Neighborhood Stabilization Program 2 (NSP2)
HUD Secretary Shaun Donovan announced Thursday, January 14 in Detroit that the Michigan NSP2 Consortium will receive nearly $224 million in NSP2 funds, the single largest award in the nation. Governor Jennifer Granholm, MSHDA Executive Director Keith Molin and the Mayors of the Consortium Cities were present to hear and cheer this unprecedented funding award.
The funds will launch the "New Michigan Urban Neighborhood" strategy, a strategy integrating planning, targeted demolition and rehabilitation, and critical land assemblage to get neighborhoods ready for new market opportunities in 12 of the state's largest municipalities Detroit, Highland Park, Hamtramck, Wyandotte, Flint, Saginaw, Pontiac, Lansing, Battle Creek, Kalamazoo, Grand Rapids, and Benton Harbor.
The Michigan NSP2 Consortium application marked the first time that MSHDA sought HUD funding through a coalition that includes city government partners and eight of the state's most progressive land banks. Michigan was among hundreds of agencies nationally competing for nearly $2 billion in federal funds to combat the effects of home foreclosures, vacancy and abandonment. The distribution of funds follows:
These funds will be targeted toward neighborhoods identified by the 12 participating cities and 8 land banks. These neighborhoods were selected for their strategic importance to their cities, including their proximity to jobs, commercial services, public transportation, and local neighborhood anchors. The objective over three years is to position these neighborhoods to compete for private investment in housing and jobs in the decade ahead—to begin rebuilding our urban residential and neighborhood infrastructure.
Through the NSP2 funding:
Cities and land banks will be able to eliminate blight and address over 30 percent of the abandoned property in these target areas, increasing their attractiveness and restoring better balance between supply and demand, increasing values and creating sustainable neighborhoods that are ready to adapt to new opportunities in a changing economy.
Michigan NSP2 Consortium Application
Michigan NSP Consortium Application Program Design