Minneapolis begins to rehab properties in neighborhoods hardest hit by foreclosure

The foreclosure recovery process in Minneapolis picked up pace with Mayor R.T. Rybak and the Minneapolis City Council approving a $6.5 million award in National Stabilization Program (NSP) funds on Friday, March 27. This is part of the $14 million in funding that the City has received from the Department of Housing and Urban Development (HUD) and the State of Minnesota to support the City's strategy to reinvest in these neighborhoods.

The award will be distributed among nine nonprofit developers to rehab 236 units, ready for occupancy, in neighborhoods hit hard by foreclosure. Developers will target 130 units to households at 50 percent of median income (about $40,450 income limit for a family of four in Minneapolis by NSP standards). Of the 236 units, approximately 35 percent will be rental and 65 percent will be for ownership.

An abandoned home or a foreclosed home requires some repair in order for it to be re-occupied. Today’s approval of funding will be used to assist local, non-profit developers with construction gap financing to cover the difference between the development cost (purchase price and the cost of rehab) and the sale price. The properties will then be sold or rented to income-qualified tenants, bringing people back on the blocks in communities hardest hit by foreclosure.

The remaining funds will be spent on land banking ($4,288,212) to acquire and demolish foreclosed properties deemed unfit for habitation and hold as vacant parcels until redevelopment is possible; demolition ($1,700,000) of Minneapolis properties that are boarded and vacant and require demolition; and financing ($500,000) to develop a down payment and closing assistance program, based on the highly successful Minneapolis Advantage Program that addresses the affordability gap in homeownership opportunities.

Published Mar 30, 2009



Contact us

Email updates

Find a service

About this site

For employees

For reasonable accommodations or alternative formats, contact 311.
People who are deaf or hard of hearing can use a relay service to call 311 at 612-673-3000.
TTY users can call 612-673-2157 or 612-673-2626.

Para asistencia 612-673-2700, Yog xav tau kev pab, hu 612-637-2800, Hadii aad Caawimaad u baahantahay 612-673-3500. 


311 call center

TTY relay service

City of Minneapolis Facebook City of Minneapolis Twitter City of Minneapolis YouTube ChaNNEL Minneapolis 311 Minneapolis 14 Government TV City of Minneapolis LinkedIn

Minneapolis, City of Lakes logo