Great Lakes Capital Fund Introduces the New Indiana Community Fund

February 2009

Great Lakes Capital Fund Introduces the New Indiana Community Fund

Paul W. Freeman, Executive Vice President-Member Services, Indiana Bankers Association

Great Lakes Capital Fund (GLCF) and IBA Service Corp., a subsidiary of the Indiana Bankers Association, have announced an investment strategy targeting smaller community financial institutions as investors in a Low Income Housing Tax Credits (LIHTC). The new offering is called the Indiana Community Fund Limited Partnership (ICF).

    Historically financial institutions that did not have the means to invest a minimum of $1 million in a multi-investor tax credit fund lacked other options to invest in affordable housing. The ICF will be targeted to the smaller investor whose investment amount would range from $250,000 to $1 million. Many IBA members fit this profile.

    The ICF will invest in tax credit qualified housing developments exclusively in Indiana. The ICF will become a side-by-side investor in developments that GLCF invests in through its larger regional multi-investor funds. The ICF will have the ability to invest in up to 49 percent of an operating partnership.

    The chief economic benefit derived from an LIHTC investment is the opportunity to claim a federal tax credit. The credit is earned over a 15-year period, but is claimed over an accelerated 10-year time frame, beginning in the year the property is placed in service and occupied. In addition, pursuant to the Community Reinvestment Act (CRA), institutions may receive consideration for LIHTC investments in the determination of their CRA ratings.

    Formed in 1992, Great Lakes Capital Fund helps socially responsible corporations invest in affordable housing and community economic development activities. GLCF raises capital from corporations and financial institutions, and invests these resources into real estate development partnerships.

    The partnerships receive essential equity for their developments. The investors receive a competitive internal rate of return on their investment through tax benefits; and the community receives high-quality, affordably priced housing and/or commercial developments that generate social and economic benefits for area residents. Since its inception, GLCF has invested in more than 300 affordable housing communities and can claim an economic impact of more than $1 billion.

    GLCF brings a wealth of knowledge and experience to the Indiana Community Fund. Mark S. McDaniel, president and chief executive officer of GLCF, has been with the corporation since its inception. He has raised and committed more than $1 billion of investment equity for affordable housing in Indiana, Michigan, Wisconsin and Illinois. McDaniel has more than 30 years of experience in affordable housing and community development.

    Jack Brummett is GLCF regional president for Indiana. For the past 30 years, he has worked in the real estate industry as a professional consultant and technical advisor for development/property management companies. Fred Hash is director of business development for GLCF. He contributes several years of experience to the ICF, including service as president of the Indiana Capital Fund for Housing and as vice president/community investment officer for the Federal Home Loan Bank of Indianapolis.

    Great Lakes Capital Fund and the Indiana Community Fund have been awarded the exclusive IBA Preferred Service Provider (PSP) designation. The PSP designation is held by less than 10 percent of IBA associate members. These firms represent the best of the best. Based on their documented ability to perform and their high level of support for the Indiana Bankers Association, IBA is pleased to recommend them for your consideration.

    For more information about the Indiana Community Fund or other IBA Preferred Service Providers, contact Paul Freeman at the IBA, 317-387-9380.

Hoosier Banker articles are published by the Indiana Bankers Association. With the exception of official announcements, the Indiana Bankers Association disclaims responsibility for opinions expressed and statements made in the articles published in Hoosier Banker and/or appearing on the IBA website. Unless requested otherwise by the author in writing, all material published in Hoosier Banker and/or on the IBA website is the property of the Indiana Bankers Association.

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