Live Midtown' project will encourage growth in Detroit neighborhood

The state of Michigan and Detroit-based companies are coming together to fund $1.2 million in incentives so residents of the city's Midtown area will stay put.

The Detroit Medical Center, Henry Ford Health System and Wayne State University announced their partnership with the Michigan State Housing Authority and the Hudson-Webber Foundation to fund the "Live Midtown" incentive program for the companies' collective 30,000 employees, according to project's website. The program, whose goal is to enrich and popularize Detroit's Midtown area, provides a variety of allowances for residents who choose to either move into the area or renew their stay.

A $2,500 allowance will be provided towards the cost of an apartment for new renters in the New Center, Midtown, Virginia Park or Woodbridge neighborhoods, followed by a $1,000 gift if they stay a second year. The organization is also providing $1,000 to existing renters who renew a lease in 2011, and a $20,000 forgivable loan for buyers who purchase a home in the area.

The initiative may be what Detroit needs to revitalize its housing market. The Detroit News reported that there were 79,000 foreclosure filings in the city in 2010, while the state recorded mortgage problems for 1 out of every 33 homes with a mortgage.

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