Minnesota: State Gets Cash Boost To Help With Selling And Rehabbing Of Homes

Three metro counties and the state of Minnesota will receive federal money through a new unit of the Department of Housing and Urban Development that aims to help communities hard hit by the foreclosure crisis. From the $57.8 million federal pot, the Minnesota Housing Finance Agency received $38.8 million, Minneapolis, $5.6 million, St. Paul, $4.3 million, Hennepin county $3.9 million, Dakota County, $2.8 million and Anoka county $2.4 million. Those communities were chosen based on the number and rate of subprime mortgages, delinquencies and defaults. The aid is funneled through HUD's new Neighborhood Stabilization Program and can be used to purchase foreclosed properties for rehab and sale and in some cases demolition. Homes that are sold through the program must be sold at or below the purchase price plus the rehab investment. The money can also be used to offer down-payment and closing cost assistance to buyers who are at or below 120 percent of the area's median income or to create land banks to stabilize neighborhoods and encourage development.