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About the
Trust Fund Blog

The Trust Fund blog features the latest news about our organization, and the affordable housing and economic development industries in Michigan.

Subscribe to the Trust Fund Blog

Subscribe to the BlogSubscribe to the Blog

Enter your email address to have updates delivered straight to your inbox:




What is an RSS feed?
Comments Feed

Subscribe in NewsGator Online Add to Google Subscribe in Bloglines

Got News?

If you have news or an event that you would like us to share on the blog, let us know about it!

Blogroll

ArtServe Michigan
Dawn Farm's Blog
Living in Michigan
MNA
The Record
Submit a link

Search the site

Don Jones on Development in Michigan
don-jones

In case you missed it, take a few minutes to listen to CEDAM Board President (and Trust Fund borrower) Don Jones' interview on Detroit Public Radio from earlier this month.

Don discussed asset building and Michigan's Housing and Community Development Fund with Quinn Klinefelter on Detroit Today a couple weeks ago. It's definitely cool that one of Michigan's strongest advocates for affordable housing and community development is getting this kind of media exposure... check it out!

(Hat Tip to CEDAM for the link)
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Muhammad Yunus: “I want to see a world free from poverty”
A little less than a year ago, we posted a story about Muhammad Yunus, who received the 2006 Nobel Peace Prize for his work with the Grameen Bank to stamp out poverty through microfinance lending.

bankertothepoor
Today we stumbled across a great post on the blog Get Rich Slowly about Mr. Yunus and his new book, Banker to the Poor:

“Poverty does not belong in a civilized human society. Its proper place is in a museum,” writes Muhammad Yunus near the end of Banker to the Poor: Micro-Lending and the Battle Against World Poverty. “I want to see a world free from poverty.”

If anyone else made such a pronouncement, you might be justified in dismissing it as idle fantasy. But after reading 250 pages describing Yunus’ thirty-year micro-lending project, the reader knows that he is not dreaming — he’s deadly serious. What’s more, he just might achieve his goal.


What's so intriguing and inspiring about Professor Yunus is that he can make bold statements like this – "I want to see a world free from poverty" – and actually do something to make it happen.

Not to toot our own horn or anything, but this is basically the same philosophy we bring to our work on a daily basis.

It’s this delineation between economic theory and economic reality that makes Yunus’ story so compelling. Instead of ensconcing himself in an ivory tower, discussing economic policy based on ideas, he chose to put these ideas into practice, to see how they worked in the real world. There’s a big difference between fighting poverty in theory and fighting it in fact.

Yunus found that most of the poor people in the villages around his university didn’t lack initiative, but only lacked opportunity, opportunity that existing financial institutions were not prepared to grant. Yunus established the Grameen Bank to help the poor help themselves.


Grameen Bank offers small low-interest, collateral-free loans to the poor. These micro-loans — most of which are given to women — are used for entrepreneurship. One woman might make stools, another might weave baskets, another might own and operate the only cell phone in a village. In nearly every case, however, the loans allow the women to break free from the chains of poverty.


Helping the poor help themselves, empowering women entrepreneurs to break free from the chains of poverty... I don't care what your political affiliation is or what your religious beliefs are – who can possibly argue with such goals?

Here's what Prof. Yunus has to say about the poor:

The poor, once economically empowered, are the most determined fighters in the battle to solve the population problem, end illiteracy, and live healthier, better lives. When policy makers finally realize that the poor are their partners, rather than bystanders or enemies, we will progress much faster than we do today.


This, folks, is what economic justice is all about.

We're putting Yunus' book at the top of your holiday gift list:

Banker to the Poor is a must-read for those interested in socially-responsible investments. It’s also good for those interested in charity, or in economics. Yunus has an agreeable style: he’s both humble and candid. I expected the book to be dry, the work of an economics professor. It is the work of an economics professor, but it’s anything but dry.


Hey, we're all about encouraging socially-responsible investing here at the Trust Fund.

If you get a chance, check out this video from the Grameen Bank about their microfinance work, and be sure to visit their website:



Hopefully someday we will see a world free from poverty, but it's going to take a lot of work to get there. Time to roll up your sleeves.
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Detroit CDCs Honored for their Work
grandmontrosedale-0036
It's nice to see some Detroit community development corporations (CDCs) getting the praise they deserve.

Model D has the details:

Saavy Detroit-observers recognize that the real workhorses of the development world are community development corporations (CDCs). Often the first to invest in an area, their work paves the way for market-rate development.

Every year, two of the CDC world's biggest supporters, Detroit Local Initiative Support Corporation (LISC) and the Community Development Advocates of Detroit (CDAD) band together to recognize the year's biggest success stories in their community. At this year's luncheon, five CDCs and one individual were recognized.

The Masco CDC of the Year was awarded to the Grandmont Rosedale Development Corporation (GRCD). The organization works to strengthen the Grand River commercial corridor with facade grants and infrastructure improvements, organizes a weekly farmer's market and will break ground on three new infill houses later this year.

