Local governments get $58 million to buy foreclosed property

Image courtesy of James Jordan on Flickr

Minneapolis got $12.4 million, St. Paul $8.9 million, Hennepin County $4.9 million to snap up and redevelop foreclosed properties in areas decimated by the economy.

The money came from the federal government's Housing and Economic Recovery Act of 2008. The grant was awarded last fall; the Minnesota Housing Finance Agency decided who got the money and announced its decision yesterday. The agency spread the wealth among zip codes and counties that had the greatest need.

To qualify for money, a county had to rank in the top 19 counties for the number of sheriff's sales or concentration of sheriff's sales per 100 households. The 37 highest-need zip codes accounted for 45 percent of the state's loans in foreclosure or REO properties, which are owned by a lender after foreclosure.

Each local government gets to decide how to use the money, but generally, it will be used to create more affordable housing.