Grants Provide Brooklyn Park Homeowners Opportunities to Improve Their Homes
Congressman Erik Paulsen joined the City of Brooklyn Park and TopLine Credit Union to celebrate the continuing success of an aggressive housing strategy.
The City of Brooklyn Park, in partnership with TopLine Federal Credit Union, received a $294,000 Affordable Housing Program (AHP) grant from the Federal Home Loan Bank of Des Moines. Starting this spring, 50 Brooklyn Park households will have the opportunity to make improvements to their homes using these funds. Congressman Erik Paulsen congratulated the City and TopLine Federal Credit Union on their efforts to preserve homeownership and stabilize home values. “The pride and responsibility of homeownership remains an important part of strengthening families, neighborhoods, and communities. During recent economic hard times though, many hardworking Minnesota families have seen the dream of homeownership slip out of their grasp. That's why I am proud to be here today to recognize the work of public private partnerships in our community who are working to keep that dream alive.”
Like many other communities across the nation, Brooklyn Park has been significantly impacted by high rates of foreclosures. The geographic concentration of the foreclosures had the potential of leading to serious, long-term problems from a decrease in property values to vacancies. For the City to successfully continue into the future, it needed a plan that addressed the difficulties and reversed the problems.
Beginning in 2009, Brooklyn Park established a comprehensive foreclosure response plan that is using $9.5 million to recover approximately 222 homes throughout the community. Although the foreclosure recovery efforts are having a positive impact on neighborhoods, the program does not address the homes that remain owner-occupied.
To encourage reinvestment from homeowners, Brooklyn Park Home Repair Assistance was created as a mechanism to fund critical housing repairs. The program was jump started using $496,000 in FHLB Des Moines AHP grant funds. More than 80 low- to moderate-income families received forgivable loans during the first round. Today, Brooklyn Park Home Repair Assistance will continue with the addition of$294,000 in grant funds. “The funding made available through our partnership with FHLB Des Moines is filling a critical housing reinvestment niche in the community. Many Brooklyn Park homeowners without access to capital will be able to make needed home repairs,” states Mayor Jeffrey Lunde.
Each year, FHLB Des Moines returns 10 percent of its net income to communities through the Affordable Housing Program. These grants are awarded in partnership with member financial institutions like TopLine Federal Credit Union. “We actually were flattered to be asked to participate,” said Harry Carter, TopLine CEO. “I’m sure that every business in the community is glad to see programs like this so effectively help our neighbors, and we’re proud to be a small part of it.”
During the most recent AHP round, 42 homeownership and rental projects were awarded more than $10.0 million to create or improve 1,490 homes. Of this amount, Minnesota received $2.0 million for the creation or rehabilitation of 315 homes. For a complete listing of the AHP grant recipients, visit the Bank’s website.
More information about Brooklyn Park housing resources can be found by visiting www.brooklynpark.org/housing.
For More Information:
Phone: (763) 493-8145
FHLB Des Moines
Phone: (515) 281-1159