GRCF's $600,000 low-interest loan helps Kent County Land Bank acquire 180 foreclosed properties

Grand Rapids Community Foundation (GRCF), 185 Oakes St. SW, has made a $600,000 program-related investment (PRI) -- a low-interest loan from its endowment -- to the Kent County Land Bank Authority (KCLBA), 82 Ionia NW, to help it acquire 180 foreclosed properties in the City of Grand Rapids.

Once acquired, some properties will be resold "as-is" with renovation plans provided by the buyer. Others will be sold to nonprofits for rehabilitation, or renovated in a subsidized program and then resold. Severely blighted buildings will be torn down. The properties go up for auction in July.

This is the second PRI that the Community Foundation has made to the KCLBA. The first, in April 2012, enabled the KCLBA to acquire 59 properties, 73 percent of which were renovated and 70 percent resold within the 2012 calendar year.

After obtaining a property, the KCLBA clears title, cleans up the property, and lists it on the Multiple Listing Service (MLS). The general public has access to MLS listings, and anyone may submit a purchase offer after meeting a set of requirements, such as submitting construction specifications, proof of financing, and proof of ability to make the renovations.

The KCLBA ensures that properties are redeveloped to protect and restore the integrity of the neighborhood, reduce visual blight, improve curb appeal, increase property values, and create a positive economic impact throughout Kent County.

"Through its work, the Land Bank was able to recoup the Community Foundation's investment and reinvest in additional properties," says Marcia Rapp, VP of programs at the Community Foundation. "Neighborhoods in Grand Rapids are better because of the work of the Land Bank."


Get involved:

- Donate to the Grand Rapids Community Foundation.
- Learn more about the Kent County Land Bank.

Source: Roberta F. King, Grand Rapids Community Foundation; KCLBA website
Writer: Victoria Mullen, Do Good Editor

Images: Courtesy of KCLBA's Facebook page