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V A C A N T P R O P E R T Y P L A NG R A N D M O N T R O S E D A L E

COMMITTED TO THE REVITALIZATION OF DETROIT AND ITS NEIGHBORHOODSI N I T I A T I V E O F D E T R O I T L I S C L E D B Y C O M M U N I T Y L E G A L R E S O U R C E S

P a g e l 3

Table of ConTenTs

abouT DVPC 3

abouT GRDC 4

neiGhboRhooDs 5Map: Neighborhoods 5

ChallenGe 6

PRoCess 7

sTRaTeGy 8Map: Residential Vacancy 8

Map: Residential Block Vacancy 9

Map: Condition 10

Map: Ownership 11

Action Steps and Timeline 13

Budget 15

Support 15

June 2010


P a g e l 5

abouT The DVPC

The Detroit Vacant Property Campaign (DVPC) is a cross-sector collaboration of community advocates and leaders who are working together to develop and implement strategies to address conditions of vacancy, blight, and abandonment in Detroit. Through support from the Local Initiatives Support Corporation (LISC) and the Kresge Foundation, DVPC comprehensively addresses the foreclosure and vacant property crisis in neighborhoods across Detroit.

The Detroit Vacant Property Campaign is comprehensively responding to the vacant property crisis through education and outreach, technical assistance, vacant property planning, and policy work.

The DVPC aPPRoaCh To TeChniCal assisTanCe anD VaCanT PRoPeRTy PlanninG

DVPC provides technical assistance to community development corporations, non-profits, community groups, and partner organizations to empower organizations to achieve two goals: mitigate the negative impact of vacant property on the surrounding community and turn vacant properties into neighborhood assets. Our technical assistance approach is defined by the following four characteristics:

Neighborhood-specific: Certain variable factors impact a neighborhood’s vacant property situation, such as the level of community engagement, the foreclosure rate, and market strength. The combination of these variable factors creates a vacant property situation that is unique to each neighborhood. The core component of DVPC technical assistance and planning work is neighborhood engagement. DVPC works directly with local stakeholders to understand the vacant property situation in the area and develop an implementation strategy to effectively mitigate the vacant property issues.

Data Driven: DVPC technical assistance joins data and analysis with decision makers to improve their ability to respond effectively to vacant properties. Our approach marries external data with community-generated data. We believe that by incorporating community-generated data, our technical assistance will benefit from data left out of external sources, such as qualitative quality of life variables.

Market- and Asset-Based: In order to develop an appropriate response to vacant properties, it is imperative that plans and strategy recommendations are firmly based on the market conditions in a neighborhood. In addition, a neighborhood’s assets can play a large role in resident attraction and retention strategies. For this reason, DVPC technical assistance also focuses on reinforcing and generating neighborhood assets.

Strategic: DVPC encourages the use of multiple strategies in a targeted and phased approach to addressing vacant properties. There is no single “silver bullet” strategy for responding to vacant properties in Detroit. In order to respond effectively, plans must include many layered strategies that consider ownership, property condition, and location.

T E C H N I C A L A S S I S T A N C E

Vacant property mapping

Analysis of assets and market activity

Production of ownership, lien, and title data

Strategies for vacant property mitigation and community-based

interventions

S E R V I C E S O F F E R E Dm a p p i n g

s t r a t e g y

o w n e r s h i p

a n a l y s i s

P O L I C Y / S Y S T E M R E F O R M

Policy development for vacant property related issues

Analysis of current or proposed policies

S E R V I C E S O F F E R E Ddevelopment

a n a l y s i s

VACANT PROPERTY PLANNING

Development of plan aimed at returning vacant properties to

neighborhood assets

Title and ownership analysis focused on identifying barriers to

redevelopment

S E R V I C E S O F F E R E D

a n a l y s i s

p l a n n i n g

E D U C A T I O N / O U T R E A C HS E R V I C E S O F F E R E D

DVPC vacant property publications and informative community

presentations

Grants for organizations to employ innovative vacant property

maintenance and security activities

f u n d i n g

e d u c a t i o n



6 l P a g e

abouT The GRanDmonT RoseDale DeVeloPmenT CoRPoRaTion

The Grandmont Rosedale Development Corporation (GRDC) is a non-profit, 501(c)(3) corporation founded in 1989 as a cooperative effort of four northwest Detroit neighborhood associations. Five neighborhood organizations now sponsor GRDC. The organization represents more than 5,500 households and 400 businesses.

