attended. Keep an eye out for forthcoming details on this fall’s Evening for Economic Justice, where we will honor investors and equity contributors in Detroit for their ongoing support of our mission.

This year’s borrowers included:
Avalon Nonprofit Housing Corporation
Cass Corridor Neighborhood Development Corp.
Dawn, Inc.
Detroit Midtown Micro-Enterprise Fund
Grandmont Rosedale Development Corp.
H.OM.E. of Mackinac County
Shep’s Beauty and Barber Shop
Liberty Hill Housing Corporation
Michigan Avenue Business Association
U-SNAP-BAC Nonprofit Housing Corp.
Williamston Theatre Project

This year’s mortgage burners included:

Avalon Nonprofit Housing Corp.
Benzie Housing Council, Inc.
Dawn, Inc.
Harmony Face & Body Care
Homestretch Nonprofit Housing Corp.
McGraw/West Grand L.D.H.A.L.P.
Michigan Ability Partners
Northern Homes Community Development Corp.
St. Francis Episcopal Church

By now everyone has read the statistics. Michigan has one of the highest foreclosure rates of any state in the nation, and the Detroit-area had more foreclosures in 2007 than any of the 100 largest metropolitan regions in the country.

Fortunately, there’s good news for some struggling Detroit homeowners. The Trust Fund has teamed up with Comerica Bank to create the Tax Assistance Loan Fund (TALF) to assist Detroit residents who may be facing foreclosure because they are unable to pay their past due property taxes.

“In these tough economic times Detroit families are facing higher costs for everything from groceries to gas,” said Louise G. Guyton, Vice President Corporate and CRA Compliance Manager for Comerica Bank. “This foreclosure crisis is a major threat to the long-term health of our state’s economy, and this program will provide relief to the people who need it most.”

Here’s how the program works. To be eligible for TALF support, an applicant’s total household income cannot exceed the median income levels set forth by HUD (maximum income for a household is $66,700). Applicants must live within the City of Detroit, and their monthly debt (including the TALF loan) cannot exceed 55% of their annual gross income. TALF loans are only available for a homeowner’s primary residence and not for vacant or rental properties. Applicants must also provide proof of homeowner’s insurance before the loan closes.

“I want to stress that this and other foreclosure prevention measures are not ‘bailouts,’ as some have suggested,” said Rita Hillman, Senior Commercial Loan Officer. “This repayable loan program is a way to help struggling families get back on their feet, pay their property taxes and keep their homes.”

Maximum TALF loan amounts will be $5,000, with terms of up to 36 months. The chart [below] outlines projected loan payments on a three-year, $5,000 loan.



The Trust Fund is partnering with local community groups to provide the necessary financial counseling to these borrowers to ensure that they do not find themselves in this situation again. These groups will do the initial assessment of the borrowers to determine how they found themselves facing foreclosure, and then the Trust Fund’s loan officer will underwrite the loan from there.

As much as we enjoy assisting new borrowers through our various loan programs, it is always a pleasure to re-team with groups that we have successfully worked with in the past for a second project.

This is certainly the case with Lansing-based Giving Tree Farm, Inc. a Christian service non-profit organization that was established by families of the disabled and several community leaders in 1991. The Giving Tree Farm is a certified organic grower of garden produce and herbs. Under the direction of a farm manager, the people with disabilities are trained and employed in the planting, cultivation and harvesting of garden produce, which is then donated to area charities.

The Trust Fund first made a loan to Giving Tree Farm in 2002 for a project that has been very successful. “The group home that we built five years ago because of [the Trust Fund’s] faith in underwriting it is at a point now where it is fully functional,” said Project Manager Bob Bower. “We’re in a good position to refinance it, and are off and flying.”

This spring the Trust Fund will close its second loan with Giving Tree on a project that will benefit 14 individuals with mild developmental disabilities, earning 30% of the area median income or less.

“Everyone deserves access to affordable housing and a productive life,” said Wendy Landes Hatem, Director of Lending for the Trust Fund. “That’s why we’re proud to support groups like Giving Tree, and look forward to partnering with them on future projects.”

The Trust Fund’s upcoming loan will include $319,625 in funding for supportive rental housing construction. Individuals will be referred to Giving Tree from Community Mental Health, insurance providers and other existing programs.

According to Bower, working with the Trust Fund provided Giving Tree with resources that the organization would not have been able to afford through a conventional bank.

“People there are pragmatic without losing purpose,” said Bower. “My opinion over the past five years has been that the Trust Fund, especially dealing with non-profits, always kept in mind our purpose and mission, as far as serving people with disabilities.”

“It’s important to remember that we’re a non-profit too,” said Hatem. “That makes us unique as a lender, since we have a better understanding of the challenges these groups face on a daily basis, and hopefully that perspective translates into better service for our borrowers.”

This March, Trust Fund President/CEO Christine Coady was appointed to an open director position on the Federal Home Loan Bank of Indianapolis’ (FHLBI) board, for a term ending December 31, 2010. The Finance Board has designated her as an FHLBI Community Interest Director.

“In this time of economic uncertainty, I am fully aware of the challenges facing our region,” said Coady. “It will be an honor to serve on the board, and I look forward to working with my colleagues in Michigan and Indiana to help stabilize our economy and make affordable housing accessible to more Americans.”

FHLBI is one of 12 regional banks that make up the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to ensure access to low-cost funding for their member financial institutions. They are privately capitalized and funded, and receive no Congressional appropriations.

The FHLBI is owned by its financial institution members which include commercial banks, credit unions, insurance companies, and savings banks headquartered in Indiana and Michigan. For more information about the FHLBI and its Affordable Housing Program, visit www.fhlbi.com.