Program to help Minneapolis homebuyers is in trouble

Boarded homes
MPR Photo/Brandt Williams

Later this morning, Minneapolis city council members are expected to vote on a loan program designed to entice homebuyers into some of the city's most troubled neighborhoods. But not before they tinker with it a little bit first.

Originally, the Minneapolis Advantage program would provide 10 thousand dollars for down payment assistance on any home in one of 18 city neighborhoods. The areas were identified as having the highest concentration of boarded and vacant homes.

Foreclosed
The foreclosure crisis has led to a sharp increase in the number of abandoned buildings in the city of Minneapolis. The city's list of vacant and boarded properties has grown to over 800. City officials say monitoring and managing all these buildings is draining city resources.
MPR Photo/Brandt Williams

But the program has undergone some changes, and is likely to see more before the council votes on it.

Some council members thought the plan was too broad to be effective. So they added some restrictions. The money will only be available to pay for fix-up costs. And loans will only go to people buying homes in foreclosure, or that are boarded and vacant or have been a rental property.

Council members say more amendments to the Minneapolis Advantage are possible before a final vote.

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