The city of Ann Arbor, according to a news release on its website, has received $850,000 grant from the Michigan State Housing Development Authority. This is to fund a Neighborhood Stabilization Program. The said program is new under the U.S. Department of Housing and Urban Development. The Neighborhood Stabilization Program provides targeted emergency assistance and redevelop foreclosed properties that might become sources of abandonment according to city officials.

Jennifer Hall, housing manager for the Office of Community Development, said in the release, “This funding will help revitalize neighborhoods and entire communities dealing with the negative effects of home foreclosure. Redeveloping these properties will help stabilize home values for all homeowners, which is in the best interest of our communities and local economies.”

She added, “The funds will help us address the foreclosure and subprime crises by providing effective tools to protect property and promote affordable housing.”

The Housing and Economic Recovery Act of 2009 instructed HUD to fund the areas with the greatest need based on the foreclosures, subprime mortgages, mortgage delinquencies and defaults. In order to increase the efficiency and affordability of the properties, green energy standards are being required.

Ann Arbor city officials said that the grant can also be used to demolish blighted structures, and offer assistance to low-and moderate income homebuyers whose household incomes are within 120 percent of the area’s median income.

The grant is also helpful in preventing foreclosures in the future by requiring housing counseling and prohibiting predatory lending practices.

Interested homebuyers can register for homebuyer education classes. They may contact the Washtenaw County MSU Extension at 734-997-1678.

Find an Ann Arbor Real Estate Agent in the Directory of Ann Arbor, MI.