St. Paul applying for $46M in federal stimulus for homes

The government of St. Paul plans to apply for $46 million in federal stimulus money to help the city acquire and rehabilitate hundreds of homes.

The request for funding comes as over 1,900 buildings sit vacant in St. Paul. The number is slightly lower than 2008, but marks a 160 percent increase from 2005 figures. Vacant and abandoned buildings cost the city about $3.8 million last year.

The city would use the funding to rehabilitate about 300 homes and demolish about 100. St. Paul agencies would also use a portion of the funds to provide financial incentives for 300 homeowners to buy vacant homes in targeted areas.

"These funds will help us take our neighborhood investment strategy to the next level," Mayor Chris Coleman said in a statement. "Invested wisely, this funding will allow us to turn vacant houses into homes, attract new families to our neighborhoods, and create jobs in our community."

The funding from the American Recovery and Reinvestment Act would supplement the $4.5 million grant from the Minnesota Housing Finance Agency, and the $4.3 million grant from the Housing and Economic Recovery Act.

The city expects to receive the federal government's decision in September.