Rehabilitation Programs

rehabilitation programs >

Housing Rehabilitation Programs

There are several programs and organizations serving the Brainerd Lakes Area that help homeowners repair their homes, and provide residential rental property owners with the financing to fix up their rental properties. These programs offer lower interest loans and deferred loans (similar to grants). Information about housing repair programs for both homeowners and rental property owners is listed below:

Homeowner Rehabilitation Programs

MHFA Greater Minnesota Fix-Up Fund: The Minnesota Housing Finance Agency (MHFA) Greater Minnesota Fix-Up Fund (GMFUF) provides homeowners with a low interest loan to make repairs to their home. Lenders from the Brainerd Lakes Area provide this loan on behalf of the MHFA, and applications to the program are made through local participating lenders.

The income limits of the program state that a household can earn no more than $88,000 per year.

For information about the program’s interest rates, click here.

The maximum loan amount for this program is $25,000 to $35,000.

The repairs allowed under this program are:

A room addition or new garage

Furnace/air conditioning installation

Roof replacement, a new paint job or siding

Upgrade or replace electrical wiring

Septic system repairs or plumbing

Energy conservation including replacing windows and doors or insulating walls or attic space

Accessibility improvements

For participating lenders in the Brainerd Lakes Area, click here.

For general information about the program, click here.

MHFA Rehabilitation Loan Program: The Minnesota Housing Finance Agency (MHFA), offers the Rehabilitation Loan Program for lower income homeowners who require certain certain basic repairs and health and safety improvements to their homes. The loan does not need to be paid back as long as the person or family who applies lives in the home. The Community Action Agency Tri-County Community Action Agency, which serves Crow Wing and Morrison Counties, provides this program in our area.

The maximum income limits of the program are $18,000 per year per household.

For information about the terms of the loan, click here.

The maximum loan amount is $15,000.

For the repairs allowed under this program, click here.

To contact a MHFA Rehabilitation Loan Program Administrator (listed by county), contact Tri-County Community Action Agency's Paul Jacobs at 320-632-0561.

For general information about the program, click here.

Rural Development 504 program: Rural Development (RD), a United States Department of Agriculture Agency, provides both deferred loans (similar to grants) and low interest loans to lower income homeowners for certain repairs to their homes.

Rural Housing Program
Repair Loans & Grants - Section 504
Single Family Housing

PROGRAM DESCRIPTION: Low interest home improvement loans and grants, designed for very low-income individuals (50% or less of county median income).

TYPE OF ASSISTANCE: Funds can be used for making basic repairs, installing essential features or to remove health and safety hazards.

ELIGIBILITY REQUIREMENTS: Must be a rural resident or living in a town of up to 20,000 population, have a reasonable credit history, own inadequate (but repairable) housing, have a very-low adjusted income, and unable to obtain credit elsewhere. To qualify for grant funds, must be 62 years or older and be unable to repay a loan.

FUND AVAILABILITY AND MAXIMUM AMOUNTS: Funding is based upon an annual appropriation. The maximum loan limit at one time is $20,000. The lifetime grant maximum is $7,500.

INTEREST RATE: Interest rate is 1% APR on loans.

TERMS: Loan repayment is based on repayment ability but cannot exceed 20 years. A three-year grant agreement is required.

COLLATERAL: A mortgage is taken when the loan is $7,500 or more.

FEES: None.

CREDIT REQUIREMENTS: Reasonable credit history.

This program is available throughout Crow Wing, Cass and Aitkin Counties, administered through the Brainerd Rural Development office. The Rural Development office is located at:

Rural Development
512 C St
Brainerd, MN 56401
Phone: (218) 829-5965 ext. 4
E-Mail: Kathryn Yager
Or visit their website.

Rental Property Rehabilitation Programs

The Minnesota Housing Finance Agency (MHFA) HOME Rental Rehabilitation Program: The HOME Rental Rehabilitation Program (HOME RRP) is available in Crow Wing County

All HOME developments needing $100,000 or more in HOME funds will receive a 0% deferred payment loan that will be coterminous with their existing first mortgage. Borrowers may obtain 100% financing as long as HOME expenditures do not exceed $14,000 per unit.

All HOME developments needing less than $100,000 will receive a 0% deferred loan that is forgiven after a 5-year period of compliance with affordability and property standards requirements. Borrowers must supply a 25% match towards the rehabilitation on the property.

Information about the program is located here.

The Central Minnesota Housing Partnership is the regional administrator for the HOME Rental Rehabilitation Program, and can be contacted by calling Deanna at (320) 259-0393, or by e-mail. Information about how to apply for the program is located at the CMHP website.

The Minnesota Housing Finance Agency (MHFA) Rental Rehabilitation Program: The MHFA Rental Rehabilitation Program provides smaller rental property owners with a lower interest loan for renovating their residential rental property, through local participating lenders. For information about the program, see below:

The purpose of the Rental Rehabilitation Loan Program is to assist owners of smaller rental properties finance improvements to their investment properties, occupied by persons or families that have an income less than 80% of the statewide median income. The loan is a 6% annual percentage rate, with a term of up to 15 years. The loan is non-assumable, and due on sale. You may receive up to $25,000 for a one or two unit property, or $10,000 per unit for larger properties, with a maximum amount of $100,000.

Owners wishing to participate in this program must have a good credit history and must be financially secure. The owner must also have equity in the property, and the building must have a positive cash flow. Individuals, partnerships, or corporations may apply for a loan. In the case of a partnership or corporation, the principals of the organization must also personally guarantee the debt. Work must be completed within nine months from the date of the loan and the property must meet Section 8 Housing Quality Standards upon completion of the rehabilitation.

For a list of participating lenders, click here.

For the MHFA Rental Rehabilitation Program webpage click here.

To email an MHFA official regarding this program click on one of the names below or call 800-657-3769.
Crystal Carlson or Brian Riley

P: (218) 828-3705
F: (218) 828-8817
info@brainerdhra.org

Top of Page

Brainerd Housing and Redevelopment Authority


www.brainerdhra.org	324 East River Road Brainerd, MN 56401	©Copyright 2004 All Rights Reserved