Columbia Heights Multifamily Improvement Loan
The City of Columbia Heights is offering funds for owners of multifamily rental properties to make improvements to their buildings.
The guidelines below are subject to change at any time without notice. Loan funds are subject to availability.
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About the Loan
- 0.134% APR*
- Loan amounts from $2,000–$50,000
- Borrowers must match loan amount 1:1
- Loan is deferred for 20 years
- Income limits apply, see Loan Terms for details
* APR is based on a loan amount of $50,000 over 20 years.
Property Eligibility
- 2+ unit residential properties located within the City of Columbia Heights
- Property may contain an owner-occupied unit
- Properties held in a Trust, single-family homes, single-unit condominiums or townhomes, cooperatives, manufactured homes, and commercial properties are NOT eligible
- Properties must be conforming uses or legal nonconforming uses under the Columbia Heights Land Use Code
- Property eligibility will be verified by CEE with the City at the time of application
- Work may not be started until loan is approved and closed
- Loan approval is subject to credit and program guidelines
Loan Details
- Income limits apply.
- In January, February, and March, all units must have a household income that does not exceed 50% of the area median income (AMI) as determined by the U.S. Department of Housing and Urban Development (HUD).
- From April to December, all units must have a household income that does not exceed 80% of HUD AMI.
- Income will be verified using the adjusted gross income from the most recent federal tax return or, if no tax return is required, project gross income. Income will include anyone listed on the lease or with a legal interest in the property.
- Rent for all rental units may not exceed 30% of the household monthly income based on the most recent federal tax return or, if no tax return is required, projected gross income.
- Borrower must match the City loan amount 1:1.
- This loan is 100% forgiven after 20 years if the property has not been sold, the title has not been transferred, and the property continues to meet income and rental requirements. If the property is sold, the title is transferred, or the property no longer meets requirements, the loan is due in full.
- Borrower must be current on all mortgages and property taxes.
- Funds are held in a non-interest bearing escrow account at CEE from loan closing until the work is completed and all final documentation is received.
- All work must be completed within 120 days of closing.
- Closing costs apply.
- A prioritization inspection is required to determine eligible projects.
- Eligible improvements include most interior or exterior improvements as determined by the prioritization inspection. If eligibility is uncertain, the City of Columbia Heights will approve use of funds.
- Work may not begin prior to loan approval and closing.
- At least two bids are required from a properly licensed or registered contractor with the Minnesota Department of Labor.
- For do-it-yourself projects, a materials list including prices is required. The cost for labor and equipment purchase may not be included in the loan.
- Please contact your City inspections department to verify if your project requires a permit. If you are hiring a contractor to do the work and it requires a permit, the contractor should pull the permit. If a permit is not required, CEE will conduct a post-installation inspection.
- All work must be completed within 120 days of closing.
- Our experience has shown that Big Box Stores are not willing to be paid on completion, which is a requirement for this program.
The current loan terms and conditions stated, including interest rates, do not constitute a commitment to lend or an offer to enter into an agreement, and that such an offer may only be made pursuant to Minnesota Statutes, Section 47.206(3) and (4).
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