"It's nice to get this kind of recognition every now and then," says executive director Tom Goddeeris. "We've been around for 18 years, and every year presents new challenges."


You can hop over to Model D to see all the award recipients, but we have to stop for a moment and tip our hat to Focus: Hope, which received the Partner Award this year.

Focus: HOPE is a nationally recognized civil and human rights organization in Detroit, Michigan whose mission is to use intelligent and practical action to fight racism, poverty and injustice.

For several years now, Focus: HOPE has been the home of our annual Evening for Economic Justice dinner in the fall, and it will be again this November 8. We're already gearing up for the dinner, and should have more details to share soon, but you can check out this page on our website for more info about the event.

Congratulations, Focus: HOPE!
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Michigan Development News
development-news

Michigan Development News is a weekly series that features affordable housing and economic development-related news stories from across the state. Feel free to submit a story suggestion by leaving a note in the comments section.

Continental-graphic
Model D: Ten new homes to be built in Jefferson-Chalmers

Creekside Community Development Corporation is helping to change the face of the lower east side. The group works to improve the area bounded by Connor, E. Jefferson, Alter and the Detroit River.

The organization will break ground in December on Creekside West, 10 homes to be located on Kitchener Street south of Jefferson. The scattered site infill development includes two models of homes, the Kitchener and the Continental (pictured). Each style is approximately 1,300 square feet and will sell for $110,000 to income-qualified buyers.

Creekside West is in the vicinity of two previous housing developments that have already added 70 homes to the area.


Community Development Corporations are revitalizing Detroit neighborhood-by-neighborhood. Imagine what they could do with a little help from the Michigan Housing & Community Development Fund.

BID-Zone-Map
Model D: Southwest Detroit secures state's first Business Improvement District

The West Vernor commercial corridor has gone from bust to boom in the last decade. Part of the reason is that the Southwest Detroit Business Association has been operating a voluntary Business Improvement District there for the past seven years. Last week a vote of property owners formalized that BID, which sets a historic precedent in Michigan.

BIDs have been used to great effect in urban areas around the country. Assessments they generate can only be used in the designated area, which means services can be specifically targeted to the needs and personality of the district. The Southwest Detroit BID includes properties fronting W. Vernor from Clark to Woodmere and those along Springwells from W. Vernor to I-75.


There's no magic bullet solution that can turn around all of Michigan's communities. What works in one area might not work in another. That's why BIDs make so much sense. Hopefully the West Vernor commercial corridor can be a model for other communities.

Ann Arbor News: Wine bar might add to city of Brighton's 'hip factor'

In the next several months, Brighton's "trendiness quotient'' could take a quantum leap forward.

Two suburban Detroit women hope to open a wine bar and restaurant in downtown Brighton. The City Council last week approved the first step toward the women obtaining a redevelopment liquor license for the wine bar.

Add to it a planned martini bar across West Main at West Street, and the new Stonefire Bistro two blocks down, and you have a recipe for the evolution of downtown Brighton from quaint to trendy.


Brighton... "trendy" and "hip"? You read that correctly.

Brighton Area Chamber of Commerce Executive Director Pam McConeghy stressed that the bars would not be honky-tonks or saloons. "They're going to be classy, they're going to spur redevelopment, and spur other retailers to come downtown,'' she told the council.

Bessette said she and her business partner picked Brighton for two main reasons, one being familiarity, with Oaks having relatives in the area. The other: "We sense that it is a developing downtown area and a community, not just (a concentration of) businesses.''


MI PR Newswire: United Solar Ovonic Signs Multi-Year Supply Agreement with EDF Energies Nouvelles for Supply of up to 30 MW of Photovoltaic Laminates

United Solar Ovonic LLC, a wholly owned subsidiary of Energy Conversion Devices, Inc. (Nasdaq: ENER), announced today that it has signed an 18-month agreement with EDF Energies Nouvelles (EDF EN) for the supply of 12 MW, with an option to buy an additional 18 MW, of UNI-SOLAR(R) thin-film photovoltaic (PV) laminates to be used for large-scale installations on industrial andcommercial buildings.

Headquartered in Paris, France, EDF EN will use UNI-SOLAR(R) laminates to develop its photovoltaic business especially in the building-integrated segment.

"This is another important illustration of the potential of UNI-SOLAR products in large-scale commercial installations," said Subhendu Guha, president and chief operating officer of United Solar Ovonic. "These installations benefit our customers, and they benefit the environment. We are pleased to help lead the growing movement toward the increased use of renewable sources of energy."