GRDC’s mission is to preserve and improve the Grandmont Rosedale communities through community-based housing and economic development.

In the past twenty-one years, GRDC has revitalized its community in the following ways:

• successfullyrenovatedandsold 51 once-abandonedsingle-familyhousesthroughitsHomeRenovationProgram,

• recently built including 3newhouses and sold them to low/moderate-income families,• providedloans,grantsandassistanceto100homeownersthroughitsNeighborhood

LoanProgramandtheCityofDetroit’sHomeRepairProgram.Severalmoreloansareinprogress,

• renovated 4 commercial buildings,• wasdesignatedasa Cool Cities NeighborhoodbytheStateofMichiganforitsGrand

RiverAvenuecommercialdistrict,• helped87 businesses alongGrandRiver update and improve their storefronts through

the Commercial Façade Improvement Program,• sponsored the all-volunteerGraffiti Busters who removed graffiti from over 650

buildings,nearlyeliminatingtheonceseriousgraffitiproblem,• brought inover$2 million in investment to improvetheGrandRiverAvenuestreetscape

including new paving, new streetlights, new sidewalks, decorative crosswalks, newbus stops, landscaping, a community mural, and new signage throughout the district,

• openedandoperatesaweeklyNeighborhood Farmers’ MarketandCommunity Gardeneachsummer/fall,

• renovated 7 neighborhood parks and school playgrounds,• installedanewfootballfieldatStoepelParkwiththehelpofa$90,000grantfromthe

NationalFootballLeague/LocalInitiativesSupportCorporation,• partneredwith the Greening of Detroit, the GM Foundation, the University ofMichigan,

Rosedale Park Improvement Association, North Rosedale Park Civic Association and CityYear to take down over 220 dead ash trees and plant 285 new trees in North RosedalePark and Rosedale Park, and

• plantedatotalofover600treesthroughoutthecommunity.

GRDC PRoGRam aReas

• vacant house renovation and sale • foreclosure education and response• home repair grants and loans• commercial strip revitalization• economic development• farmers’ market• community garden• park/playground renovation• community marketing• community organizing• neighborhood beautification

G R a n D m o n T R o s e D a l e DeVeloPmenT CoRPoRaTion

19800GrandRiver,Detroit,MI48223p:313-387-GRDCf:313-387-5158

www.grdc.org

Tom Goddeeris, Executive [email protected]

Cathy Marks Marshall, Deputy [email protected]


P a g e l 7

The neiGhboRhooDs

The Grandmont Rosedale neighborhoods are located in northwest Detroit. The community is composed of 5 contiguous neighborhoods including: North Rosedale Park, Rosedale Park, Minock Park, Grandmont and Grandmont #1.

The Grandmont Rosedale subdivisions were planned around 1920, changing the character of the area from agricultural to residential. Throughout the 1920s and 1930s, large brick homes in a variety of styles were constructed in the area. These neighborhoods attracted many prominent businessmen, and were soon counted among Detroit’s most prestigious communities. Homes continued to be built through the 1950s, resulting in a wide range of housing choices. In the late 1920s, residents formed homeowner associations, which have operated continuously to the present day, making them among the oldest neighborhood organizations in the city.

Ten years ago, according to the 2000 census, there were a total of 18,683 persons in the area. The average household size was 2.8. The median income per neighborhood ranged between $41,567 and $88,890.

North Rosedale Park: North Rosedale Park is comprised of 1,694 homes. It is bounded by McNichols, Southfield, Grand River, and Evergreen. North Rosedale Park’s assets include: the North Rosedale Park Community House, a six acre park surrounding the community house, and T. Dale Cooke Elementary School. It is served by the North Rosedale Park Civic Association.

Rosedale Park: Rosedale Park is a historic Detroit neighborhood comprised of 1,550 homes. It is bounded by the Southfield Freeway, Acacia and Lyndon, Evergreen and Outer Drive, and Grand River. Rosedale Park’s assets include: historic district designation, Flintstone Park, and Stoepel Park. It is served by the Rosedale Park Improvement Association.

