Is Lahti's Relationship With MSHDA Affecting His Ability to Fairly Act?

On September 7, 2006 MSHDA handed Mike Lahti a check for nearly $3 million dollars.

EDITORIAL - Monday, October 27, 2008 - John Cain's recent letter to Representative Mike Lahti inspired me to fire off the following email:

Dear Mr. Lahti,

I am one of the people that requested a FOIA on the market survey in Ironwood. There NEVER was a market survey done in the City. I own apartments in the City. I know all of the landlords in the City. NOBODY was ever contacted to get an accurate count of apartments in the area.

Woods Consulting was unable to produce the document; the City was unable to produce the document; and MSHDA refused to produce the document.

I have evidence that shows City personnel were working on creating a market survey for Hovey AFTER Tim Hunnicutt told the Commission that he had one made.

Hovey is NO GOOD for Ironwood. We have over 500 empty homes in Ironwood, existing rentals are struggling to keep full. We get NO TAX abatements or special deals. It's unfair, and I will NOT VOTE FOR YOU if you continue to support this kind of project. Progress is a good thing... but it should HELP somebody. NOBODY in Ironwood will be helped by HOVEY. NO JOBS will be created and NO LOCAL contractors will be used. I checked into it.

Sincerely,

Jim Albert

Here is Mr. Lahti's response to my email:

Dear Mr. Albert:

This project is not up to me or for me to support or not support. It is up to the locals and City of Ironwood.

I did contacted (sic) MSHDA on your comments and was told the following. "A market study was done and it was provided through FOIA. MSHDA always has a market study for a project if it includes tax credits in its financing. The market study they received, completed by Woods, for this project was included in the response to the FOIA."

"The study was completed using the old set of guidelines. The analyst uncovered a few multifamily comparables in the area that had market rents-most are subsidized in some way. The single-family rental market is seen by most as different from the market for apartment units. What market-rate apartment units that are operating are older, with fewer amenities than the Hovey project plans to provide."

Again, as your State Representative, I am unable to intervene in local issues, such as this, and should be addressed to the City Manager and board members.

Thank you,

Rep. Mike Lahti's Office

Keep in mind that several people have requested the marketing survey through the Freedom of Information Act (FOIA), and NO ONE has yet received it. What is Hovey, MSHDA, and the City of Ironwood trying to hide?

Jim Albert

Here is a September 7, 2006 press release from MSHDA that could help to explain Lahti's failure to properly act on complaints.

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY PRESENTS SCOTT SENIOR BUILDING IN HANCOCK WITH $2.8 MILLION IN REHABILITATION FUNDING

HANCOCK, MI - September 7, 2006 - Michael DeVos, Executive Director of the Michigan State Housing Development Authority (MSHDA) presented a check today at groundbreaking ceremonies in the amount of $2,820,464 to Mike Lahti, with Scott Building Developers, LLC. The funds will be used in the acquisition and rehabilitation of the historic Scott Building located in downtown Hancock. The building will be renovated into a mixed senior living and retail and commercial facility.

Other partners in the rehabilitation efforts include: Michigan Economic Development Corporation (MEDC) who awarded the City of Hancock CDBG Funding, The City of Hancock, The Downtown Development Authority and The Main Street Program. In addition, the project has been awarded Historic Tax Credits.

“Preserving a housing development like the Scott Building is important in ensuring that elderly residents in Michigan receive the safe and affordable housing options they require,” said Michael Devos Executive Director of MSHDA. “The partners working together in this preservation effort are experienced and knowledgeable with similar goals in mind of keeping housing decent and affordable for elderly Michigan residents.”

The Scott Building is a historically significant building, built as a hotel in 1906, and located in downtown Hancock at the corner of Quincy and Reservation. The building will consist of ground level retail and commercial space and upper level senior living. The senior living area will include 11 one-bedroom and 17 two-bedroom units. The units will be rented to eligible elderly residents who fall under the low to moderate-income levels.

The completed unit and development amenities will include: mini-blinds, dishwashers, frost-free refrigerators, common laundry facilities, cable television hook-ups, Internet access, individual electric meters and community space.

The living units have been divided up to ensure that all elderly residents who fall under the low to moderate income levels are eligible to live in the Scott Building. Three units will be designated for households whose incomes do not exceed 30 percent of the area median income. Eleven units will be designated for households whose incomes do not exceed 60 percent of the area median income. Fourteen units will be designated for households whose incomes do not exceed 50 percent of the area median income. All requirements are adjusted for family size determined by the Department of Housing and Urban Development (HUD).

MSHDA is a quasi-state agency that provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing, engage in community economic development activities, and address homeless issues. MSHDA’s loans and operating expenses are financed through the sale of tax-exempt and taxable bonds and notes to private investors, not from state tax revenues. For more information on MSHDA programs and initiatives, visit the Web site at www.michigan.gov/mshda.

Email Mike Lahti and let him know what you think! His email address is mikelahti@house.mi.gov