Planning & Development Department

Site Navigation
  

NSP I

NSP I PresentationAs part of Mayor Bing's efforts to Transform Detroit, the City utilized funds from the U.S. Department of Housing and Urban Development to address vacant, abandoned and foreclosed properties in Detroit neighborhoods.
 
The Detroit Neighborhood Stabilization Program 1 (NSP1) targets nine neighborhoods and includes the construction and rehabilitation of homes to provide for renters and those seeking home ownership.
 
For a look at some of the work completed under NSP1, click here.

NSP I Executive Summary


In response to the national foreclosure and subprime lending crisis, in July 2008, Congress enacted the Housing and Economic Recovery Act of 2008. Primarily designed to address the impacts of foreclosure in communities hardest hit by the crisis, this legislation aims to foster market recovery and stabilize neighborhoods. States, cities and counties will receive a total of $3.92 billion to acquire, rehabilitate, demolish, and redevelop foreclosed and abandoned residential properties. With the realization that while these funds empower state, county and local governments to provide some level of response and relief in their respective communities, the funds allocated are by no means a comprehensive remedy to the larger crisis.

As the city with the highest home foreclosure rate among the nation’s 100 largest metropolitan areas, the city of Detroit has suffered tremendous impacts as a result of this crisis. With over 67,000 foreclosed properties, 65% of which remain vacant, the City of Detroit recognizes that the $47 million allocation must be implement in a manner that is strategic, efficient and yields great results. Noting that Detroit faced several challenges prior to this crisis, including a shrinking population still spread across a large land mass, a market where the supply of housing exceeded the demand, a declining tax base, older housing stock, and an old infrastructure system to name a few, we recognize the need to strategically utilize these funds to stabilize neighborhoods hardest hit by the foreclosure crisis, devise proactive remedies for anticipated future foreclosure activity, and foster market recovery for enhanced quality of life.

It is important to note the strong focus on demolition activity in the plan, which accounts for approximately 30% of the total award amount. Due to the number of vacant properties, duration of vacancy and the market conditions, eliminating blighted structures in the target neighborhoods for future development or alternative land uses will have a tremendous stabilizing impact. Priorities for demolition will include structures adjacent to development projects nearing completion, and concentrations of blighted, vacant properties.

This plan details the City of Detroit’s strategy for utilizing these funds to achieve the goals for which the program was designed. While the foreclosure problem is widespread, touching almost every neighborhood in the city, investing these funds on a citywide basis will not yield the impact or results needed. As such, we have used the data to determine a targeted approach, focusing on nine neighborhoods. By targeting the allocation, the opportunity for sustained impact is significantly higher. Once implemented, this plan will result in stabilization of neighborhoods most severely impacted by foreclosure and abandonment, reversal of the decline of neighborhood housing values, significant elimination of blighted and abandoned structures, and stimulation of other investment in and around the target neighborhoods.

The Planning & Development Department convened meetings will key stakeholders including Community Development Advocates of Detroit, City Planning Commission, Michigan State Housing Development Authority, Office of Foreclosure Prevention, LISC, Wayne County and financial institutions. Opportunities to leverage the Detroit NSP award amount and engage partners in implementation was discussed and will be further detailed once the plan is submitted.


NSP Targeted Communities and Maps

Detroit NSP Plan (pdf file) This file contains the complete NSP document with all summaries and maps.

Copies of the Plan are available for review in the City of Detroit Planning and Development Department, 65 Cadillac Square - Suite 2300, in downtown Detroit.

NSP FAQ (Frequently Asked Questions) 12-17-09 (pdf file)


Public Notice: NSP 1 Amendment (pdf file)

The City of Detroit, through the Planning & Development Department is proposing an Amendment to the 2008 HUD Consolidated Plan for the Neighborhood Stabilization Program (NSP 1). The purpose of the amendment is to assist in facilitating changes in restructuring the NSP 1 program. Click Here

NSP Archives

To download and print pdf files you will need the  latest copy of the Adobe Acrobat Reader.  This program can be downloaded for free from Adobe's Web site:



Written comments regarding the City of Detroit NSP Plan and activities should be sent to NSP@detroitmi.gov.

