Much like a snake sheds its skin to allow for new growth, the Capitol region has some shedding of its own to do when it comes to its load of foreclosed housing.
But thanks to a pair of recent federal grants, there are millions of dollars now available to help area leaders attract new resident, revitalize Lansing’s neighborhoods and jump-start the Capitol region's emerging New Economy identity.
NSP ASAPThe influx of funds comes from the federal government's
Neighborhood Stabilization Program (NSP), which recently announced a second round of grants (NSP2) for state and local development organizations.
Groups like the
Michigan State Housing Development Authority (MSHDA) and the
Ingham County Land Bank can use the funds to purchase foreclosed properties, give them a facelift and hopefully resell them to willing buyers.
Michigan is behind only California and Florida in terms of the portion it's receiving from the overall $1.93 billion available through the NSP2 program. The grants are given out by the
U.S. Department of Housing and Urban Development through the
American Recovery and Reinvestment Act.
Out of about $224 million awarded under NSP2 to Michigan cities, Lansing secured $17.4 million. The plan is to use the funds to buy foreclosed properties and either demolish structures or revitalize them. That amount builds on the $6 million in NSP1-funded rehabilitation projects the city’s already benefitting from.
So what, exactly, does the funding mean for Lansing?
The County's RealtorOn a broad scale, NSP2 seeks to increase population density near
Downtown, deal with the foreclosure crisis and provide homes for low-income families. New homes will achieve a five-star energy rating and be designed to
LEED environmental standards, while rehabilitated homes will achieve at least a four-star rating.
While MSHDA is in charge of giving out the money to cities, in Lansing the Ingham County Land Bank hires contractors to upgrade properties and put them on the market.
“We have done very well on the funding,” says Eric Schertzing, Ingham County treasurer and chair of the Ingham County Land Bank. “One of the aces in the hole is a strong partnership between the county Land Bank and the city.”
The Land Bank owns homes in 40 of 55 neighborhoods in Lansing. It sold thirteen homes last year, mostly in the city. It sold eleven in 2008, and seven in 2007, Schertzing says.
The Land Bank uses a formula to select which homes to revitalize. The Capitol region has 17 census tract areas that form a circle around the city. Foreclosed homes within the area are targeted first. Factors such as location within the floodplain and historical significance play a role in determining whether to upgrade the home or demolish it.
In total, NSP2 will fund 80 home renovations and a number of demolitions. There's also some money available to pick up vacant parcels, Schertzing says.
While NSP money will be used to fix up old and foreclosed homes, local officials ultimately seek to bring people back to the Capitol region, particularly near Downtown.
Shot in the ArmBetween 2000 and 2006, Lansing's population declined by seven percent and vacant units nearly doubled to 7,164, or 13 percent of available housing stock, according to the
City of Lansing Development Office.
“People leave, but property does not,” says Rick Ballard, community development leader for MSHDA. “We want to make a vibrant city, and by definition that means not a city with declining population."
Maintaining or increasing population adds value to a city, and Ballard says increasing density is the key to attracting vibrant retail and public transportation.
“As population declines, value decreases and the economic message is 'get out.' It’s a vicious cycle that is hard to stop,” he says. “It’s not good.”
Dorothy Boone, development manager with the City of Lansing, says NSP2 is just the shot in the arm Lansing needs right now.
With more than 7,000 vacant buildings in Lansing already on the market for too long, there’s a lot of property up for sale.
“That’s a huge problem for our community,” Boone says. “But these grants are a great opportunity to refit an old housing stock. While tough economic times are bad news, new funding is a great opportunity to move us on a new path.”
The Capitol region is at a turning point and these grants will help position Lansing communities for a modern housing market, she says.
“Even though it’s a lot of money and we’re pleased to refit these homes, it’s still a tip of the tail of the whole dog,” she says. "An economic tsunami is hitting our community and we’re certainly going to do everything we can."
Communities and JobsVarious neighborhood organizations throughout the Capitol region will see the effects of NSP2 money. To most, it will supplement their existing priorities and efforts to strengthen neighborhoods by fixing up homes.
Joan Nelson, director of the
Allen Neighborhood Center, has a vision of Lansing in 30 years.
“We’re about to catapult into the future,” she says. “We’re aided by funding like NSP, as long as it’s done thoughtfully and strategically.”
To Nelson, that means a stronger emphasis on walkable and bikeable communities and better use of parklands for growing “food, flowers and community.”
“We’re moving to a much more liveable, fun city,” she says. “I’m excited about it.”
These grants are also creating jobs. Tony Olivarez, owner of AM Home Inspection Services, took a buyout from General Motors and now contracts with the Ingham County Land Bank to help with upkeep on its more than 400 properties—properties like 3118 Risdale Ave., a three-bedroom, full bath, ranch-style home that was also the first house the Land Bank refurbished using NSP1 money.
“This place was a complete mess,” Olivarez says. “It was in real bad shape.”
Across the street at 3201 Risdale, a woman finishes cleaning the three-bedroom, full bath bi-level that was also fixed up with NSP1 money.
Olivarez emphasizes the amount of work that goes into transforming these homes. Roofs, windows, siding, electrical, mechanical, appliances, landscaping, demolition and cementing are just some of the work that needs to be contracted out.
“This all has to be accounted for, but it makes a big difference,” he says.
It also creates jobs, which Olivarez says could be upwards of 50 for just one home.
“You know, it’s amazing. Once we started fixing the place up, people on the block say, ‘Yeah, we’ll fix up our place, too.’ It has a trickle effect,” he says. “We see that a lot with this program, and that’s good,” he says. “I take a lot of pride in it.”
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Andy Balaskovitz is an East Lansing resident and freelance writer. This is his first contribution to Capital Gains.
Dave Trumpie is the managing photographer for Capital Gains. He is a freelance photographer and owner of Trumpie Photography.
Photos:
Land Bank properties for sale
Tony Olivarez
A Land Bank project
Joan Nelson
Eric Schertzing
All Photographs © Dave Trumpie