Buyers of foreclosed homes can get funds

State offers up to $40,000 for work

Home buyers interested in purchasing a foreclosed property may soon be able to receive as much as $40,000 in cash toward improvements under a new state program expected to be unveiled today.

The Massachusetts Department of Housing and Community Development plans to unveil a $9 million plan to encourage low- and moderate-income buyers to purchase, improve, and move into as many as 250 properties in neighborhoods most hit by foreclosure.

Buyers purchasing single-family homes could get up to $20,000 in funds and those buying two- or three-families could receive as much as $40,000 to make improvements under the plan.

Home buyers are restricted to certain neighborhoods in 39 municipalities including Boston, Salem, Somerville, Yarmouth, Brockton, and Peabody and will have 18 months to take up the offer, starting this April and ending in September 2010.

"We are trying to give folks another reason to take a look at foreclosed properties in neighborhoods that are hardest hit," said Clark Ziegler, executive director of the Massachusetts Housing Partnership. "We think we are going to help people get into good situations."