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DETROIT DEMOLITION IMPACT Report


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DETROIT DEMOLITION IMPACT Report


Measuring the Economic Impact of Detroit's Blight Elimination Program

Since Mayor Mike Duggan took office, the City of Detroit has made tremendous strides in removing blighted structures. Thousands of vacant homes have been removed at a more rapid pace than ever before in Detroit's history. In order to better understand the positive economic impact of these demolitions, the Skillman Foundation and Rock Ventures commissioned an impact study to evaluate the economic effect of the recent demolitions.

The study found that each demolition in the Detroit Hardest Hit Fund target areas increased surrounding occupied home values by an estimated 4.2%. Cumulatively, the home equity impact of all demolition activity was calculated at $209,000,000. More details can be found in the reports below.

More details of the Hardest Hit Fund Program, and a more detailed overview of the results from the impact study can be found in the policy brief.

The full impact report details the estimated economic affect of the Hardest Hit Fund Blight Elimination Program, as well as the specific techniques used in the analysis.

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78,000 Detroit structures in need of intervention


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78,000 Detroit structures in need of intervention


The scale of blight in Detroit is massive. 

Detroit Blight Removal Task Force: Strucures in need of intervention June 2014

The 2014 Detroit Blight Removal Task Force report identified 40,077 blighted structures, and an additional 38,429 structures with strong indicators that they would become blighted in the future.

The map above illustrates properties in need of intervention as defined by the blight removal task force. The blue properties are those which the task force recommended for removal, the green properties require further research and community engagement to determine which blight remediation technique is appropriate. 

78,000 structures, 29% of all structures in the city, are in need of intervention in order to restore neighborhoods, attract investment, and stabilize decades of decline.

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$107.3M Committed to Detroit demolitiontionS


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$107.3M Committed to Detroit demolitiontionS


Creative Solutions for Elimination

Funding for blight elimination is challenging to find. In 2010, the US Treasury’s Hardest Hit Fund Program (HHF) made $7.6B available for foreclosure prevention in 18 states. As a result of research indicating that targeted demolition helps preserve property values and prevent foreclosures, Michigan was allowed to reprogram a portion of its HHF allocation for blight elimination. To date, Michigan has programed $175M for blight elimination, with the city of Detroit receiving $107.3M for demolition. The Hardest Hit Fund's represent the largest source of funding for bight elimination.

Detroit Land Bank Authority Activities January 2014 - September 2015

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5,812 Demolitions in Detroit from January 2014-July 2015


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5,812 Demolitions in Detroit from January 2014-July 2015


Detroit's work thus far

In early 2014, the Detroit Land Bank Authority began the implementation of the HHF Blight Elimination Program in targeted zones of low and moderate vacancy throughout the city. This investment has been supported with additional programs aimed at revitalizing neighborhoods.

From January 1st, 2014 to July, 2015, 5,812 demolitions have been completed in the City of Detroit.

Through the nuisance abatement program, cited owners of vacant blighted property have 6 months to fix their property, or it will seized by the city. 3,865 vacant properties have been noticed through the program.

Excess public property is being put back to productive use. Neighbors are now able purchase the vacant lots adjacent to their properties. To date over 2,100 side lots have been sold. Property auctions have transformed formerly vacant homes with new owners responsible for restoring them within 6 months. Over 370 auctions have closed since the programs implementation in Summer 2014.


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13.8% increase in property values in the HHF Zones


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13.8% increase in property values in the HHF Zones


The Impact from Demolition

In order to evaluate the impact of the City of Detroit's revitalization activities, researchers leveraged public and private data sharing and cooperation from a range of institutions to develop and economic model to estimate the impact of Detroit's demolition.

The research suggests that each demolition in the targeted demolition zones increases the value of occupied single family homes within 500 feet by an estimated 4.2%.

Each occupied house in the Hardest Hit Fund Blight Elimination target zones is now worth more – by about $3,600 – because of the HHF Demolition Program.



Download The Reports To Learn More: 

 

More details of the Hardest Hit Fund Program, and a more detailed overview of the results from the impact study can be found in the policy brief.

The full impact report details the estimated economic affect of the Hardest Hit Fund Blight elimination program, as well as the specific techniques used in the analysis.