Duggan to Announce Initiative to Increase Homeownership in Detroit’s Neighborhoods

etroit Mayor Mike Duggan will unveil a new home-mortgage program Thursday designed to increase homeownership in the city, the latest in the administration’s goals to stabilize the neighborhoods.

The Detroit Home Mortgage initiative is a venture in conjunction with local banks including Huntington Bank, Flagstar Bank, Talmer Bancorp, FirstMerit Bank and Liberty Bank, in addition to local organizations and nonprofits, including the Community Reinvestment Fund, the Kresge Foundation and the Detroit Association of Realtors.

Along with auctioning city-owned homes through the Detroit Land Bank and an aggressive anti-blight campaign, the Duggan administration has sought to stem the tide of residents leaving Detroit neighborhoods by keeping existing neighbors and attracting new residents.

Thursday’s announcement seeks to address Detroit’s appraisal financing gap, a clear stumbling block in the city’s progress. The majority of homes in the city are appraised lower than their actual value, making it difficult for potential homeowners to obtain mortgages in the city limits. Detroit Home Mortgage allows qualifying borrowers to receive a first mortgage for the appraised value of the house, and a second mortgage, up to $75,000, for the cost of renovations.

The mortgage program is part of the larger Clinton Global Initiative Commitment to Action as part of the Clinton Foundation, a nonprofit corporation founded by President Bill Clinton. Duggan will be making the announcement alongside Clinton Foundation President Donna Shalala and other local leaders tomorrow at a renovated home in the North Rosedale Park neighborhood.