City of Boston puts money where its blight is

The HUD money will provide grants to developers, nonprofits and people who want to rehabilitate foreclosed properties, and down payment aid to homeowners buying bank-owned homes. The funds will be used to defray the cost of fixing up foreclosed properties intended as rental housing for the homeless and low- to moderate-income households.

“Some not-so-scrupulous developers could acquire these properties quite quickly, so we want to make sure we’re competitive. We want to make sure the nonprofits and the good guys are competitive,” Friedman said.

Within 30 days, the city will complete its first major acquisition from a lender when the Boston Redevelopment Authority buys seven foreclosed properties in Mattapan, Roxbury, Dorchester and East Boston from Countrywide Financial.