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

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight