Over the next two years JP Morgan Chase will grant $1 million in downpayment assistance as an incentive to police officers and city employees in Detroit who agree to purchase vacant homes and return to the city.
The effort aims to address neighborhood revitalization issues around the city by simultaneously assisting its workforce and eliminating blight.
The incentive is especially significant for the first 10 Detroit police officers who purchase a vacant home. These first buyers will receive $25,000 in downpayment assistance, while an additional 60 police officers and city employees will receive up to $15,000 or equal to up to 20% of the home's purchase price.
The DPA grant will be forgiven within five years at 20% every year the homebuyer uses the property as a primary residence.
Qualifying criteria include: earnings that do not surpass 120%-150% of the area median income; completing homeownership counseling through a partner of the Community Development Corporation; selecting a vacant home in the designated neighborhoods and closing on a mortgage.
The City of Detroit is supporting the initiative through its Detroit Works Project.
The grant is earmarked for properties located in the neighborhoods that participate in the Project 14 and Detroit Works Project's demonstration neighborhoods of North End, Boston Edison, Virginia Park and Southwest, Hubbard Farms.
A Chase spokesperson told this publication the first interested buyer from the police department came forward as the initiative was launched in the Boston Edison neighborhood. She is eying a historic property that will be rehabilitated by Central Detroit Christian, one of the participating community development corporations that may receive additional funding to complete the renovation. The selling price of the property will be announced after the property has been rehabilitated.
An information hotline will provide detailed information to all interested buyers.
