MOSES LAKE — Moses Lake will receive roughly $315,000 in federal grant funds to help with the impacts of foreclosed properties.

Community Development Director Gilbert Alvarado said the city must send a letter to the Community, Trade and Economic Development (CTED) indicating they want the funds before receiving the grant.

The funds can be used for the city to provide down payment assistance to people interested in purchasing a foreclosed home, to solve blight issues or for the city to purchase homes, he said.

Blight issues include when a home is foreclosed upon and abandoned. Oftentimes weeds overgrow the lot and the city has to spray and clean the area, Alvarado said.

If the city uses funds to purchase homes, they have the option to re-sell the homes for a profit.

After five years, any profit left over from selling homes above the initial grant must be given to the U.S. Department of Treasury, he said.

It appears CTED would prefer the funds be used for providing down payment assistance and for solving blight issues rather than having the city buy homes to sell for a profit, he said.

“This is an interesting project,” Alvarado said.

The grant is part of the 2008 Housing and Economic Recovery Act that establishes Neighborhood Stabilization Programs.

All states are receiving funding, he said. Moses Lake was chosen partly due to the high volume of low to moderate income citizens and a reportedly high number of foreclosed homes.

Council unanimously approved to send a letter to CTED indicating they would accept the funds.

Mayor Ron Covey was absent from the meeting.