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Michigan Tests Broadband Grant Program

Governor Jennifer Granholm, in an effort to expand affordable high-speed internet to low/moderate income families, recently announced new broadband grants from the Digital Divide Investment Program (DDIP). The DDIP was created by a grant approved by the Department of Housing and Urban Development (HUD) and will begin with pilot locations in two counties. Michigan is the first state to use this new program.

Contact: Madeleine Bayard
Center for Best Practices

http://www.nga.org/center/frontAndCenter/1,1188,C_FRONT_CENTER%5ED_7375,00.html

Broadband providers willing to invest in areas that have 51 percent or more of low and moderate income families, will compete for DDIP grant monies through an RFP process. Vendors will be judged on:

* affordability of service,

* plan for marketing services to low and moderate income families,

* total investment, and

* financial viability for the project area.

The DDIP will combine Michigan Broadband Development Authority (MBDA) loans with federal Community Development Block Grant (CDBG) dollars to encourage additional investment in under-served regions of the state and reduce Internet service prices for low and moderate income households. Up to $4 million in grants will be made available during the initial phase of the program.

Related Links:

* Governor Granholm’s Press Release http://www.michigan.gov/emi/0,1303,7-102–100956–,00.html

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