LANSING, Mich., Sept. 18, 2013 /PRNewswire-USNewswire/ -- Scott Woosley, executive director of the Michigan State Housing Development Authority, issued the following statement today in support of the Kresge Foundation and NCB Capital Impact, who announced Tuesday the launch of the Woodward Corridor Investment Fund. The $30.25 million fund will be used to develop and invest in transformative real estate projects that spur the physical redevelopment of Detroit's Woodward Corridor:
"MSHDA, like the Kresge Foundation, acknowledges the vacuum in the capital markets for competitive financing for quality real estate developments. The reality of the Detroit, and Michigan, real estate markets is not the perception, and this disequilibrium is holding many quality projects, in strong markets, with experienced developers from moving forward. That vacuum robs Michigan and Detroit of much needed jobs, economic activity and stimulus to continue to drive what we believe will be an historic rebound in the city and a continued rebound in the state.
"MSHDA's efforts to remedy this problem are more broadly focused geographically across the state. We believe the vacuum exists not only in Detroit (the problem is most prevalent in all urban areas) but also across the state. The Michigan Mezzanine Investment Fund, seeded by MSHDA with $25 million and aiming to raise more than $100 million, will provide the support for similar developments in Detroit and throughout the state. As these projects move forward, neighborhoods will stabilize, additional economic development will be initiated and the economy of Detroit and of Michigan will become more robust and vibrant.
"We applaud the Kresge Foundation and NCB for their new $30.25 million dollar fund. It will greatly help the Woodward corridor continue its growth."
The Michigan State Housing Development Authority (MSHDA) provides financial and technical assistance through public and private partnerships to create and preserve decent, affordable housing for low- and moderate-income residents and to engage in community economic development activities to revitalize urban and rural communities.*
*MSHDA's loans and operating expenses are financed through the sale of tax-exempt and taxable bonds as well as notes to private investors, not from state tax revenues. Proceeds are loaned at below-market interest rates to developers of rental housing, and help fund mortgages and home improvement loans. MSHDA also administers several federal housing programs. For more information, visit www.michigan.gov/mshda.
SOURCE Michigan State Housing Development Authority