MCC one of 76 Community Development Entities chosen to receive allocations
Lansing, MI - U.S. Department of Treasury’s Community Development Financial Institution (CDFI) Fund announced on July 15th that Michigan Community Capital (MCC) will receive a $55 million New Market Tax Credit (NMTC) allocation. MCC is one of only 76 Community Development Entities (CDEs) chosen to receive allocations out of the 206 that applied nationwide. MCC remains the only CDE to attract NMTC exclusively into the state of Michigan. MCC focuses on projects that are in qualified low-income census tracts and provide wealth-creation opportunities for disenfranchised communities, job training for low-skill workers, access to healthy foods, and affordable and workforce housing.
“Three years ago, with the invaluable support of the Michigan Economic Development Corporation, MSHDA, our bank investors and local partners, we began an experiment to see if we could tackle some of the toughest challenges facing low- and moderate-income communities and people in the state. Through partnerships and collaboration, we are seeing great results,” said Eric Hanna, President and CEO of MCC. “Without the confidence of partners such as the MEDC, Northern Trust, Huntington Bank, PNC Bank, TCF Bank and the generous support of local foundation partners such as Rotary Charities of Traverse City, the Pennies From Heaven Foundation, the Grand Haven Area Community Foundation, and the C. S. Mott Foundation, we would not be in a position to help when Michigan’s businesses and communities need it most.”
In 2019, MCC won a $55 million NMTC allocation, the first in eight prior years, which they used to fund projects such as the Allen Neighborhood Center in Lansing, Peterson Farms in Shelby, Sugar Hill in Detroit, and UP Paper in Manistique. Without assistance from MCC through NMTC, these projects would not be possible. They created jobs, revitalized neighborhoods and invested in the power of people.
“The $55 million awarded to Michigan Community Capital will help fuel Michigan’s economic recovery and support new opportunities for underserved people and communities in Michigan. We’re pleased to be a part of the collaboration bringing these beneficial projects to the state,” said MEDC Senior Vice President of Community Development Michele Wildman. “The decision by CDFI Fund to recognize and support the work of MCC for a second year emphasizes the strength of Michigan’s community development programs and our ongoing collaborations to create vibrant communities throughout the state.”
NMTC is a highly competitive resource that helps economically distressed communities attract private capital by providing investors with a federal tax credit. Congress authorizes the amount of credit, which the Treasury (through a division called the CDFI Fund) then allocates to qualified applicants (CDEs) such as MCC. These CDEs are financial intermediaries through which private capital flows from an investor to a qualified business.
MCC will use this $55 million allocation to advance complex and financially challenging projects around the state with a focus on ensuring that both business and community revitalization projects get funded and ensuring that rural communities in Michigan receive at least 20 percent or more of these important resources.
About Michigan Community Capital
Michigan Community Capital “MCC” is a Lansing, MI-based private non-profit, a 501(c)3 public charity, a Community Development Entity, and a U.S. Treasury licensed Community Development Finance Institution. MCC focuses on public-private partnerships to complete projects that the private sector would not pursue. Over its 14-year history, the company has completed 22 projects utilizing $164M in Federal New Market Tax Credit allocation and has worked to finance the development of over 250 units of rental housing, addressing a continuously expanding gap called the “Missing Middle”. MCC is a supporting organization to the Michigan Economic Development Corporation and the Michigan State Housing Development Authority and works with a number of local, regional, and national banks to drive investment into underserved markets in the State of Michigan.
About Michigan Economic Development Corporation (MEDC)
The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.