Fed Funds Target Homes

Local governments across Michigan are crafting a number of programs to spend $263 million in federal funds designed to help bring down the number of foreclosed, abandoned, and blighted homes.

The money comes from the federal Neighborhood Stabilization Program and allows governments to provide cash for down payments and closing costs to homeowners purchasing foreclosed or neglected houses, provide cash to rehab blighted houses, offer rent-to-own programs, interest-free loans or loans that will be forgiven after five years if the buyer occupies the home, and funds to buy and demolish blighted houses.

Detroit is in line to receive $47 million and officials there said they plan to use half the money to demolish vacant houses and the remainder to buy, rehab, and sell houses.

The state will get $99 million, Wayne County will receive $26 million, and Oakland County will get $17.3 million, with the rest going to local governments across Michigan.

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