Through the HOME program, created by the National Affordable Housing Act, Michigan will administer approximately $21 million in new funds to support 2,000 new units of housing for families with very low incomes. Another $25 million will be directed to designated communities for similar projects administered at the local level. This is in addition to the 42,000 low-income house-holds already receiving rent assistance from the Michigan State Housing Development Authority (MSHDA). MSHDA also assists lower-income households to purchase and own homes.

MSHDA will work to target resources--particularly those which promote home ownership-- to distressed communities.

To further the well-being and vitality of communities, MSHDA will pilot new initiatives designed not only to provide affordable housing, but also to link housing with community-based efforts to promote family economic self-sufficiency. Funding will be specifically available for housing rehabilitation and development tied to local adult education, job training, and other human service efforts. In addition, public assistance recipients will be provided with opportunities to learn new skills in the building trades and fulfill their obligations under the social contract, referred to previously, by performing important community service and rehabilitating homes in their neighborhoods.

A crucial element in the success of these projects will be the commitment of local, grass-roots organizations to revitalize their neighborhoods and provide opportunities for families to become self-sufficient. As with Communities First, neighborhood revitalization efforts should reflect the needs and goals of the neighborhood. Examples abound of successful efforts to reclaim neighborhoods from decay and crime in Michigan. These examples should be followed wherever the need exists. One such movement is the Ravendale neighborhood in Detroit. Through the efforts of the Joy of Jesus, led by Reverend Eddie Edwards, Ravendale has succeeded in rehabilitating numerous neighborhood homes, helping families to overcome barriers to success, and working with resident block clubs to eliminate drug related crime and improve the quality of life for all who reside in the community.

The social contract between the state and recipients of public assistance enables people to develop their own talents, improve their lives and contribute to their communities. Similarly, the state and local communities should work cooperatively to re-invigorate Michigan's neighborhoods. Revitalization must begin with residents. Our goal is to assist communities and neighborhoods committed to positive change through revitalized homes, families, and communities.

Complementary to MSHDA's proposed initiatives linking affordable housing with the promotion of family self-sufficiency, is the creation of Neighborhood Enterprise Zones.