The City of Minneapolis will be able to extend its program to help middle- and low-income home buyers purchase homes in neighborhoods hit hard by foreclosures. The Minneapolis Advantage program received a $1.5 million grant from Federal Home Loan Bank (FHLB) of Des Moines, a member-owned cooperative bank that receives no taxpayer funding.

In its pilot period, Minneapolis Advantage gave out approximately 50 grants to low-income, first-time home buyers in foreclosure-impacted neighborhoods in the North, Northeast and South Minneapolis neighborhoods. Buyers receive up to $10,000 to help with down payment and closing costs so long as they buy a home on the same block as a foreclosed or vacant home.

In its pilot period, 62 percent of the properties purchased were foreclosures and 9 percent were boarded up and vacant. The program encouraged more owner-occupied homes, as 62 percent that were rental units became homestead properties. The majority of the new home owners bought in North Minneapolis, had incomes under the median and bought homes priced under $150,000.

Seventy-eight percent where first-time home buyers.

The FHLB of Des Moines grant will triple the amount of grant awards for the program.

“The key to rebuilding neighborhoods overwhelmed by foreclosures is to get solid, responsible homeowners into these neighborhoods,” Mayor R.T. Rybak said in a statement Wednesday. “The success of the Minneapolis Advantage program has shown us that there are great homes to be had and that people are ready to move into these neighborhoods. Our job is to help make that happen and this funding just made our job a whole lot easier.”