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Labor and Economic Opportunity

New funding available for residential and commercial blight elimination

MSHDA is awarding up to $3.75 million in grants for demolition projects to trigger economic growth and improve public safety

Media Contact: Misty Miller
517-373-1858 |

April 27, 2017

Lansing, MICH. – The Michigan State Housing Development Authority is seeking proposals in support of targeted demolition activity within local units of governments across Michigan, Executive Director Earl Poleski announced today.  

“The objective of this funding is to spur private investment and development across the state,” Poleski said. “We are looking for proposals to tear down residential or commercial buildings that will promote public safety, stabilize or increase property values and support projects that are currently underway.”

Communities with a population of more than 50,000 are eligible to receive from $50,000 to $500,000 in funding; and communities with a population of fewer than 50,000 could receive between $25,000 and $250,000. Eligible applicants include local units of government—counties, cities, townships or villages—and local land banks.

The maximum award amount is set at $25,000 per residential structure, or $100,000 per commercial structure. For residential demolition, the applicant must provide proof that the building’s last use was as a single-family or multifamily residential structure with one to four units. Commercial projects must be part of development plans that have existing funding commitments and must include a local match of at least 10 percent.

All structures targeted for demolition must be vacant, publicly-owned and meet specific blight criteria. This criteria includes being deemed a public nuisance, identified as a fire hazard or otherwise dangerous to public safety and/or have had critical internal systems disconnected, destroyed, removed or rendered ineffective so that the property is unable to meet state and local building code.

The full RFP and additional details about the application process can be viewed at Questions should be submitted in writing to Jess Sobel at by 5 p.m. on June 12. Responses will be posted at on or before June 15.

The deadline for proposal submissions is 5 p.m. June 21, 2017.

The Michigan State Housing Development Authority (MSHDA) provides financial and technical assistance through public and private partnerships to create and preserve decent, affordable housing for low- and moderate-income residents and to engage in community economic development activities to revitalize urban and rural communities.*

*MSHDA's loans and operating expenses are financed through the sale of tax-exempt and taxable bonds as well as notes to private investors, not from state tax revenues. Proceeds are loaned at below-market interest rates to developers of rental housing, and help fund mortgages and home improvement loans. MSHDA also administers several federal housing programs. For more information, visit