A $25 million grant will pay for up to 175 foreclosed homes in Modesto to be spruced up and made into housing for low-income families and others, the city announced Thursday.
The money is part of the $787 billion federal stimulus package, which had funneled more than $180 million into the Northern San Joaquin Valley by the end of October.
Modesto was one of 10 cities or nonprofits in California to receive the funding. The competitive grants were awarded to agencies that offered "innovative ideas" to address the foreclosure crisis, according to a statement from the U.S. Department of Housing and Urban Development.
In Modesto, some of the money will be used to buy foreclosed homes, then rent them to young people who are too old for foster care, people with mental illness or substance abuse problems and others who struggle to find housing.
The money could help as many as 200 families and individuals, officials say.
"We're thrilled to get it," said Modesto Parks and Recreation Director Julie Hannon. "This should really help revitalize some of the neighborhoods out there."
The money will be divided this way:
$10.5 million will go to the city. It will distribute the funds to nonprofits such as Habitat for Humanity, which will buy and fix up foreclosed or vacant homes, then sell them to low- and middle-income families. The city will use up to $2.5 million to help pay for staff to run the program.
$6 million will go to the Housing Authority to buy and refurbish 40 foreclosed or vacant homes. Homeless youth and young people too old for foster care will live in the houses and receive social services.
$6 million will go to the Stanislaus Community Assistance Project to buy or fix 35 foreclosed or vacant houses. The houses will be rented at low cost to people with mental health problems, people living with HIV/AIDS, people with chronic disabilities and low-income senior citizens.
For more information about the foreclosure funding, call Judith Ray, 577-5351.