Minock Park: Minock Park is comprised of 300 homes. It is bounded by Outer Drive, Fenkell, Evergreen, and Grand River. Minock Park’s assets include: a wide variety of housing types and price points. It is served by the Minock Block Association.

Grandmont: Grandmont is comprised of 1,030 homes. It is bounded by Schoolcraft, Asbury Park, Grand River, and the Southfield Freeway. Grandmont’s assets include: Edison Elementary School (grades K-6) and the newly renovated Ramsay Park. It is served by the Grandmont Community Association.

Grandmont #1: Grandmont #1 is comprised of 940 homes. It is bounded by Southfield, Schoolcraft, Grandville, and Lyndon and Acacia. Grandmont #1’s assets include: the newly renovated Flintstone Park. It is served by the Grandmont #1 Improvement Association.

North Rosedale Park is comprised of 1,694 homes. It is bounded by McNichols, Southfield, Grand River, and Evergreen. North Rosedale Park’s assets include: the North Rosedale Park Community House, a six acre park surrounding the community house, and T. Dale Cooke Elementary School. It

Rosedale Park is a historic Detroit neighborhood comprised of 1,550 homes. It is bounded by the Southfield Freeway, Acacia and Lyndon, Evergreen and Outer Drive, and Grand River. Rosedale Park’s assets include: historic district designation, Flintstone Park, and Stoepel Park. It is served by the

Minock Park is comprised of 300 homes. It is bounded by Outer Drive, Fenkell, Evergreen, and Grand River. Minock Park’s assets include: a wide variety of housing types

Grandmont is comprised of 1,030 homes. It is bounded by Schoolcraft, Asbury Park, Grand River, and the Southfield Freeway. Grandmont’s assets include: Edison Elementary School (grades K-6) and the newly renovated Ramsay

Grandmont #1 is comprised of 940 homes. It is bounded by Southfield, Schoolcraft, Grandville, and Lyndon and Acacia. Grandmont #1’s assets include: the newly renovated Flintstone Park. It is served by the Grandmont #1 Improvement

North Rosedale Park

Rosedale Park

Grandmont 1

Grandmont

MinockPark

Grand River

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McNichols

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The neiGhboRhooDs


8 l P a g e

The ChallenGe

The Grandmont Rosedale neighborhoods have had a stable history of home sales, occupancy, and overall quality of life, covering several decades. However, macro-level forces and recent changes in the local market have contributed to unprecedented neighborhood instability. The four most prominent factors leading to instability in the Grandmont Rosedale neighborhoods are rising foreclosures, increasing vacancies, declining housing values and decreasing market sales.

Foreclosures: In the Grandmont Rosedale neighborhoods, there were 1,200 foreclosures from 2005 through the second quarter of 2009 (First American Core Logic).

Vacancies: In 2000, Grandmont Rosedale had a housing vacancy rate of 2%, considerably lower than the 10% vacancy rate for the city (Census, 2000). By the end of 2009, that vacancy rate climbed to 11%, with 657 houses vacant in Grandmont Rosedale (Grandmont Rosedale).

Housing Values: Average housing sales prices for traditional market sales have fallen by 40% from 2005 to second quarter of 2009 across the neighborhoods. In 2005, average market sales prices ranged from $171,000-$101,000, but by the second quarter of 2009, the range fell to $125,000-$65,000 (First American Core Logic).

Market Sales: In a matter of four years, the number of market sales decreased by 75% in Grandmont Rosedale neighborhoods (First American Core Logic).

These four factors led to a decline in the neighborhood’s housing market and quality of life. Given the community’s historic stability, these changes could potentially lead to a dramatic decline and disinvestment in one of Detroit’s strongest neighborhoods. Immediate and concentrated action is needed in the community to preserve the quality housing stock, spark a resurgence of private market activity, and return to the historic stability for the neighborhoods.

