The Kresge Foundation in Troy, Michigan, has announced that it has issued a $4.5 million unfunded guarantee to enable United Community Housing Coalition to help Detroit residents facing eviction.

Although the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act nearly a year ago allocated more than $600 million to Michigan for rental assistance, the Michigan House, Senate, and governor's office have yet to agree on a plan to allocate those dollars. Once a plan is approved, the Michigan State Housing Development Authority is expected to allocate $94 million to Detroit, just under half of which will flow through UCHC. Kresge's guarantee will back a $5 million loan from the Lake Trust Credit Union to ensure that UCHC has the liquidity needed to help families facing eviction and/or homelessness while it waits for the state to approve a plan.

Kresge's Detroit Program also awarded a $159,000 grant to UCHC to help support the organization's staff, outreach, and other expenses.

"This is a good example of philanthropy's ability to respond quickly and flexibly in times of crisis," said Kresge Foundation president Rip Rapson. "Everyone agrees on the need, on the solution, and on the urgency of resolving the situation. But the political stars have not yet aligned. Foundations like Kresge can step forward to construct a bridge to the time vitally important dollars flow into the hands of Detroit residents who deserve and need help."