GOVERNOR GRANHOLM ANNOUNCES AWARD OF $810,000 FROM STATE HOUSING AUTHORITY TO CITY OF PONTIAC FOR BLIGHT ELIMINATION
LANSING – Governor Jennifer M. Granholm today announced over $810,000 in funding from the Michigan State Housing Development Authority (MSHDA) to the City of Pontiac as part of a Blight Elimination program through the Cities of Promise initiative. MSHDA will fund up to $25 million over the next four years toward blight elimination in eight Cities of Promise: Benton Harbor, Detroit, Flint, Hamtramck, Highland Park, Muskegon Heights, Pontiac and Saginaw. The city of Pontiac has committed to eliminating 270 blighted properties throughout the city to improve the quality of life for all residents.
“By providing resources to eliminate blight, we will help make neighborhoods safer for citizens and more inviting for businesses and economic investments,” Gov. 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
Gov. Granholm’s Cities of Promise initiative 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.”
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 1,511 properties across the eight cities that will be demolished under the blight elimination program, totaling $4.7 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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