Foreclosures

Vacancies Housing Value

Market Sales

NeighborhoodInstability


P a g e l 9

The PRoCess

The DVPC vacant property planning process revolves around input from community stakeholders. Stakeholders make up the Planning Committee and are the lead decision makers. During the DVPC vacant property planning process, the Planning Committee is presented with data on vacancy, condition, ownership, and market activity. With this information, the Committee identifies a goal and strategies to address vacant properties in the neighborhood. The process is very narrowly focused on structuring immediate responses to vacant properties. The final stage of the process is the implementation of the plan, a responsibility that lies with the planning participants and the lead committee members.

In November of 2009, DVPC initiated the vacant property planning process in the Grandmont Rosedale neighborhoods, at the request of the Grandmont Rosedale Development Corporation.

Planning Committee:

Lead: Grandmont Rosedale Development Corporation (GRDC)Tom GoddeerisCathy Marshall

Facilitator: Detroit Vacant Property Campaign (DVPC)Heidi MucherieDanielle BoberTara AuBuchon

Members: North Rosedale Park Civic AssociationClarenda WebbBill FreyWendy Jackson

Rosedale Park Improvement AssociationRenee KentCarolyn Cruse

Minock Block AssociationKen Wolfe

Grandmont Community AssociationRichard Berlin

Grandmont #1 Improvement AssociationDuane Perry

Detroit Local Initiative Support CorporationBrandon IvoryChris Plummer

Next Detroit Neighborhood InitiativeSteve OgdenMonica Smith

Detroit Land Bank Authority BoardSteve Ogden

I M P L E M E N T

D I S C O V E R

A N A L Y Z E

P L A N

I D E N T I F Y

Identify a planning

committee

Identify community

generated data

Present preliminary

dataIdentify plan

goal

Present vacant property and

condition data

Present available property

inventories

Present market information

Draft area and target

strategies

Present drill down ownership analysis

for target areaDetermine

acquisition criteria

Assemble �nancing, holding, and acquisition

information

Finalize area and target strategies

Develop action plan, timeline, and budget

Draft and �nalize plan document

The PlanninG PRoCess


10 l P a g e

ResiDenTial VaC anC y

Vacant Structure (657 or 11%)

Legend

Vacant Residential Structures

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boro

ugh

Tournier

Scarsdale

War

wic

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Midland

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Midland

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ton

Kendall Kendall

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Lyndon

Chalfonte

Eaton

Residential vacancy rose sharply in the past few years in the Grandmont Rosedale neighborhoods as a result of increased foreclosures. In order to obtain the most up-to-date data, the residents conducted a vacant property survey in December 2009. In addition, GRDC compiled the list of addresses where the US Postal Service could not deliver mail. The combination of these two sources revealed that there are approximately 660 vacant properties in the Grandmont Rosedale neighborhoods. This represents over 11% of the area’s 5500 residential dwellings.

DataSource:GRDC,Jan2010


P a g e l 11

0-1 (38% of blocks)

2-3 (29%)

4-6 (23%)

7 or more (9%)

LegendNumber of Vacant Residential Structures, Per Block

Grand River

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Schoolcraft

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Fenkell

Lyndon

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Verne

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Penr

od

Pied

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boro

ugh

Tournier

Scarsdale

War

wic

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Midland

Pilgrim

Puritan

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bury

Midland

Ash

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Kendall Kendall

Pilgrim

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Keeler

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Lyndon

Chalfonte

Eaton

ResiDenTial bloCk VaC anC y

The residential vacancy rate for all of the Grandmont Rosedale neighborhoods is 11%. When the vacancy data is aggregated to the street block level (both block faces on a street), it becomes clear that while there are a few areas with concentrated vacancy, the vacancy is generally dispersed throughout the neighborhood. Each neighborhood has a pocket of higher vacancy, but these pockets are scattered throughout the Grandmont Rosedale community.DataSource:GRDC,Jan2010


12 l P a g e

Vacant Residential Structure Condition

Good (153 or 23%)

Fair (146 or 22%)

Poor (22 or 3%)

Demolish (15 or 2%)

No Data (321 or 49%)

