Minneapolis Energy Efficiency Loan
The City of Minneapolis is offering a 0% loan to residents to make energy efficiency improvements to their homes.
To quality, the recipient must have had a Home Energy Squad® (HES) visit or a Truth in Sale of Housing (TISH) Energy Disclosure report within 3 years of loan closing.
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About the Loan
- 0% APR
- Loan amounts up to $20,000.
- Loan terms up to 10 years depending on the loan amount.
- Household income cannot be over 150% of the Area Median Income (AMI), based on your household size and adjusted gross income from the most recent Federal Tax Return. Qualifying income cannot be over $161,500. Qualifying income is the income needed to verify the ability to repay the loan.
- The total loan amount for all Energy Efficiency Interest Subsidy Loans CANNOT be more than $20,000 per year.
Property Eligibility
- 1–4 unit owner-occupied residential properties located in the City of Minneapolis.
- Individually owned townhomes, twin-homes, and condominiums are eligible.
- Properties cannot be more than 4 units, cooperatives, manufactured homes, held in Trust, used for commercial purposes, or new construction.
- Property must have had a Home Energy Squad (HES) visit or a Truth in Sale of Housing (TISH) Energy Disclosure report within 3 years of loan closing.
Loan Details
- This loan is secured by a mortgage.
- The loan amount can cover up to 100% of the total project cost, including utility rebates but excluding the Minneapolis Bonus Rebate.
- Work can NOT Begin until after the loan is approved and closed. All work must be completed within 270 days of the loan closing. CEE may make exceptions on a case-by-case basis.
- A credit report will be pulled and used as part of the loan qualifying process.
- Closing fees apply.
- 1 bid is required from a properly licensed or registered contractor with the MN Department of Labor. Permits must be obtained when required. The contractor must complete a Supplemental Application.
- Sweat equity or do-it-yourself (DIY) projects are NOT allowed. All projects must be completed by a properly licensed or registered contractor with the MN Department of Labor.
- Below is a list of the eligible energy efficiency improvements available with this loan.
| Eligible Equipment | Equipment Specification |
|---|---|
| Attic Air Sealing and Insulation | ≥ R49 or as much as possible |
| Wall Insulation | ≥ R11 or as much as possible |
| Rim Joist Insulation | Evaluated on a case-by-case basis |
| Triple Pane Windows | EnergySTAR v.7 Northern Climate windows replacing single-pane windows |
| Boiler | 95% AFUE or greater. Eligible only if installed with a new or existing air source heat pump. |
| Furnace | 96% AFUE or greater. Eligible only if installed with a new or existing air source heat pump. |
| Heat Pump Electric Water Heater | EnergySTAR |
| Air Source Heat Pump — Ducted | Must meet efficiency requirements listed on the CEE Supplemental Energy Application form. |
| Air Source Heat Pump — Mini-Split | Must meet efficiency requirements listed on the CEE Supplemental Energy Application form. |
| Health and safety upgrades related to the energy efficiency upgrade | Combustion safety, knob and tube wiring, asbestos abatement, and ventilation may be eligible. |
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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