White House: $311.33M Will Be Provided to Detroit to Assist Bankruptcy Recovery

White House: $311.33M Will Be Provided to Detroit to Assist Bankruptcy Recovery

WASHINGTON. D.C — (Mealey’s) The White House announced on Sept. 27 that it is providing more than $311 million to help the bankrupt City of Detroit through a combination of federal block grant programs as well as money from the U.S. Department of Transportation (DOT), the Federal Emergency Management Agency (FEMA) and private foundations.

 The total amount of money being provided to Detroit is $311.33 million.

Grants

The money includes $65 million from the federal Community Development Block Grant Program (CDBG) for rehabilitating areas of blight and rehabilitating housing in connection with community revitalization efforts being run by the U.S. Department of Housing and Urban Development (HUD), according to a fact sheet provided by the White House.

The facts sheet indicated that through a public-private partnership among HUD, city and state agencies and unspecified “business and philanthropic partners,” $25.4 million will be provided for the demolition of commercial buildings.

The $25.4 million will be designated as follows:

  • $5 million in Neighborhood Stabilization Program (NSP-3) funding from HUD and the city;
  • $5.4 million of repurposed CDBG funding from HUD and the city;
  • $5 million in program income from NSP-2 from the State of Michigan; and
  • $10 million through the fundraising efforts of philanthropic and business organizations.

 Housing Assistance

According to the fact sheet, the U.S. Environmental Protection Agency and the U.S. Department of the Treasury are providing $52 million for “blight elimination”; HUD is making $10.18 million available to the city to support affordable housing; the EPA is awarding $1.1 to the city for environmental assessment and the cleanup of brownfield sites; and the Treasury Department, through a partnership with the Michigan State Housing Development Authority, is expanding the tax lien assistance program.

The Ford Foundation is providing $1.5 million in operating cash for the Detroit Land Bank Authority between 2014 and 2018 and is giving $1 million to Invest Detroit for the acquisition and predevelopment of residential properties, which is a project that also gets ongoing support from the Kresge Foundation.  The Skillman Foundation is providing $500,000 for blight removal in Detroit neighborhoods.

Transportation

The city is also set to receive $134.7 million, comprising $100 million in DOT funds to repair and rehabilitate buses and provide security cameras; $25 million for the city’s M1 Rail Streetcar Project; $6.4 million for the newly created Regional Transit Authority; $300,000 for the design of “high-performing transportation system”; and $3 million for property acquisition related to the M1 Rail project, according to the fact sheet.

Additional money includes $29.95 million for the following:

  • $3 million in Justice Department funds for hiring new police officers, establishing a bike patrol, supporting prisoner re-entry programs and supporting youth anti-violence programs;
  • $25 million in FEMA funding that will enable the hiring of 150 firefighters;
  • $1.35 million in the next six months to improve safety in neighborhoods and to build a community policing model; and
  • $300,000 from the Skillman Foundation and a $300,000 investment from the Kresge Foundation to improve the police department’s CompStat system and ensure safe pathways to school for kids.

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