City of Ann Arbor gets $850,000 to redevelop foreclosed properties

The city of Ann Arbor has posted a news release on its Web site announcing it is receiving a grant for $850,000 from the Michigan State Housing Development Authority to fund a Neighborhood Stabilization Program. The program, new under the U.S. Department of Housing and Urban Development, provides targeted emergency assistance to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight, city officials said in the release.

“This funding will help revitalize neighborhoods and entire communities dealing with the negative effects of home foreclosure. Redeveloping these properties will help stabilize home values for all homeowners, which is in the best interest of our communities and local economies” Jennifer Hall, housing manager for the Office of Community Development, said in the release. “The funds will help us address the foreclosure and subprime crises by providing effective tools to protect property and promote affordable housing.”

The Housing and Economic Recovery Act of 2008 directed HUD to target grant funding to areas with the greatest needs based on the extent of foreclosures, subprime mortgages, and mortgage delinquencies and defaults. Green energy standards are being required to increase the efficiency and affordability of the properties. Ann Arbor officials say the city can also use its Neighborhood Stabilization Grant to: â€¢ Demolish blighted structures. â€¢ Offer down payment and closing cost assistance to low-and moderate-income homebuyers who have household incomes that do not exceed 120 percent of the area's median income. The grant money also is intended to prevent future foreclosures by requiring housing counseling and prohibiting predatory lending practices for families receiving homebuyer assistance with grant funds. Interested homebuyers should contact the Washtenaw County MSU Extension at 734-997-1678 to register for homebuyer education classes.

Check out the county's Web site to find out about help for homeowners facing foreclosure.