The other cities that won funding are East Chicago, Hammond, Indianapolis and Lawrence.
The abandoned and blighted structures have made it hard for Gary to entice entrepreneurs to set up new businesses, perpetuating the cycle of economic downturn that causes homes and buildings to be abandoned in the first place.
"By creating this initial push, which is a substantial push, it allows us to set the stage for a rebirth and redevelopment of the city," said Gary Mayor Karen Freeman-Wilson.
Despite the thousands of abandoned homes yet to be demolished, there is construction underway. A new home for veterans will open next year and residents have moved into newly constructed homes.
Progress is slow to bring back the Gary that many speak of but it is progress nonetheless.