In October 2014, the Michigan State Housing Development Authority (MSHDA) invited the City of Jackson to submit an application to its Help for the Hardest Hit (H4HH) Blight Elimination Program. In December 2014, the City learned it would be a recipient of $5.5 million to acquire and demolish blighted vacant, foreclosed or abandoned residential properties. Under the H4HH program, MSHDA agrees to reimburse the City of Jackson the following upon the successful completion of each project:
If an individual property requires reimbursement of less than the allotted $23,750, the remaining per property allowance is used to acquire and demolish projects above the minimum. Conversely, if an individual property exceeds its $23,750 cost allowance, overruns are borne by Jackson’s Demolition Fund.
The H4HH Blight Elimination Program is funded as a loan, forgivable over five years, instead of as a grant. As such, MSHDA requires a 5-year lien on the property. Once the loan is forgiven and the lien extinguished, the City may dispose of lots in accordance with its “Disposition of City Owned Property” policy. However, City Officials may petition MSHDA to release lien prior to the 5-year term as follows: