Michigan’s plan to spend $154.5 million in federal funds to help those hardest hit by the economy has gained federal approval and will be available starting July 12.

The funds – targeted at helping borrowers facing pay cuts or job losses keep their homes – are expected to aid more than 17,000 Michigan households.

Until then, Michigan State Housing Development Authority officials will educate banks and credit unions about the process of evaluating borrowers for the program. Borrowers must apply with their lenders to take advantage of the lifeline, which will be awarded on a first-come, first-serve basis.

• FAQs: Answers about the new homeowner help.

State officials say they’ll tell borrowers within 48 hours if they qualify for one of the program’s three options:

• Mortgage payment assistance for homeowners now receiving unemployment compensation. The state would provide half of the monthly mortgage payment up to $750 a month for a maximum of 12 months.

• Rescue funds for homeowners who have fallen behind on their mortgage payments because of a temporary layoff or medical emergency and have overcome this obstacle. The state will provide up to $5,000 to families in this situation.

• Federal matching funds for principal reductions for homeowners who can no longer afford their mortgage payments as a result of reduced income. This will allow up to a $10,000 principal reduction from the state that will be matched by the lender.

Gov. Jennifer Granholm and the Michigan State Housing Development Authority announced a plan to spend the money in April – two months after President Barack Obama announced that the five states hardest hit by the housing crisis would share $1.5 billion in funding.

Michigan will be the first of those five states – ahead of Nevada, California, Florida and Arizona — to implement its program.

“We will invest the resources provided by the Obama administration as quickly and efficiently as possible to help Michigan homeowners avoid the devastation of foreclosure,” Granholm said in a statement.

The program does not make participation mandatory.

Michigan’s unemployment rate of 13.6% is one of the highest in the nation. The state has had a 35% decrease in average home sale prices since 2005.

Previous government programs designed to help distressed homeowners required that they had income. So many were left out.

While 17,000 represents a small percentage of Michigan homeowners in need, the plan will still help shrink the problem, according to GreenPath Debt Solutions, a Farmington Hills-based counseling firm.

Last year, GreenPath counseled 76,645 homeowners who were delinquent on their mortgages because of job loss or reduced pay, adjusted mortgages and other unforeseen changes.
Article from:

http://www.freep.com/article/20100623/NEWS06/100623004/1017/Business04/Michigan-to-offer-154M-in-aid-to-homeowners

Article referenced at MIlifeMItimes.com:

Full article here: http://blog.milifemitimes.com/article/2008/02/15/detroit-to-host-creative-cities-summit/

Detroit to Host Creative Cities Summit
by Jaime Pfeffer

This fall, Detroit will host the second International Creative Cities summit. Dubbed Creative Cities Summit 2.0, the special event will provide a next-generation look at how communities are integrating innovation, social entrepreneurship, arts and culture and business to make vibrant economies. The Michigan State Housing Development Authority’s (MSHDA) Cool Cities Team is a key organizer of the event.

“Michigan’s greatest economic successes have always been tied to the creative and productive power of our cities,” Governor Jennifer Granholm said. “We are looking forward to hosting leading thinkers and practitioners from around the world to discuss the latest in creative community development.”

Topics will include place making, talent attraction, retention strategies and best practices for economic and social development.

“We are thrilled to bring this event to Michigan, in particular to Detroit, where these ideas are already underway,” said Peter Kageyama of Creative Cities Productions, the producers of the event. “We saw this as an opportunity to use the metaphor of Detroit as the epitome of the American industrial city that is creatively remaking itself in the 21st century.”

The initial Creative Cities Summit held in St. Petersburg, Florida in 2004, was one of the first creative economy events in the United States.

“We want to showcase Michigan, not only to the world, but to ourselves,” said Karen Gagnon, MSHDA’s Cool Cities team leader.

An exact location for the event has not yet been released.

One of Detroit’s biggest cheerleaders, Jaime Pfeffer moved to the Motor City from suburban Detroit five years ago. She started a blog, Girl in the D, in September 2004 to promote the positive aspects of Detroit and hasn’t stopped touting Motown’s good side since. Jaime left corporate America in 2007 to pursue her first love, writing.