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| Family Size | 50% of Median | 80% of Median |
|---|---|---|
| 1 | $29,400 | $47,040 |
| 2 | $33,600 | $53,760 |
| 3 | $37,800 | $60,480 |
| 4 | $42,000 | $67,200 |
| 5 | $45,400 | $72,640 |
| 6 | $48,750 | $78,000 |
| 7 | $52,100 | $83,360 |
| 8+ | $55,450 | $88,720 |
Income Limit
- No maximum income limit for the borrower!
Eligible Properties
- Property must be located in the Lyndale neighborhood and must contain at least one rental dwelling unit. Properties may be owner-occupied or absentee owned. Condos and townhomes are eligible to participate in this program for the portions of the property that are commonly owned.
Eligible Improvements
- Loans may be used to finance a wide range of improvements. Priorities on each property shall be: First priority shall be the correction of any outstanding violations of the City of Minneapolis Housing Codes and correction of other hazardous codes, health or safety-related conditions as identified by CEE. Second priority shall be energy efficiency-related improvements that help lower on-going energy costs. Energy efficiency-related improvements include but are not limited to: windows, doors, heating and air conditioning systems, insulation, water heaters. To be considered an eligible energy efficiency-related improvement the property must have had an energy audit within the previous three years and the improvements must be part of the energy audit’s recommendations. Third priority shall be the improvement of the physical condition of the property in order to enhance the livability, durability or appearance of the property.
Loan Term
- Generally one year per 1,000 borrowed with a maximum repayment term of 10 years.
Homebuyer's Assistance Deferred Loan Program
Loan Amount
- Minimum: $1,000
- Maximum: $2,500
Interest Rate(s)
- 0% fixed
Income Limit
- No maximum income limit!
Eligible Properties
- Property must be located in the Lyndale neighborhood. Single family homes, condominiums, townhomes, duplexes, or properties purchased through a Community land Trust that will be owner occiupied.
Application/Dispursement Process
1. The purchaser(s) must notify LNA of his/her/their intent to participate in the program at least 45 days prior to purchasing the property. Generally, a copy of the executed Purchase Agreement for the property will be required to prove intent.
2. The purchaser(s) must provide LNA with a copy of the executed purchase agreement, a copy of the mortgage loan commitment letter, and written documentation relative to the loan closing date. If funds are to be used for necessary improvements to the property, present a bid for the proposed work. The purchaser(s) sign the program’s “Participation Agreement” form.
3. From funds made available to CEE by the CPED through the NRP, CEE will provide the loan check to the lender, loan closing or title insurance company prior to the purchase closing.
4. If a LNA representative is unable to attend closing, after the purchase closing, the purchaser(s) must provide written evidence ( a copy of the HUD-1 for example) to CEE from the lender, loan closing or title insurance company regarding the use of the funds.
5. LNA will get a copy of the settlement statement, mortgage and note.
Rental Rehabilitation Loan Fund
Loan Amount
- Minimum: $1,000
- Maximum: $15,000 for 1-3 unit properties; $20,000 for 4-7 unit properties; $30,000 for 8+ unit properties
Interest Rate(s)
- 4% for energy related improvements
- 6% for all other rehabilitation projects
Income Limit
- No maximum income limit!
- The determining income for the interest rate shall be based on the adjusted gross income from your most recent Federal Tax return.
Eligible Properties
- Property must be located in the Lyndale neighborhood and must contain at least one rental dwelling unit. Properties may ve owner-occupied or absentee owned.
Eligible Improvements
- Most improvements are eligible, interior or exterior maintenance or remodeling.
- Two bids are required for projects over $5,000 and one bid for projects under $5,000.
- First priority will be given to the correction of any outstanding code violations with the City of Minneapolis along with other health or safety-related improvements.
- Second priority will be given to energy efficiency improvements.
- Third priority will be given to all other projects that will improve the physical condition of the property.
Loan Term
- Generally one year per 1,000 borrowed.
- Maximum repayment term 15 years.
- Loan may be prepaid at any time without penalty.
Additional Emergency funding is available if you are not able to qualify for a loan and have an emergency improvement that needs to be repaired immediately. Contact Jim Hasnik at (612) 335-5885 for more information.
Adjusted Gross Income
The determining income shall be based on the adjusted gross income from your most recent Federal Tax return.
Contractors
Loan recipients must submit bids or materials lists. All contractors must be properly licensed to work in the City of Minneapolis and 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 Lyndale 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 for more information at (612) 335-5885