Legend

Grand River

Grand RiverM

-39

Sou

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-39

Sou

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McNichols

Schoolcraft

Ever

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Fenkell

Lyndon

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Verne

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War

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k

Art

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Penr

od

Pied

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Acacia Acacia

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Tournier

Scarsdale

War

wic

k

Midland

Pilgrim

Puritan

Plai

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w

Gla

ston

bury

Midland

Ash

ton

Kendall Kendall

Pilgrim

Stah

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Rose

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Keeler

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Lyndon

Chalfonte

Eaton

ConDiTion

The condition of vacant residential structures in the Grandmont Rosedale neighborhoods is quite good compared with the rest of the city. Grandmont Rosedale residents gathered data on a portion of the vacant properties in December 2009. In general, most properties surveyed are in good to fair condition. Only fifteen of the properties surveyed are potential candidates for demolition.DataSource:GRDC,Jan2010


P a g e l 13

owneRshiP

The ownership of vacant properties in Grandmont Rosedale can be broken down into four categories: 1) Investors (companies or individuals that own multiple pieces of property), 2) Individuals (owning only one property), 3) Real Estate Owned (REO - includes banks and Government-Sponsored Enterprises), and 4) Other (includes non-profit entities and municipalities). Generally, the breakdown of vacant property ownership does not demonstrate significant spatial trends or densities. Nearly 50% of the vacant houses are owned by investors. These investors include in and out-state companies as well as individuals in the city who own

multiple pieces of property. Grandmont Rosedale also has a high number of REO properties, which presents an opportunity for a short-term acquisition strategy.

DataSource:DVPCMarch2010

Investor (326 or 50%)

Individual (142 or 22%)REO (176 or 27%)

No Type Determined (2 or 0%)

Ownership Type of Vacant Residential Structures

Other (11 or 2%)

Legend

Grand River

Grand River

M-3

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M-3

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McNichols

Schoolcraft

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Fenkell

Lyndon

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Verne

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k

Art

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Penr

od

Pied

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Acacia Acacia

Gra

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Bretton

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Rose

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Min

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Long

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ton

Lancashire

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Stah

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Gra

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Grove

Mid�eld

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Gainsborough

Shaf

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Edin

boro

ugh

Tournier

Scarsdale

War

wic

k

Midland

Pilgrim

Puritan

Plai

nvie

w

Gla

ston

bury

Midland

Ash

ton

Kendall Kendall

Pilgrim

Stah

elin

Rose

mon

t

Gre

envi

ew

Keeler

Oute

r

Lyndon

Chalfonte

Eaton


14 l P a g e

The sTRaTeGy

After reviewing the preceding maps on vacancy, condition, and ownership, assessing the current vacant property situation in the neighborhoods, and discussing neighborhood priorities, the Planning Committee came to a consensus on an overarching goal for the vacant property plan.

Goal: Stabilize the local housing market in the Grandmont Rosedale Communities, in order to help to preserve this area’s position as a “Neighborhood of Choice” in Southeast Michigan.

To accomplish this goal, the Planning Committee set four measurable objectives:

1. Reduce the rate of vacant residential structures to less than 10% within two years and to less than 5% within five years.

2. Restore the rate of owner-occupancy to 90% in 10 years.

3. Stop or reverse the trend of declining median sales prices for market sales.

4. Reduce the number of vacant properties rated as “poor condition” or needing demolition to zero.

The implementation for the vacant property plan is intended to be short-term, however the Planning Committee acknowledged that macro-level forces may impede their progress on some of the objectives, so the Committee set aggressive, yet realistic terms for some objectives. For

example, ideally, the Planning Committee would like to see traditional owner-occupants move into vacant properties; however, the Planning Committee recognizes that in the short-term, lease purchase and rental may be more realistic for certain occupants, given the tight credit market. Therefore, the Committee set a ten year goal to return to the owner-occupancy rate the community had in 2000, 90%.

