Securing $96 Million for Blight Elimination in Michigan
Michigan
Project Date: 2023
Services: State Legislation Drafting and Consultation
Client: Michigan Land Bank Association
Making the Case for Resources to Address Vacant Properties
With over 55 land banks (as of 2026), Michigan is home to one of the largest land bank networks in the country. These land banks were created to address extensive inventories of vacant and tax-foreclosed properties, however, they did not receive dedicated state funding for their work and were significantly underfunded for the task.
In 2022, a conservative estimate of costs to address land bank-owned residential, commercial, and industrial properties was $246 million across the state. Meanwhile, the median Michigan land bank budget from 2020-2023 was just $340,000.
Land banks needed state support to address the statewide challenge of transforming vacant properties back into community assets.
THE TASK
Community Progress has deep roots in Michigan. Our founders were the primary authors of Michigan’s land bank enabling legislation (Act 258) in 2003, and we have served as a trusted thought partner and strategic advisor to Michigan land banks ever since. As land banking expanded across the state, we helped form the Michigan Land Bank Association (MLBA) to connect land banks to one another, share best practices, and expand awareness across the state. In partnership with MLBA, we helped shape statewide policies and informed advocacy strategies, bringing national expertise and best practices to Michigan communities.
In 2022, we partnered with MLBA to develop and advance their first state budget request. Drawing on our expertise in drafting legislation, program design, data analysis, and persuasive writing, we helped build the case for state investment in Michigan’s land banks.
SOLUTION
To develop the request, Community Progress analyzed tax foreclosure and vacancy statewide and the average costs of abatement activities like demolition and boarding. Our analysis—which we presented in a policymaker-facing one pager—estimated there were 223,774 abandoned homes and 149,498 vacant business addresses statewide. A conservative estimate to demolish or stabilize just a portion of these properties was $1.7 billion.
Community Progress supported MLBA to craft a proposal to the state legislature that would give land banks across the state $50 million, with all land banks receiving a guaranteed minimum of $200,000 and rural counties without land banks also receiving the same minimum. We also created educational materials, facilitated meetings with state legislators, and supported MLBA in building statewide support for the budget request.
IMPACT
The new “Blight Elimination Program” was funded through two state budget allocations to the State Land Bank Authority, $21.5 million of general fund in 2022 and $75 million of state ARPA funds in 2023.
These funds could be used to:
- Stabilize vacant residential, commercial, and industrial buildings to secure them and protect against further deterioration, with the goal of preserving them for future rehab to purposeful use
- Demolish vacant and blighted residential, commercial, and industrial structures that could not be rehabilitated
- Provide matching or gap funding for environmental remediation on vacant land—often a critical barrier to redevelopment
- Rehabilitate vacant residential, commercial, or industrial structures
Every land bank received at least $700,000 and the 10 largest land banks received nearly $3 million each. The remainder was given out in competitive grants. As of 2026, 51 land banks and 24 counties have received funding to address and improve problem properties in their communities.
The Onepager that Made the Case
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