Millions for Foreclosures

Congress and the states are looking at spending what could be billions of dollars on efforts to buy and revamp foreclosed properties. By the time the money is available, they could have models for how to do so, thanks to grants from a group of wealthy philanthropies.

(WSJ) -- The Living Cities Consortium will on Wednesday announce a plan to provide up to $10 million in grants and low-interest loans to state and local programs addressing rising foreclosures. The first grants, of up to $500,000 apiece, will go to programs in eight cities with a variety of housing markets, from Cleveland to New York.

The amounts are modest, but the group hopes the programs will guide future efforts. In Cleveland, funds will be used to buy 150 homes, rehabilitate and sell 50 of them and demolish 100. In New York City, where the housing market is stronger, the grant is intended to keep foreclosed homes from being resold to speculators. In Rhode Island, a trust will retain title to the land when the homes are sold in an effort to make the homes more affordable.