Neighborhood Stabilization Program 2

Description

Neighborhoods hardest hit by foreclosures and declining property values will benefit from $19.4 million in American Recovery and Reinvestment Act funding meant to boost home sales, increase median market values, and remove vacant and abandoned properties.

A consortium made up of Hennepin County, and the cities of Minneapolis and Brooklyn Park, received the grant from the U.S. Department of Housing and Urban Development (HUD) as part of the agency’s second round of Neighborhood Stabilization Program funding. The consortium will target neighborhoods across 73 census tracts with many foreclosures and declining property values. The consortium will use the funds to provide down payment and closing cost assistance for homebuyers of foreclosed properties, purchase and rehabilitate foreclosed and abandoned units, land-bank foreclosed properties, and redevelop demolished or vacant units. Activities will benefit households at or below 120 percent of the area median income ($100,700 for a family of four), with 25 percent of the funds reserved for households at or below 50 percent of median income ($41,950 for a family of four).

The consortium is part of a pilot community collaboration with the National Community Stabilization Trust, which facilitates the acquisition of foreclosed properties at a substantially reduced price.

Money Received

$1,670,900