Eligible Distressed Areas (2020)

Eligible Distressed Areas (2020)

Updated August 6, 2020



Eligible Distressed Areas are generally those cities, villages and townships which exhibit higher than statewide average levels of economic distress. Applicants for certain competitive MSHDA programming who are located in an Eligible Distressed Area may receive enhancements to their applications. There are no cash awards available to residents, businesses, or local governments based on the Eligible Distressed Areas list.



Section 11 of Public Act 346 of 1966 defines an “eligible distressed area” as one or more of the following:



1. Community Wide:

A community that meets all of the following requirements (formula allocation):

A. The municipality shows a negative population change from 1970 to the date of the most recent federal decennial census.

B. The municipality shows an overall increase in the state equalized value of real and personal property of less than the statewide average increase since 1972.

C. The municipality has a poverty rate, as defined by the most recent decennial census, greater than the statewide average.

D. The municipality has had an unemployment rate higher than the statewide average unemployment rate for three of the preceding five years.

2. Blighted Areas Within a Community:

An area located in a city with a population of at least 10,000 which is either designated as a “blighted area” by a local legislative body or which is determined by the Authority to be blighted or largely vacant by reason of clearance or blight. If the Authority designates the area as blighted, it must determine that private enterprise has failed to provide a supply of adequate, safe, and sanitary dwellings sufficient to meet market demand. In addition, the city must approve the changes in income limits that are associated with this designation by either a resolution or written communication from the higher legislative body of the city or the mayor.

3. Neighborhood Enterprise Zone Qualified Communities:

An area located in a local unit of government certified by the Michigan Enterprise Zone Authority as meeting the criteria prescribed in Section 2(d) of the Neighborhood Enterprise Zone Act of 1992. These criteria include all county seats

ELIGIBLE DISTRESSED AREAS updated August 6, 2020