We told you about ECD back in August, and it looks like the Auburn-Hills company is really on a roll, attracting world-wide attention for their groundbreaking work.
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Michigan Receives National Award for Vibrant Small Cities Initiative
MSHDA_Logo_blue
For those who need more proof that this state needs to invest more in community development efforts, well... here you go:

Governor Jennifer M. Granholm, today announced that The Michigan Vibrant Small Cities Initiative administered through the Michigan State Housing Development Authority (MSHDA) has been awarded the Sterling Achievement Award for Community Development Programs by the Council of State Community Development Agencies (COSCDA). COSCDA is the premier national association advocating and enhancing the leadership role of states in community development through innovative policy development and implementation, customer-driven technical assistance, education and collaborative efforts. This is the first time ever the award was given for this type of initiative.


The Award nomination featured the initiatives undertaken by MSHDA's Community Assistance Team (CATeam) and MSHDA's Office of Community Development in the communities of Niles and Newaygo. Both communities used the downtown facade improvement initiative. This program is designed to assist a community in making physical improvements to an entire traditional downtown area, block, or portion of a block that contains buildings, properties and businesses in need of facade improvements resulting in downtown revitalization and rental rehabs. These successful projects resulted in MSHDA committing $6 million in CDBG funds.

"We all remember the rich histories of the downtowns where we spent our early years, and the good memories that go along with those recollections," said MSHDA Executive Director Michael R. DeVos. "This initiative will help preserve and rejuvenate those cities, bringing them back to the illustrious vibrancy of former times while drawing more residents and tourists to our state."


Remember, community development projects like this typically have a 1:2 investment ratio, meaning every dollar spent generates two dollars in economic activity.

In other words, investment => additional investment.

The efforts of MSHDA and Michigan's affordable housing and community development industry are clearly paying off, but just imagine what we could accomplish through the Michigan Housing and Community Development Fund.
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A Message from Ken Bensen on MHCDF
Living in Michigan
Well, it looks like members of the Legislature haven't taken our advice... yet. The battle over the 2008 budget continues, but word from Ken Bensen, Chair of the Living in Michigan campaign, gives us reason for hope:

"I am hopeful, every day that this budget debate rages on, that we are getting closer to funding. Senator Mark Jansen, the chair of the six person budget committee, is in contact with me almost daily. Today, the message from Senator Jansen is that the supporters of this fund need to reach out in big numbers and educate their legislators. That means you need to reach out today.

"This coalition has significant support in the right places within the legislature. What we are lacking is awareness in the entire legislature. Advocacy Day was many months ago and the issue of housing has been overshadowed by some other, more aggressive coalitions.

"One email from you will take five minutes. And if we all participate, we'll send thousands of emails. Thank you for your passion about affordable housing. This fund will help Michigan far beyond our lifetimes."

You can contact your State Representative here, and your State Senator here.
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Our Word of the Day: Compromise
That's right, today's word of the day is: compromise.

capitol-trees
com·pro·mise [kom-pruh-mahyz]
Noun: a settlement of differences by mutual concessions; an agreement reached by adjustment of conflicting or opposing claims, principles, etc., by reciprocal modification of demands.

Today's word of the day is brought to you by our friends at the Michigan Nonprofit Association:

Policymakers are elected to represent their districts. We all know this. But “representation” means different things to different people. Some say representation means voting in whatever way the majority of their constituents desire. Others say representation means voting for whatever would ultimately be in the best interest of their district, whether this means agreeing or disagreeing with the majority of the populous and making decisions between short-term and long-term interests that might be contradictory. And while most legislators claim to subscribe to one of these philosophies, rarely will you find an individual that doesn’t cross the fence to the other theory of thought at one time or another.

I say all this because I recognize that the policymakers addressing our state’s fiscal crisis represent varying schools of thought and very different constituencies. I don’t expect them to easily solve the massive budget hole, nor would I want them to. With as diverse a population as the state of Michigan holds, debate is key to sound public policy.

But it’s time for a compromise.

We’ve been going at this budget deficit for several years, and to be bluntly honest, the resolution thus far has pretty much gone one way. We’ve had budget cuts and budget cuts and more budget cuts.

And it’s time for a compromise.

That’s what politics is all about. Differing ideologies, conversing and dialoguing and debating each other on behalf of their differing constituencies, ultimately coming to some sort of compromise. Why? Because we represent different people, and as difficult as it is, our collective responsibility is to look out for all of them.

That’s done through compromise.


The state's constitution requires that a balanced budget must be in place for the fiscal year beginning on October 1... now less than two weeks away.

It's time for our legislators to come together and reach a bipartisan agreement that solves our state's structural deficit once and for all.

How they do it is up to them. Of course, our preference is for them to make the choice to invest in our state's economic recovery by funding the Michigan Housing and Community Development Fund. Whatever they decide though, we need to have this solved, and the sooner the better.

Like Bono once said, "compromise is not a dirty word."

For the latest news on the budget, be sure to keep an eye on MLive.com over the coming days.
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Michigan Development News
development-news

Michigan Development News is a weekly series that features affordable housing and economic development-related news stories from across the state. Feel free to submit a story suggestion by leaving a note in the comments section.

Muskegon Chronicle: Official urges campaign to end homelessness

Michael R. DeVos brought his "Campaign To End Homelessness" to West Michigan Thursday in a barnstorming tour that took him to Ludington, Fremont and Muskegon.

While in the area, DeVos, director of the Michigan State Housing Development Authority, announced the "immediate" release of $12 million in grant money statewide for rental assistance programs and an additional 1,600 vouchers to help individuals and families find permanent housing. Each voucher is worth $485 in rental assistance per month.


MSHDA made $14.5 million available in 2006-07 for people who are chronically homeless, homeless survivors of domestic violence, homeless youth and homeless families with children.

"I tell people, because people like to think there is a simple solution to all this ... that we have to change how the system works," he said.

In past years, he said, various local and state agencies addressed the problems of the homeless in the state in a "hodgepodge" manner.

"It should be our obligation ... to have a plan to end homelessness," he said.


Crain's: Detroit EDC OKs $5.5M contract for transit center canopy

The Detroit Economic Development Corp. Tuesday approved a $5.5 million contract with USAShade & Fabric Structures Inc. of Costa Mesa, Calif., for the seven-peaked canopy structure to top the Rosa Parks Transit Center at Cass and Michigan avenues.

Tim Miles, project manager for the Detroit Economic Growth Corp., which staffs the EDC, said the canopy was selected by the Detroit Department of Transportation for its “signature design” and architectural “flair.” It also will provide weather protection for passengers as they wait to board DDOT buses.

The $18.3 million transit center, designed by Parsons Brinckerhoff, is being built by the EDC for DDOT with a Federal Transit Administration grant. Northville-based Dumas Concepts in Building Inc., which has a fabricating plant on Detroit’s west side, is to receive work of more than 40 percent of the contract value.


Rapid Growth: Brownfield rehab spurs $2.6M investment and 9 jobs in downtown Muskegon

The proposed new Sidock Building in downtown Muskegon could generate nine new jobs and leverage $2.6 million of private investment. The property at 379 W. Western is part of a Brownfield Redevelopment Zone. Last month, the Michigan Economic Development Corporation and the Michigan State Housing Development Authority announced some $237,000 in tax capture for the project.

The two-story, 16,000-square-foot building broke ground August 29 as a mixed-used development that will accommodate retail and restaurant business on the 8,000-square-foot main level and Sidock Group's offices on the second floor. The building is one of the first new construction sites on the former Muskegon Mall property.

"We've been in a growth mode since early 2004, and have added nine people," says Bill Sidock, owner of the architectural and engineering firm. "We're looking to grow from 21 to 30 people over the next three to five years."


Here are a couple new sites to bookmark:

Metromode: Development news from suburban Detroit
CapitalGains: Development news from the Lansing area
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"Green" Housing on Display at LTU
One of our longtime board members, Harriet Saperstein, tipped us off to an article in the most recent edition of Detroit Auto Scene. While the DAS website is currently under construction, here's a quick rundown of the story...

A crew of students and recent graduates from Lawrence Technological University are currently putting the finishing touches on their answer to America's energy crisis –– a solar powered house with 620 sq. ft of living space that not only has the ability to generate twice the power a family of four would use, but can power a small electric vehicle.

Apparently anyone who's interested in "green" housing design can see the model on display at the LTU campus on W Ten Mile Rd in Southfield, starting today thru September 21st from 4:30 to 8 p.m.

As we pointed out on Wednesday, smart and sustainable housing designs are a big part of what makes affordable housing projects... affordable.

If you're interested in reading more from this article, be sure to pick up a copy of Detroit Auto Scene this week.
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Ann Arbor News: Income lags housing
Want to know why affordable housing is such a critical issue for this state? Home prices are growing at twice the rate of earnings. Here's the story from the Ann Arbor News:

The average price of a home grew at more than twice the rate of household income in both Washtenaw and Livingston counties since 1990, a review of new Census data by The News shows.

The growing separation between the two figures mirrors a trend across the nation, where homeowners have faced a growing gap between their incomes and the cost of their homes.

The widening gap in all but a handful of the nation's 500 largest cities helped make the recent boom in housing prices unsustainable, analysts say. The rising prices were fueled largely by low interest rates and risky borrowing, rather than increasing incomes.


Nationally, the median household income grew by about 60 percent from 1990 to 2006, roughly matching inflation. At the same time, the median home value - the point at which half cost more and half cost less -- more than doubled, to $185,200.

The trends held in Washtenaw and Livingston counties as well.

In Washtenaw County, the median household income climbed from $36,307 in 1990 to $56,817 in 2006, Census figures show. That's a gain of 56.5 percent.

At the same time, however, the median value of an owner-occupied home rose from $96,000 in 1990 to $235,900 in 2006. That's a gain of 145.7 percent.

