University of Affordability

A PUBLICATION OF GREAT LAKES CAPITAL FUND

VOLUME 22 | ISSUE 2 | 2015

SPECIAL PREVIEW

AnnuaL EducatioN Conference MaY 5 — 6, 2015

Blue chip casino hotel spa michigan city, Indiana

NEW CONSTRUCTION RENOVATIONS HISTORIC REHAB MULTI-FAMILY COMMERCIAL MIXED USE

FEATURES THE TRUE MEANING OF PARTNERSHIP.......................... 6 CONDITIONING FOR LIFE’S CHALLENGES..................... 8 CONTINUING EDUCATION IS NOT A DIRTY WORD....... 9 UNIVERSITY OF AFFORDABILITY CONFERENCE SPECIAL PREVIEW....................................................... 10 TACKLING SOCIAL MEDIA.......................................... 18 THE GOLDEN RULE..................................................... 20

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MARKET COMPARISON MYSTERIES SOLVED................ 22 CREATING STRONG AND VIBRANT COMMUNITIES..... 23 DECREASING RESIDENT DELINQUENCIES.................... 25

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DON’T WORRY, BE HAPPY.......................................... 27 CAPTIAL BOOST......................................................... 28

DEPARTMENTS CEO’s MESSAGE.......................................................... 5 Filling the Void UPCOMING EVENTS.................................................. 29 ADVERTISER INDEX..................................................... 30

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Promises Made, Promises Kept.

Syndicators and lenders will attest to our rock solid reputation.

For more information, contact our administrator at 248.833.0550

CEO’s MESSAGE

GOVERNING BOARD Wendell Johns, Chair Former SVP, Fannie Mae Michael J. Taylor, Secretary/Treasurer PNC Bank Catherine A. Cawthon Fifth Third CDC Derrick K. Collins Chicago State University Christine R. Hobbs Former Director, Freddie Mac Multifamily

FILLING A VOID

BY MARK MCDANIEL, CEO/PRESIDENT GREAT LAKES CAPITAL FUND

William C. Perkins Wisconsin Partnership for Housing Development, Inc. Robert Rossiter AIG Federal Saving Bank James W. Stretz George K. Baum & Company Donald F. Tucker Don Tucker Consulting Paul J. Weaver Former SVP and Controller, FHLBI

CORPORATE OFFICERS Mark S. McDaniel, President & CEO Christopher C. Cox, CFO James L. Logue III, COO Kevin Crawley, Executive Vice President Jennifer A. Everhart, Executive Vice President Rick Laber, Executive Vice President Marge Novak, Executive Vice President Jim Peffley, Executive Vice President

LOCATIONS Lansing Headquarters 1118 S. Washington Avenue Lansing, MI 48910 Phone 517.482.8555 Detroit Office – NEW LOCATION! 2111 Woodward Avenue, Suite 600 Detroit, MI 48201 Phone 313.841.3751 Illinois Office 225 West Washington, Suite 1350 C Chicago, IL 60606 Phone 708.781.9603 Indianapolis Office 320 N. Meridian, Suite 516 Indianapolis, IN 46204 Phone 317.423.8880 Wisconsin Office 2 E. Mifflin Street, Suite 403 Madison, WI 53703 Phone 608.234.5291 Delaware Office 100 W. 10th Street, Suite 302 Wilmington, DE 19801

Prior to 2008, we hosted an annual event referred to as the “asset management conference”. This two-day conference was seen as a valuable educational tool for our management and development company partners and their staff. However, with the coming of the “Great Recession”, everyone had to hunker down and focus on assets more than ever, so we went on a hiatus with offering the conference.

Over the last two years we have been fielding multiple requests from our partners to offer it again. Why? As statewide housing conferences have grown in size due to their efforts to serve wider audiences, the type of training and educational opportunities that have been sought by housing developers and management companies are no longer offered.

The history of GLCF has always been one of listening to our partners and filling the voids that are presented to us. This is one of those times we are filling an unmet need.

We test marketed the concept in 2013 with a series of one day trainings in Michigan, Indiana, and Wisconsin. Sessions on leasing, maintenance, and team building were offered. The response exceeded our expectations! So, last year we offered a one and half day event located in the Mid-western footprint. We broadened the offering of workshops to include issues of concern to our development partners and deeper dives into management staff training. Again, the response was overwhelmingly positive. To further develop our educational offerings, we plan to host the one-day session in our Delaware and Mid-Atlantic region this fall. If the response is positive, we will host our annual conference in the Midwest and Mid-Atlantic areas.

This year we have taken what we have learned and fine-tuned the program to provide wider depth of offerings. We have moved the conference location to the Blue Chip Casino in Michigan City, right on the shores of Lake Michigan. It will provide some added fun and entertainment to your day of learning.

We have added an exciting feature to the conference with two motivational keynote speakers. As a sports enthusiast, I was excited to secure two former professional athletes to join our speaker lineup. Kurt David, a former professional basketball player, author, and host of the TV show, From Glory Days, and Rocky Bleier, Hall of Famer, and player on the Championship Pittsburgh Steelers. Rocky’s story is especially poignant as he served in the Army in Vietnam and then came back to pursue a professional football career. Besides speaking during the conference, they will be hanging out with everyone at the trade show event.

Our goal is to have this conference become a premier event in the region. When you think of where you can get real in-depth training and education on property management, asset management, and development, GLCF’s University of Affordability will be your number one choice.

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FEATURE

THE TRUE MEANING OF PARTNERSHIP

O

Alone we can do so little; Together we can do so much.

–Hellen Keller 6

ne age old saying tells us it’s not what you know but who you know. It is probably truer to say that it is what you know, plus, who you know. At Great Lakes Capital Fund (GLCF), the latter would be very fitting. While we certainly rely on the personal relationships we have been able to establish in the community development industry, it is successful execution of everyday tasks that ensures development and financing partners keep coming back.

Some partners have been working with our team for over twenty years. In an industry where every dollar counts and folks often look to the next best or new thing, these partnerships of longevity create a sense of pride.

“I have had the absolute pleasure of partnering with GLCF on thirty-three tax credit deals over the course of 20 years, with several more in the works,” says longtime development partner Marvin Veltkamp. “Together, our teams have delivered award-winning developments serving formerly homeless Veterans, families, seniors, and those with specials needs. I have always found their staff to be extremely helpful, intelligent and caring; truly understanding the significance of the work that GLCF and myself pursue in providing safe, supportive and quality homes for those that need it most.”

As our business lines and capacities have increased, our circle of industry partners has also grown. Recently, our lending and title insurance team, Capital Fund Services (CFS) and Capital Fund Title Services (CFTS), helped deliver Elgin, Illinois’ largest housing development to date. The complex Rental Assistance Demonstration (RAD) development in Elgin is the first of three planned RAD transactions with C Ray Baker & Associates’ development team.

“A lot of firms use the word ‘partner-

ship’. It has become one of those terms whose true meaning has been diluted through overuse,” says Carlos Guice, Sr., President, C. Ray Baker & Associates, Inc. “For the most part, it has become something people just say because they think is sounds good. The folks at GLCF, under Mark McDaniel’s leadership, understand what it means to be a true partner. C. Ray Baker & Associates, Inc. (CRB) and our clients have been the beneficiaries of their principle-based business model. These are good people who strive to do the right thing while still managing to make sound and strategic business decisions. CRB is proud to have partnered with GLCF on the Central Park Tower, Rental Assistance Demonstration (RAD) transaction in Elgin, Illinois. GLCF’s commitment to changing communities was demonstrated once again in this deeply transformative project for the City of Elgin.”

In Detroit, another GLCF line of business is proving to be a critical partner in the City’s ongoing revitalization efforts. Develop Michigan, Inc. (DMI), has worked to fill critical financing gaps for large scale redevelopment projects, filling the void when traditional institutions could not underwrite or leverage the necessary capital to bring projects over the finish line.

“As a developer undertaking challenging projects, I can definitely see how DMI is going to be a great financial and technical asset to developers not only in Detroit, but all across the state,” according to Karp, principal of Lansing-based Karp + Associates.

Richard Karp joins partners Kevin Prater, president, Prater Development Ltd; and Richard Hosey, owner, Hosey Development; along with a host of the nation’s best historic and new markets tax credit professionals to comprise the talented development team at Capitol Park PartnerGREAT LAKES CAPITAL FUND

ship (CPP).

