Governor Granholm, MSHDA Announce Over $7.5 Million for 15 Michigan Entitlement Cities

Governor Granholm, MSHDA Announce Over $7.5 Million for 15 Michigan
Entitlement Cities

Two additional cities slated to receive funds for housing redevelopment,
blight elimination

LANSING, Mich., April 29 /PRNewswire-USNewswire/ -- Governor Jennifer M.
Granholm together with Michigan State Housing Development Authority (MSHDA)
Executive Director Keith Molin today announced over $7.5 million in grants to
be distributed to 15 cities across the state through the Neighborhood
Stabilization Program (NSP). The grants are the first round of NSP funding in
Michigan that could total as much as $22 million over the next six to nine
months. This initial funding will support the redevelopment of 116 residential
units and the demolition of 276 blighted units throughout the state.

"These funds are going to help us improve communities across the state and
create jobs in the process," Granholm said. "We are pleased to make these
grants available in record time so we can restore vibrancy and energy to
Michigan's economy and our cities."

According to Molin, 15 cities are slated to receive funds immediately with two
more close behind. The 15 include Ann Arbor, Battle Creek, Bay City, Benton
Harbor, Jackson, Kalamazoo, Livonia, Muskegon, Muskegon Heights, Port Huron,
Roseville, Royal Oak, Saginaw, St. Clair Shores, and Wyoming. Awards also
will be distributed to the cities of Dearborn Heights and Farmington Hills
upon completion of a review soon to be completed.

"These federal funds could not have come at a better time," Molin said. "We
have expedited the funding because these cities all have strong municipal
housing and community development programs, effective delivery systems and
immediate need."

Molin pointed out that timing is critical because foreclosures and abandonment
are threatening the property values of other community residents.

"Not only are foreclosures bringing down property values and creating blight,
but many of these homes have been abandoned and are actually posing a serious
threat to the surrounding neighborhoods, Molin explained."

"The improvements planned with the NSP funds can't help but breathe new life
into these cities and prosperity will start to grow and thrive," Molin said.
"The 'sense of place' that develops is key to Michigan's ability to retain and
attract that much-needed young knowledge worker of the future."

MSHDA also anticipates that additional grant allocations to other communities,
nonprofits and developers will be made in the very near future.

"Our vision is the improvement of the quality of life for all Michigan
residents and the creation of vibrant communities across the state with safe
and affordable housing through both homeownership and rental programs," said
Gov. Granholm.

MSHDA is a quasi-state agency that provides financial and technical assistance
through public and private partnerships to create and preserve safe and decent
affordable housing, promote homeownership, engage in building vibrant cities
and neighborhoods, and address homeless issues. MSHDA's loans and operating
expenses are financed through the sale of tax-exempt and taxable bonds and
notes to private investors, not from state tax revenues. For more information
on MSHDA programs and initiatives, visit the Web site at
www.michigan.gov/mshda.

Please note the list of cities, award amounts and contacts for more localized
information and project details.

MSHDA NSP Awards
Production Data and Project Descriptions
April 29, 2009

Grant Units Units
Award Developed Demolished
City of Muskegon
Contact: Wilmern Griffen
(231) 724-6963 $570,460 6 25

The City of Muskegon intends to use its initial grant award of $570,460 in
seven target areas throughout the city: Jackson Hill, McLaughlin, Nelson, East
Muskegon, Nims, Marquette, and Lakeside/Glenside/Campbell. Proposed NSP
activities include:
-- The rehabilitation for owner-occupancy of 6 abandoned/foreclosed
properties will be rehabilitated for residential use by owner
occupants; homebuyers will receive at least 8 hours of housing
counseling and up to $12,500 for down payment, closing cost and/or
mortgage principal reduction; and
-- Demolition of 25 blighted properties to eliminate nuisances.

City of Muskegon Heights
Contact: Reatha Anderson
(231) 733-8830 $193,820 7 0

The City of Muskegon Heights intends to use its initial grant award of
$193,820 in the city's target areas. Proposed NSP activities include:
-- To acquire 5 abandoned functionally obsolete homes for demolition; and
-- To acquire and rehabilitate 2 foreclosed-upon single family homes for
resale to eligible owner-occupants; buyers will receive at least 8
hours of housing counseling and up to $30,000 for down payment, closing
cost, and principal reduction assistance.

City of Livonia
Contact: James Inglis
(248) 477-7086 $591,250 14 6

The City of Livonia intends to target its initial grant award of $591,250
in the eastern and southern areas of the city. The anticipated results of the
NSP assistance include:
-- Assisting 5 homebuyers buying foreclosed or abandoned homes through
direct homeownership assistance and/or housing counseling;
-- Rehabilitating 9 abandoned/foreclosed properties for resale or rental
to eligible households; and
-- Demolition and new construction on 6 currently blighted sites for sale
to low-to-moderate income residents.

City of Benton Harbor
Contact: Nicol Brown
(269) 927-8420 $133,400 2 0

The City of Benton Harbor intends to use its initial grant award of
$133,400 in a revitalization target neighborhood adjacent to downtown for the
rehab and resale of 2 abandoned/foreclosed properties to eligible households.
The projects will promote homeownership in the neighborhood and in Benton
Harbor.

Grant Units Units
Award Developed Demolished
City of Wyoming
Contact: Patrick Gaffney
(616) 530-7219 $454,410 4 0

The City of Wyoming intends to use its initial grant award of $454,410 to
acquire and redevelop 4 abandoned or foreclosed homes for resale or rental to
eligible households. The projects will promote homeownership in an area of the
city currently hard-hit by foreclosures.

