Des Moines to pump $3.9 million into problem neighborhoods - KWWL - Eastern Iowa Breaking News, Weather, Closings

Des Moines to pump $3.9 million into problem neighborhoods

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DES MOINES (AP) -- Des Moines will pump $3.9 million in federal money into neighborhoods threatened by home foreclosures.

Officials say the plan is to help about two dozen neighborhoods across the city deal with vacant properties that can lower values of surrounding homes and attract squatters and crime.

The money is part of a nearly $4 billion package that will be distributed across the country to help soften the impact of foreclosures.

Iowa cities will share $21.6 million. The money will help buy homes, demolish or rehabilitate abandoned properties, or help low- to moderate-income homebuyers.

There were nearly 230 foreclosures in Des Moines as of mid-March, and city officials say that number could rise to 1,200 by the end of this year.

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Information from: The Des Moines Register, http://www.desmoinesregister.com

(Copyright 2009 by The Associated Press. All Rights Reserved.)

APNP-04-22-09 1007CDT

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