In June of 2016, Home Renewal Systems, a Farmington Hill’s based development company, began renovations on the 101-year-old building. The project converted the former orphanage into a mix of one-, two- and three-bedroom apartments for those who earn up to 60% of the area median income. The original terrazzo flooring was cleaned and refinished throughout the building, and the historic chapel was restored for use as community space for residents. Extensive masonry restoration, including cleaning and repairing the existing brick and sandstone, was also needed. Additionally, a new roof and custom windows, designed to match the originals, were installed.
Rent is maintained at an affordable level, and 14 apartments offer vouchers through the Michigan State Housing Development Agency (MSHDA’s) Housing Choice Voucher and Section 811 Programs. Tenants in the voucher units have access to supportive services such as skills training, health care and everyday assistance. Services are coordinated by Community Action Alger-Marquette (CAAM) and other regional service providers. Construction completed in December of 2017.
The rehabilitation generated over $14 million in Low Income Housing Tax Credits (LIHTCs) and nearly $2.8 million in Historic Rehabilitation Tax Credits. Old National Bank, through its tax credit investment company, ONB Community Equity, invested in both the LIHTC and Historic tax credits. Old National also brought in an investment partner to facilitate the tax credit investment. Finally, Old National provided construction, bridge and permanent loans for the project.
By bringing in an outside investor, Old National was able to cultivate a Master Lease Pass-Through investment structure that drove more equity into the project, allowing the developers to reduce reliance on debt financing. This creative solution helped to facilitate a strong, feasible project that fills a need for affordable housing and supportive services in Marquette.
The renovation of the former Holy Family Orphanage saved the important historic landmark from demolition. The project provides 56 apartments that offer tenants a safe, high-quality place to live within walking distance of downtown Marquette.
Rehabilitation HighlightsProject Budget -$16 Million
New Housing Units -56 Apartments
Supportive Housing - 14 Apartments
Building Size -25,000 Sq ft
Tax Credit Team
Creative financing to help communities grow
Through community development lending and equity investment solutions, Old National is committed to supporting community growth. Learn about our business focus on providing affordable housing and driving economic development.
Copyright © 2021 ONB
This content is not intended to provide legal, tax, accounting, financial or investment advice or indicate the suitability of any product or service for your unique circumstances. You are encouraged to consult with a qualified legal, tax, accounting, financial or investment professional based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.