The U.S. Department of Housing and Urban Development (HUD) awarded Michigan $223.9 million recently as part of the second phase of the government’s Neighborhood Stabilization Program (NSP2) to rebuild local economies, as authorized by the American Recovery and Reinvestment Act of 2009. The program is intended to facilitate and stimulate neighborhood stabilization programs to fight the effects of home foreclosures.  Michigan received the single largest grant, 11% of the $2 billion pool. The Michigan State Housing Development Authority (MSHDA) submitted a collaborative application on behalf of twelve local cities and eight land banks.

Left to right: Detroit Mayor Dave Bing, US Representative Carolyn Cheeks Kilpatrick, U.S. Housing and Urban Development Secretary Shaun Donovan, and Gov. Jennifer Granholm.

HUD Secretary Shaun Donovan praised the unique application when he visited Detroit to award the grant. Under Michigan’s distinctive plan, local cities will work in conjunction with land banks to create affordable housing, generate jobs, and stimulate property redevelopment in an effort to combat the challenges to the state’s housing sector. Specifically, the money will be used to acquire thousands of foreclosed, abandoned and blighted properties in targeted areas. These properties will be rehabilitated, demolished or placed in land banks for future development. Since Michigan received most of the money it requested, state officials do not expect major revisions to the state spending plan.

CEDAM congratulates MSHDA and the members of the Michigan NSP2 consortium. We look forward to the new collaborative community development this grant will support.

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