DMI’s partnership with CPP came out of a study of the financial environment conducted by CPP in conjunction with the Michigan Economic Development Corporation (MEDC). They identified the greatest obstacle in securing construction and bridge financing as being a forward commitment for permanent debt. Adapting MEDC’s Community Revitalization Program (CRP) to provide such a commitment involved the creative thinking of DMI to structure a participation with MEDC acting as a permanent lender utilizing DMI’s underwriting team.

Our Delaware based office, Delaware Community Investment Corporation (DCIC), maintains its strong reputation in the community development industry after recently joining the GLCF family of companies. This expands the lines of products and services offered to this region and allows the Delaware-based team to be even more resourceful in helping partners realize their mission.

Two major rehabilitation developments are currently underway in downtown Wilmington: The Flats of Wilmington and Market Street Village. The experienced and well-respected developers who chose DCIC, as their financing partner did so because of the reputation for executing complex equity and lending transactions.

“We at the Buccini/Pollin Group are thrilled with our decision to work with DCIC on the Market Street Village development in downtown Wilmington. Part of that decision was based on their experienced team members and our perception of the value they could add through local knowledge and state-wide accomplishments. While we are the largest developer in the State of Delaware, we had never engaged in a combined low-income and historic tax credit project prior to Market Street Village, so this partnership with a knowledgeable resource was critical,” state Rob Buccini, co-president and Rob Snowberger, development manager, of Buccini/Pollin Group.

AVENUES TO AFFORDABILITY

The Buccinic/Pollin Group understood the value of partnering with a group which not only cared about the vision for the City of Wilmington, but also had the knowledge to help them navigate the intense process. Jim Peffley, Executive Vice President, and the Delaware team were able to help them close a highly-complex financing package in just six months, an unexpected outcome and a truly incredible accomplishment within Delaware.

Beyond its home field advantage, DCIC was able to provide a tremendous amount of support from the GLCF underwriting team. Stemming from their nation-wide deal experience and in-depth knowledge of tax credit projects, Ben Stehouwer and the underwriting team added tangible, monetary value to the deal, and the Buccini/Pollin Group looks forward to working with the our team on many more successful projects in the coming years as well as excitedly watching the progress they inspire in their market.

GLCF provides the financing tools developers and communities need while maintaining a mission-based business model. The investments and transactions support the organization’s grand vision for creating healthy, vibrant and sustainable communities. Together, the entities’ investments complement past and prospective community development initiatives, so that every dollar, in every community, manifests itself.

“Choosing DCIC/GLCF to work with the Todmorden Foundation on THE FLATS OF WILMINGTON project was one of the best decisions we’ve ever made,” says Rod Lambert, president & CEO and Vernon Green, senior vice president, real estate and operations, of the Todmorden Foundation.

Woodlawn Trustees, Inc. partnered with the Todmorden Foundation, a nonprofit organization, to design and rebuild the Flats affordable housing community, established by William P. Bancroft over 100 years ago. They considered the fi-

nancing of this project very carefully, particularly the options available under the Low Income Housing Tax Credit programs, and anted to ensure their financing partner would possess the necessary experience in this niche market and have established relationships with the Delaware State Housing Authority and the local banking institutions.

DCIC was perfectly aligned to meet their goals and assisted in navigating a very complex tax credit process. While our primary role is to provide financing solutions, we are much more than a financing partner. We share the vision of transforming one of the City of Wilmington’s most historic neighborhoods into a vibrant, new community to last another century.

Lambert and Green continue, “We are extremely pleased to work with Jim Peffley and his team of well experienced professionals. Their local institutional knowledge and expertise coupled with the increased capacity of their parent organization, Great Lakes Capital Fund, have truly paved the way for a successful first phase of one of the largest affordable housing communities in the City of Wilmington. We at Todmorden look forward to an ongoing relationship with DCIC.” Together, with partners from around the country, Great Lakes Capital Fund and our business lines have invested over $3 billion in the community development space, including 635 affordable housing developments with 39,000 apartments, to serve 97 thousand low- to moderateincome residents. In addition to housing investments, GLCF manages $360 million of New Markets Tax Credits investments in high profile economic development projects.

That is something to be proud of.

Thank YOU for giving us the opportunity to make communities more healthy, vibrant and sustainable places to live. We look forward to working with you on your next community development finance project!

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GREAT LAKES CAPITAL FUND

AnnuaL EducatioN Conference May 5 — 6, 2015

CONDITIONING FOR LIFE’S CHALLENGES

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ocky Bleier’s life story — a gripping tale of courage on both the football fields of America and the battle fields of Vietnam — has held audiences in rapt attention for years. Yet, the motivational message behind it, detailing how ordinary people can become extraordinary achievers, defines success in the new American century.

With the same optimism, sense of humor and steadfast determination that were his trademarks as a Pittsburgh Steelers running back, Rocky Bleier takes audiences from his early years through his profes-

{Build.} A higher return on experience.

Get the expert support you need to see your project through to completion.

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Audits, reviews, & compilations

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Transaction structuring

•

Market feasibility

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Financial projections

•

Tax credit incentivized financing

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Tax planning & compliance

•

Strategic & business planning

Protecting your bottom line while you build from the ground up.

Robert Edwards, CPA 517.336.7460 robert.edwards@plantemoran.com plantemoran.com

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sional career and talks about the lessons he learned along the way...lessons that we all can benefit from.

Not falling within the ideal of what a running back should look like, Bleier had to run harder and play smarter to be able to stand out. Despite his drive and ability to make the big play, the Pittsburgh Steelers only considered him a late round pick.

But before the season ended that first year, he was drafted again...this time by the United States Army. At the height of the Vietnam War, Bleier was thrust into combat early and was seriously wounded when his platoon ran into an ambush. Receiving wounds from both rifle fire and grenade fragments in his legs, he was barely able to walk and his professional football career seemed to have ended before it began.

For more than two years, he drove himself. Little by little he overcame obstacles and fought his way back. He not only made the Pittsburgh Steelers, but also eventually became a starting running back on a team that won four Super Bowls and became the greatest football team of the 20th century.

The hard lessons Rocky Bleier learned early in his life, which helped him, overcome adversity and reach his goals, have paid off after football. What makes Rocky Bleier so popular as a speaker is his ability to translate core values in his speech, “Be the Best You Can Be”. With real-world practicality, he points out ways to reach new levels of inner-confidence.

Bleier’s message consistently brings audiences to their feet and re-energizes them for personal and work challenges ahead.

His advice is not about avoiding life’s twists and turns but conditioning one’s self to lean into them and to incorporate the resulting energy in realizing goals.

GREAT LAKES CAPITAL FUND

‘CONTINUING EDUCATION’ IS NOT A DIRTY WORD!

BY KURT A. DAVID, AUTHOR, SPEAKER, TV PERSONALITY FROM GLORY DAYS

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hen I was in 7th grade I was 5’11” tall, and by the end of my 8th grade year I was 6’5” tall. True Story!

Needless to say, this rapid physical growth was in a relatively short period of time. This growth on one hand was the greatest thing a young boy could wish because I was dunking the basketball for the first time while still in middle school.

At the same time, this rapid development was also one of the most physically painful experiences in my life, and my doctor would help me understand the reason was the bones throughout my body were growing much faster than the soft muscle tissue and tendons around them, which caused persistent discomfort in all of my joints, especially when I was physically active.

Regardless of the painful byproduct, being 6’5” and the ability to dunk a basketball far outweighed the chronic discomfort.

Similar to this physical growth experience, personal growth can have tremendous benefits to our development.

The rich experiences that personal development offers often outweighs the discomfort for which we may incur…. discomforts of time, energy, and finances (rarely is personal development free). In addition, personal development helps us pursue excellence and as so well put by New York Times best-selling author, Chris Brady, “Wealth always finds excellence!”

The majority of people in this world are average (true statistic) and regardless AVENUES TO AFFORDABILITY

of our role within an organization the pursuit of excellence can set us apart and move us above the norm.

