Brooklyn Park Using Federal Funds To Fight Foreclosures | Business
Many Minnesota cities are seeing foreclosure rates inch back up. A new report says one in 10 households nationwide is at risk of foreclosure this summer.
Brooklyn Park has been one of the Minnesota cities hardest hit by foreclosures. This year, the city could see 750. But leaders have found a creative way to fight back.
The city, which has the third highest number of foreclosures in Minnesota behind Minneapolis and St. Paul, is teaming up with as many as ten for-profit and non-profit developers to purchase foreclosed homes, repair them, and resell them. It is using $7 million in mostly federal money.
Because the homes are generally selling for less than their purchase and repair costs, the city loses about $20,000 per home. But Robert Schreier, Brooklyn Park's Community Development Director says reducing the number of foreclosed homes reduces crime, graffiti, and neighborhood blight.
Developers are currently in the process of renovating 53 properties and hope to complete up to 160 homes before funding runs out in late 2012.
Long-time residents of Brooklyn Park say they're seeing a big difference in how neighborhoods look. The city plans to look for new revenue sources to rehab more foreclosed homes.