The sTRaTeGy: Goal, obJeC TiVes, aC Tions

2012

2020

2015 2012

2

012

Build pipeline of

pre-quali�ed homebuyers

Establish pre- and post-

homebuyer counseling

Develop incentives for

homeownership

Aggressively market

neighborhood

Gain local control of

housing market

Increase homeowner

property maintenance

Provide home repair

grants

Demolish properties

Increase code

enforcement

Acquire, rehab, and sell 50 properties

Increase resident

retention

Aggressively market

neighborhood

Stabilize the local housing market to help preserve this area’s position as a “Neighborhood of

Choice”

Reduce vacancy rate to less than 10%

Reduce vacancy rate to

less than 5%

Stop declining median sales

prices

Increase owner

occupancy rate to 90%

Remediate all vacant

houses in poor or demolish

condition


P a g e l 15

aCTion sTePs anD Timeline

In order to accomplish the Grandmont Rosedale vacant property plan’s goal and objectives, the Planning Committee outlined an aggressive action plan and timeline, summarized below. The action steps are designed to address the plan objectives in the next two years. The Planning Committee assigned responsibilities to each activity. The Grandmont Rosedale Development Corporation is responsible for overseeing all activities; however, the five community organizations have responsibilities as well.

2010 2011 2012Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Acquire and Rehabilitate/ Gain Local Control

Acquire, rehab, and sell 50 properties (3 per month)Monitor REO inventories for possible acquisition

Host bimonthly homebuyer workshopsWork with partner to deliver homebuyer counseling

Increase Resident RetentionDisseminate foreclosure prevention materials

Aggressively MarketDevelop marketing materialsExecute marketing strategy focusing on attracting new residentsRevamp websiteCreate and disseminate positive media stories

Increase Property MaintenanceHold neighborhood clean up events and paint boarded housesPressure property owners and property preservation companies toadhere to property maintenance standards Work with City to perform targeted code enforcement blitzesEnsure compliance with Rental RegistryMaintain vacant property list and monitor poor condition properties

Provide Home Repair GrantsApply for additional MSHDA HOME and City CDBG home repair fundsProvide 40 forgivable home repair loans to homeowners

Demolish PropertiesAcquire and demolish 3 propertiesAdvocate for demolition of other properties

Build Pipeline of Pre-Quali�ed Homebuyers/Establish Homebuyer Counselling

Identify sources for down payment assistanceDevelop Incentives for Homeownership

Reprogram existing CDBG for acquisition development resale (ADR)Update commitment of City HOME funds for ADR

Secure acquisition pool of fundsSecure NSP funding for ADR

Establish revolving line of creditSecure construction and development loans

aC Tion sTePs anD Timeline


16 l P a g e

Acquire and Rehabilitate/ Gain Local Control: Acquisition, rehabilitation, and resale of vacant properties is a main component of the Grandmont Rosedale Vacant Property Plan. The Planning Committee established a target of 50 houses in a 16 month term.

The first phase of the acquisition/rehab/sale strategy is assembling multiple sources of financing for acquisition and rehabilitation.

• Public: Neighborhood Stabilization Program (NSP) funds are not currently targeted for the Grandmont Rosedale communities. GRDC is working with the City of Detroit’s Planning and Development Department as well as the Detroit Land Bank Authority to see if NSP plans could be augmented to support the current vacant property plan in Grandmont Rosedale. Additionally, GRDC obtained commitments for City of Detroit HOME funds and City of Detroit Community Development Block Grant funds for the acquisition, development, and resale program.

• Private: The financing strategy for acquisition also includes attracting an infusion of private capital. GRDC is working with a consultant to develop acquisition and development funding sources from private foundations, intermediaries and other lenders.

Once a financing structure is established, GRDC will move on to the acquisition and rehabilitation phase of the strategy. GRDC set an acquisition target of three properties a month for 16 months beginning in the summer of 2010. The Planning Committee did not choose a specific target area for its acquisition/rehab/sale activity. This decision was made strategically because the data examined did not show a singular area or trend where conditions of vacant properties were significantly deteriorating and dramatically impacting surrounding blocks. Rather than limiting acquisition to a singular geography, the Planning Committee chose to allow GRDC to determine properties for acquisition within the boundaries of the following acquisition considerations:

• Ease: Can GRDC quickly or economically acquire the property? • Scale: Can GRDC acquire more than one property from this source?• Proximity: Are there other vacant properties around this vacant property that could be acquired

to have an immediate impact on block stability?• Affordability: Will the property’s long-term affordability match the income requirements of the

funding source?

