Community Development

Over the last 30 years the Housing Authority has been involved in writing grants on behalf Cities and Counties for funding housing rehab and public facilities. These funds come through the Department of Employment and Economic Development.

Each application is competitive with other communities and funding is awarded to the community that proves the greatest need. Priorities are to preserve existing housing for owner occupied residents and repair rental units to specific standards such as energy, health and safety items.

Other funds from this program are used to improve the existing sewer or to install new sewer systems, water towers and infrastructure for Small Cities that cannot afford to update their facilities without this funding.

The HRA has operated various community and economic development programs since 1982. Currently, the majority of funding is received from the Department of Employment and Economic Development (DEED), located in St. Paul, MN.

Communities in northwest Minnesota contract with the HRA to develop and submit applications to DEED, which are accepted annually, for housing rehab or infrastructure activity.

Currently the following communities have funding for housing/commercial rehabilitation: Thief River Falls, Crookston, McIntosh/Erskine, Winger and Fosston/Twin Valley. Grant applications will be submitted for Red Lake County, Norman County, Thief River Falls and Crookston for various needs as determined by the local leaders. For more information, please review the USDA Program, and Federal Home Loan Bank Forgivable Loan.

Is your home or rental property in need of renovations? With issues like lead based paint, economy, and constructions costs, renovations may seem unrealistic. But the HRA is here to help! Look here to find information on: Home Improvement Loans and Rental Rehabilitaiton Loans.

Home Improvement Loans

The Rehabilitation Loan program assists low to moderate income homeowners in financing home improvements that directly affect the safety, habitability, energy efficiency and accessibility of their homes.

Applicants eligible for this program must occupy the home to be rehabilitated. Applicant's assets must not exceed $25,000.

The maximum loan amount is $24,999 plus up to $10,000 in additional funding for lead based paint reduction. Single family homes have a 15 year term with loan payment deferred until the borrower sells, transfers title, no longer lives in the property or at the end of the 15 years. Mobile homes taxed as personal property with a park have a 10 year term due on sale and forgiven at the end of the term.

Single family homes, duplexes and manufactured housing taxed as real or personal property are eligible for this program.

Income limits for this program are as follows:

Household Size	Statewide Income Limit
1 person	$17,400
2 person	$19,850
3 person	$22,350
4 person	$24,850
5 person	$26,750
6 person	$28,650
7 person	$30,800
8 person	$32,750

Improvements to the livability, accessibility, energy efficiency and addressing lead pain hazards of a home are eligible. Lead paint reduction, electrical wiring, a new roof, plumbing and septic repairs are just some of the possible improvements.

For more information on the program, contact Tina at 218-637-2435. You can also visit MHFA's web site at www.mhfa.state.mn.us.

Rental Rehabilitation Loans

You may receive up to $25,000 for a one or two-unit property, or $10,000 per unit for a larger property. The maximum loan amount is $100,000. The interest rate is 6%, and the term of the loan may be up to 15 years.

Who is eligible?

Owners must have a good credit history and must be financially secure. Individuals, partnerships, or corporations can apply for a loan. In the case of partnerships or corporations, the principals of the organization must also personally guarantee the debt. Owners must have equity in the property, and the building must have a positive cash flow after rehabilitation.

A building must have been used for residential housing in the past five years. Mixed-use properties are eligible, provided the majority of the building is used for residential purposes. There may be any number of units in the building.

Loan funds cannot be used for acquiring properties, adding units, refinancing existing debt, converting non-residential space into residential space, or new construction. Other ineligible improvements include constructing new garages and recreational facilities.

What area does this cover?

To receive a MHFA Rehabilitation Loan, your rental property must be in one of the northwest Minnesota counties of: Kittson, Marshall, Norman, Pennington, Polk, Red Lake and Roseau. If you are not in our service area, you may call the Minnesota Housing Finance Agency at 1-800-710-8871 for a list of participating lenders in your area. For assistance with an application or additional questions, please contact John in this office at 218-637-2431.

See a map of our service area Service Area Map

USDA Program

Housing Preservation Grants are provided through the Rural Development and USDA funding. The funds are used primarily to rehab very low income owner occupied homes.

Federal Home Loan Bank Forgivable Loan

In the funding for 2010-2012 you may receive up to $6,500 and must have a rehab cost of no less than $15,000 with an average rehab of $21,000 per unit. The income limit is based on 50% of state median. The grant is forgiven over a 5 year period starting the day of completion of the rehab.

Please e-mail Tina or Ken or call at at 218-637-2435 for more information or to request an application.

Serving the counties of