Detroit's Bankruptcy Plan Accelerates Blight Reduction

To drastically increase the rate of Detroit’s ongoing transformation, the city's bankruptcy plan, recently filed in U.S. Bankruptcy Court, would spend $520 million on its ongoing blight reduction efforts in the hopes of razing 400-500 homes a week.

1 minute read

February 24, 2014, 5:00 AM PST

By James Brasuell @CasualBrasuell


Detroit recently filed its Chapter 9 bankruptcy plan of adjustment in U.S. Bankruptcy Court. The proposed actions of the plan include a dramatic acceleration of the city’s blight reduction efforts.

“Reduction of urban blight is among the city’s highest reinvestment priorities,” said Detroit emergency manager Kevyn Orr in the U.S. Bankruptcy Court filing, which took place February 21, 2014.

Nathan Bomey, Matt Helms, and Brent Snavely report on the details of the bankruptcy plan adjustment, which will “[pave] the way for the city to dramatically reduce an estimated $18 billion in debt and liabilities.”

In a separate article, John Gallagher, Patricia Montemurri, and JC Reindl detail the plan’s dramatic acceleration of the city’s blight reduction program—from the current pace of 114 residential structures a week to 400-450 every week by next year. “At that pace, the city would rid itself of 80,000 blighted houses in five years, paid for by savings from the bankruptcy reorganization and from government and private sources.”

Friday, February 21, 2014 in Detroit Free Press

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