MSHDA Blight Elimination Program – Notice of Funding Availability

The Michigan State Housing Development Authority (MSHDA) is seeking proposals in support of targeted demolition activity within local units of governments across Michigan with the goal of initiating or triggering private investment and development; supporting current investment and development; promoting public safety, and/or stabilizing and increasing the property values of the project area­.    

Award Limit:

  • For communities that have a population of 50,000 or less, the minimum award is $25,000, and the maximum award is $250,000;
  • For communities with a population of over 50,000, the minimum award is $50,000 and the maximum is $500,000; and
  • The maximum amount of grant funds allowed per residential structure is $25,000.
  • The maximum amount of grant funds allowed per commercial structure is $100,000. 

Eligible Applicants: Local units of government (counties, cities, townships, or villages) and local Land Banks. 

Eligible Properties:

  • Must be vacant at the time of acquisition;
  • Must be blighted, which is defined as meeting any of the following criteria:
    • Properties have been either deemed a public nuisance according to local code or ordinance or deemed a nuisance because of age, physical condition, or use;
    • Properties are a fire hazard or otherwise dangerous to the safety of persons or property; or
    • Properties have had utilities, plumbing, heating, or sewage disconnected, destroyed, removed or rendered ineffective so that the property is unable to meet state and local building code.
  • For residential demolition, the Grantee must provide documentation that last use was as a single-family or multifamily residential 1-4 unit structure;
  • For commercial demolition, property must be in or adjacent to a residential area. Commercial demolition must be part of a development project with funding commitments, and must include a local match of at least 10%.
  • Must be publicly-owned.

Ineligible Projects:

  • Demolition of structures with known or suspected environmental contamination (e.g., sites with underground storage tanks, structures previously housing dry cleaning establishments, etc.), not including lead or asbestos;
  • Demolition of industrial property;
  • Property acquisition or redevelopment
  • Demolition of properties that are listed in the National Register of Historic Places (either individually or as part of a historic district) or those found within local historic districts designated under 1970 PA 169 for which the State Historic Preservation Office (SHPO) and/or the local historic district commission has not already approved demolition.

Applications must be received on or before 5:00 PM on June 21, 2017.  For more details including how to apply (and deadlines), go to http://www.michigan.gov/mshdagrants

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