Bank of America has announced that it will be investing $3 million in Detroit neighborhoods aimed at helping homeowners and small-business entrepreneurs, as well as another $2.5 million in support of Detroit’s neighborhoods.
“Bank of America is committed to investing in the people, places and projects that move Detroit forward. Our neighborhood strategy is providing support that spurs economic mobility for individuals and families,” said Matt Elliott, Michigan market president at Bank of America. “This foundation grant and the business investments we’ve made to support entrepreneurship, create jobs and make homeownership more attainable are helping to drive economic mobility and strengthen Detroit now and for future generations.”
Elliot also announced an additional investment of $1.5 million in the 0% Interest Home Repair Program and a $1 million operating grant to Invest Detroit to support its expansion of the Strategic Neighborhood Fund and Affordable Housing Leverage Fund
“Detroit’s comeback cannot succeed unless it includes its neighborhoods,” Mayor Mike Duggan said. “That’s why these programs supported by Bank of America are so vitally important. They are helping longtime Detroiters participate in the city's recovery by helping them start their own business, purchase a new home or renovate the home they've lived in since long before our city's comeback began."
Detroit is facing an increase in demand for affordable housing as the city continues to bounce back from the 2008 crash. Despite holding nearly 81,000 off-market vacant units and a net supply of nearly 25,000 owned units expected by 2045, tight inventory of homes and the lower supply has pushed up prices, Hour Detroit reports.
“Detroit was hit so hard by the economic crisis that it needs more developers and people willing to rehab homes than currently available,” Chase Cantrell, Executive Director of Building Community Value told Hour Detroit. “Fixer-uppers abound throughout the city but many don’t want to go through that process. First-time home buyers are not signing up to be developers.”
Additionally, Detroit is one of the leading cities in the nation in reverse mortgage foreclosures, according to reporting from Detroit Free Press. USA Today analysis estimates there has been around 1,884 reverse mortgage foreclosures in Detroit between 2013 and 2017, the highest number in the country.