World re-known leadership guru, Orrin Woodward, frequently talks about his prescription for personal growth with an acronym, “PDCA,” which stands for Plan, Do, Check, and Adjust. If you were to evaluate the great leaders and innovators throughout history you’d more than likely discover this PDCA pattern of growth throughout their lives, and also notice that one of the biggest hang ups to this process is not the planning, doing, or checking, but adjusting as this requires additional knowledge and options. Getting additional knowledge and learning other options becomes an imperative aspect in personal growth, and one of the best options for gathering additional knowledge and learning new options can be found in continuing education.

Opportunities to learn and improve are best when associated with a specific skill or industry and the continuing education offered at the upcoming University of Affordability conference, allows for the pursuit of excellence and an ability to gather additional knowledge and new options, thus ‘Continuing Education’ is not a dirty word.

KURT A. DAVID IS A KEYNOTE SPEAKER, AUTHOR, AND TV PERSONALITY. TO LEARN MORE, VISIT WWW.KURTDAVID.COM. TO REGISTER FOR THE UNIVERSITY OF AFFORDABILITY CONFERENCE, SEE PAGE 17 OF THIS MAGAZINE.

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GREAT LAKES CAPITAL FUND

AnnuaL EducatioN Conference May 5 — 6, 2015

WELCOME

We are very pleased to announce that we will be hosting our annual University of Affordability Conference in Michigan City, Indiana at the Blue Chip Casino Hotel & Spa. Blue Chip is nestled in the heart of Northwest Indiana and just 40 minutes east of the Chicago City Limits overlooking beautiful Lake Michigan. GLCF University of Affordable Housing strives to cultivate the ongoing success of our industry by facilitating technical and operational development in a collaborative setting to enhance strong, agile teams.

Registration Information

Hurry and register now for the low fee of $250. The fee will go up on Friday, April 24 to $300. Register online at www.datadesignpros.com/GLCF.php

Attire

We want you to be comfortable. Please dress in business casual for your educational experience.

LOCAL ATTRACTIONS

Michigan City has many area attractions including Lighthouse Shopping Outlets, Winery Tours, South Shore Train and a quaint downtown as well as a beautiful beach front. When you are not experiencing the conference or casino amenities, take a tour of the city.

ROOM Reservations

Please be sure to reserve your hotel room immediately by calling 888.879.7711 and request Great Lakes Capital Fund room block rate! Rooms are available in the Blue Chip Tower for $89 per night and in the Spa Blu Tower for $109 per night until April 17, 2015.These rates are based upon single and double occupancy (please add $10 for triple and quad occupancy) and are subject to the 12% state and local taxes.

Hotel Address

Blue Chip Casino Hotel Spa 777 Blue Chip Dr. Michigan City, Indiana 219.879.7711 www.bluechipcasino.com

Tuesday, May 5 EXECUTIVE

MANAGEMENT

SUCCESSFUL PARTNERSHIPS

MAINTENANCE

1:00 –­ 2:15pm

Inspirational General Session with Kurt David

2:15 ­– 2:30pm

Break

2:30 – 3:45pm

Tax Credit 201 (Part 1)

What Every Manager Needs to Know

REAC (Part I)

3:45 ­– 4:00pm

4:00 – 5:15pm

COMMUNITY DEVELOPMENT

Taking Professionalism to the Next Level

Construction Pitfalls for Affordable Housing

Communication Performance

New Market Tax Credits

Break

Tax Credit 201 (Part II)

The Art of Creating Social Media Campaigns

5:30 – 8:00pm

REAC Part I (repeat session)

Tradeshow/Dinner Reception

Wednesday, May 6 EXECUTIVE

Year 15 Happens (Part I)

Proactive Strategies for Increasing Revenue

11:15 – 1:00pm

1:15 – 2:45pm

SUCCESSFUL PARTNERSHIPS

COMMUNITY DEVELOPMENT

REAC (Part II)

Leadership for Life

A follow-up and reinforcement of REAC 1

State and National Economic Update

Tradeshow/Lunch with Kurt David & Rocky Bleier

Year 15 (Part II)

The Market Comparison Mysteries: SOLVED!

2:45 – 3:00pm

3:00 – 4:30pm

MAINTENANCE

SPECIAL SESSION

Breakfast & General Session with Guest Pro Athlete Rocky Bleier

7:45 ­– 9:30am

9:30 – 11:15am

MANAGEMENT

Live Grow and Thrive

REAC Q&A

Placemaking

Break

Think Tank

Advocacy

LIHTC Acquisition & Rehabilitation Credits

GREAT LAKES CAPITAL FUND

AnnuaL EducatioN Conference May 5 — 6, 2015

PROGRAM

2:30 – 3:45pm Breakout Sessions

TUESDAY, MAY 5, 2015 1:00 – 2:15pm Inspirational General Session with Kurt David Kurt David, Author, Glory Days; Host, Glory Days and former Professional Basketball Player in Europe Kurt David’s experience as a professional athlete, best-selling author, TV personality, keynote speaker, certified sports counselor, business owner, and transition consultant to professional & Olympic athletes has given him the unique ability to connect with vast audiences.

He is the creator of the highly-acclaimed book and TV show, From Glory Days which chronicles the lives of Hall of Fame, All-Star, and World Champion former professional athletes.

Kurt has vast experience with TV, radio, and print media, and currently resides in Metro Detroit with his wife and two young daughters. Despite his extremely busy schedule he believes it is important to give back and does so by volunteering his time and resources to the following organizations: Board Trustee to Beyond Sport Integrated – Monze, Zambia (Africa); Advisory Board Member to International Sports Professionals Association – Headquartered in Chicago, Illinois; Supervisory Committee Member to LOC Federal Credit Union – Metro Detroit; Co-creator of the MIND OVER MATTER Bike Event benefitting the Alzheimer’s Association; and numerous other local youth assistance and charity events.

2:15 – 2:30pm Break Book signing with Kurt David From Glory Days

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Tax Credit 201 (Part 1) Panel Presentation: Jeff Blattner, CPA, Baker Tilly; Steve Smith, Great Lakes Capital Fund/Title Fund Services; Yulonda Byrd, Great Lakes Capital Fund; Zina Risk, Great Lakes Capital Fund; Don Klump, Great Lakes Capital Fund Our panelists will cover more advanced tax credit development topics. We will discuss issues involved with acquisition and rehabilitation developments including when you can claim the acquisition credit, working with existing residents, appraisal requirements, and resident file certifications.

What Every Manager Needs To Know Speaker: Mark Cukro, Plus One Consulting This course is based on the Proven Leadership Principles that will have an immediate impact in your organization. In this session, we will discuss the significant differences between Management and Leadership. You will learn the skills necessary to be an effective supervisor/manager by learning coaching skills, how to hire and establish “buy in” from associates. This is a session for EVERYONE!

REAC (Part I) Speaker: David Rudolph, Great Lakes Capital Fund This is not an introduction to REAC. Chances are you are familiar with REAC. You’ve experienced them, you’ve had some failures, some ties (a low passing score) and some wins. Still hoping to find that tip to stop or to eliminate your organization from getting pending REAC? Eliminating “score” concern, spending thousands of dollars and endless man-hours in hopes for that “90+” score.

Information will be presented in the most understandable/appreciated styles available: “Layman’s terms” or “everyday terms”.

REAC 1, prep session to REAC 2, will allow you to see REAC through the eyes of HUD, the inspector, the employee, supervisors, management company and owners. Learn how to avoid the stress and over-spending by understanding how to utilize what most call an unfair and ridiculous scoring system. The knowledge and skills presented will allow you to assess and establish a plan of action that will be successful.

GREAT LAKES CAPITAL FUND

Taking Professionalism to the Next Level Speaker: Elaine Simpson, Occupancy Solutions We have all heard the saying, “Treat others as you would like to be treated.” These days, society is trending to “Treat others how THEY would like to be treated.” It’s all about perception and so is professionalism. In today’s business world, professionalism is increasingly important to compete in the market place and to increase your value. Walk away from this session with the top 10 ways to increase your professionalism.

Construction Pitfalls for Affordable Housing James F. Stephen, RA, Martindale Property Consultants, Inc. Jim has been involved in the construction of affordable communities for many years. He will present on the pitfalls of construction related to affordable housing, specifically speaking to contingency and timing. We will discuss contingency and how and where it’s best spent. We will also discuss timing as it relates to hard deadlines and best practices pertaining to scheduling. Examples from our current portfolio will be reviewed with audience participation.

