Subject: Clinton Foundation Update: New Clinton Global Initiative Commitment for Detroit Announced Today
From: Clinton Foundation Press Office <[email-masked]>
To: Clinton Foundation Press Office <[email-masked]>
Date: Fri, 19 Feb 2016 00:22:05 +0000

Hi all,

We wanted to give you some updates on a new Clinton Global Initiative Commitment to Action that Clinton Foundation President Donna Shalala helped to announce in Detroit today.

This morning, Donna joined Detroit Mayor Mike Duggan, Michigan Governor Rick Snyder, and leaders from local banks, nonprofit organizations, and the real estate industry to unveil a new CGI America Commitment to Action: the Detroit Home Mortgage initiative<https://www.clintonfoundation.org/clinton-global-initiative/commitments/detroit-home-mortgage-bringing-lending-back-detroit>. This new mortgage program aims to increase homeownership opportunities in Detroit by offering new and much needed financing tools for homebuyers who are ready to buy a home, but lack the upfront capital to pay for necessary home repairs.

In January of 2015, CGI's Head of U.S. Impact Investing, Nick Salter, met with Detroit Mayor Duggan, who challenged CGI to convene its multiple local and national partners to develop a solution to this persistent problem, and the result was this cross-sector partnership. Read our latest blog post<https://www.clintonfoundation.org/blog/2016/02/18/it-just-became-easier-families-buy-home-detroit-0> for a more comprehensive look into CGI's involvement with this commitment.

Read coverage about the announcement from local and national media outlets:

*         The Atlantic's CityLab<http://www.citylab.com/housing/2016/02/detroit-home-mortgage-housing-market-appraisals-lending-clinton-global-initiative/463395/> piece earned today illustrates the first-of-its-kind nature, CGI's role in sparking action, and how it has the potential to correct a market failure, not just provide a short-term solution:

"'There hasn't been, at scale, any type of loan product that would cover those repairs,' says Nick Salter, head of U.S. economic empowerment at the Clinton Global Initiative. 'That's what this new program does.'

"Duggan raised the appraisal gap issue with the Clinton Global Initiative in January 2015, and CGI helped assemble a crew of partners to do something about it, including two national foundations, five regional banks, local mortgage counselors, and the Obama administration's Detroit Federal Working Group.

"'If you get enough home transactions going, you'll actually fix that appraisal gap over time,' Salter says. 'This doesn't need to be a permanent program-this is meant to correct a market failure.'"

Share the article on TWITTER: https://twitter.com/ClintonFdn/status/700453198188802048

*      Today's Associate Press story highlighted CGI as a convener and has been picked up by more than 40 outlets in the first hour after being published, including top national and regional outlets such as the San Francisco Chronicle<http://www.sfchronicle.com/news/article/Detroit-mayor-announces-program-to-help-people-6840171.php>, the Boston Herald Courier<http://www.heraldcourier.com/workittricities/business_wire/detroit-mayor-announces-program-to-help-people-get-mortgages/article_6df9cbbe-4f20-5fa5-a171-7cdfa8b2d29d.html>, the Miami Herald<http://www.miamiherald.com/news/business/article61010962.html>, San Antonio Express-News<http://www.expressnews.com/news/article/Detroit-mayor-announces-program-to-help-people-6840171.php>, The Charlotte Observer<http://www.charlotteobserver.com/news/business/national-business/article61010962.html>, the Seattle Post-Intelligencer<http://www.seattlepi.com/news/article/Detroit-mayor-announces-program-to-help-people-6840171.php>, and The News & Observer<http://www.newsobserver.com/news/business/article61010962.html>:

"The discussions included meetings with the Clinton Global Initiative, which brings together business, philanthropic, nonprofit and government leaders to develop solutions encouraging economic growth."

*         Today's Detroit Free Press<http://www.freep.com/story/news/local/michigan/detroit/2016/02/18/new-program-aims-1000-mortgages-detroit/80563174/> story pointed to the commitment's history and CGI's role in bringing the right people to the table:
"The mortgage program - details are at www.detroithomemortgage.org<http://www.detroithomemortgage.org> - took what participants said was a deeply complicated path to become a first-of-its-kind project. It began with two days of meetings in Denver last summer at the Clinton Global Initiative, a program put on by the Clinton Foundation, the charitable organization founded by former President Bill Clinton. His former health and human services secretary, Donna Shalala, also attended the news conference."

Share the article on TWITTER:
https://twitter.com/ClintonGlobal/status/700411582568919040

*        Today's Crain's Detroit Business<http://www.crainsdetroit.com/article/20160218/NEWS/160219832/duggan-unveils-40-million-fund-to-help-detroit-homebuyers> piece also provided additional history:

"The program was born a year ago when Duggan met with former President Bill Clinton during the Clinton Global Initiative America meeting in Denver.

"Duggan complained to Clinton about the appraisal gap. Clinton gathered bankers and foundation leaders, who created the fund after two days of talks.

"'We created a partnership, a class example of a great, American partnership, said Donna Shalala, the former U.S. Secretary of Health and Human Services and current president of the Clinton Foundation, a New York City-based nonprofit. 'Today, there is nothing distressing in the city of Detroit.'"

*        Yesterday's Detroit Free Press<http://www.freep.com/story/news/local/michigan/detroit/2016/02/17/detroit-detail-mortgage-program-city-home-buyers/80504874/> piece emphasized the cross-sector partnership and its role in addressing one of the city's biggest issues:
"Detroit Mayor Mike Duggan, representatives from major banks and community and civic groups will announce a new program Thursday that takes aim at one of the biggest hindrances to neighborhood revival in the city: potential home buyers'  inability to get a mortgage."

