Lowry Hill East Home Improvement Program

Lowry Hill East Neighborhood Association is making Neighborhood Revitalization Program (NRP) funds available to property owners of the Lowry Hill East neighborhood to make improvements to their properties. The current Lowry Hill East Home Improvement Program offers low interest revolving loans to both owner-occupied and absentee-owned residential properties.

Program Information

4% Low Interest Loans

Historic Preservation Deferred Loan Program

Proof of Income

Contractors

Optional Sweat Equity (do-it-yourself)

Disbursement of Funds

Remodeling Advisor

Program Forms

Lowry Hill East Application

Contractor Completion Certificate

Homeowner Installed Completion Certificate

NRP Payment Procedure

Contractor Participation Agreement

NRP/CPED Loan Subordination Policy

4% Low-Interest Loans

Loan Amount

• Minimum: $2,500
• Maximum: $25,000

Interest Rate(s)

• 4% fixed

Income Limit

• No maximum income limit!

Eligible Properties

• Property may be owner-occupied or absentee owned with any number of units.
• Rental units must be properly registered and licensed through the City of Minneapolis.
• Owners of condominiums and townhouses are eligible.
• Condominium and/or townhome associations are eligible to apply for a loan to finance eligible improvements to common property only.

Eligible Improvements

• Most improvements are eligible, interior or exterior maintenance or remodeling.

Loan Term

• Maximum repayment term 15 years.
• Loan may be prepaid at any time without penalty.

Historic Preservation Deferred Loan Program

Loan Amount

• Minimum: $2,500
• Maximum: $10,000

Interest Rate(s)

• 0% fixed

Income Limit

• No maximum income limit!

Eligible Properties

• Eligible properties will be identified by LHENA based on historical significance.
• All loans received through this program must be matched on a dollar for dollar basis. The LHENA 4% loan as well as others administered by CEE may be used for the match.
• Properties may be owner occupied or absentee owned. Individual owners of townhomes or condos are not eligible; however, condo and townhome associations are eligible.

Eligible Improvements

• Eligible work items include repairs or replacement of items that will restore the exterior of the property within the context of historical preservation. .

Loan Term

• Maximum repayment term 10 years. The borrower must retain ownership of the property for 10 years from the date of closing for the loan to be 100% forgiven. If the borrower sells or transfers title prior to 5 years the full amount will be due, if the ownership change occurs after the 5th but before the end of the 7th year 65% of the loan must be repaid. If change in ownership occurs after the end of the 7th year but before the end of the 9th year, 30% of the loan must be repaid, and if change in ownership occurs after the end of the 9th year but prior to the end of the 10year anniversary of the loan closing, 10% of the loan must be repaid.

• Loan may be prepaid at any time without penalty.

Proof of Income

• If you are employed submit copies of your two most recent paystubs.
• If you are retired submit a copy of your social security benefits or pension.
• If you are self-employed submit copies of your Federal Tax Returns for the last 2 years.

Contractors

Loan recipients must submit bids or materials lists. All contractors must be properly licensed to work in the City of Minneapolis. The Center for Energy and Environment will verify that contractors are licensed. It is important that you are satisfied with the bid or estimate you have selected. CEE offers assistance in helping you compare and understand the estimates you collect.

Optional Sweat Equity (for the do-it-yourselfer)

Applicants must clearly demonstrate the ability to complete high quality work within the required time period. Loan funds will be allowed for materials only, property owners will not be compensated for their labor. Note: Loan funds will not be disbursed until the project is complete.

Disbursement of Funds

You will have 180 days (depending on the loan program) from the date of your loan closing with CEE to complete your improvements. You must close on the loan prior to beginning project(s). Loan funds will be paid only after the work is completed and inspected and the following is provided:

• Signed completion certificate by the homeowner indicating satisfaction with the work and authorizing payment to the contractor
• Signed completion certificate by the contractor
• Final contractor invoice
• Lien waiver from the contractor for the entire amount of the project; homeowner must turn in receipts for sweat equity projects
• Evidence of required building permits
• CEE inspection of the property to verify the completion of the work when required by the neighborhood

Remodeling Advisor

If you need assistance in identifying and prioritizing improvements, the Center for Energy and Environment offers a Remodeling Advisor Service where you can receive objective remodeling advice. The service is free to Lowry Hill East residents and includes an informational visit to your property and assistance with collection and evaluation of bids. To schedule an appointment call 612-335-5856.

Additional Financing Available

Minnesota Fix-Up Fund

The Minnesota Fix-up Fund is a statewide program that offers loans at below market interest rates to homeowners. The fix-up fund was established to improve the basic livability and/or energy efficiency of the borrower's home. Eligible projects include interior or exterior improvements, general remodeling or maintenance items.

Home Energy Loan Program

The Home Energy Loan Program is a statewide program that offers low interest loans to homeowners that want to make energy improvements to their properties. This program is only offered by CEE.

Rental Energy Loan Fund

The Rental Energy Loan Fund provides financing to owners of residential rental properties to increase the energy efficiency of their buildings. The Minnesota Department of Commerce sponsors the Rental Energy Loan Fund using Exxon Oil Overcharge funds. This program is only offered by The Center for Energy and Environment.

MHFA Rental Rehabilitation Program

The Rental Rehabilitation Loan offers owners of residential rental properties low interest financing to complete improvements that increase the livability of the property including interior or exterior projects, general remodeling or maintenance issues.

Contact Jim Hasnik at (612) 335-5885 for more information.