Get Involved
NEWS
Volume #46, Report #71, Article #08 - Michigan Report | Thursday, April 12, 2007
The Michigan Housing and Community Development Fund needs a steady funding source to help revitalize communities and grow the economy, representatives from various industries told the House New Economy and Quality of Life Committee Thursday.
The fund was established in 2004 with money from the Temporary Assistance for Needy Families program, but that money hasn't been consistent. A coalition of housing and other groups as well as the Michigan State Housing Development Authority is asking for an annual fund of $100 million.
MSHDA provides technical and financial help to public and private partnerships to create affordable housing, address homeless issues and work in community economic development activities. It also works to develop cities towns and villages.
Rep. Steve Tobocman (D-Detroit), who said he will soon introduce legislation that would provide a revenue source for the fund, told the committee the projects that could be paid for by the Community Development Fund would help create jobs for the state and help cities grow and attract talented residents.
"It can make local communities exciting places to live so they can compete with places around the country," Mr. Tobocman said.
He said the Michigan State Housing Development Authority has been operating with one arm tied behind its back and needs the fund to have a steady stream of funding.
The individuals who spoke to the committee stressed that putting money in the fund would help fund projects that improve neighborhoods, cities and communities.
Jim Logue from the Great Lakes Capital Fund and a former director of the MSHDA said redeveloping neighborhoods and cities and creating affordable housing helps build knowledge-based communities.
"We know what we can do and what can be done," Mr. Logue said. "We just need the resources to do it."
Marsha Kreucher, CEO of the Community Action Agency said the work they've done in Housing and Community Development in Jackson with a grant from the MSHDA has led to an investment of more than $12 million with less than $1 million of state funds. They've had to use almost all federal funds that are running out.
Having flexible funding through the Housing and Community Development Fund would help them create both housing for low-income residents and other developments. The money will help to improve neighborhoods and the community, Ms. Kreucher said.
"This would give us the tools to sustain us and help us," Ms. Kreucher said. "Neighborhood development is an economic boon to downtown employers and creates jobs through construction and helps improve lives."
Dennis Sturtevant, CEO of Dwelling Place of Grand Rapids Inc., said projects such ones they have done in Grand Rapids that turned several older buildings into retail and housing projects generate property taxes, sales tax and jobs.
"While many of the benefits associated with community development cane documented, significant private investment can only be attained when elected officials recognize how public policy attracts that investment," Mr. Sturtevant said. "We have an opportunity here to build a better Michigan with real jobs programs and government has a unique opportunity to be a real force for good."
Kenneth Bensen, president of Habitat for Humanity Michigan said helping residents get affordable housing leads to family stability which leads to better communities. With more assistance with money from the fund, they can do more to change the communities where they live.
Lee Schwartz, executive vice president for government relations at the Michigan Association of Home Builders said putting flexible money in the Housing and Community Development Fund allows local units of government the ability to help neighborhoods and that investing in the fund makes sense.
Rep. Mark Meadows (D-East Lansing) said he wants the MSHDA to create a plan so what kind of projects the money might go toward. Representatives from the MSHDA are expected to give a more detailed presentation to the committee later.