FARGO (AP) - North Dakota's largest city is planning to use nearly $5 million to buy foreclosed, vacant and abandoned properties, as part of a federal grant that will provide money to numerous communities and American Indian reservations in the state.

The city of Fargo will rehabilitate the properties or replace them with new housing.

The $4.8 million is part of a $19.6 million grant to North Dakota from the federal Department of Housing and Urban Development.

In Minot, Public Workers director Alan Walter says the city is looking to the stimulus package for help in building an infrastructure to handle its expected growth. The city has $33.5 million in projects that it would like to complete in the next two years, he said.

Fargo's plans include providing housing for seniors, homeless veterans and low-income families, Senior Planner Dan Mahli said. The city also plans to work with Habitat for Humanity and local high schools to build affordable housing.

Mahli said city staff have been monitoring foreclosure auctions.

"Basically, what we are looking for are the toughest properties on the block" to rehabilitate or replace, he said. "These are properties that nobody wants to touch."

Gov. John Hoeven's office says Grand Forks will get about $4.4 million and Bismarck about $2 million. The North Dakota Housing Finance Agency will administer $6.7 million for a number of other cities and the four Indian reservations.

The cities include West Fargo, Minot, Mandan, Jamestown, Williston, Grafton, Wahpeton, Devils Lake, Valley City, Dickinson, Lincoln and Casselton.

North Dakota's application for the program cited Fargo, Grand Forks and Bismarck as having the greatest needs, with 41 percent of all foreclosed homes and 42 percent of the state's 5,559 subprime mortgages.