Council awards grants to improve and resell homes in foreclosure and left vacant
Contact: Bonnie Kollodge 651.602.1357
ST. PAUL—June 18, 2008--The Metropolitan Council this month awarded $500,000 in Livable Communities funds to affordable housing programs in Minneapolis and St. Paul, and one program that will benefit six Washington County communities. The award will help finance the purchase of 23 homes that will be rehabilitated and improved and then sold to households with incomes at 60 to 80 percent of median income, or $40,450 to $64,720 for a family of four.
“Given today's economic conditions, the need for affordable housing is probably about the highest it has ever been in the Twin Cities metro area,” said Council Chair Peter Bell. “So we're pleased to continue, through the Livable Communities program, to help make housing more affordable to working families.”
Initiatives awarded funding:
City of Lakes Community Land Trust, City of Minneapolis—$150,000 to help renovate seven homes in North Minneapolis that have been foreclosed on, or that are vacant and boarded up, into long-term affordable housing for lower-to-moderate income families. The program is a partnership between the City of Minneapolis and Community Land Trust, which the Metropolitan Council has previously supported in the form of a 2006 Livable Communities grant for the acquisition, rehabilitation and resale of six affordable ownership units.
MCASA Model Cities, City of St. Paul--$150,000 to help acquire and renovate seven single-family homes in the Thomas-Dale and Summit-University neighborhoods that have been in foreclosure and vacant. These areas are considered “priority areas” in the city for combating foreclosure and blighted building conditions. Families will be provided financial and homeownership training, home maintenance training, case management and coaching and mentoring to try to prevent future foreclosures.
Two Rivers Community Land Trust, Cities of Cottage Grove, Forest Lake, Newport, Oakdale, St. Paul Park and Stillwater--$200,000 to acquire, rehabilitate and sell up to nine single-family homes that have been in foreclosure. The purchasing families will own the homes, and the CLT will own the land, which helps to make the homes more affordable. The Council has invested Livable Communities funding in this program previously, awarding four grants for the betterment and resale of 17 homes.
The Council grant awards are part of a larger housing finance initiative that also includes Minnesota Housing. The two agencies together invested approximately $3 million in affordable ownership opportunities in the metro area as part of this funding round. Grants for homeownership are made twice a year.
The Metropolitan Council is the regional planning organization for the seven-county Twin Cities area. It runs the regional bus and light rail system, collects and treats wastewater, coordinates regional water resources, plans regional parks and administers funds that provide housing opportunities for low- and moderate-income individuals and families. The Council is appointed by and serves at the pleasure of the Minnesota governor.
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