Dearborn to Receive More than $1 Million; Michigan $30 Million

Dearborn, MI – Congressman John D. Dingell (D-MI15) praised the decision by the Obama Administration to invest more than $1 million in the City of Dearborn, Michigan, for the purpose of buying foreclosed homes, rehabilitating them, and reselling them to first-time home buyers and for tearing down abandoned homes.  The program is Dearborn, and across Michigan, has been a “tremendous success” said Congressman Dingell.  In total, Michigan will receive $30 million in funding for its Neighborhood Stabilization Program (NSP).

Congressman Dingell joined Dearborn Mayor John B. O’Reilly, Jr. in applauding the grant.  “I am very pleased that Dearborn will receive much-needed assistance to address home foreclosures and abandonment,” Congressman Dingell said.  “We are working diligently in Congress to keep hard-working Americans in their homes, but it is also important for our hardest hit communities to be able to start tearing down abandoned properties and rebuilding strong neighborhoods with an eye to the future.”

Mayor O’Reilly, Jr. added, “Dearborn is pleased to receive significant funding to continue our neighborhood stabilization efforts.  We hope to keep buying foreclosed homes and rehabbing them to sell to first-time home buyers, as we’ve done with previous federal funds, and also continue buying foreclosed properties in very poor condition to demolish and create larger residential lots.  Both initiatives have produced positive results in our neighborhoods by improving 58 sites, and having more funds will add to our momentum of success.” 

With its initial $2.44 million in funding, Dearborn was able to purchase 58 abandoned or foreclosed homes for rehabilitation or demolition, and the city expects to improve or demolish 30 more homes with this second round of funding.

The Department of Housing and Urban Development (HUD) recently announced the allocation of an additional $1 billion in funding for its Neighborhood Stabilization Program, as appropriated by the Dodd-Frank Wall Street Reform and Consumer Protection Act.  HUD will award over $30 million to the State of Michigan to help the communities hardest hit by foreclosure continue rehabilitating healthy neighborhoods.  In 15th Congressional District, the City of Dearborn will receive over $1.03 million, bringing its total NSP funding to over $3.46 million.

NSP projects include establishing financing mechanisms, acquiring and rehabilitating abandoned and foreclosed housing, operating landbanks, demolishing blighted property, and redeveloping property for housing projects.  At least 25 percent of the funds will go towards activities that provide housing for households at or below 50 percent of area median income.

Congressman Dingell was an original co-sponsor of the Housing and Economic Recovery Act (HERA) of 2008, which was signed into law by President Obama on July 30, 2008.  This comprehensive legislation established several programs, including NSP, to help homeowners avoid foreclosure, and to help minimize potential blight and associated problems in neighborhoods with high concentrations of foreclosed properties.

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