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MHFA Rental Rehabilitation Loan Program

The Minnesota Housing Finance Agency (MHFA) Rental Rehabilitation Loan Program provides low interest financing for making energy conservation and other basic improvements to residential rental properties located in participating Minnesota Communities.

MHFA Rental Rehabilitation Loan Application - Complete the application and send it to CEE Financial Resources at 212 3rd Avenue North, Suite 560, Minneapolis, MN 55401.

Contractor Warranty - Once you have selected your contractors have them sign the contractor warranty and send it to CEE Financial Resources at 212 3rd Avenue North, Suite 560, Minneapolis, MN 55401.

Loan Terms

  • Interst rate 6.0% APR
  • Maximum loan amount is $25,000 for single-family and two unit structures; the lesser of $10,000/unit or $100,000/structure for multi-family structures
  • Maximum term 15 years
  • Loans may be made in conjunction with other public or private funding sources

Eligible Borrowers

  • There are no income restrictions; however, he or she must have a good credit/financial standing and have the demonstrated ability to repay the loan
  • Loans exceeding $5,000 are evaluated on the basis of the building’s revenues, which must show a positive cash flow after rehabilitation
  • Loans of $5,000 or less may be evaluated on the basis of the borrower’s personal credit/financial status
  • A mortgage is required on loans exceeding $5,000

Proof of Income

  • Provide 2 years of your Federal Tax Returns.

Eligible Structures

  • The structure must require improvement to meet State Energy Conservation Standards for Rental Housing.
  • The residential portion of the structure must contain separate dwelling units.
  • Mixed-use (commercial/residential) structures are eligible if more than 50% of the building’s total floor area is devoted to residential use, and if the improvements will primarily benefit the residential portion.

Eligible Improvements

  • Most improvements are eligible, interior or exterior maintenance or remodeling.
  • Applicants must provide bids for each improvement project.
  • Structures less than 15 years old are eligible only for funds to finance the necessary improvements to bring the structure into compliance with the state energy standards for rental housing.
  • Structures more than 15 years old are eligible for other moderate rehabilitation, provided they must also be brought into compliance with the energy standards.
  • Conversion from non-residential use to residential use is not permitted, nor is the construction of additional dwelling units.

Contact Jim Hasnik at (612) 335-5885 for more information.
Center for Energy and Environment • 212 3rd Avenue North, Suite 560 • Minneapolis, MN 55401 • Phone: (612) 335-5884 • Fax: (612) 335-2650