Fund to deal with foreclosures and revitalizing neighborhood

Investors from the financial industry are helping establish a new $16 million fund that will address foreclosures, help revitalize neighborhoods and increase housing opportunities for families in the Twin Cities.

US Bank, Wells Fargo, TCF Bank and Thrivent Financial announced Tuesday that they are investing in the Family Housing Fund’s new loan program called the Home Prosperity Fund.

The fund will, in part, provide money to assist organizations working in neighborhoods threatened by foreclosure. They will acquire vacant, boarded homes to repair and sell to responsible owners.

The new loan will also help create new affordable housing opportunities in the metro and provide gap loans to families so they can afford to buy a home.

The Home Prosperity Fund has initial investments of $16 million with a goal of reaching $50 million by 2012.

The Dayton’s Bluff Neighborhood Housing Services, Greater Metropolitan Housing Corp., Twin Cities Habitat for Humanity and the Minneapolis/St. Paul HOME Program have been awarded the first loans from the Home Prosperity Fund.

The Family Housing Fund is a nonprofit organization whose mission is to provide safe, affordable, sustainable homes to families and children in the Twin Cities through ongoing partnerships with the public and private sector.