In Livingston County, the median household income jumped from $45,439 in 1990 to $70,629 in 2000, Census figures show. That's a gain of 55.4 percent.

At the same time, the median value of an owner-occupied home rose from $97,300 in 1990 to $233,600 in 2006, an increase of 140.1 percent.

However, both the median household income and the median value of an owner-occupied home in Livingston County dipped in 2006 as compared to 2005.


Yikes. And here's the scary part: if folks earning the median income can't keep up with the skyrocketing cost of housing, what chance do lower-income individuals have of attaining the American dream?

The analysis showed that homeowners in nearly every city are spending significantly bigger shares of their incomes on housing costs. From 1990 to 2006, the share spent on housing costs increased in all but 13 of the cities examined. Nationally, the share increased from 21 percent to nearly 25 percent for homeowners with a mortgage.

In Washtenaw County, the median mortgage was $878 in 1990. It was $1,782 in 2006. That's a gain of 103 percent. Census figures also show that in 1990, 26.3 percent of mortgages took up 25 percent or more of a household budget. By 2006, that figure had risen to 51.7 percent.


Sure, housing prices are starting to stumble now –– although, that's bad news in a completely different way –– but the point here is that these figures from the Census bureau just underscore the importance of our work towards increasing the supply of affordable housing here in Michigan.

As we argued on Tuesday, this issue is too important to our state (and our nation's) economic future to ignore. While this is sobering information, fortunately there's something we can do about it. That is, if our elected officials have the will.
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Lansing Old Town Wins IKEA Makeover!
UPDATED: See below...

They won! Thanks to all our readers for logging on to IKEA's website to vote for Old Town Commercial Association (from LSJ):

Jamie Schriner-Hooper's dreams of Swedish furnishings can finally come true.

Old Town has won IKEA's "Small Businesses, Big Dreams" contest, which comes with a $50,000 makeover and $5,000 cash prize. The home furnishings retailer will announce the victory today.

"We can't wait," said Schriner-Hooper, executive director of the Old Town Commercial Association. "As corny as it sounds, I literally have been dreaming about IKEA."

The artsy Lansing commercial district last month finished in first place in the public vote portion of the contest.

IKEA's judges concurred.

IKEA designers will visit Old Town later this year to come up with a plan for 10 businesses and organizations. The makeovers will be chronicled at www.ikea.com/business.


A $50k makeover at a $5k cash prize? Nothing to sneeze at.

This is just more proof that good things are happening here in Lansing. Congrats, OTCA!

UPDATED: Here's the local reaction to OTCA's win:

Jana Nicol, Old Town store owner: "We're going to the store, we're going to work."

At Jana Nicol's Old Town shop, dogs rule and furniture, that's an afterthought.

Jana Nicol: "When I opened, I had hardly any startup money, so I used things that were in my house, like tables, old ladders, a desk that someone put out onto the curb for free."


Jana Nicol: "It's very exciting, I already got, I think I have half of my share spent. I know what I want already."

And Nicol's shop isn't the only one. Ten of the businesses in Old Town will be made over and the designers from Ikea say they'll work with each of the business owners to figure out exactly what they need.

Michael Berryman, Ikea Interior Designer: "It's really important for us to get to know them first, because every business is a reflection of their personality, so we need to know what their needs are so we can find the solutions."

For Nicol, she says she needs to get organized.

Jana Nicol: "It will be more presentable, it will be easier to display all my products."


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Innovative Affordable Housing Design by UDM Design Center
Green building techniques? $100 a square foot? This sure sounds like a great project (from Model D):

The University of Detroit Mercy's Detroit Collaborative Design Center has secured a $60,000 grant from an anonymous national foundation to develop a unique housing prototype. The best part is, it will be priced to sell, says DCDC director Dan Pitera.

"You can actually do wonderful design and make it sustainable within the budget of affordable housing," Pitera says. He aims to keep construction costs of the prototypes at $100 per square foot.

Because it will first be built in Woodbridge, the design will be developed through a series of workshops with its partner organization, Woodbridge Neighborhood Development Corporation. Neighborhood residents and business owners will take part, as will contractors, bankers and other community development groups from around the city.

Two prototypes will be developed, one for new construction infill and one that details renovation procedures. The designs will use salvaged materials and employ green building techniques like rain water collection and other passive design considerations.


Smart and sustainable designs are a big part of what makes affordable housing projects... affordable. It'll be interesting to see how this prototype turns out.
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Put affordable housing into the election
HomeStretch: Kensington Park

This is a decidedly non-political blog. However, the decisions made by politicians obviously have a huge impact on our industry. So, regardless of which party or candidate you may be supporting in the 2008 presidential race, this editorial from the Minneapolis-St. Paul Star Tribune is something we should all take to heart:

The "American Dream" of an affordable home is something most people care about, both for themselves and as a foundation for a strong economy.

