Mayor Duggan announces no-interest home repair
loans to help strengthen neighborhoods
City
joins forces with LISC, Bank of America to help homeowners
DETROIT—
Mayor Mike Duggan joined city, community and nonprofit partners to unveil the
Detroit 0% Interest Home Repair Loan Program, which will provide $8 million in
financing for eligible homeowners looking to patch roofs, replace windows,
upgrade plumbing and address structural or safety issues.
The
program is a city-led partnership with the Local Initiatives Support Corp. (LISC)
and Bank of America. It is designed to help homeowners fix deteriorating properties
and help eliminate blight—all while laying a foundation for renewed private investment
in areas struggling to attract capital. It’s a focused public-private
commitment to Detroit’s neighborhoods.
The
program targets Detroit homeowners earning up to 80 percent of the area median
income ($54,150 for a family of four), as well as households in targeted parts
of the city, regardless of their income. It helps fill a growing market
gap—owners who want to invest in their homes but can’t get affordable traditional
financing because property values have eroded their ability to borrow.
"We
worked very closely with HUD and our other partners to make sure these loans are
accessible to as many Detroiters as possible,” said Mayor Duggan, who added, “establishing
this loan fund will generate a wave of home improvement work across
the city that will raise property values and strengthen neighborhoods."
Funding
for the program comes from $4 million of
Community Development Block Grant funds from HUD, as well as $4 million from
Bank of America. LISC will use the funding to provide loans to qualified homeowners.
Borrowers will pay no interest on their
loans—the partners will absorb most of the costs to operate the program—but they
must pay back the principal. That helps homeowners improve their credit history
as they improve their homes, while also building a track record of loan
performance that will encourage others to lend and invest in these communities.
“Our
support of the Detroit 0% Interest Home Repair Loans Program in partnership
with the City of Detroit and LISC is yet another demonstration of our commitment
to aligning our resources to help revitalize Detroit, and more specifically its
neighborhoods,” said Matt Elliott, Michigan Market President, Bank of America.
“We see this partnership as a way to support homeowners with resources that
will improve their lives and be instrumental in sustaining the economic
vitality of our city.”
“The
impact of this program will go well beyond the walls of the houses it helps
repair,” said Michael Rubinger, LISC president and CEO. “We are building a case for investing in
homes, businesses, schools and parks in Detroit neighborhoods—even in places
that might appear too risky for conventional financing models. And we’re doing
it while lifting property values for hardworking families that are committed to
Detroit’s future.”
The
program taps highly regarded local nonprofits to help with outreach. Bridging
Communities, Central Detroit Christian CDC, Cody Rouge Community Action
Alliance, Detroit Non-Profit Housing Corp., Goodwill Industries of Greater
Detroit, Jefferson East, Inc., New Hope Community Development, Operation ABLE,
SER Metro Detroit, Southwest Economic Solutions, U SNAP BAC, and Wayne Metro
Community Action Agency each serve as Intake Centers, helping homeowners
complete the intake forms and start the loan application process.
“This
is an exciting opportunity for LISC to work in partnership with the Mayor to
bring new resources to the hardworking and proud residents of Detroit,” said
Tahirih Zeigler, executive director of LISC’s Detroit program, which over the
last 25 years has invested $187 million in Detroit neighborhoods. “With the 0% Interest Home Repair Loan
Program, homeowners can reinvest in their homes and play an active role in
revitalizing the city. The use of
long-standing local partners as intake centers allows homeowners to work with
organizations they are already familiar with.
This new product for financing home repair will support existing
residents to stabilize their neighborhoods and make Detroit more attractive to
new residents and businesses.”
The
City has scheduled five information sessions to help Detroit homeowners learn
more about the application process. Homeowners can pick up applications, talk
to City staff, and set application review appointments with Intake Centers.
Tuesday,
March 24th
6:00pm
to 7:00pm
Samaritan
Center, Ford Wellness Center Gymnasium
5555
Conner – Detroit, MI 48214
Thursday,
March 26th
6:00pm
to 7:00pm
NW
Activity Center Ballroom
18100
Meyers – Detroit, MI 48221
Thursday,
March 26th
6:00pm
to 7:00pm
Patton
Park Recreation Center
2300
Woodmere – Detroit, MI 48209
Saturday,
March 28th
11:00am
to 12:00pm
Don
Bosco Hall
19321
W. Chicago – Detroit, MI 48228
Saturday,
March 28th
11:00am
to 12:00pm
Heilmann
Recreation Center
19601
Crusade – Detroit, MI 48205
Near
E. State Fair and Hayes
###
About Bank of
America
Bank
of America is one of the world's largest financial institutions, serving
individual consumers, small- and middle-market businesses and large
corporations with a full range of banking, investing, asset management and
other financial and risk management products and services. Visit the Bank of America newsroom for more Bank of America news.
About LISC
LISC
combines corporate, government and philanthropic resources to help nonprofit
community development corporations revitalize distressed neighborhoods across
the country. Since 1980, LISC has invested $14.7 billion to build or rehab
330,000 affordable homes and apartments and develop 53 million square feet of
retail, community and educational space. For more, visit www.lisc.org
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