The Michigan Historic Preservation Network collaborates with Michigan residents and property owners on the protection and preservation of this state’s outstanding stock of historic properties. One way it does so is through its Preservation Incentives Committee which utilizes a revolving fund to offer financial incentives for preservation development
The concept of revolving fund is not new to those involved in historic preservation. In fact, many organizations that work on a limited budget and wish to leverage their impact have turned to this effective, proven concept. Simply put, a revolving fund is seeded with dollars, disperses those dollars for carefully defined uses such as the rehabilitation of historic properties, and then has those dollars returned after projects are complete, ideally with sufficient interest to allow the fund to keep up with inflation. The beauty is that the terms of financing provided by revolving funds are generous, meant more to foster success of its projects that to fulfill some prescribed rate of growth.
The Michigan Historic Preservation Network Revolving Fund (hereafter, Fund) is devised solely to serve the people and historic properties of Michigan. Funds raised from the MHPN’s state tax credit investment program are being used initially to seed and maintain the revolving fund and provide the type of impact that falls squarely within the mission of the organization. The Fund’s policies, like any public trust created for the public good, have been defined to meet this goal. Thus, the Fund has a statewide perspective on the historic properties it serves. Terms of the Fund are generous relative to the dollars lent or granted, timeframes for project completion, dollars re-paid, and interest earned, distinguishing it from other lending sources with goals defined by board members. Significantly, the fund even provides a mechanism for the MHPN to use funds raised from bigger projects to subsidize smaller ones.
The benefit derived by the MHPN from the Fund is that it can help conserve in a powerful way the historic properties the organization and its members have been committed to protect since 1981.. Never before has it had this ability.
The Preservation Incentives Committee Chair or Co-Chairs Shall:
Guide the committee members through execution of the annual work plan by recruiting committee members and holding regular meetings of the committee to assign tasks and get progress updates. MHPN staff is included in the meetings, as available, and is kept apprised of the committee’s progress. The chair/co-chairs assists the Treasurer in preparing the annual budget, provides a monthly financial and program report to the Executive Committee, and offers quarterly summaries to the Full Board. The chair or one of the co-chairs must be a member of the MHPN Board and serves on the Executive Committee as the representative of the Committee.
The Preservation Incentives Committee Shall:
The members of the Preservation Incentives Committee assist the Board in developing the yearly work plan. In addition to the tasks unique to each year’s work plan, the committee shall:
- Assist in developing new funding mechanisms for the Fund in light of the transition from historic tax credits to some new form of State preservation incentives, including review and recommendation of real estate opportunities.
- Participate in the evaluation of potential funding opportunities in concert with MHPN staff and the committee’s legal and accounting consultants.
- Refine the Fund’s structure, operating principles, loan requirements, etc. in anticipation of funding that allows initial deals to be consummated.
- Participate in the consideration of loan applications in concert with MHPN staff and the committee’s legal and accounting consultants.
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