Community Focus

Community and economic development impact

Our community impact plans come from a collaborative process that includes the participation and consensus of community members with civic and nonprofit stakeholders. It’s the most effective way to deliver what each community needs.

Recent examples include:

The Obama Building: A partnership with the city of Detroit’s Strategic Neighborhood Fund and Invest Detroit resulted in a $3.6 million renovation of a historic bank building in the Old Redford neighborhood. The renovation will create four affordable loft apartments and 8,800 square feet of retail space, creating a new gateway for the neighborhood’s main commercial corridor. 

28 West II: In 2020, Flagstar closed on this project, a newly constructed 168-unit, mixed-income apartment community in Wyoming, Michigan. Once complete, the development will provide 132 units of affordable housing and 28 units of much-needed workforce housing to families in the Grand Rapids area. The transaction marks the first time in Michigan history where the Michigan State Housing Development Authority has partnered with a bank lender on a 4% bond project. This unique structure was spearheaded, presented, negotiated, and closed by Flagstar.

Detroit Sewn PPE project: Partnering with Oakland County officials, Flagstar worked to determine regions with the greatest need for personal protective equipment. The result? We provided $300,000 to fund a woman-owned cut-and-sew small business manufacturer, Detroit Sewn, helping it transition to addressing the critical shortage of face masks needed by first responders. The funds helped Detroit Sewn produce 87,000 masks, and it doubled its workforce to do so, creating jobs for local low-income individuals. Masks were donated to hospitals and first responders serving the high minority and low- to moderate-income communities in Detroit, Ecorse, Inkster, and Highland Park.

Black, Indigenous, and People of Color (BIPOC) Small Business Grant Program: In response to the devastating effects of COVID-19 on businesses, Flagstar provided $1 million to nonprofits supporting BIPOC-owned small businesses in Indiana, California, and Michigan. The nonprofits awarded 180 businesses grants of $5,000 each.

Pontiac Funders Collaborative: Flagstar committed $10 million to the city of Pontiac, Michigan to drive development and economic opportunities. Since Flagstar’s initial investment, our efforts expanded into a collaborative with other foundations including the Ballmer Group, the Community Foundation for Southeast Michigan, the Flagstar Foundation, General Motors, the New Economy Initiative, the Ralph C. Wilson Jr. Foundation, the Tauber Family Foundation, the Vera and Joseph Dresner Foundation, and the William Davidson Foundation. In 2020, the collaborative awarded grants to support local organizations and respond to the COVID-19 pandemic, as well as made direct payments to local businesses.

Gray Street: Flagstar provided $21.9 million in construction loans for a development in Ypsilanti, Michigan that will provide 151 units of affordable housing in an area where rental rates or housing prices are beyond the means for many low- to moderate-income earners.

411 Lyon Street: In 2020, Flagstar committed $3.124 million for a construction line of credit and $3.278 million in LIHTC equity investments in Flint, Michigan. The development will provide more than 20 units of affordable housing, including five units that will operate under HUD's Section 811 Project Rental Assistance Program, which provides financial support to extremely low-income households with at least one non-elderly disabled adult.