Most of Minnesota's state housing money will go to help preserve existing affordable housing or finance new units.
Preventing foreclosures gets much less funding.
Minnesota Housing officials announced Thursday a $96 million plan that will help create or maintain more than 3,000 units of affordable housing.
The agency will attempt to save only 141 homes from foreclosure.
Housing advocate Chip Halbach, director of the Minnesota Housing Partnership, a non profit, said only the federal government has the resources to address the tens of thousands of homes being foreclosed on Minnesota this year.
"The state can only do so much and it really will require some sort of federal relief. 28,000 foreclosures this year, I mean there aren't enough state resources around to have a significant response to that level of hardship," Halbach.
Members of Congress and the Bush administration said Thursday they are preparing a national plan to help homeowners facing foreclosure renegotiate the terms of their loan.