Detroit Launches Interest-Free Home Repair Loan Programs

In another effort to revitalize its local housing market, the Detroit city government is teaming with the Local Initiatives Support Corp. (LISC) and Bank of America to offer the Detroit 0% Interest Home Repair Loan Program, which is designed to  provide $8 million in financing for eligible homeowners that need to address structural or safety issues on their properties.

The new program is open to Detroit homeowners who earn up to 80 percent of the area’s median income ($54,150 for a family of four) and households in targeted parts of the city, regardless of their income. The program seeks to fill a gap created when traditional financing cannot be obtained due to the deterioration of property values.

The program will be funded with $4 million in Community Development Block Grant funds issued by the U.S. Department of Housing and Urban Development (HUD) and $4 million from Bank of America. The nonprofit LISC will use the funding to provide interest-free loans to qualified homeowners. A coalition of local nonprofits will serve as “Intake Centers” for helping homeowners complete the intake forms and start the loan application process.

“We worked very closely with HUD and our other partners to make sure these loans are accessible to as many Detroiters as possible,” said Detroit Mayor Mike Duggan. “Establishing this loan fund will generate a wave of home improvement work across the city that will raise property values and strengthen neighborhoods.”