GOVERNOR GRANHOLM ANNOUNCES GRANT FUNDING FOR CITIES OF PROMISE
BLIGHT ELIMINATION PROGRAM IN COORDINATION WITH THE
MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY

LANSING – Governor Jennifer M. Granholm and Michael DeVos, Executive Director of the Michigan State Housing Development Authority (MSHDA), today announced MSDHA has committed to funding up to $25 million over the next four years toward blight elimination in the eight Cities of Promise. The eight cities are Benton Harbor, Detroit, Flint, Hamtramck, Highland Park, Muskegon Heights, Pontiac and Saginaw.

“By providing resources to eliminate blight, we will help make neighborhoods safer for citizens and more inviting for businesses and economic investments,” Granholm said.  “Establishing thriving and healthy communities is a critical part of our plan to transform Michigan’s economy and create jobs for our workers.”

The blight elimination program has several goals which will reduce unsafe neighborhood conditions and make neighborhoods more attractive. These goals include:

• Improving neighborhood safety for children
• Substantially increasing the number of blighted residential structures demolished in each of the cities through strategic demolition activities
• Increasing income and skills of homeless persons in the cities
• Increasing the use of deconstruction (salvaging/recycling usable materials) in place of and/or in conjunction with demolition to remove unwanted structures and rebuild communities
• Increasing the use of holistic, market-based neighborhood revitalization plans tied to the neighborhoods where blight is being addressed with MSHDA funds

The Cities of Promise is an initiative of Governor Granholm’s that aims to re-develop communities and reduce poverty in cities that are experiencing devastating conditions due to declining population, extreme poverty, loss of industry and jobs, crumbling infrastructure and blighted neighborhoods. The blight elimination program is the critical first step in these revitalization efforts across Michigan. Jobs created through this program will provide opportunities for training and employing homeless persons.

“All of the goals of the program tie into what MSHDA is working on everyday,” said DeVos. “Increasing skills for the homeless, improving neighborhoods, demolishing blighted structures; these all tie into the overarching goal of MSHDA and the Cities of Promise Initiative. Tackling all of these issues will drastically improve these eight cities, and in the process improve the State of Michigan and its economy.”

Local units of government are eligible for the program, and have been encouraged to partner with their counties, local and state level land banks, Habitat affiliates and community development corporations. Within the first year, the priority will be put on publicly owned, residential properties in target neighborhoods and re-development districts, along routes identified during Safe Routes to School walking audits, and within 400 yards of all schools. The $6.25 million available for the first year will be distributed at 50 percent of the cost of demolition or $3,000 (whichever is less) per property, and must be supplemented by local (city or county) Community Development Block Grant funds. Eligible activities are costs associated with, deconstruction and demolition, clearance, removal and disposition of materials and site restoration. Demolition must also include deconstruction when appropriate, thus reducing materials dumped in landfills. Currently there are 885 properties across the eight cities that will be demolished under the blight elimination program, totaling $2.8 million.

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.

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