3:45 - 4:00pm Break

4:00 – 5:15pm Breakout Sessions Tax Credit 201 (Part II) Panel Presentation: Steve Smith, Great Lakes Capital Fund/Title Fund Services; Jeff Blattner, CPA, Baker Tilly; Yulonda Byrd, Great Lakes Capital Fund; Zina Risk, Great Lakes Capital Fund Continuing our Tax Credit 201 series, our panelists will examine what happens after you get the Tax Credits. We will review the 10% Carryover requirements, Cost Certification, and Placed in Service Requirements. We will then consider Due Diligence items needed to get to a closing, including title, survey, and standard loan document provisions.

The Art of Creating Social Media Campaigns Speaker: Elaine Simpson, Occupancy Solutions Are you using Facebook and Twitter correctly? Find out how to maximize your social media presence and engagement by walking through the steps of creating an effective social media marketing campaign. Learn tips and techniques for producing interesting and engaging content that will make your community stand out, improve resident retention, generate leads and increase your social media visibility. Leave with numerous resources to assist you with your future campaign plans.

REAC Part I (repeat session) Speaker: David Rudolph, Great Lakes Capital Fund See description on page 4.

AVENUES TO AFFORDABILITY

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GREAT LAKES CAPITAL FUND

AnnuaL EducatioN Conference May 5 — 6, 2015

PROGRAM Communication Performance Speaker: Mark Cukro, Plus One Consulting This course is based on awareness and how to communicate with everyone effectively. We will use real life examples of the challenges we face in this industry and you will learn how to handle difficult situations with ease and professionalism.

This course is for everyone at every level of the organization and we encourage teams to attend together so they may have fun interacting and getting to know each other in a safe and friendly environment. You will communicate much more effectively as soon as you return from this course. It is fun and energetic. If you want to have fun and improve the way your team performs immediately this course is for you.

New Market Tax Credits Mike Kwiatkowski, PNC Rob Edwards, Plante & Moran Peter Giles, Great Lakes Capital Fund This session will explore the basics of the New Markets Tax Credit program and how it can support an overall community revitalization and affordable housing mission. The session will include examples of various projects in the Midwest that have had significant impact on the communities in which they built.

5:30 – 8:00pm Tradeshow/Dinner Reception Come join us for an evening of games and fun while you network and meet representatives from companies who provide products/ services to organizations in our industry. We promise you a great time, a fun picnic meal and cocktails.

WEDNESDAY, MAY 6, 2015 7:45 – 9:30am Breakfast & General Session with Guest Pro Athlete Rocky Bleier Rocky’s story is a gripping tale of courage on both the football fields of America and battle fields of Vietnam. The motivational message behind it, detailing how ordinary people can become extraordinary achievers, defines success in the new American century.

With the same optimism, sense of humor and steadfast determination that were his trademarks as a Pittsburgh Steelers running back, he talks about his early years through his professional career and lessons he learned along the way...lessons we all can benefit from.

Not falling within the ideal of what a running back should look like, Bleier had to run harder and play smarter to be able to stand out. Despite his drive and ability to make the big play, the Steelers only considered him a late round pick. But, before the season ended that first year, he was drafted again...this time by the US Army. At the height of the Vietnam War, Bleier was thrust into combat early and was seriously wounded when his platoon ran into an ambush. Receiving wounds from both rifle fire and grenade fragments in his legs, he was barely able to walk and his professional football career seemed to have ended before it began.

For more than two years he struggled to overcome obstacles and fight his way back to pro football. Join us to hear the rest of Rocky’s story and get inspired!

After the Tradeshow, have some fun in the Casino!

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GREAT LAKES CAPITAL FUND

9:30 - 11:15am Breakout Sessions Year 15 Happens (Part I) Dennis Sturtevant, Dwelling Place, Inc. George Larimore, Colliers International We’ve heard the rumors, we sort of understand the concepts, we know it will happen to us someday, but are we ready? It’s not going away. Year 15 happens. This session will dissect and examine an actual project going through year 15. Session participants will benefit from the knowledge and expertise gained from actually living through all of the processes leading up to disposition.

Proactive Strategies for Increasing Revenue

Each attendant will participate in fun and practical exercises that will begin building new skills immediately. This is more of a general course for everyone at all levels. If you want to get results, reduce stress, and build loyal fans this is for you.

State & National Economic Update Mitchell L. Stapley, ClearArc Capital A “Can’t Miss” session! Join us for a smart informative session that will contain pertinent updates on the US and global economies.

This session will also include a smart and interesting analysis of how the US and global economies impact Michigan with a specific focus on housing. Q & A session to follow.

LIHTC Acquisition & Rehabilitation Credits

Speaker: Elaine Simpson, Occupancy Solutions Good collection practices are vital, but it does not stop there.

Learn about strategies for more timely collections, decreasing bad debt write offs, increasing bad debt collection and much more. This solution oriented session is a MUST for those who want to increase the bottom line.

Kenny Dennison, DOZ/Dauby O’Connor & Zaleski, LLC Informative session that will dive into the gamut of topics to consider in LIHTC acquisition and rehabilitation credit transactions.

Topics include land/building cost allocation, placed in service criteria, and the rules for 10-year hold, related parties, occupied rehabs, and tenant move-in and certification, and more.

REAC (Part II)

11:15 – 1:00pm Tradeshow/Lunch with Kurt David and Rocky Bleier

A follow-up and reinforcement of REAC 1 Speaker: David Rudolph, Great Lakes Capital Fund The instructor will walk and talk the participants through numerous live repairs that generate large point losses and others that are common and easy. All are time-manageable and affordable on virtually any budget. The session will close with the instructor presenting a realistic detailed “guaranteed to succeed” plan-ofaction that can be adjusted and applied to any property.

Leadership for Life Speaker: Mark Cukro, Plus One Consulting This course is based on the Proven Leadership Principles that will have an immediate impact in your organization and every aspect of your life. In this class we will discuss the difference between Management and Leadership and how to improve your personal impact in a positive and encouraging way.

It also covers how to get buy in from associates, coaching, hiring, and the skills necessary to be an effective supervisor or Manager.

AVENUES TO AFFORDABILITY

1:15 – 2:45pm Breakout Sessions Year 15 (Part II) Dennis Sturtevant, Dwelling Place, Inc. George Larimore, Colliers International This session will examine issues facing owners as a tax credit property reaches the end of the 15 year compliance period. It will look at the disposition of a property from the perspective of the general partner, investor, syndicators, lender and the property.

Issues that will be discussed include exit taxes, capital accounts, fair market value, capital needs, market conditions, and general partner options. Case studies will be presented and you have the opportunity to discuss your own Year 15 issues.

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GREAT LAKES CAPITAL FUND

AnnuaL EducatioN Conference May 5 — 6, 2015

PROGRAM The Market Comparison Mysteries: SOLVED! Speaker: Elaine Simpson, Occupancy Solutions Increase your understanding of the function of a Market Comparison Survey. Who? What? When? Where? Why? How? It’s all in this session.

REAC Q&A Speaker: David Rudolph, Great Lakes Capital Fund Take what you saw and heard in the REAC 1 & 2 sessions and stop in to ask any questions that you didn’t get answered during the sessions.

(place, placemaking, sense of place), and presents some of the most fundamental elements that make up quality places that can attract and retain talent, as well as looking at how placemaking benefits not only the people living and working in a community, but at how it is a serious economic development tool that makes financial sense.

2:45 – 3:00pm Break Refreshments and photo opportunity with Rocky Bleier.

3:00 – 4:30pm Breakout Sessions

Live, Grow & Thrive

Think Tank

Speaker: Mark Cukro, Plus One Consulting This fun, engaging, and insightful session is about dealing with challenges in our industry, on our properties and in our lives and how to not only overcome them, but how to find the unique lesson in each experience and use it to grow and thrive beyond your expectations. So often, a change is made, progress begins and then after a while the momentum is lost and the change and improvement stop.

This is going to be a fun and interactive way to complete your day.