In order to gain local control of vacant properties in the Grandmont Rosedale neighborhoods, acquisition may occur at a faster rate than the rate of rehabilitation. To address this issue and to mitigate holding costs, GRDC will work with the Detroit Land Bank Authority (DLBA) to hold the properties to 1) take advantage of the financial incentives that the DLBA offers and 2) appropriately phase rehabilitation of the properties to respond to the flow of funds and market demand.

Aggressively Market: The current housing market in Southeast Michigan is quite competitive. Lower selling prices have opened markets that would have otherwise been cost prohibitive to potential homeowners. Given the “buyers market,” Grandmont Rosedale will need to compete not just with other neighborhoods in the City, but also with suburban neighborhoods that may offer other services and amenities. For these reasons, the Planning Committee recognized that a comprehensive marketing campaign must be an integral component of implementation.

GRDC will develop professional marketing materials that highlight the neighborhoods’ unique housing stock, assets, and competitive advantages. GRDC will then use a multi-pronged approach to distribute the materials that will include working with local realtors, human resources departments, and relocation/employee search programs. GRDC will also host a Neighborhood Open House and plan a large media event structured around the launch of the acquisition/rehab/sale strategy.


P a g e l 17

Increase Resident Retention: In addition to attracting new residents, the Planning Committee also identified resident retention as a priority. GRDC will continue the foreclosure prevention activities in the neighborhoods. They will disseminate foreclosure prevention information through the neighborhoods’ newsletters, flyers, and posters. Also, GRDC will host at least one neighborhood workshop or fair focused on homeownership and foreclosure prevention.

Develop Incentives for Homeownership: The Planning Committee identified homeownership as the ideal goal of home rehabilitation. However, given the tight credit market, GRDC will need to attract additional incentives for potential homeowners. For example, GRDC will try to identify appropriate sources of down-payment assistance.

Build Pipeline of Pre-Qualified Homebuyers/Establish Homebuyer Counseling: Attracting new residents to the neighborhood is important; however, to develop long term stability, it is crucial to prepare new homebuyers through counseling activities. GRDC will explore the option of having an in-house homebuyer counselor and also work with partner organizations to deliver homebuyer training, credit counseling and mortgage qualifying services. Lastly, GRDC will host bimonthly homebuyer workshops once the acquisition phase begins.

Increase Property Maintenance: GRDC currently works with the neighborhoods on a number of initiatives to increase property maintenance including maintaining a vacant property database, painting boarded houses, and distributing tip sheets on watching vacant houses and dealing with squatters. GRDC and the neighborhoods recruit volunteers to watch and maintain vacant houses, schedule regular neighborhood clean up events, and establish code enforcement committees. In order to ramp up the property maintenance activities, GRDC will work closely with the Buildings and Safety Engineering Department (B&SE) to perform code enforcement blitzes in target areas and encourage rental property owners to comply with the rental registration regulations.

Provide Home Repair Grants: The focus of the vacant property plan is to improve the maintenance of vacant properties; however, the Planning Committee also decided that improving the maintenance of owner-occupied properties would improve the overall stability of the neighborhood. So, GRDC will provide 40 MSHDA-funded forgivable loans and eight CDBG-funded Home Repair Grants to residents for home repair. GRDC will also apply for renewal and expansion of home repair funding in addition to pursuing new funding from the Retrofit Ramp Up program.

Demolish Properties: GRDC will work with the Building and Safety Engineering Department to monitor the status of the fifteen vacant properties in the area that need demolition and will advocate for building demolition at City Council.

Amount

$6,900,000

Acquire and Rehabilitate/ Gain Local Control $5,220,000

Aggressively Market $25,000

Increase Resident Retention $5,000

Increase Property Maintenance $15,000

Provide Home Repair Grants $1,000,000

Demolish Properties $35,000

Program Management and Implementation $600,000

City of Detroit Buildings and Safety Engineering

City of Detroit CDBG Program

City of Detroit HOME Program

Detroit Vacant Property Campaign

Development Corporation of Wayne County

Eastern Michigan University Capacity Building Program

Federal Home Loan Bank of Indianapolis

Ford Foundation

Local Initiatives Support Corporation

Michigan State Housing Development Authority

Neighborhood Volunteers

O�ce of Foreclosure Prevention and Response

State of Michigan Cool Cities Program

University of Michigan AmeriCorps Program

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