DETROIT (WXYZ) — Detroit businessman Dan Gilbert is using funds received from the sale of Rocket stock to fund the Detroit neighborhoods revitalization initiative announced last week.
Rocket stock was sold for $500 million, which will be used to fund revitalization efforts in the city.
In documents obtained by 7 Action News, it states that Gilbert "plans to use his portion of the proceeds to help fund his recently announced $500 million commitment to revitalizing Detroit neighborhoods."
Rocket Companies Founder Dan Gilbert announced the new plan to invest $500 million in Detroit neighborhoods over the next 10 years on March 25.
In an interview with Gilbert and CEO Jay Farner, it was announced that the first $15 million will go to relieve property tax debt for homeowners. Farmer said it's expected to cover about 20,000 homes that are delinquent.
It hasn't been determined yet what the remaining funds will be used toward. In a 7 UpFront interview with Laura Grannemann, VP of Strategic Investments for the Rocket Community Fund, she said that discussions are being had about how the rest of the funds will be spread out to help Detroit neighborhoods.