The Neighborhood Stabilization Program (as per section 2301(c)(2) of HERA) requires that “…funds be distributed to the areas of greatest need, including those with the greatest percentage of home foreclosures, with the highest percentage of homes financed by subprime mortgage related loan, and identified by the grantee as likely to face a significant rise in the rate of foreclosures.  The grantee’s narrative must address the three need categories in the NSP statute, but the grantee may also consider other need categories.”  Outlined below are the items considered to identify the target areas. 

A. Low/Moderate/Middle Income Area
Funds must be targeted to Census Block Groups that qualify as an area of low-, moderate, and middle-income (LMMH) benefit, where more than 51 percent of the people in the area had incomes in 2000 less than 120 percent of Area Median Income.

B.  Neighborhood Stabilization Program Data
In addition, as per the NSP statute, grantees must target funds to give priority emphasis and consideration to areas with greatest need, including those:

 

 

 

  1. With the greatest percentage of home foreclosures
  2. With the highest percentage of homes financed by a subprime mortgage related loan
  3. Identified as likely to face a significant rise in the rate of home foreclosures

C.  Foreclosure Data
To more accurately define those areas with the highest percentage of home foreclosures, the City’s Planning and Development Department staff gathered data on Wayne County Tax foreclosures.  Social Compact, Inc. provided data on Mortgage foreclosures for 2006 and 2007.  Data was also provided on adjustable mortgages that have reset or are scheduled to reset.  This data indicates those areas that may be facing foreclosure due to the resetting of interest rates.

D.  Local Target Areas
To insure that efforts aligned with other local stabilization and development efforts, consideration was give to targeting areas with:
  1. Significant private sector investment (by analyzing building permit activity)
  2. Current allocation of Block Grant activity, including demolition, minor home repair and other rehabilitation and redevelopment activity
  3. Urban renewal activity
  4. Local designation such as the Next Detroit Neighborhood Initiative areas
  5. Federally designated Empowerment Zone and Renewal Community activity
  6. Other Planning and Development Department redevelopment activity
  7. Need for stabilization as identified in the City’s revised Master Plan of Policies
  8. Investment by foundations such as LISC, Skillman and the Community Foundation
 
E.  Citywide Policies
In addition to the consideration of the City’s Master Plan policies for each of the target areas (see item D-6 above), consideration will also be given to the Master Plan’s citywide policies, especially those that pertain to vacant land and open space (listed below).
  1. Establish an inter-connected open space system throughout the City (Environment and Energy: Policy 4.1). 
  2. Work with communities to convert vacant properties into neighborhood parks and natural habitat areas (Environment and Energy: Policy 4.2).
  3. Encourage and support urban agriculture (Environment and Energy: Policy 4.3).
  4. Encourage large-scale developments and developments in high-density areas to incorporate open space (Environment and Energy: Policy 4.6).
  5. Investigate the feasibility of expanding participants involved in operation of existing parks and recreational facilities such as local community organizations, larger non-profit organizations, or regional public/quasi-public agencies (Parks, Recreation and Open Space: Policy 1.2).
  6. Expand the collaborative planning of parks and recreational facilities and programs with the Detroit Public Schools and other city agencies (Parks, Recreation and Open Space: Policy 1.3).
  7. Educate property owners about the benefit of early repair and preventive maintenance of their property (City Design: Policy 3.1).
  8. Promote cooperative efforts on part of residents, businesses and the city to share responsibility for care and maintenance of abandoned lots and structures (City Design: Policy 3.2).
  9. Provide survey and inventory of vacant land and vacant structures in order to identify their potential for future development (City Design: Policy 3.3).
  10. Encourage public and private initiatives to develop interim uses for vacant buildings and spaces (City Design: Policy 3.4).

F.  Target Areas
Data from each of the elements listed above (items A through D) were cross-referenced to determine the areas with the greatest need.  The target areas as identified are based on Census Block groups, but the boundaries are not intended to be limited to the specified Block Groups but may include adjacent areas.

View and download maps (pdf files) of the Target Areas:

NSP Executive Summary

Detroit NSP Plan (pdf file)