The number of foreclosed homes in Dakota County this year is on pace for a 555 percent increase over 2004. Meanwhile, there's not enough affordable housing and thousands are on waiting lists.
Soon, there will be cash from the federal government that could help put people into some of those foreclosed homes.
Officials with the county's Community Development Agency hope to use some of $2.77 million in new federal grant money to buy some of those foreclosed properties from banks and turn them into affordable-living homes, said Mark Ulfers, executive director of the Dakota County Community Development Agency.
The federal Neighborhood Stabilization Program is a new government initiative aimed at giving emergency help to local agencies to buy and redevelop foreclosed properties, which are devaluing neighborhoods and posing problems for local officials who want them cleaned up.
Under that program, the U.S. Department of Housing and Urban Development recently awarded $3.96 billion nationwide for communities, of which $57.78 million is coming to Minnesota.
Dakota County will get $2.76 million in a direct allocation. Hennepin and Anoka Counties and the cities of Minneapolis and St. Paul also were notified Sept. 26 that they would get funds, and another $38 million will go to the state of Minnesota for distribution.
"Everybody's doing the same thing we're doing right now, which is to try to decide what would be the best use of those resources," Ulfers said.
One is to deal with the burgeoning number of foreclosed properties. RealtyTrac, an online real estate marketer, estimates that in the third quarter, the nationwide foreclosure rate spiked 71 percent over that period a year earlier.