Rhode Island is set to receive almost $20 million in federal grants from the Department of Housing and Urban Development in order to buy, redevelop or sell foreclosed properties in the region.

The Department of Housing and Urban Development has approved a grant of $19.6 million for Rhode Island which has been hit badly by the housing market crisis since last year. According to Rhode Island Senator Jack Reed of the Democrat Party, the nearly $20 million aid would enable homeowners as well as communities to stay protected from devaluing impact of foreclosed properties that fall into disrepair. In areas suffering from foreclosures, it is necessary to renovate and sell foreclosed properties since vacant properties attract crime and blight which eventually drive down real estate prices in the area.

Rhode Island has the highest rate of foreclosures in the New England region. Nationally, Rhode Island ranks sixth in the list of most foreclosed properties started during the second quarter of the current year. Around 1700 mortgage holders in Rhode Island initiated foreclosure proceedings in the three-month period ending June 30. Practically the whole of United States continues to suffer the after-effects of last year’s housing market crisis which not only led to the collapse of major mortgage lenders but left many homeowners with the prospect of foreclosed properties.