The struggling Douglas County housing market could get a shot in the arm if the county receives a $3.7 million grant through the Neighborhood Stabilization Program.

Data given to the county showed Douglas County with the third greatest need for funds behind Henry County, which is eligible for $6.1 million and Bibb County, which is eligible for $4 million.

"Funds are based on foreclosure data, mortgage loan data and other factors," Development Services Director Mark Teal said at a public hearing last week.

The plans budget, Teal said, could allocate $224,655 of the grant to administration funds leaving $3.5 million. The remaining money would be divided into acquisition funds to aid in down payments with $936,065 for 50 percent under the average median income, $387,531 for 51 to 81 percent of the average median income and $2,196,011 for 81 to 120 percent of the average median income.

Eligible activities for the plan, Teal said, include establishing financing mechanisms for the purchase and redevelopment of foreclosed properties, the purchase and rehabilitation of residential properties that have been abandoned or foreclosed upon in order to sell, rent or redevelop properties, the ability to establish land banks for homes that have been foreclosed upon, demolish blighted structures and redevelop demolished or vacant properties.

The plan offers the possibility of $25,000 per unit in downpayment assistance to 140 homebuyers, which Westside Homebuilders Association Executive Officer Chris Collier said his organization would like to see adjusted.

Among the changes outlined by Collier and the association are:

? The Eligible/Use Activity be revised to address two separate opportunities. The down payment assistance should continue to be included, but the $25,000 figure should be adjusted downward to allow a second Eligible Use Activity. An amount of $5,000, Collier said, could be more appropriate.

? Rehabilitation of private properties should be added to allow homebuyers to upgrade the homes they are purchasing to green living standards. This, Collier said, would allow the county the ability to designate these standards. An amount of $20,000 per house, the homebuilders felt, would be appropriate.

? Clearance should be added to allow the county to identify and demolish condemned structures in target areas and then place leans on the property to insure that the costs of demolishing are recaptured for future use. The association, Collier said, felt $4,000 per unit might be appropriate.

The application, Teal said, is prepared and ready for submittal, but changes could still be made.

The plan, Teal said, received HUD approval prior to the Dec. 31 deadline.