The Housing and Economic Recovery Act of 2008 is starting to get enforcement across the country. In the state of Minnesota, the city of Minneapolis is one of the areas hardly hit by the housing and economic downturn. Since 2006, the volume of Minneapolis foreclosure homes has been steadily rising. There is an apparent need to curtail the foreclosure growth rates, before such homes dominate the city's real estate market for good.



The local government of Minneapolis has approved a $5.6 million budget for the acquisition and redevelopment of foreclosed assets in neighborhoods within the city that are hardest hit by rising foreclosure. The budget allocation was in line with the national legislation that was ratified in July. The law is aimed at helping state and city governments address rising number of foreclosed homes and declining home values.

The fund will be aimed at curbing Minneapolis foreclosure homes and helping other homeowners avoid possible mortgage defaults and foreclosures. Aside from the funding, the city is also aiming to simultaneously launch other initiatives backing the budget allocation. Among these measures are persuading mortgage lenders to extend foreclosure processes, pursuing abusive lenders and giving mortgage and foreclosure counseling to homeowners.

The $5.6 million funding allocation will be appropriately distributed into several factors and initiatives. These include financing mechanisms for acquisitions and renovation of foreclosed homes; the First Look Program that coordinates transfer of REO houses from financial agencies to local housing groups; buying vacant foreclosed houses and demolishing blighted structures. The city's funding was part of the $58 million rescue aid provided by the federal government to the state for anti-foreclosure activities.