Mich. gets $223M for neighborhood revitalization

**DW313512** · January-14-10, 01:22 PM

"The federal government awarded Michigan more than $223 million on Thursday to help tear down blighted buildings and revitalize neighborhoods in a dozen cities including Detroit, Grand Rapids and Flint".

"Battle Creek, Benton Harbor, Hamtramck, Highland Park, Kalamazoo, Lansing, Pontiac, Saginaw and Wyandotte also would be targeted for revitalization efforts."

Saw an article in the Detroit News today. I can understand some of these cities need help but why is Wyandotte on this list?

**iheartthed** · January-14-10, 01:33 PM

That should be just enough to level the rest of the CBD.

**ghettopalmetto** · January-14-10, 01:41 PM

I bet George Jackson is just licking his chops to get his hands on that money. You can level 140 Lafayette Buildings for that kind of coin! Imagine the possibilities!

I wonder which buildings are suddenly going to be found "structurally unsound".

**Swimmaven** · January-14-10, 01:42 PM

Why is Detroit on this list? Detroit is just rubble, in case you haven't noticed.

**Rocko** · January-14-10, 01:47 PM

http://www.detroitnews.com/article/2...revitalization

**Detroitnerd** · January-14-10, 01:48 PM

I wonder how this money will be spent.

"Mr. Adamo, George Jackson on the line."

MichMatters · January-14-10, 09:50 PM

This money is for vacant housing almost exclusively in residential areas:

The Michigan Consortium told HUD it would buy 6,250 foreclosed, abandoned, vacant and blighted properties in these targeted areas, HUD said. Of those, 1,500 homes will be fixed up and 2,500 demolished. Another 4,650 will be set aside for land banks, so they can be sold later and not create surplus housing that depresses home values.

"Vacant homes have a debilitating effect on neighborhoods and often lead to reduced property values blight, and neighborhood decay," HUD Secretary Shaun Donovan said. "This additional $2 billion in Recovery Act funding will help stabilize hard-hit communities by turning vacant homes into affordable housing opportunities."

The Michigan State Housing Development Authority has a consortium agreement with 12 city governments that will benefit from the grants. They are Battle Creek, Benton Harbor, Detroit, Flint, Grand Rapids, Hamtramck, Highland Park, Kalamazoo, Lansing, Pontiac, Saginaw and Wyandotte.

Also aided will be eight land banks: the Calhoun County Land Bank, Berrien County Land Bank, Michigan Land Bank Fast Track Authority, Genesee County Land Bank, Wayne County Land Bank Corp., Kalamazoo County Land Bank, Ingham County Land Bank and Saginaw County Land Bank.

**jtf1972** · January-14-10, 09:55 PM

And if you can tell me what Jackson masterpiece this was outside of, you can say anything you want about him.

**DetroitPlanner** · January-14-10, 10:19 PM

Originally Posted by jtf1972

And if you can tell me what Jackson masterpiece this was outside of, you can say anything you want about him.

Thats the corner of I-75 and Trumbull, next to Tiger Stadium and pointing to the Motor City.

BTW, none of the money is going downtown, sorry hipsters its going to the neighborhoods where real Detroiters live.

**cman710** · January-14-10, 11:23 PM

This is a great infusion of money for the neighborhoods of Detroit, if it is spent wisely.

MichMatters · January-15-10, 01:09 AM

Why the hell are we talking about the DEGC?

**iheartthed** · January-15-10, 09:39 AM

Originally Posted by MichMatters

This money is for vacant housing almost exclusively in residential areas:

Yeah, right.

Where did the money to demo the Lafayette Building come from again?

**daddeeo** · January-15-10, 01:24 PM

Money for neighborhoods long overdue.

Retroit · January-15-10, 03:30 PM

The Michigan Consortium told HUD it would buy 6,250 foreclosed, abandoned, vacant and blighted properties in these targeted areas, HUD said. Of those, 1,500 homes will be fixed up and 2,500 demolished. Another 4,650 will be set aside for land banks, so they can be sold later and not create surplus housing that depresses home values.

6250
-1500
-2500
2250 homes unaccounted for

$223,000,000
10,900 homes
$20,459 per home

Seems kind of high to me.

[[Sorry, I just can't help my skeptical self.)

**buzzman0077** · January-15-10, 04:13 PM

Better neighborhoods will lead to a better downtown. This is great news regardless, and about time some more money was directed to the neighborhoods.

