City awards $6.5M to rebuild foreclosed homes

     Mayor Rybak and the City Council Friday awarded $6.5 million to rehab homes in neighborhoods hit hard by foreclosure. This is part of $14 million that the City received from the Department of Housing and Urban Development and the State of Minnesota to support the City’s strategy to reinvest in these neighborhoods.

     An abandoned home or a foreclosed home requires repair in order to be re-occupied. This funding will be used to help local, non-profit developers cover the cost difference between the development cost (purchase price and the cost of rehab) and the sale price of reclaimed foreclosed homes. The properties will then be sold or rented to income-qualified tenants, bringing people back on the blocks in communities hardest hit by foreclosure.