The Michigan State Housing Development Authority (MSHDA) submitted a consortium application under the U.S. Department of Housing and Urban Development Neighborhood Stabilization Program 2 (NSP2) competition. Under the NSP2 competitive round, authorized under the American Recovery and Reinvestment Act (the Recovery Act) of 2009, states, local governments, non-profits and consortiums will compete for up to $1.93 billion of NSP2 funds to carry out neighborhood stabilization programs to combat the effects of home foreclosures, vacancy and abandonment.

MSHDA, as the lead agency for the Michigan NSP2 Consortium, submited an NSP2 Application to HUD on July 14, 2009 to compete for these funds. MSHDA, in collaboration with local cities and land banks, developed an NSP2 consortium application for a total funding request of $290.00 million for targeted neighborhoods in the following communities:

NSP2 funds will be used for the following activities:

1. Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties;

2. Purchase and rehabilitate homes and residential properties abandoned or foreclosed;
3. Establish and operate land banks for foreclosed homes and residential properties;
4. Demolish blighted structures;
5. Redevelop demolished or vacant properties.