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Wendy Silverio supports herself and her four children with the money she earns as a part-time baby sitter, making it impossible for her to afford the $400,000 home where she now lives in Silver Spring.

Yet in February, Silverio, 37, and her family moved into the four-bedroom, 1,476-square-foot house thanks to a state and federal grant program that turns foreclosed homes into affordable housing for those living in poverty.

"We set programs in the state of Maryland that try to prevent people from losing their homes, but sometimes it's not possible. And when we can't save that home, the beautiful thing is that we can come in and rehab it so we can help another family," said Del. Craig L. Rice (D-Dist. 15) of Germantown.

Rice made the remarks at an event Thursday showing off a newly renovated, formerly foreclosed home in the Germantown Estates neighborhood that would be rented by the end of the month to a family living in poverty.

The program is funded through grants from the U.S. Department of Housing and Urban Development and the Maryland Department of Housing and Community Development.

HUD's $3.9 billion Neighborhood Stabilization Program was launched in 2008 in response to the nation's foreclosure crisis.

Between January and March, Maryland saw 14,855 foreclosures, down 11.5 percent from the last quarter of 2009, according to state data.

Montgomery County had 1,542 foreclosures between January and March —the fourth-highest total in the state, but down 24.2 percent from the last quarter of 2009.

Prince George's County continues to have the highest rate with 3,816 foreclosures, more than a fourth of the state's total.

Montgomery County Executive Isiah Leggett (D) said Thursday that the state and federal grant program transforms properties which were a "blight on the community" and that it helps residents find affordable housing.

In Montgomery County, 16 homes already have been purchased in Germantown and Wheaton, which have the highest rates of foreclosure in the county, and nine are occupied by renters. The county has used about $7 million in grants to purchase and renovate the homes, and plans call for acquiring another six.

The homes are purchased and managed by the county's Housing Opportunities Commission.

To qualify for the program, renters must earn less than 50 percent of the area median income, or $51,750 for a family of four.

Homes were purchased for an average price of $242,860. The average rehabilitation cost was $43,260, and the average rent is $934. The renters can remain in the homes as long as they can afford them. If renters leave for some reason, the homes will be made available to other families at affordable rents.

Silverio, who pays $1,170, said her house is much bigger than the three-bedroom apartment she was renting.

Before the homes are rented, they undergo extensive renovations. The home on Tilford Court that was featured in Thursday's event is a four-bedroom split-level. It was recently assessed for $256,000.

Improvements included new siding and windows, deck replacement, new energy-smart appliances, landscaping, new insulation, a new heat pump, new carpeting and other repairs.