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:

Distribution of Neighborhood Stabilization Program 2 Funds
City Land Bank Amount
Battle Creek Calhoun County Land Bank $7,719,839
Benton Harbor Berrien County Land Bank $13,895,711
Detroit Michigan Land Bank Fast Track Authority $40,799,351
Flint Genesee County Land Bank $25,089,478
Grand Rapids Michigan Land Bank Fast Track Authority $15,555,476
Hamtramck Michigan Land Bank Fast Track Authority $13,895,711
Highland Park Michigan Land Bank Fast Track Authority $13,895,711
Kalamazoo Kalamazoo County Land Bank $14,281,703
Lansing Ingham County Land Bank $17,369,638
Pontiac Michigan Land Bank Fast Track Authority $13,895,711
Saginaw Saginaw County Land Bank $17,369,638
Wyandotte Michigan Land Bank Fast Track Authority $ 7,719,839

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:

  • Foreclosed and abandoned property will be rehabilitated for buyers and renters,
  • Blighted properties will be demolished, and
  • Foreclosed, vacant property will be acquired, and reassembled into buildable lots and development parcels, so it can be marketed to developers for future investment

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.

Related Documents

Michigan NSP2 Consortium Application
Michigan NSP Consortium Application Program Design