Share the article on TWITTER: https://twitter.com/ClintonGlobal/status/700096472042369025

Share the article on FACEBOOK: https://www.facebook.com/ClintonFoundation/posts/929765307144911

*        The Detroit News<http://www.detroitnews.com/story/business/2016/02/18/snyder-duggan-unveil-new-mortgage-plan-detroit/80550016/> highlighted the impact this could have for the people of Detroit, citing,

"The new program will lend potential Detroit homeowners up to $75,000 to fix up a home or cover the gap between the appraised value and sales price."

*        Crain's Detroit Business<http://www.crainsdetroit.com/article/20160217/NEWS/160219859/banks-nonprofits-team-up-on-mortgage-program-to-boost-investment-in>' piece yesterday explained why it's particularly important for the people of Detroit:
"Federal lending rules previously made it difficult for banks to loan borrowers enough money to pay for home repairs. Many borrowers, even those with good credit and stable income, could not obtain a large enough mortgage because there were no homes nearby with comparable sales prices."

*        Curbed<http://detroit.curbed.com/archives/2016/02/detroit-home-mortgage-announced-buying-will-get-a-little-easier.php> touted the multiple partners involved and what this means for potential homebuyers in Detroit:

"This initiative is a collaboration between the Obama Administration's Detroit Federal Working Group, Clinton Global Initiative, Huntington Bank, Flagstar Bank, Talmer Bank and Trust, FirstMerit Bank, Liberty Bank, the Ford Foundation, The Kresge Foundation, and the Michigan State Housing Development Authority.

"Banks will now be able to lend qualified homebuyers the full amount needed to purchase a renovated home, or to buy and rehabilitate homes anywhere in the city of Detroit, added Duggan."

*        The announcement was also covered by each of the local Detroit affiliates, including ABC here<http://www.wxyz.com/news/region/detroit/mayor-duggan-announces-detroit-home-mortgage-program-designed-to-help-homebuyers-in-the-city> and here<http://www.wxyz.com/news/mayor-duggan-to-announce-detroit-home-mortgage-program>, NBC<http://www.clickondetroit.com/news/mayor-duggan-to-announce-detroit-home-mortgage-program_>, CBS<http://detroit.cbslocal.com/2016/02/18/mayor-duggan-to-announce-detroit-home-mortgage-program/>, and Fox<http://www.fox2detroit.com/news/local-news/93459891-story>.

At the event, Donna highlighted CGI's role as its strength in bringing a diverse group of people to the table, and relying on our knowledge that partnerships create progress:

"Miracles can happen, but good work happens when people of good will - in the private sector, in government, in foundations - come together and decide that they can solve a problem. What the Clinton Global Initiative does is it convenes. It has convening power. The president loves locking people into a room and saying, 'solve this problem.'

"But what we do is we create partnerships and this is a classic example of a great American partnership between the private sector, the public sector, foundations focused on a great city.

"[The Detroit Mortgage Initiative] is an example of a partnership that works and that works for the people of Detroit. So we're delighted that our CGI model worked for Detroit this time."

Mayor Duggan also credited CGI for sparking partners into action:

"In February, former President Bill Clinton called me and he invited to come out to Denver to speak at the Clinton Global Initiative<http://livestream.com/CGI/events/4096617/videos/89869184> retreat which is their annual event, and be on the stage. And he said, 'What issue do you want to talk about?' And I said, 'Let me tell you what's going on with the mortgages.' And I explained it to him. It took about a minute and a half before he completely grasped it. He said, 'I can help with that.' I said, 'Really?' He said, 'Yeah, come on out and I'll take care of it.'

"We went out to Denver and he did a fascinating thing. He invited several banks and several foundations. And we were all in Denver together and while everybody else was watching all the wonderful events on the stage, he had everybody locked in a room for two days and it included representatives of the banks you saw here. It also included people like Erica Gerson. It had folks from the Ford Foundation and the Kresge Foundation. Poor Laura Trudeau I don't think got out of the room for a couple of days. Frank Altman from CRF who was critical.

"And at the end of the two days, we had the solution, the framework for the deal that being rolled out today came out of those two days with President Clinton and I'm so glad that they have the Clinton Global Initiative's Donna Shalala is here to celebrate with us today because they were so critical."

Partners also offered insight on the commitment in a blog post available here<https://www.clintonfoundation.org/blog/2016/02/18/it-just-became-easier-families-buy-home-detroit-0>:

"Detroit's single-family housing finance market is broken. The vast majority of home sales in the city are all cash purchases. While Detroit boasts an abundant and affordable housing stock, qualified homebuyers are largely unable to find mortgages that cover both the appraised cost of the home and the often necessary renovation and repair costs.

"But a new commitment developed through CGI America is hopes to be a game-changer for families and homebuyers in Detroit. Today, Clinton Foundation President Donna Shalala joined Detroit Mayor Mike Duggan, Michigan Governor Rick Snyder, and leaders from local banks, nonprofit organizations, major foundations, and the real estate industry to announce the Detroit Home Mortgage initiative, a new program to increase homeownership in Detroit. Starting today, it will help qualified homebuyers access mortgages to purchase a home and pay for necessary renovations.

"CGI's collaborative model made it possible for nearly 20 partners spanning multiple sectors to come together to address this critical housing and financing challenge. I spoke with several of the key players about the obstacles to Detroit's housing recovery, the magnitude of this CGI commitment, and their takeaways for other U.S. cities with similarly distressed housing markets."

Watch the full announcement on PERISCOPE: https://www.periscope.tv/w/1mrGmOWgNgnxy

Share the announcement on TWITTER: https://twitter.com/ClintonFdn/status/700367377192476674

Share the announcement on FACEBOOK: https://www.facebook.com/ClintonFoundation/photos/a.390214751099972.1073741828.389051904549590/929800797141362/?type=3&theater