The Michigan Collaborative, managed by Community Capital Management (CCM), launched last year to encourage increased investment in targeted fixed income investments in specific geographical areas in Michigan through CCM’s publicly traded mutual fund, the CRA Fund.
The Michigan Collaborative, managed by Community Capital Management (CCM), launched last year to encourage increased investment in targeted fixed income investments in specific geographical areas in Michigan through CCM’s publicly traded mutual fund, the CRA Fund. It is available to members, and CMF is also an investor.
The Michigan Collaborative has provided opportunities for investment in Michigan in affordable housing, targeted small business lending and civic infrastructure from endowment portfolios.
CCM recently announced an additional portfolio impact theme offering. Themes – used to target investments as an alternative to earmarking investments by geographies - are chosen by CCM based on trends in the impact investing space and client requests and because they can “contribute to positive environmental and social outcomes” in addition to superior risk-adjusted returns.
The new CCM theme is economic inclusion, defined as “assisting and supporting the process of bringing targeted groups, individuals, and communities closer to the economic mainstream and capital markets.” Examples of impact investments falling in this theme would include financial literacy training, loans to first-time homebuyers, small business loans, rent-to-own housing programs and “banking the unbanked” initiatives.
Economic inclusion is now one of 17 available investment themes through CCM. Two case studies highlighted by CCM show work underway in Michigan in the affordable and accessible housing theme.
The fund invested in Allen Manor, a low-income senior housing community in Grand Rapids that is providing 24 units of low-income senior housing, including accessible housing.
CCM also highlighted a project where bond proceeds are to be used by the Michigan State Housing and Development Authority (MSHDA) to refund outstanding mortgage loans and refinance newly originated mortgage loans for the construction, permanent financing or acquisition and rehabilitation of developments through their various programs.
Two of those projects include Silverstone Townhomes in Ingham County, consisting of 105 affordable homes for families, including accessible housing, and Riverview Terrace in Emmet County which updated a property providing 70 units of affordable housing.
Impact investing through the Michigan Collaborative has led to more than $200 million in investments in our state.
The $200 million in investments support home mortgages for low- and moderate-income borrowers, enterprise development and job creation, statewide home ownership and down payment assistance, economic development, environmental sustainability, neighborhood revitalization and healthy communities.
MI Collaborative impact highlights:
$35 million has been invested in statewide home ownership and down payment assistance.
$12 million was invested in economic development, environmental sustainability, neighborhood revitalization and healthy communities.
Investments have been made to leverage:
8,500 affordable rental units.
805 home mortgages for low- and moderate-income borrowers.
$2 million has been invested in enterprise development and job creation.
Want more?
If you’d like to learn more about impact investing please connect with Jennifer Oertel, CMF’s impact investing expert-in-residence.
Learn more about The Michigan Collaborative.
