CLEVELAND, Tenn. -- The collaboration between Habitat for Humanity and Cleveland has resulted in a $400,000 grant to provide homes for more Cleveland families.

The federal grant is administered through the Tennessee Housing Development Agency. The city applied for and received the grant from the agency, then turned it over to Habitat for Humanity of Cleveland.

Habitat Executive Director Matt Carlson said Wednesday the money will be used to build homes on donated land adjacent to Century Village, the south Cleveland community now under Habitat development.

Called a Neighborhood Stabilization Grant, the funds can be used to acquire foreclosed homes and vacant property to be rehabilitated for families, Mr. Carlson said.

"We are blessed that the property was donated," he said. "So the grant will actually all go towards bricks and mortar."

The 11th, 12th and 13th homes in Century Village are being built now. The development eventually will include 40 homes.

Habitat officials are not sure yet just how many more can be added with the donated property and new grant, Mr. Carlson said.

"We are still working with the numbers," he said.

Cleveland Community Development Director Greg Thomas said Wednesday that the city's partnership with Habitat benefits low- to moderate-income families.

On Monday, the Cleveland City Council approved a resolution to amend its agreement with Habitat, describing Habitat for Humanity of Cleveland as a "developer."

That redefinition meets new U.S. Housing and Urban Development guidelines and allows the local Habitat organization to take part in the Neighborhood Stabilization Program.

The local grant is for $402,771.

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