Property owners/managers met to discuss real life issues they are facing RIGHT NOW in the industry. They have come up with strategic problems in a question format to get you thinking about real life ways to solve the problems. You will walk out of this session with a whole new set of ideas of how to solve issues you are currently dealing with. You’ll walk away energized and ready to face your job head on!

In this seminar you will learn how to identify the barriers and approaches that so often sabotage progress. You will also learn where the most common mistakes are made, how to positively embrace change, go greener, become more innovative, and find comfort in change. If you want to improve your outlook and effectiveness in every aspect of your life and business, be more optimistic about taking initiative to change, and thrive then this session is highly recommended.

Advocacy What is advocacy and why is it important? How do I get recognition and elected officials to my property? In this session, we will go over the basics of how government (local, state and federal) affect affordable housing properties. Then, we’ll show how to cover your bases and be a team player when opening and operating affordable housing properties. But first and foremost, we will kick-off with a discussion of current reality in the political and tax credit world from leading experts in the industry.

Placemaking Jamie Schriner-Hooper, Community Economic Development Association of Michigan Michigan leads the national movement for “placemaking.” Downtowns and neighborhoods, cities, and regions are beginning to see the importance of “place” to attracting talent, inspiring entrepreneurship, and encouraging business. This session will focus on defining and discussing a number of terms and definitions

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GREAT LAKES CAPITAL FUND

Registration fee includes education and the following meals: • Tuesday’s Break • Tuesday’s Dinner in the Tradeshow • Wednesday’s Breakfast • Wednesday’s Lunch in the Tradeshow • Wednesday’s Afternoon Break

REGISTRATION Please complete one form for each participant.

First Name

Please select one breakout session within each time slot.

Last Name

TUESDAY, MAY 5, 2015 2:30 – 3:45pm o Tax Credit 201 (Part 1)

Organization

o What Every Manager Needs To Know o REAC (Part I)

Address

o Taking Professionalism to the Next Level City

o Construction Pitfalls for Affordable Housing 4:00 – 5:15pm

State Zip

o Tax Credit 201 (Part II)

Phone

o The Art of Creating Social Media Campaigns

Email

o Communication Performance

o REAC Part I (repeat session) o New Market Tax Credits

PAYMENT METHOD o $250 (if registering before or on April 23, 2015) o $300 (if registering on April 24, 2015 or after)

WEDNESDAY, MAY 6, 2015 9:30 - 11:15am o Year 15 Happens (Part I)

o Check payable to Great Lakes Capital Fund

o Proactive Strategies for Increasing Revenue

o Visa

o REAC (Part II) A follow-up and reinforcement of REAC 1

o MasterCard

o Discover

o Leadership for Life Card No.

o State & National Economic Update

Name on Card Exp CVV

o LIHTC Acquisition & Rehabilitation Credits 1:15 – 2:45pm o Year 15 (Part II) o The Market Comparison Mysteries: SOLVED!

Signature

o REAC Q&A o Live, Grow & Thrive

DON’T FORGET TO MAKE YOUR HOTEL RESERVATION! CALL 888.879.7711.

o Placemaking 3:00 – 4:30pm o Think Tank o Advocacy

return form with payment to Elizabeth Blackwell Great Lakes Capital Fund • 1118 S. Washington • Lansing, MI 48910 questions? CALL 517.230.5494 • REGISTER ONLINE AT www.datadesignpros.com/GLCF.php

MARKETING

TACKLING SOCIAL MEDIA

BY ELAINE SIMPSON, OCCUPANCY SOLUTIONS

I

f you are still convinced the Internet and social media is a time drain versus a digital gold mine of leads, you may need to rethink your approach. The Internet really is the place to go to find leads, network with people, and to get the word out about your community.

Your community can actively work the social media networks while balancing the management of residents’ needs and worrying about the property’s reputation. You just need to set a strategy which makes sense.

If you overwhelmed about how to approach social media, you really are not alone. Many property managers know that social media sites should be their tool of choice when it comes to finding leads, building a reputation and achieving their marketing goals. Yet,

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it just isn’t working for them. The trick is social media must be used properly to work, and you might actually find you enjoy leveraging it when done right and you see your numbers of followers steadily climb.

So, where do you start? The first step to take as a leasing specialist or community manager is to identify why you need social media and what you’ll need to use it for. In other words, what do you want this tool to do for you?

Ask these questions: • Do you want it to help you to find residents for your community?

• Do you want to use it to build up your current residents’ loyalty?

• Do you need to use it to build up the reputation of your

community in the local area?

• Do you want to use it to showcase your property?

Now consider your greatest struggles with managing your property.

• Turnover rates?

• Finding quality employees?

• Managing your bottom line?

• Improving communications?

• Developing an effective marketing plan?

Sure, you don’t have time to focus on it, but what if social media sites could change all of that for you? What if it could help to boost your bottom line, improve your resident retention rates, and even help you to find well qualified residents for your property? Does it sound too good to be true? It’s not when you take a closer look at the benefits.

Here’s how you can benefit from the use of effective social media campaigns: 1. The effective use of Facebook can help you to market your community instantly at no cost.

The truth is simple. If your community does not have a Facebook page, it is missing key, lucrative marketing. It does not have to use up a lot of your time, either. People are on Facebook right now talking about your community - be sure your page is there to showcase information in a positive manner.

2. You can help your community GREAT LAKES CAPITAL FUND

stand out from other communities using Twitter and other social media tools to showcase good things happening within your community. Are you renovating, giving back to the community, providing a charity campaign, or just looking for good residents? Then you should be talking about this on social media.

3. Your current residents will see you care about them and their sense of community. Not only can social media help you to find new residents, but it can also help you to keep the ones you have. People take pride in the place they live when they have information, tools, and resources to do it. Allow social media pages to help you to communicate in a positive manner with your residents. This can, in turn, help you to find new residents when it is necessary.

If you are somewhat convinced of the benefits social media and have some initial strategy and goals in mind, you will still need to put in some time and strategic effort to get your accounts up and running effectively. It may not be easy to do at first, but you’ll find it can be very enjoyable. And, when you attend The Art of Creating Social Media Campaigns at the University of Affordability conference, you’ll get the help you need to make it happen including great resources to assist you in this endeavor!

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TO LEARN MORE, REGISTER FOR THE BREAKOUT SESSION, “THE ART OF CREATING SOCIAL MEDIA CAMPAIGNS,” WITH ELAINE SIMPSON OF OCCUPANCY SOLUTIONS ON TUESDAY, MAY 5 FROM 4:00 - 5:15 P.M. REGISTRATION INFORMATION FOR THE UNIVERSITY OF AFFORDABILITY CONFERENCE CAN BE FOUND ON PAGE 17.

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AVENUES TO AFFORDABILITY

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PROFESSIONALISM

BY ELAINE SIMPSON, OCCUPANCY SOLUTIONS

W

e have all heard the saying, “Treat others as you would like to be treated.” These days, we are moving to “Treat others how THEY would like to be treated.” It’s all about perception, and so is professionalism. If you want to increase your community’s business value, you need to start by looking at your level of professionalism.

Begin by asking yourself some key questions, even if you think the answers are simple. What is professionalism, and why does it matter? How can you be practice professionalism in your day-today role, and what does it look like? Do you believe fully professional behavior will lead you to success as a community manager?

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For some, being professional might mean dressing smartly at work or writing great letters. For others, being professional means having lots of awards or other certifications, framed and hung on the office wall. Professionalism encompasses all of these definitions. But, it also covers much more.

Professionals are the kind of people others respect and value. They are a genuine credit to their organizations! This is why it’s so important to work towards earning a professional reputation. True professionals are the first to be considered for promotions, they are awarded valuable projects or clients, and they are routinely successful in their careers. Being professionalism in the management of a community, in addition to the wonderful rewards

above, also leads to residents in the door who stay and are pleasurable during business discourse even through trying times.

And residents mean revenue!

If you are struggling with what professionalism means in the business of community management, there is a session just for you at the University of Affordabability conference. If you struggle with any one of the following, this session can turn your struggles into a rewarding new path for yourself as a professional and your business: • You find that residents and prospects question your authority.

• Your team does not respond to your requests.

• You dread writing emails, letters or notices to residents, supervisors or industry partners.

• People do not respect or defer to you as a professional.

• Verbal communication is challenging for you.

• You lack confidence when addressing sensitive matters.

