First demolition complete for Blight Elimination Program

An historic first step was taken in Memphis’ flight against blight this week, as an abandoned home on Mississippi Blvd. was demolished. The Washington Heights home is the first in a series of selected properties to be knocked down, thanks to the state’s Blight Elimination Program.

Tennessee Housing Development Agency began accepting blight elimination applications in May, offering funding for demolition and greening activities to stabilize local housing markets.

“We’re thrilled to be able to put these Treasury dollars to use in neighborhoods where one or two abandoned houses are dragging down everyone else’s property values and creating serious safety concerns as well,” said Ralph M. Perrey, Executive Director of THDA.

As approved by the U.S. Department of the Treasury, the THDA program provides zero-interest loans up to $25,000 to qualified nonprofit groups to purchase an abandoned home, demolish the structure, and transform the lot into a green space, affordable housing, or other approved end use.

United Housing was the first to apply and was funded for the demolition of this first home. They plan to turn the now vacant lot into a public green space for neighborhood use.

The U.S. Treasury Department allocated $5.5 million for the Blight Elimination Program across the state, and THDA contributed another $1 million. All money will be granted out before the close of 2020 and will be spread across six qualifying counties: Shelby, Davidson, Hamilton, Knox, Montgomery and Rutherford.

It’s expected for Shelby County to receive a bulk of the funds. “We have a number of nonprofits who have been chomping at the bit for a chance to apply for this program, especially in Shelby County, where we expect a large number of groups to receive loans,” said Perrey.