Money Available for Foreclosed and Abandoned Properties – This past summer the Congress and the President signed into law legislation that provides $3.9 billion in one-time funding to create the Neighborhood Stabilization Program (NSP). The goal of the NSP is to address issues surrounding foreclosed and abandoned properties in communities. Michigan’s share of this funding is “$263 million”. According to a “formula” established by the federal Department of Housing and Urban Development (HUD), a portion of the funding will be made available from HUD directly to “22 entitlement communities and counties”. The state share will be made available to another “17 entitlement communities” and a portion will also be made available on a “regional basis”. The Michigan State Housing Development Authority (MSHDA) will be the coordinating agency for the state share. Funding is being made available for specific projects including:
1) acquisition/rehabilitation/redevelopment of abandoned and foreclosed homes and residential properties; 2) displacement prevention for foreclosed properties; 3) demolition of blighted structures; and 4) redevelopment of demolished or vacant properties. Local units of government along with non profit community developers and for-profit developers are eligible to apply for funding. Local units might want to consider partnering with such entities on specific projects.