• You find it hard to develop relationships with existing or potential residents - people just don’t want to talk or get to know each other.

• You find it hard to communicate your messages in an effective manner on social media or email- it’s difficult to actually give information in GREAT LAKES CAPITAL FUND

OVER 20 YEARS EXPERIENCE IN ALL PHASES OF AFFORDABLE HOUSING this manner.

• You struggle with communicating effectively over the phone, and you are just not getting the results you need during follow-up interviews.

• You struggle with customer relationships, and your conversion rate for residents is low.

• Most importantly, you just don’t feel like people view you in the manner you want when in a business setting.

In order for you to overcome these struggles and gain the professionalism you desire, you need to learn a new way of thinking, of interacting, and of achieving your goals focused on assessing then delivering on how an individual wants to be treated. Your role as a property manager is becoming more challenging, and learning to treat current or potential residents in the manner they desire will deliver the results you need. People who feel you understand what they need are more likely to spend money on your community and treat you with the respect and deference you desire. This will also translate into broader success in the marketplace as well as you become the choice location for residents as a result, and the knowledge on how to do this is one conference class away.

When you enroll in “Taking Professionalism to the Next Level,” you’ll finally get the information and resources you need to move from “doing okay” to dominating the marketplace and increasing the value of your community. Let us teach you the top 10 ways to increase your professionalism across the board.

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TO LEARN MORE, REGISTER FOR THE BREAKOUT SESSION, “TAKING PROFESSIONALISM TO THE NEXT

It’s time to count on more.

LEVEL,” WITH ELAINE SIMPSON OF OCCUPANCY SO-

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LUTIONS ON TUESDAY, MAY 5 FROM 2:30 - 3:45 P.M. REGISTRATION INFORMATION FOR THE UNIVERSITY OF AFFORDABILITY CONFERENCE CAN BE FOUND ON PAGE 17.

clarkhill.com

AVENUES TO AFFORDABILITY

21

MARKET ANALYSIS

MARKET COMPARISON MYSTERIES SOLVED

BY ELAINE SIMPSON, OCCUPANCY SOLUTIONS

I

f you view the market comparison survey as a report to check off your list each year without understanding how it can be used to better your community, you might be trapped inside a mystery. If you use the information collected, however, you can be a super sleuth who can solve the mystery of the data and better your community.

A market comparison survey offers some of the best information, when used properly, to manage your community at a more strategic level. It can be a tool to improve and grow your community and

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22

your position in the market. The action of taking the information and putting it to good use often seems hard to do though, but what if it wasn’t? What if this tool could answer your questions and resolve many of your concerns? First, let’s talk about what your concerns are.

Before we focus on what this survey can offer to you, let’s talk about the problems you are having managing, running, growing, or maximizing your community.

Every business has weak points, and worrying will not solve them. Leveraging the survey data will, especially the concerns presented below: 1. Are you challenged with how much rent to charge for your community?

You may have some idea of what your rents should be based on what you’ve been charging in the past.

Are you getting what you should be though? Do you wonder how other communities around you are able to get residents at higher rates?

This is a big sticking point for many property managers and a big area for improvement the survey can help you with.

2. What about amenities and investments? Many property owners wonder (and in some cases there is no doubt that this is a need) what steps they need to take to upgrade, modify, or improve on their communities.

Does your community stack up to the competition? More specifically, if you add these amenities or features, will you better compare?

3. What are your long term goals? Is your community ready for an expansion? Would such an expansion be profitable or how long would it

take for you to see the benefits of doing so? Even more importantly, where is the area headed and how well does your community fit into this changing marketplace?

Every property manager has to ask these questions to pinpoint areas of improvement and take steps towards achieving long term and short term goals. The key is to know how to use the comparison survey to your advantage to address concerns.

Now that you have the wheels turning and you are wondering what steps you should be taking to grow your community, don’t stop. It is essential you take the time to put in place a survey that can answer your most important areas and questions.

When you attend The Market Comparison Mysteries: SOLVED! at the University of Affordabability conference, you’ll learn more about the exact steps you need to take to gather data and to use it to better your community including how to: • Compete in your market, • Attract higher paying rents, • Improve your bottom line, • Understand where your community stacks up in the area, • Identify areas of improvement, and • Add value by knowing what your competitors are offering.

Most importantly, you will learn to use this survey as a tool to guide your management decisions. It can impact virtually every area of business related to your community making you the Sherlock to your property management mysteries.

TO REGISTER FOR THE UNIVERSITY OF AFFORDABILITY CONFERENCE, SEE PAGE 17.

GREAT LAKES CAPITAL FUND

PLACEMAKING

CREATING STRONG AND VIBRANT

COMMUNITIES

BY JAMIE SCHRINER-HOOPER, COMMUNITY ECONOMIC DEVELOPMENT ASSOCIATION OF MICHIGAN “Placemaking” or creating a “sense of place” has local governments, foundations and community stakeholders across the country chasing a dream to make their community jump off a map and pull talented and creative people into their world.

In short, placemaking is taking a place you can’t wait to leave and transforming it into a place you can’t wait to be. But what does placemaking really mean to community economic developers?

For years, community-based nonprofits and developers have been working to create strong and vibrant communities, enabling low- and moderate-income residents to take control of their neighborhoods through community-based activities such as increasing relationships and safety, helping plan events like festivals and neighborhood clean-ups, creating public art, and building affordable housing. They have built the foundation for placemaking.

Today’s version of placemaking, building on this foundation, takes these activities to the next level, thereby creating a counter trend to the exodus which has plagued city centers for years. Baby Boomers and Millennials, the two largest age groups in the nation, want to return to the downtowns or neighborhood commercial districts in communities of all sizes. Easy access to vibrant living spaces, cultural activities, walkable and bikeable communities with public transportation, and parks and recreation rank high on their list of reasons, a stark contrast to AVENUES TO AFFORDABILITY

the desire for suburban living in previous years.

The trend of moving to more suburban areas with large-lot single family homes in subdivisions has shifted due to significantly fewer households with children at home than in the past. The overall number of households with children will continue to decline as well. And, last but not

least, the trend towards homeownership is also on the decline. Many people lost their homes during the foreclosure crisis, and the Millennial population did not grow up with the American Dream of homeownership instilled in their brains. So where does this leave us today?

Nonprofits around the country continue their work to make communities great

23

PLACEMAKING

places to be in partnership with government, foundations and other stakeholders.

They engage in this partnership because placemaking supports the much needed recruitment and retention of talent, from

college graduates to entrepreneurs to seasoned professionals. These efforts and resources are primarily directed toward the areas with the highest population density, which are generally downtowns, neigh-

We Do More Than Just Answer Your Questions…

WE CREATE THE SOLUTIONS!

borhood commercial districts or the corridors connecting these areas because this is where people now want to live. Michigan, with Detroit being a must watch location across the country as far as revitalization is concerned, has some placemaking under way which can provide inspiration to other communities down the same path or desiring to get started.

In Michigan, several public/private partnerships have formed, including the MIPlace initiative (www.miplace.org), which seeks to keep Michigan at the forefront of the placemaking movement.

To-date, thousands of Michigan residents, business owners, nonprofits, developers and elected officials have been trained in the placemaking curriculum, which includes different types of placemaking and how to implement them.

This curriculum is being introduced at the University of Affordability conference in May to help cultivate and grow best practices to communities across the United States.

At the end of the day, making a place pop on the map is not easy work, but it is rewarding work. With common goals and partnerships in place, as well as a solid understanding on how to leverage natural trends, all of our communities can make strides in offering our own flavor of place.

This, in turn, creates a healthier economy not only for our communities, but the country as well. Come find out more about the why and how at the conference in May! TO LEARN MORE, REGISTER FOR THE BREAKOUT SESSION, “PLACEMAKING,” WITH JAMIE SCHRINERHOOPER OF THE COMMUNITY ECONOMIC DEVELOP-

“My properties have shown incredible improvement since you started working with them. I can’t believe how much better the sites are doing today.

I don’t know what took me so long to get you involved!”

Lora D. Gilbert, Vice President of Asset Management, Larc Properties, Inc.

