Duggan said that national data shows in 2012 only 500 mortgages were issued in the city of Detroit.
The move comes after a new owner purchased the building and did not renew the contract to accept HUD housing vouchers which many residents were receiving.
The cash-strapped city of Flint has been ordered to repay more than $1 million in federal housing funds.
Texana Hollis, who was evicted seven months ago, returned Wednesday to the home she had lived in for 60 years.
Mayor Dave Bing said he is delighted to be part of the attempt to connect businesses with low-income and public housing residents with HUD funded projects.
The Detroit Housing Commission will be returned to local control, following seven years under federal receivership.
Texana Hollis was evicted Sept. 12 after her 65-year-old son failed to pay the mortgage. Two days later, the U.S. Department of Housing and Urban Development said she could return.
The head of Detroit’s Workforce Development Department is welcoming help from the Obama Administration.
Detroit residents are waiting to hear which Detroit neighborhoods will be chosen to receive help from Washington, D.C..
HUD Secretary Shaun Donovan is visiting Detroit to tout a program that’s designed to help cities in urban areas rebound.