Neighborhood Stimulus Grant

By Jonathan Kleyer

The City of Kalamazoo and the Kalamazoo County Land Bank Authority, will jointly receive approximately $15.6 million in neighborhood stabilization stimulus funding, to reinvigorate six downtown core neighborhoods struggling with foreclosures and abandoned, blighted housing.

The announcement, made in Detroit the afternoon of January 14th by Shaun Donovan, the Secretary of Housing and Urban Development, will bring $223.8 million to twelve Michigan communities.

As for Kalamazoo, the City and County announced that it will strategically target the grant funding in the Vine, Edison, Northside, Eastside, Fairmont, and Stuart neighborhoods to transform abandoned, foreclosed, and vacant property into quality housing stock for Kalamazoo County.

The City and County intend to direct the funding into Kalamazoo’s local economy by investing in sustainable housing rehabilitation, blight removal, new construction with a focus energy efficiency and green building techniques, and financial assistance to homebuyers.

City of Kalamazoo Mayor Bobby Hopewell, who was in Detroit for the funding announcement, said “The neighborhood stabilization funds come at a time of great need in our community, and we will be directly investing them in the future of our core neighborhoods: making them stronger, more sustainable, and stable for city residents and homeowners.”

The Kalamazoo County Land Bank Authority was officially formed on September 2nd, 2009, through the leadership of Kalamazoo County Treasurer, Mary Balkema, with support from the Kalamazoo County Board of Commissioners and other various community leaders and officials.

In response to the U.S. Department of Housing and Urban Development’s (HUD) announcement, Balkema stated, “Getting the money is just the beginning. How we work together as a community to ensure a return on investment is the key. We are not just rebuilding homes, we are rebuilding lives and completing neighborhoods.”

HUD had issued a Notice of Funding Availability for $1.93 billion Neighborhood Stabilization 2 (NSP2) funds on May 4th, 2009.

NSP2 funds are intended to address foreclosure recovery and neighborhood stabilization in high need and high risk communities consistent with the objectives and rules of the American Recovery and Reinvestment Act of 2009.

The Michigan State Housing Development Authority (MSHDA), organized a Michigan Consortium that consists of 12 cities working in collaboration with eight land banks in high need and high risk communities in Michigan. On July 15th, 2009, the Michigan Consortium submitted a request for $290 million of the neighborhood stabilization funds.

The City and County will work with the housing development authority to finalize an action plan, timeline, and funding agreement.

According to the Kalamazoo County Land Bank, it is anticipated that Kalamazoo’s Neighborhood Stabilization Program will be underway in late spring and that all funding will be fully expended by February 2013.