Michigan Set to Receive Nearly $200 Million in Additional Federal Funds, Championed by Congressman Kildee, to Fight Blight, Strengthen Neighborhoods
Hardest Hit Funds to Help Remove and Repurpose Thousands of Abandoned Properties in Cities like Flint, Saginaw and Detroit
WASHINGTON, D.C. – (RealEstateRama) — Congressman Dan Kildee (MI-05) today welcomed the announcement that Michigan will receive an additional $188.1 million in Hardest Hit Fund (HHF) dollars which can be used for blight removal. Michigan will receive the most money out of the 14 states who applied for additional HHF money from the U.S. Department of Treasury in the second and final round of funding.
The additional $188.1 million in federal funds come in addition to $74.49 million CongressmanKildee helped to secure for Michigan in February. Late last year, as part of the budget process, Congressman Kildee led a major effort in the U.S. House of Representatives to give Treasury the flexibility to transfer this money to the HHF, to be used for additional demolitions.
“Communities across Michigan will benefit greatly from this huge influx of federal funds,” Congressman Kildee said. “Removing blight raises property values for surrounding homeowners, decreases violent crime and unlocks greater opportunity for all families. Securing these funds has been one of my main focuses in Congress and I look forward to seeing the real positive impact this initiative will have on neighborhoods across the state.”
The Hardest Hit Fund was originally designed – and is still working – to keep people in their homes and prevent additional foreclosures after the Great Recession. In recent years, thanks to Congressman Kildee’s efforts in Congress, the U.S. Treasury Department rightfully determined that removing blight in communities helps to stabilize and strengthen neighborhoods.
Since 2013, Congressman Kildee has helped to secure over $350 million for Michigan cities to help get rid of blight. According to the Detroit News in 2013, Congressman Kildee made securing HHF money to address blighted Michigan communities a “top priority,” aiming his first bill in Congress at directing unused HHF funds to tear down and repurpose abandoned properties.
Independent studies have shown that removing blight and abandonment in cities like Detroit, Flint and Saginaw leads to greater economic opportunity for communities. According to a two-year study by the Land Policy Institute at Michigan State University, $3.5 million of demolition activity in Flint unlocked $112 million in improved property values for surrounding homeowners. Additionally, by removing abandoned properties in the community, crime and arson rates are reduced.
Congressman Kildee has an extensive background in housing policy and land use issues. In 2002, as Genesee County Treasurer, he founded the Genesee County Land Bank – Michigan’s first land bank – and served as its Chairman from 2002 until 2009. Congressman Kildee’s successful land bank model has helped to inspire over 100 other communities to start similar models to help create opportunity and foster development, including in Cuyahoga County, Ohio, Syracuse, N.Y., and Fulton County, Ga. He also previously co-founded and served as the President & CEO of the Center for Community Progress, a national non-profit organization focused on supporting America’s older, industrial cities.