But this important social and economic issue is being largely ignored or forgotten in the presidential sweepstakes. Meanwhile, from Wall Street to Main Street, the affordable housing issue is being overshadowed by the credit crisis sparked by the implosion of subprime lenders.

But the people are way out in front of the candidates on affordable housing. A recent Zogby Poll said that 70 percent of Americans are more likely to choose a 2008 presidential candidate who articulates a plan for providing affordable housing.


The war in Iraq continues to (somewhat justifiably) be the issue we hear most about in the media as far as the presidential race is concerned. However, with last month's jobs report hinting at a recession, it seems clear that our country simply cannot afford to ignore important bread and butter economic issues, such as affordable housing.

In the past, affordable housing has been dumped into a pile of issues that affected people living at or near the poverty line. Now, it's clear that finding affordable housing is becoming much harder for middle-class working families, as well as very low income people, seniors on fixed-incomes and people with mental or physical disabilities.

In many cities around the country, teachers, police, firefighters and service-industry workers cannot afford to live in the communities where they work.

The first question to ask a presidential candidate is how will he or she get the federal government back into the affordable housing business?


I would say that last question is something we should be asking all of our elected officials. At the state level, we still have good initiatives like the Michigan Housing and Community Development Fund that have received lukewarm support as Legislators have been grappling with the worst budget crisis in decades.

Affordable housing is literally the foundation of the American economy. While all levels of government are constantly preoccupied with short-term budgetary issues, the ability of consumers to afford a home is something that affects all other aspects of economic activity. This is not an issue that we can simply ignore.

If you get a chance, go read the whole editorial. It's great to see that an important paper like the Star Tribune in Minneapolis-St. Paul (which is playing host to the 2008 Republican National Convention) is putting this issue front and center. Hopefully we'll see affordable housing get the attention it deserves over the next fourteen months, but you're an important part of making sure that happens.

On the campaign trail next year, be sure to ask political candidates and the local, state, and federal levels what their plan is for affordable housing.
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Michigan Development News
development-news

Michigan Development News is a new weekly series that features affordable housing and economic development-related news stories from across the state. Feel free to submit a story suggestion by leaving a note in the comments section.

windmills

MiBiz.com: Windmills on our minds

As state-of-the-art as that is, the state of Michigan seems to be in a position of playing catch-up on the alternative energy field.

Stough told MiBiz that officials in close to 30 other states have developed renewable and alternative energy portfolios, boosting the growth of those sectors in those states. He wants the same thing to happen in West Michigan.

“Some people have projected tens of thousands of jobs could be created in Michigan if 15 percent of our energy purchases came from renewable energy,” Stough said. “A national wind energy group and other organizations have said there are opportunities for Michigan manufacturers to make parts for alternative energy OEMs.”

He pointed out that things like turbine blades, gear boxes and the components that go with solar cells will have to be made by someone as the technologies develop. Stough does not see any reason that could not happen here.

First, economic developers have to determine exactly where West Michigan stands in relation to the rest of the world - not just the United States - in the alternative energy field.

“We know we have a strong manufacturing base,” he said. "What we need to figure out now is our strengths and weaknesses, and then we can determine how we could address the weak points.”

Stough believes that the region might find it is more involved in alternative energy than is widely known.

“There are probably lots of companies doing work for alternative energy manufacturers,” he said. “We need to find out who is doing what and who has capabilities that might be underutilized.”

Work on the study began in August. It should be completed by the end of November. Stough expects it to include a list of recommendations. He is optimistic.


Renewable energy is the next "hot" industry... hopefully Michigan can grab a piece of the action. If workers in our state know how to do one thing well, it's build things.

MiBiz: Boosting Burton Heights

Like many neighborhoods, Grand Rapids’ Burton Heights business district has a long list of needs that could translate into entrepreneurial opportunity. Now a partnership between Macatawa Bank Corp. and Neighborhood Ventures intends to revitalize the Burton Heights business district and tackle that list.

Holland-based Macatawa Bank will provide more than $140,000 in micro-loans and other financial support for the project. Neighborhood Ventures is a local economic development organization that is active in eight of the city’s 20 neighborhood business districts. It will invest $20,000 to help Burton Heights business owners improve their building facades. The combined funds will help to pay for efforts to attract new businesses and promote the neighborhood with a marketing and branding effort.

The Garfield Development Corp. and the Garfield Park Neighborhood Association are also partners in the effort.


While Burton Heights isn't part of the Cities of Promise program, this sounds like a similar (local) effort to revitalize the area's business district. If Michigan is going to attract knowledgeable workers and businesses that will create 21st Century jobs, we're going to need more of these types of downtown revitalization programs.

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Lansing Business Monthly: Coalition Touts Education

This is not your father’s economy. And, yet, an EPIC/MRA poll commissioned in 2005 by Your Child showed that only 27 percent of Michigan parents think advanced education is important to their children’s future. But the days of high-paying, low-skilled jobs are gone, and Michigan is falling behind nationally in terms of wages and education.

