State to loan $20m for foreclosure rehab

Massachusetts will loan up to $20 million to nonprofit developers to buy and rehabilitate foreclosed properties in the state's largest cities. The funding is part of a new economic package announced today by Governor Deval Patrick.

Community groups have pushed the government to make such funding available, arguing that a growing number of vacant homes are affecting the quality of life in urban areas. Vacant buildings are havens for criminal activity and they tend to reduce the value of surrounding properties, particularly as the vacant buildings deteriorate.

The new state program will focus on foreclosed properties in Boston, Brockton, Lawrence, New Bedford Springfield and Worcester. It is a relatively modest commitment -- even if buildings can be purchased for $50,000, the program would support the purchase of only 400 homes, less than half the number foreclosed statewide in February alone.
(By Binyamin Appelbaum, Globe staff)