Fannie Mae has partnered with the Detroit Land Bank Authority to stabilize distressed neighborhoods.
As part of the agreement, the government-sponsored enterprise will sell foreclosed properties to the Land Bank for a minimal fee, and offer funds for the demolition of certain assets. In its first transaction, Fannie will sell 44 Detroit properties to the Land Bank, including 26 scheduled for rehabilitation and 18 for demolition.
This agreement allows the Land Bank to determine which pieces of land and property could be beneficial for the community.
“Vacant properties are a strain on the neighborhood and can depress property values for other homeowners,” said P.J. McCarthy, vice president of alternative dispositions and real estate asset management for Fannie Mae. “We are happy totransform these properties into homes for local families, or new community spaces.”
This partnership complements the Detroit Neighborhood Stabilization initiative pilot announced by the Federal Housing Finance Agency earlier this year. The NSI was developed to stabilize neighborhoods that were hardest hit by the housing crisis by matching these distressed properties with non-profit organizations for property renovation, resale or redevelopment.