A Minneapolis pilot program that provides $10,000 grants to people to buy homes in the city is getting a boost.
The Federal Home Loan Bank of Des Moines announced Wednesday that it's giving $1.5 million to the city to continue the Minneapolis Advantage program.
Under the program, recipients can use the money for downpayment and closing costs on a home in targeted neighborhoods. However, the new round of grants will only apply to foreclosed homes. Bank vice president Curt Heidt (height) says each year the bank awards millions of dollars in grants for affordable housing projects.
"The first part of the year we were looking at the foreclosure issues and realized that a lot of community revitalization efforts over the last 20 years were going to be dramatically harmed by this activity that's going on in particularly many of our low-income neighborhoods," Heidt said.
The grants are also targeted to home buyers whose household income is less than 80 percent of area median income.
City officials say that means a family of four would have to make $80,000 a year or less to qualify.