**ghettopalmetto** · January-15-10, 04:16 PM

Originally Posted by Retroit

$223,000,000
10,900 homes
$20,459 per home

Seems kind of high to me.

[[Sorry, I just can't help my skeptical self.)

Seems "kind of high"? Based on what? What you *think* it should cost to renovate or demolish a house?

A kitchen remodel could easily go for double that price. I'm just trying to figure out where you get your expertise on renovation work.

Retroit · January-15-10, 04:43 PM

Originally Posted by ghettopalmetto

Seems "kind of high"? Based on what? What you *think* it should cost to renovate or demolish a house?

A kitchen remodel could easily go for double that price. I'm just trying to figure out where you get your expertise on renovation work.

If a renovation costs more than a demolition [[and as much as $20,459), why renovate? And if it costs $20,459 to demolish a house, I need to get into the house demolition business!

**DetroitZack** · January-15-10, 05:25 PM

Of the $223 million Detroit will get $41 million. Dave Bind says they will focus efforts on Herman Gardens, East Village, and southwest Detroit.

http://www.mlive.com/news/detroit/in...ists_with.html

**buildingsofdetroit** · January-15-10, 05:32 PM

"The federal government awarded Michigan more than $223 million on Thursday to help tear down blighted buildings and revitalize neighborhoods in a dozen cities including Detroit, Grand Rapids and Flint".

Somewhere, Adamo Demolition Co. is licking its chops.

**ghettopalmetto** · January-15-10, 06:26 PM

Originally Posted by Retroit

If a renovation costs more than a demolition [[and as much as $20,459), why renovate?

You haven't included the lost opportunity costs of demolition.

Renovation recoups property value. Demolition doesn't.

Retroit · January-15-10, 06:50 PM

Originally Posted by ghettopalmetto

You haven't included the lost opportunity costs of demolition.

Renovation recoups property value. Demolition doesn't.

If people don't buy the renovated houses, they don't recoup anything except vandalism, illegal occupancy, or arson.

Explanation [[since I know I'll be accused of being against renovation if I don't.): It's not that I'm totally against renovation or totally in favor of demolition. I just hope they are renovating homes that don't require $20,459 of work, and that there is a very good possibility of those homes being occupied. I also think the money could be better spent tearing down more unsalvageable buildings, of which I am sure there are more than 2,500 of just in Detroit alone.

MichMatters · January-15-10, 10:10 PM

Originally Posted by iheartthed

Yeah, right.

Where did the money to demo the Lafayette Building come from again?

A consortium of city governments and land banks formally submitted a grant application to HUD back in July to go after these grants. The agreement is specifically concentrated on clearing and redeveloping single-family homes.

This isn't like in the past where HUD threw out sh%ts-loads of money with no strings attached. This is not even to mention that unlike in years past, these applications by cities were submitted in conjuction with their respective county or state land banks, so not only do the city have agreements which they must legally abide by with MSHDA, HUD, and the American Reinvestment and Recovery Act of 2009 [["The Stimulus"), but they have agreements with their respective land banks about how this money will be used. This will make it incredibly hard for this money to go to projects as dubious as demolishing downtown commercial high-rises and the like.

And, it's why if any of the money somehow makes it to the DEGC or DDA to demolish prominent abandoned commercial high-rises downtown, I'll eat my non-existant hat.

Here is the formal application:

Michigan NSP2 Consortium Application

While it will allow for the demolition of all types of properties, the focus is almost entirely on single-family homes. Really, read through it.

**tahleel** · January-15-10, 10:19 PM

Use the money to demolish acres of blighted homes for urban farming.

Idea A, meet Idea B.

-Tahleel

**tahleel** · January-15-10, 10:22 PM

To build on top of the my last post, why would we invest a ton of money on demoing a few high rises, when the abandoned homes are what needs to be torn down? Drug deals/usage, rapes, and squatting don't typically happen in high-rises. :shrug:

I'd rather see one high-rise eye-sore, than a couple hundred burned out/dilapidated houses. Plus, with less houses, home values might even go up! Lower quantity, higher demand. Simple economics.

-Tahleel

**karenka** · January-16-10, 11:42 AM

Part of Hamtramck's 13.9 million portion will be used to finish up the last remaining requirements for low-income housing for the plaintiffs in the long-running Sarah Garret et al. vs. City of Hamtramck [[R-31) lawsuit.