Michigan Minority Contractors Association October 2, 2015

Investment Areas 2

Preservation of Current Affordable Housing Stock Trends in Development 3 12

Challenges to Development  Greater need & fewer resources  Changes in delivery systems for neighborhood development  Displacement Year# of Applicants# of AwardeesTotal AppliedTotal Awarded $26,616,113$9,249, $25,934,413$9,759, $12,858,106$4,038, $12,690,645$6,329, $16,806,303$2,467, $12,237,849$1,778,942 Total11237$220,143,429$29,588,529 4

Opportunities in Development 5  Housing is a City Priority (Market & Affordable)  Greater collaboration among lenders  Programs aimed at revitalizing housing stock & market

6 0% Interest Home Repair Loan Program Program grant sub-recipient overseeing loan capitalization ($8 Million Loan Pool), develop and implement program design, oversee application intake, loan underwriting and loan servicing. Local Initiative Support Corporation (LISC) Provide program design, development and technical assistance. Corporate F.A.C.T.S., Inc. Non-Profit Community Organizations receive and review applications. Intake Centers (Total 14) Opportunity Resource Fund, Communicating Arts Credit Union – Performing loan underwriting, loan closing, construction contractor payment disbursement, and loan servicing. Community Development Financial Institutions (CDFI) Perform project inspections, specification writing, bidding and contract award, construction management. Construction Manager (GS Group, LLC) Perform home repair work including minor repairs, replacement of deteriorated building components, and lead-based paint hazard reduction. General Construction Contractors (Total 35) Monitor sub-recipient, develop and implement program design, policy and procedures, manage construction activity, maintain program files. Housing & Revitalization Staff

20 Eligibility - Target Areas

17 District # of Applications Submitted # of Applications Approved Total Amount Approved $402, $299, $338, $595, $393, $487, $526,396 Total1,092145$3,044,077 District applications submitted 19 approved for $402,500 District applications submitted 17 approved for $299,914 District applications submitted 18 approved for $338,183 District applications submitted 26 approved for $595,384 District applications submitted 17 approved for $393,758 District 6 97 applications submitted 22 approved for $487,942 District applications submitted 26 approved for $526,396 0% Interest Home Repair Loan Program Applications by District Update

How Much Can I Borrow? 18  0% interest home repair loans from $5,000 to $25,000 are available to qualified Detroit homeowners who can afford a loan.  0% interest means homeowners can invest in their home and neighborhood while paying back only what they borrow.

19 Who Can Apply? This program is intended to reach as many Detroit homeowners as possible. Below are the minimum qualifications:  Homeowners must own and occupy their home for at least six months prior to applying.  Low-income homeowners can apply no matter where they live. Low-income is defined as $37,950 for a family of one or $54,150 for a family of four.  Regardless of income, homeowners in designated areas in each city council district can still apply.  The minimum credit score is 560.  Homeowner’s insurance and taxes must be current.  The homeowner must be able to afford the loan payments.

Eligible Costs 11| If the home has health and safety hazards, those issues must be addressed first before other repairs can be made. The follow are sample projects: 21

12 ANNOUNCEMENT OF APPLICATIONS ACCEPTANCE CERTIFIED GENERAL CONTRACTOR HOUSING REHABILITATION CONSTRUCTION SERVICES The City of Detroit Housing And Revitalization Department is accepting applications from qualified general construction contractors interested in providing construction repairs on homes under the City’s home repair grant and loan programs. Contractors that are selected will be placed on an Approved Contractors List to provide bids for contracted repair services on residential owner-occupied and rental properties (1 to 4 units) for approved applicants who receive housing rehabilitation assistance through our Community Development Block Grant and Lead Hazard Control Demonstration Grant funded programs.

13 Tahirih Ziegler, Executive Director Detroit LISC LOCAL INITIATIVES SUPPORT CORPORATION (LISC) 660 Woodward Avenue, Suite 1600 Detroit, MI Phone: Website: 32