City of Kalamazoo
Contact: Jeff Chamberlain
(269) 337-8044 $765,000 6 40

The City of Kalamazoo intends to target its initial grant award of
$765,000 in the East Side, North Side and Edison neighborhoods. Activities
include:
-- Assistance to 6 homebuyers to acquire and rehab foreclosed homes; and
-- Demolition of 40 blighted properties by the city and/or the county
Land Bank to create opportunities for future development

City of Port Huron
Contact: Mary Wrocklage
(810) 984-9736 $500,000 18 4

The City of Port Huron intends to use its initial grant award of $500,000
for the following eligible NSP activities:
-- Down payment assistance to 14 homebuyers will be assisted through a
local homeownership down payment assistance program for the
acquisition and rehabilitation of abandoned and foreclosed homes;
-- New construction of 4 housing units on abandoned/foreclosed property
for resale or rental; and
-- Demolition of 4 blighted properties by the city and/or the county Land
Bank to reduce blight and create opportunities for future development.

City of Saginaw
Contact: John Falls
(989) 759-1536 $627,000 0 72

The City of Saginaw intends to use its initial grant award of $627,000
for demolition of blighted properties located within three targeted
neighborhoods: the Cathedral District, the Covenant Area, and the
Houghton/Jones Expanded Neighborhood. The city expects to demolish 30 small
commercial and 42 residential structures to promote opportunities for future
development.

Grant Units Units
Award Developed Demolished
City of Bay City
Contact: Debbie Kiesel
(989) 894-8158 $375,000 2 15

The City of Bay City intends to use its initial grant award of $375,000
for sites in neighborhoods at high risk for further foreclosure and
abandonment. Expected results include:
-- Assistance to 2 households through rehab of abandoned or foreclosed
properties for resale or rental; and
-- Demolition of 15 blighted properties by the city and/or county Land
Bank for future redevelopment.

City of Battle Creek
Contact: Al Giguere
(269) 966-3315 $1,072,500 8 72

The City of Battle Creek intends to target its initial grant award of
$1,072,500 in four target areas: Post/Franklin, Northcentral,
Wilson/Coburn/Roosevelt/Territorial, and Fremont/McKinley/Verona. The
anticipated results of the NSP assistance include:
-- Rehabilitating 8 abandoned or foreclosed properties for resale to
eligible households; and
-- Demolition of 72 blighted, abandoned, and vacant properties to promote
opportunities for future redevelopment.

City of Roseville
Contact: IJ Campbell
(586) 447-4606 $500,000 19 14

The City of Roseville intends to target its initial grant award of
$500,000 within ten census tracts which stretch from the southern edge
of the city at Ten Mile Road to the northern edge at Fourteen Mile Road.
The anticipated results of the NSP assistance include:
-- Assisting 14 homebuyers purchasing foreclosed or abandoned single-
family homes through direct homeownership assistance and/or housing
counseling;
-- Rehabilitating 5 abandoned or foreclosed properties for resale to
eligible households; and
-- Demolition of 14 blighted properties by the city to promote
opportunities for future redevelopment.

City of Royal Oak
Contact: Timothy Thwing
(248) 246-3280 $250,000 7 3

The City of Royal Oak intends to target its initial grant award of
$250,000 within its census tracts at risk of further foreclosure and
abandonment. The anticipated results of the NSP assistance include:
-- Assisting 5 homebuyers through direct homeownership downpayment
assistance;
-- Acquisition and rehabilitation of 2 abandoned or foreclosed
properties for resale to eligible households; and
-- Demolition of 3 blighted, vacant, and abandoned properties by the
city to promote opportunities for future redevelopment.

Grant Units Units
Award Developed Demolished
City of Ann Arbor
Contact: Jennifer Hall
(734) 622-9006 $300,000 16 4

The City of Ann Arbor intends to target its initial grant award of
$300,000 within its highest priority neighborhoods that are at risk of further
foreclosure and abandonment which are: Arbor Oaks/Bryant School, Mary Beth
Doyle Park, Esch Park and Woodbury Park, Mitchell/Scarlett School, Pittsfield
Elementary School, Kerrytown & West Park, Hunt Park & Forsythe School, and
Pontiac Trail & Traver. The anticipated results of the NSP assistance
include:
-- Assisting 16 homebuyers purchasing and rehabilitating foreclosed or
abandoned single-family homes through direct homeownership assistance
and/or housing counseling; and
-- Demolition of 4 blighted, vacant, and abandoned properties by the
city to promote opportunities for future redevelopment.

City of St. Clair Shores
Contact: Liz Koto
(586) 447-3350 $250,000 3 0

The City of St. Clair Shores intends to target its initial grant award of
$250,000 within three neighborhoods consisting of four census tracts that are
at risk of further foreclosure and abandonment. The city intends to use its
initial grant award to acquire and rehabilitate 3 abandoned or foreclosed
homes for resale to eligible households. The projects will promote
revitalization and homeownership in the city's older neighborhoods.

City of Jackson
Contact: Carol Konieczki
(517) 768-6438 $953,700 4 21

The City of Jackson intends to target its initial grant award of
$953,700 within its oldest residential neighborhood and area of greatest
need which is bound by Waterloo Street to the East, Ganson Street to the
North, Mechanic Street to the West and Pearl Street to the South. The
anticipated results of the NSP assistance include:
-- Acquisition and rehabilitation of 4 abandoned or foreclosed properties
for resale to eligible households and providing direct homeownership
down payment assistance; and
-- Demolition of 21 structures consisting of the Acme Building and 20
blighted, vacant, and abandoned residential properties by the city
and/or county Land Bank.

TOTALS (15 Grants) $7,536,540 116 276

SOURCE Michigan State Housing Development Authority

Mary Lou Keenon, Michigan State Housing Development Authority Communications
Office, +1-517-373-0011