“Until recently, we had one of the highest per capita earnings, well above average, in Michigan, with a relatively not well-educated workforce,” noted Capital Area Michigan Works! (CAMW) CEO Douglas Stites. “Right now, we’re going through a transformation. We don’t like it, and people don’t want to talk about it, but now we’re just average.”

So Stites united with local business leaders, educators and media—with absolutely no budget—to create the “Keep Learning … Our Future Depends on It” initiative to get the word out over the next decade that it is not just important to individuals’ but also to the entire state’s economic well-being.

“Historically, you could drop out of high school, go to work in a factory, and achieve a degree of success that afforded you an upper middle class lifestyle,” noted Michael J. King, vice president and general manager for WILX-TV and a member of the Workforce Development Board for CAMW. “Well, those days are over. Michigan is aggressively trying to recruit new industries and companies. One of the criteria those companies use in evaluating a new location is the educational attainment of the workforce. Without increased education levels, mid-Michigan will simply be passed by.

“The Keep Learning campaign says it all: ‘Keep Learning … Our Future Depends On It,’” he continued. “By airing the public service announcements and reporting stories that focus on the new economy, our hope is that we can help keep the message in front of kids and their parents. The data is very clear; we can’t guarantee success with an education; however, we can all but guarantee failure without it.”


All year we've been telling folks that housing = jobs. That's still true, but making sure Michigan maintains a healthy supply of knowledgeable workers is also essential to attracting new businesses to our state and stimulating job growth. Here's hoping the "Keep Learning" campaign is a success.

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Model D Media: Vanguard CDC completes 24 units of housing, 57 more in the works

Detroit's North End is getting a boost from three citywide initiatives that target specific geographic areas. Bounded roughly by E. Grand Boulevard, Woodward Avenue, Clay and I-75, the North End is a NEXT Detroit Neighborhood, a LISC Neighborhoods Now area and a Skillman Foundation Good Neighborhood.

In December of 2006, Vanguard Community Development Corporation completed Melrose Square Homes, 24 single-family rental homes that are tax-credit subsidized. Next up are a 48-unit senior apartment complex and 27 market-rate townhouse condominiums. Plans call for a groundbreaking in spring of 2008.

In the meantime, Vanguard is conducting a series of free classes intended to boost home ownership and entrepreneurship. Beginning on September 8, a "do-it-yourself" class, conducted in partnership with WARM Training, will cover topics such as basic electrical and plumbing, wall repair, painting and carpentry in once-a-week sessions through October 20.


Motown: getting better all the time!

Additional Articles:

Rapid Growth: Grand Rapids tech firm ranked as fastest growing company in West Michigan
Rapid Growth: $500M apple industry promotes tourism with Michigan harvest markets
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Redeveloping Muskegon
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More good news out of Muskegon:

The second groundbreaking in as many months signaled the beginning Wednesday of the first construction of a new building on the former Muskegon Mall redevelopment site in downtown Muskegon.

Sidock Group Inc. -- a Muskegon- and Novi-based engineering and architectural company -- broke ground on a new two-story office and commercial building at 379 W. Western


Directly across West Western Avenue, Clifford Buck Construction Co. and Capstone Real Estate are ready to begin construction of the Hines Building, which will house the new offices of the Muskegon Area Chamber of Commerce. The Hines Building groundbreaking was in late July.

Both the Hines and Sidock buildings are expected to be under construction this fall. They are the first new buildings to go on the former mall site. The five remaining buildings from the mall are already being planned for redevelopment with the former Century Club already open as the new Muskegon home for Hegg's Furniture.


"It is good to see the downtown coming back to life and see the people who are making it happen," Sidock said.


All over the state -- from Detroit to Northern MIchigan to West Michigan and everywhere in between -- things are getting better. Sure, we still have a long way to go to really turn our economy around, but it's always encouraging to read stories like this.
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The NYT Loves Michigan
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It looks like the folks at the New York Times have been in a Michigan state of mind lately. In May they featured Trust Fund borrower Ruth Ellis Center, then last month they featured two lower peninsula destinations in their travel section:

For Mario Batali, It’s Molto Michigan
A Lower Peninsula Spot Draws a Wider Crowd

You gotta love publicity like this, especially considering how vital tourism dollars are to our state's economy. According to the Michigan Economic Development Corporation, "in 2004, travelers to and in Michigan spent approximately $17.5 billion; generating $971 million in state and local taxes; and accounting for 193,000 jobs statewide."

There are good things happening here in the Great Lakes state, and it's just nice to get some positive reinforcement from such a prominent national publication as the New York Times every once in a while.

Hat tip to the Leelanau News Blog for these links.
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Michigan Development News
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Michigan Development News is a new weekly series that features affordable housing and economic development-related news stories from across the state. Feel free to submit a story suggestion by leaving a note in the comments section.

