Real Estate Pro Articles

$47 Million From Federal Foreclosure Funds for Nine Detroit Neighborhoods

[Valid RSS feed]  Category Rss Feed -
By : Cassiano Travareli    99 or more times read
Detroit Mayor Ken Cockrel has proposed to demolish about 2,350 derelict and abandoned homes in blighted neighborhoods using about half of the $47 million provided by the U.S. federal government to tackle its foreclosure problems. An estimated $8 million will be spent to repair certain vacant houses and about $4 million will be used to build new homes.

According to federal government regulations, the $47 million must be spent for the restoration of neighborhoods with the highest number of foreclosed homes and neighborhoods where individual resident income does not exceed by more than 120 percent the communityís median income. The $47 million allocation is part of the $3.9 billion released by the federal Dept. of Housing & Urban Development to help neighborhoods devastated by the foreclosure disaster.

Five of the nine recommended neighborhoods are Osborn, Brightmoor, North End, Grand River/Greenfield and East/Far East English Village. They are part of a neighborhood initiative established during the administration of former Detroit Mayor Kwame Kilpatrick.

The four other recommended neighborhoods are North Central and Kettering, Herman Gardens, the north section of southwest Detroit, and an area between East Outer Drive and McNichols and Woodward and Ryan.

According to the plan, which was prepared by Detroitís Department of Planning and Development headed by Douglass Diggs, the funds will be coursed through neighborhood initiatives or foundations which have long been working in city redevelopment. The plan also needs to be approved by the Detroit City Council before it is implemented.

Diggs said that two-thirds of about 67,000 foreclosed homes in the neighborhoods since 2005 are still unoccupied despite previous neighborhood improvement programs. The 2008-launched plan is expected to put back value into the foreclosed properties and bring back stability into Detroitís housing market.

Deborah Younger, who heads Detroitís Local Initiatives Support Corporation and who has been assisting seven of the recommended neighborhoods, has expressed support for the plan.
Cassiano Travareli has been educated in the finer points of the foreclosures market over 5 years.

Related Articles

Print This Article
Add To Favorites




© All rights reserved to Real Estate Pro Articles