March 3, 2008
Second year of grants through Michigan State Housing Authority
LANSING - Governor Jennifer M. Granholm today announced that the Michigan State Housing Development Authority (MSDHA) will make awards toward blight elimination in eight cities this year. These awards are part of a four-year $25 million blight elimination program targeted at revitalizing economically-challenged Cities of Promise: 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."
MSHDA has targeted 1,511 blighted properties to be eliminated this year at a cost of $4.78 million if all targeted sites are completed. The first round of awards resulted in 455 blighted properties being demolished in 2007.
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, mortgage foreclosures, extreme poverty, loss of industry and jobs, crumbling infrastructure, and blighted neighborhoods. The blight elimination program is a critical step in these revitalization efforts across Michigan. Jobs created through this program will provide opportunities for training and employing homeless persons.
"All the goals of the program tie into what MSHDA is working on every day," Granholm said. "Increasing skills for the homeless, improving neighborhoods, demolishing blighted structures, these all tie into the overarching goals 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 partnered with their county, local and state level land banks, Habitat affiliates, and community development corporations. The funds are distributed at up to $4,000 per property, calculated on a sliding scale based on cost and must be supplemented by local (city or county) Community Development Block Grant funds or other local sources. 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.
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. For more information on the Cities of Promise, visit the Website at www.citiesofpromise.org.
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