MENT ASSOCIAITON OF MICHIGAN ON WEDNESDAY, MAY 6 FROM 1:15 - 2:45 P.M. REGISTRATION INFORMATION FOR THE UNIVERSITY OF AFFORDABILITY CONFERENCE CAN BE FOUND ON PAGE 17.

Operations • Marketing • Leasing • Training Specialists Call Today to Reduce Expenses and Increase Your Occupancy 800.865.0948 | www.occupancysolutions.com 24

GREAT LAKES CAPITAL FUND

MONEY MANAGEMENT

PROACTIVE STRATEGIES FOR DECREASING RESIDENT

DELINQUENCIES

BY ELAINE SIMPSON, OCCUPANCY SOLUTIONS

Y

ou have had it for the thousandth month in a row. You are finally done trying to chase down those residents month after month for rent they seem to perceive as optional. As the first of the month comes around, you notice heads down in passing as if you are invisible. No matter how much or how little the resident’s monthly rent is, the fact is, people are going to make late payments. The

question is, though, what are you doing to proactively help avoid these delinquencies? Yes, you, not the resident!

Across the board, property managers spend more time than they should on delinquency matters, and time is money. A personal cost in the form of frustration is also paid as a result of the inability to turn things around. Even if your delinquency number is low, this is still one of the hardest parts of the job, but many property

managers fail to see how taking the time to get residents back in good graces with timely payments can be a benefit to everyone involved, including the community as a whole. But first, you must admit that you have a problem.

How do you know if you have a problem? If you are battling any of the issues below, then yes, you have a problem. • Do you have residents that you send to court each month? Delinquent

MONEY MANAGEMENT

residents will never get ahead by incurring late penalties and court costs. Education about the costs of delinquency can help.

• Do you see yourself spending money and time on collections activities? If you are facing collections actions against your residents, and you really do not want to be in that position, you may be able to turn things around easier than you realize.

• Are you seeing an increase in bad debt as more residents struggle to pay on time? You find yourself sending out more late notices each month, but this is not necessarily a sign of the times. Don’t blame the economy. Don’t blame the job loss.

Instead, look at the steps you are taking to reduce this risk in the

first place.

• Are you struggling with write offs?

When you can no longer afford to put money into the process of collecting from previous residents and you start writing off debts, your business could really start to hurt as a result.

If you agreed to any of the above, you do not need to feel bad. You need to fix it. YOU can turn things around. You may need to find better qualified residents for your community moving forward, but first, let’s turn these delinquencies into a more profitable situation for your community by further understanding where you are spending money.

Let’s take a look at how expensive collecting on past due rent really can be by looking at four key sources of spend.

1. You have to pay for any and all com-

munications sent when the resident fails to make payment or it is late.

You are spending time and money in this case.

2. You then have to pay for collections actions from an attorney, if it gets to that point. You are spending money on an additional resources with an hourly charge to collect debt.

3. If you then add more time to your legal bill to handle evictions, there goes your much needed vacation for the year. Legal support does not guarantee money in return, so you may have to write off this debt, too.

(And don’t forget about damage to property from stressed and angry residents).

4. Finally, after this downhill slide of your money ending up anywhere but in your hands, you have to spend money to find new residents to fill the vacancy!

It seems endless, and it can cause financial and personal headaches for impacted property managers. Don’t get too upset just yet, though. You can turn things around and see your property flourishing through help by coming to the University of Affordability conference.

By enrolling in the Proactive Strategies for Increasing Revenue by Decreasing Resident Delinquencies program, you will learn the solutions available to you when you want to increase your bottom line even when you are facing what seems to be increasing debt from delinquencies. It is possible to turn things around and to reduce not only the financial loss but also the anxiety and frustration you feel every time a check doesn’t reach your office door in time. One of the easiest ways to make money is by not losing money due to you in the first place. We look forward to teaching you how.

TO REGISTER FOR THIS BREAKOUT SESSION AT THE UNIVERSITY OF AFFORDABILITY CONFERENCE, SEE PAGE 17.

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GREAT LAKES CAPITAL FUND

ECONOMIC OUTLOOK

Don’t Worry, Be Happy Why You Need to Believe in Michigan and the U.S. Again An Interview with Mitchell Stapley, ClearArc Capital, By Kelly Rogers

For those of you who lived through the most recent, seemingly endless economic recession in the Midwest, Mitchell Stapley of ClearArc Capital insists you have every reason to be happy and not worry about whether it could happen again. Michigan, which most experts agree suffered the most during an eight year economic slide, now sits at a 3% growth rate and the lowest unemployment it has seen in years.

While a 3% growth rate and steadily declining unemployment might not set fire through the rain, Stapley wants us to take a closer look at the data which he will share at the University of Affordability conference in May to understand its impact on housing and how we can, in turn, impact the trend.

If you look at key economic trend lines, they are all moving in a positive direction.

From consumer balance sheets to housing prices to interest rates, all of the data points to a continued up cycle. Stapley attributes the positive trends to a manufacturing resurgence boosting a middle class towards increased consumption, including homes.

According to Stapley, “Manufacturing jobs create real value in the economy by supporting a middle class which can afford to buy things from houses to cars.

While the downturn was soul-crushing for many, and people are still nervous about whether it could happen again, we need to stay focused on the trends and things we can do to support them.”

Stapley believes a focus on recruiting and training a workforce to support the manufacturing resurgence as well as conAVENUES TO AFFORDABILITY

tinuing to promote the affordable and readily available amenities for living, working and playing in states like Michigan can go a long way in sustaining the trends. An exodus of talent, including emerging talent, occurred during the downturn creating a skills gap as activity ramps up.

On the topic of workforce retention, Stapley shared a glaring example of how aging is impacting a key manufacturing skilled trade. “The average age of a tool and die skilled worker is 57 years. We could be looking at flexible education to train the employees who will take their place. Partnerships between corporations and educational institutions have helped in the past and could be a solid place to focus,” says Stapley.

In addition to a shortfall in skilled workers, we also need to look at infrastructure improvements from roads to railways in support of the movement of goods being produced at increasing levels.

Workers and companies lost confidence regarding the manufacturing industry during the sustained loss of business and jobs.

Stapley points to the disparity between manufacturing and service wages, $27/ hour versus $17/hour respectively, as to why you can’t give up on an industry with a value far beyond the products made. This wage differential again supports buying power for homes, especially since interest rates continue to remain steady.

Since consumers are in a better position to borrow and pricing is normalized, borrowing costs will stay down. Stapley does not think we will see 8% interest rates anytime soon, and he will share some of the data and his reasoning at the

conference.

He says, “If you understand the data and trends as you will after my session at the conference, you will know how to leverage the information to sustain the growth. And as a result, you just might feel happy again.”

One thing is clear from the pre-conference discussion with Mitchell Stapley.

Happy people buy homes and contribute to the sustained growth of the economy.

It is time for all of us to get happy, and Stapley is sounding off to anyone who will listen as an ambassador of positivity.

He recently encouraged a young man from Michigan now living in California to return home to the Grand Rapids area to build his technology business and acquire something other than an apartment with roommates in which to live. Major manufacturing cities in Michigan, such as Grand Rapids and Detroit, as well as in other parts of the country are making strides in business and cultural development. They just need a workforce committed to staying and further developing their future. Stapley is ready to carry the same message, with the data to back it, at the upcoming conference.

Stapley’s session at the University of Affordability conference will offer pertinent updates on both the U.S. and global economies as well as an analysis of their impact on Michigan and the housing industry. There will also be an opportunity to ask questions in case you still aren’t ready to be happy. We guarantee you will leave feeling better at the least, but we would prefer you leave happy and ready to contribute to continued growth.

27

TAX CREDITS

CAPITAL BOOST B

usinesses and nonprofits located in distressed or lowincome communities have faced the grim reality of trying to obtain necessary loans or otherwise attracting capital required in order to expand, improve, construct or rehabilitate their facilities. They often can’t find, or are turned away, from capital sources because of their locations or populations served. This is especially true when they are pursuing conventional capital, and

their lack of success can create an uphill battle, in turn, for the development of their home communities.

Communities and local government need well-capitalized businesses and nonprofits to succeed and grow in order to revitalize and improve services to their residents. It is a conditional partnership where neither can thrive without the other, and there is support available today through the New Market Tax Credits program (NMTC).

One step ahead.

