Blight Elimination Program

Blight Elimination Program

YTD Facts & Figures

Total Amount of Program Funds: $20,000,000
Amount Committed to Date: $1,072,500
Available Funds: $18,927,500
Number of Applications Submitted: 7
Number of Applications Awarded: 5
Number of Properties Demolished: 4


Report Fraud

US Treasury

Program Contact

Lisa Coleman

Vice President of Federal Grants

Contact BEP

The purpose of the BLIGHT ELIMINATION PROGRAM (BEP) is to provide grant funding to municipalities for the removal of blighted properties, prevention of abandonment of neighboring properties, reduction in foreclosures among neighboring houses, and to strengthen neighborhood property values.

Program Information

  • Applications will be accepted year-round on a first-come, first served basis
  • Eligible Applicants are municipalities, county governments, and qualified non-profit organizations
  • Applicants must execute a Partnership Agreement with a Blight Partner
  • Applicants may apply for up to $500,000 per application. Additional funding may be requested upon the completion of all approved projects. No Applicant may receive more than 20% of the total amount of Program Funds.
  • Grant Recipients will be reimbursed for acquisition, demolition, and other approved expenses for up to $25,000 for each eligible property that is demolished
  • Eligible BEP Properties consist of blighted and vacant single-family (1-4 units) residential structures located in a Target Area
  • Properties that won't be immediately redeveloped must be maintained as green space for three years
  • Grant Recipients may utilize MHC's Corporate Revolving Loan Fund for interim financing
  • Additional funds may be allocated to the program as they become available
  • HHF funds may only be used to reimburse program partners for costs that are both necessary and reasonable for the completion of requisite blight elimination activities
  • HHF funds will reimburse up to $6,000 (or 40% of demolition activity costs) per property for acquisition costs
  • All contracts for demolition must be awarded through full and open competition, consistent with practices required under Federal, state, or local laws
  • Applicants may utilize MHC's Revolving Loan Fund to fund demolition while a project is underway

Application Information

No longer accepting applications

  • Applications will be accepted until all funds are exhausted or until April 15, 2020 whichever comes first
  • Applicants must identify (a) all properties to be demolished, (b) the end use of each property, and (c) all Blight Partners that will be utilized
  • Applications must meet a minimum score threshold of 120 points in order to qualify for an award. All applicants will be permitted to reapply for funds if they are denied initially.

Blight Partner

  • Eligible Blight Partners may include, but are not limited to nonprofit organizations, for-profit entities, faith-based organizations, community development corporations, home owner associations, economic development entities, and land banks
  • At a minimum, Blight Partners will be responsible for (a) holding title to the property prior to demolition and throughout the three year Compliance Period, (b) maintaining the property for up to three years unless transferred or sold to another party, and (c) pay annual property taxes (a reimbursable expense) on the property during the Compliance Period. Additional responsibilities may be negotiated between the Applicant and the Blight Partner.

Demolition Requirements

  • All properties must be demolished within six months of receiving the award
  • All waste must be disposed of in a state licensed landfill
  • Asbestos must be handled by a properly licensed contractor

MHC's Corporate Revolving Loan Fund (RLF)

Funds from the BEP Program will not be disbursed until the successful completion of a project. Grantees will have the option of utilizing MHC's Corporate Revolving Loan Fund (RLF) as interim financing during the demolition process. The term of the RLF Loan will be as follows:

  • 0% Interest Rate
  • Short-term (180 days) financing
  • Secured by a Promissory Note, Deed of Trust and Guaranty Agreement
  • RLF Loan funds may be drawn down for acquisition and demolition activity only. Reimbursements for other activity (maintenance, administration, and property taxes) will be disbursed on an annual basis (up to three years) from the BEP funds. The BEP funds will also be used to pay off the RLF Loan.
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