LSJ: Michigan Ave.: From 'seedy' to trendy

"It wasn't a place where you ventured too far out of your car, especially at night," Gillespie said. "It just wasn't a safe place."

But drive through today, and an apparent transformation is under way. It's the result of more than 10 years of planning and development of a new vision by builders and government officials. From a baseball park to a recent $3.2 million streetscape project by the city, the corridor reflects more of a welcome mat than a sin strip.

A Virginia-based expert, who helped Lansing with revitalization of the Washington Corridor, said if he were handing out grades, he would give the progress at Michigan Avenue an "A."

"Downtowns are successful when they become a neighborhood," said Doyle Hyett, chairman of HyettPalma, a consulting firm that has helped cities in all 50 states with revitalization efforts. "Not just places of commerce, but well-rounded places that people want to go to for a variety of things.

"That's what Lansing is trying to do now."


That's what every community in Michigan should be trying to do right now. Our state needs this sort of long-term planning to rejuvinate urban cities like Lansing and attract business investment.

Muskegon Chronicle: Developer praises downtown improvements

Although it took some juggling of federal money and construction schedules, Muskegon city officials held out for fancier sidewalks, lighting and landscaping in rebuilding Western Avenue, hoping it would attract investors to the "new" downtown.

There may be something to this strategy. With four big projects under his belt in Grand Rapids, condominium developer Jonathon Rooks plans to convert the seven-story former Comerica Bank building into commercial and residential uses.

In an appearance before the Muskegon City Commission Tuesday, Rooks cited street and lighting improvements on Western Avenue, which he said were "among the best I've seen."

And he said he was just as impressed by various downtown real estate projects already in the works, both in existing and new buildings, and by the sense of "contagious optimism and enthusiasm" shown by local leaders in downtown redevelopment.


Sounds like good things are happening in Muskegon too. But wait, it gets better... Muskegon is getting national attention for their downtown redevelopment.

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USA Today: Michigan city finds hope in tax breaks

Muskegon has deployed more than 20 economic-incentive programs to reinvent itself.

It has Smart Zones, Renaissance Zones, Neighborhood Enterprise Zones and Foreign Trade Zones — all offering tax breaks and assistance. It has Site Assessment Grants, Clean Michigan Grants, Facade Improvement Grants, Urban Land Assembly Grants and Employee Training Grants — offering money for environmental, aesthetic or other business needs. The state supplies most of the money, and federal and local programs contribute, too.

For all its struggles, an optimism pervades the city.

"The only way is up," says Sarah Rooks, project manager of the WaterMarkCenter, a former furniture factory on Muskegon Lake that is being turned into loft condominiums. "We've got a clean slate to rebuild our town however we want."

You gotta admire that optimistic attitude.

Escanaba Daily Press: The face of homelessness changing in state

Michigan is the only state in the country where all communities are committed to end homelessness, [MSHDA Executive Director Michael] DeVos said. The state’s 10-year Campaign to End Homelessness began in October. It incorporates 60 plans in eight regions covering all 83 counties in the state. It brings together representatives of the private, public, and nonprofit sectors to develop plans to end homelessness in Michigan by 2016.

“Were working to implement a social movement. It’s about all of us as a community working together. Everything is connected. We’re all partners,” said DeVos.


The second annual Summit on Ending Homelessness is set for Oct. 15-16 at Michigan State University in East Lansing. Click here for more information on Michigan's Campaign to End Homelessness.

Forbes: Best Cities For Singles

As what it means to be single changes, the growing economic clout of singles as a class means that cities can ill afford to lose them, as sociologist Richard Florida argues in The Rise of the Creative Class.

So what lucky cities stand the best chance of attracting this crucial class? We answer that question in our seventh annual Best Cities for Singles special report. We looked at 40 of the largest urbanized areas in the country and judged them on culture, nightlife, job growth, the cost of living alone, online dating, the number of other singles and that ever-elusive quality, cool.


Motown must be doing something right, because Detroit placed in the #21 spot on Forbes' list!

Rapid Growth: Burned out home on Grand Rapid's south side gets Habitat makeover

A burned-out home in the Oakdale Neighbors neighborhood has sat vacant since last winter. That's when it caught fire and the owner, Mike Kelly, decided it wasn't worth fixing. Kelly, his wife, two young children, and mother-in-law have found another place to live, but he needed to do something with the house.

"I was trying to think of different options and I happened to see an article in the paper about Habitat for Humanity, and I thought, hey, that might be the way to go," Kelly says. "I can do something with that property and not leave the neighbors with a burned out house."

Habitat for Humanity builds houses for families whose income is 30 to 50 percent less than the area mean income. The program is the only way many families can purchase a home. Once approved, the family chooses from a list of available properties. Then they invest some 500 hours of "sweat equity" to qualify for the home. Most choose to put that time into helping to build their house.


Our friends at Habitat... doing what they do best.
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