Within our full-service accounting and advisory firm, Baker Tilly’s nationally recognized affordable housing specialists can help you analyze options, overcome barriers, and uncover resources to make your project successful.

Our strategic solutions go beyond the basics to help public and private development entities, managers, lenders, and investors make the right decisions with candid advice and clear industry insight.

Connect with us: bakertilly.com Don Bernards, CPA, Partner 608 240 2643 | Donald.Bernards@bakertilly.com

Baker Tilly refers to Baker Tilly Virchow Krause, LLP, an independently owned and managed member of Baker Tilly International. © 2015 Baker Tilly Virchow Krause, LLP

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NMTC is a program at the federal level providing a much needed capital boost to turn distressed into success. Congress created a new Federal tax-credit program in 2000 to encourage private sector investment in low-income communities.

NMTC promotes economic development by creating an incentive for the private sector to invest capital in local businesses in distressed communities. There is some process to access the credits, but a knowledgeable source to manage the project called a community development entity (CDE) exists throughout communities to make the process seamless and get the capital to where it is needed as quickly as possible.

The simplified process flow with CDEs such Great Lakes Capital Fund (GLCF) is as follows: 1. The CDE applies to the federal NMTC regulation agency, the CDFI Fund, for an award of allocation of NMTCs. 2. Upon receipt of the tax credits, the CDE seeks out qualified projects, real estate or operating businesses which need the NMTC investment in order to complete their financing structure.

3. Qualifying projects are evaluated both on financial viability and social impact. Each CDE has a slightly varied strategy for evaluating projects and deploying their tax credits.

Some CDEs are more focused on job generation, while others look more to social service components.

4. Once the CDE has identified a project, an investor(s) is sought out to make an investment in the CDE, GREAT LAKES CAPITAL FUND

and this investment generates the tax credits.

5. Finally, the investment into the CDE is used to make loans to the aforementioned qualifying projects.

GLCF has produced impact in the communities they serve with three allocations of NMTCs. A variety of project types, including a substance abuse treatment center, charter school, arts and sports youth facility, grocery store, corporate headquarters, culinary arts school, autism therapeutic school, paper mill, and community support facility have been brought to communities through this financing source. The application of this program is expansive and can offer financial hope to a wide variety of businesses and nonprofits as a result of the ultimate intention behind the program.

The motivation for the NMTC structure is to allow loans to be made to the project at below market rates, with a 15-20% reduced cost of funds, or with more flexible terms than conventional loans. Even with these terms and reduced costs, a market rate of return is still realized by the investor. As an example, project loans have interest only for the first seven years (during the compliance period) and then have a balloon payment at the seventh year or by their terms start amortizing principal after year seven. In addition to lower interest rates and more flexible terms, the collateral requirements can also be much more

accommodating.

GLCF, as a result of the flexible program terms and low cost, has used NMTC as a financing option for many nonprofit facility developments. The nonprofit NMTC borrowers have been able to leverage grants, donations and the value of donated property to then generate additional equity. The NMTC has offered nonprofit borrowers a financing bridge to fill fundraising shortfalls.

In addition to nonprofit borrowers, GLCF has also financed for-profit business and developments located in low-income areas. These projects have combined other investment and loan proceeds along with the NMTC equity to complete the capital stack for impactful economic development projects even in rural communities which lack large employers or impactful philanthropy to encourage investment.

NMTC has stepped into fill the gap in this instance as well.

NMTC financing can be incorporated into so many different types of projects in a flexible and creative manner, so it is worthy of consideration as a financing option. Communities locked in cycle of distress can break new ground on a successful future full of revitalization and affordable housing through NMTC and a solid partnership and vision sharing with their CDE, all while offering benefits for nonprofits, business owners, investors and developers alike.

UPCOMING EVENTS

Great Lakes Capital Fund has many exciting events planned for 2015, please save the below dates and stay tuned for more information!

GLCF/MHC RECEPTION April 27, 2015 5:30 – 7:30 p.m.

GLCF Headquarters Lansing, Michigan This reception will be held during the Building Blocks Conference.

UNIVERSITY OF AFFORDABILITY CONFERENCE May 5-6, 2015 Blue Chip Casino, Hotel and Spa Michigan City, Indiana This is a full day and a half session, focused on key aspects of the Community Development industry.

For session details and registration information, see page 10.

DELAWARE EDUCATIONAL DAY Date TBD Dover Downs Hotel & Casino Dover, Delaware This is a free, one-day seminar about Connecting the Dots with Customer Service.

NEW DETROIT OFFICE LOCATION Please make a note of the new Detroit office location, effective immediately: 2111 Woodward Avenue, Suite 600 Detroit, MI 48201 AVENUES TO AFFORDABILITY

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ADVERTISER INDEX Managing Editor Mary McDaniel, CMP, Alternative Solutions 517.333.8217 mcdaniel64@comcast.net Advertising Kelly Bernero, Great Lakes Capital Fund 517.364.8945 kbernero@capfund.net Graphic Design Melissa Travis, Ink Ideas Graphic Design 989.272.3101 www.inkideasgraphicdesign.com Editorial Kelly Rogers, Pixie Publishing, LLC 517.575.5051 pixiepublishing@gmail.com Avenues to Affordability magazine is published quarterly by the Great Lakes Capital Fund (GLCF).

This publication is copyrighted. The reproduction of Avenues to Affordability is prohibited by law. For additional copies, comments, concerns or to be added to the mailing list, please contact the Great Lakes Capital Fund office at 517.482.8555 or visit www.capfund.net.

Associated Management Company............................................................................... 21 Baker Tilly.................................................................................................................... 28 Blystone & Bailey......................................................................................................... 21 Chesapeake Community Advisors, Inc......................................................................... 23 Clark Hill..................................................................................................................... 21 Community Economic Development Association of Michigan...................................... 29 Dauby O’Conner & Zaleski.......................................................................................... 19 Ginosko Development Company.................................................................................. 32 Keller........................................................................................................................... 20 KMG Prestige............................................................................................................... 24 Loomis, Ewert, Parsley, Davis & Gotting, P.C................................................................ 30 Love Funding............................................................................................................... 26 Maner Costerisan & Ellis.............................................................................................. 22 Medallion Management, Inc........................................................................................... 9 MHT Housing, Inc......................................................................................................... 4 O’Brien Construction Company, Inc............................................................................... 2 Occupancy Solutions.................................................................................................... 24 Plante Moran.................................................................................................................. 8 PM Environmental....................................................................................................... 19 Rohde Construction..................................................................................................... 31

Karl L. Gotting Kenneth W. Beall Michael G. Oliva Michael H. Rhodes Jeffrey L . Green Kevin J. Roragen Richard W. Pennings Ted S. Rozeboom Tracey L . Lackman Michael G. Stefanko Elizabeth Husa Briggs

OVER 45 YEARS OF EXPERIENCE IN AFFORDABLE HOUSING Representing developers and syndicators before the Michigan State Housing Development Authority, and numerous other state financing agencies, U.S. Department of Housing and Urban Development, USDA Rural Housing and municipalities,

124 W. Allegan, Suite 700 Lansing, Michigan 48933 Phone 517.482.2400 www.loomislaw.com 30

and with private lenders, including projects receiving LIHTC, historic and new markets tax credits.

GREAT LAKES CAPITAL FUND

Great Lakes Capital Fund 1118 S. Washington Avenue Lansing, MI 48910 www.capfund.net

Ginosko Development Company “Creating a Brighter Community Today” Ginosko Development Company (GDC) is a real estate development company specializing in the creation and preservation of quality affordable housing. GDC has a successful track record meeting the financing challenges of these developments, from MSHDA and HUD loan programs, tax-exempt bond programs, rental subsidy programs, and Low-Income Housing Tax Credits; to historic tax credits, brownfield credits and other specialized financing programs unique to the affordable housing industry. GDC is also known for its success in meeting the design, planning and environmental challenges of these developments. GDC’s residential communities are recognized for careful and coordinated planning, an experienced development team of top architects, attorneys, contractors and engineers, attention to detail and design quality, and respect for the environment. Visit our website to get to know us better!

Ginosko.com 41800 West 11 Mile Road, Suite 209 | Novi MI 48375 | office 248.513.4900 | fax 248.513.4904