One of the goals of the Empowerment Zone program is to stimulate economic development activity in the Zone. In Detroit, a new approach in the city's existing Empowerment Zone is using capable local non-profit developers to increase the EZ's "bang for the buck" in the construction or rehabilitation of affordable housing.

To help maximize Zone participation in economic development activities, a new community-based delivery system was created by the Detroit Empowerment Zone Development Corporation (EZEC). In the first round of funding under this system, the Corporation awarded $559,000 in pre-development costs late last year to seven non-profit housing organizations located in the Zone. The awards will lead to development of 53 units of single-family housing and 198 units of multifamily housing and at the same time increase the potential direct benefit to Zone residents and organizations.

One of the awardees was Bagley Housing Association, which will receive $100,000 for the fourth phase of its single-family infill project: Homes at St. Anne's. Along with other sources of funds, the community-based delivery system award will be used to construct 33 single-family homes for low- and moderate-income families (Secretary Martinez toured the Bagley Housing site and its anchor, St. Anne's Church, during a Detroit visit last summer).

Members of the successful nonprofit groups and EZEC Board members: Josephine Smith, EZDC Board Member; Frank Crawford, EZDC Board Co-chair; Larry Alcantar, HUD Community Builder; Sharon McWhorter, EZDC Board Chair; Judith Burkhardt, St. Ignatius Non-profit Housing Corp; Jeanne Bufton, Exec. Director, Southwest Alliance for Neighborhoods; Patrick Dorn, Board Chair, Cass Corridor Neighborhood Dev. Corp.; Jackie Collins, Exec. Director, Delray United Action Council; Maisha Kenyatta, Exec. Director, Positive Images; Denise Willingham, EZDC Board Member; Cheryl Hildreth, Community Development Director, Wayne County; Vincent Murray, Exec. Director, Bagley Housing Corp.

A number of Detroit HUD staff, including Community Builders Larry Alcantar and Thomacina Brown, play a role in the advances in Detroit's Empowerment Zone: Alcantar worked with the city to develop its Empowerment Zone strategic plan, and Brown works closely with the One Stop Capital Shop, which is located in the zone and supported by Empowerment Zone funds. In addition, HUD's core programs are "value added" in the Detroit EZ, and several of the nonprofit awardees will use HUD's flexible HOME program in their housing projects.