The Rocket Community Fund, the philanthropic arm of Rocket Mortgage, and the City of Detroit have announced a joint investment of $ 5 million in a program aimed at increasing the availability of affordable homes in the city.
The Rehabbed & Ready program, launched in 2015 in cooperation with the Detroit Land Bank Authority (DLBA), refurbishes single-family homes owned by land banks in neighborhoods with a valuation gap that prevents Detroit residents from accessing finance.
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The DLBA supervises the renovation work and transforms destroyed properties into ready-to-move-in houses with new mechanical, electrical and plumbing systems.
The new investment – part of the Rocket Community Fund’s 10-year US $ 150 million commitment to Detroit – will fund renovations and provide a backing to bridge the gap between construction costs and the selling price of homes in the program.
“The Rehabbed & Ready program has provided affordable home ownership for many Detroiters who may not be up to the challenge of renovating a vacant Land Bank home,” said Mike Duggan, Detroit Mayor. “Expanding this program will create that opportunity for more residents … while reducing pollution and stabilizing property values.”
“We are committed to ensuring that every Detroit resident has reliable access to sustainable housing and the opportunity to create wealth through programs like Rehabbed & Ready,” said Laura Grannemann, vice president of the Rocket Community Fund. “Sales through this program not only create rot and repairs issues, but also provide appraisers with new comparisons of home sales that stabilize values for surrounding homes and improve access to finance for Detroit residents and their families.”