St. Louis Park Deferred Loan
The City of St. Louis Park offers funds for residents to make improvements to their homes.
The guidelines below are subject to change at any time without notice. Loan funds are subject to available. Email or call for complete details.
About the Loan
- 0% (0.156% APR)*
- Income limits apply, see Loan Terms for details
- No monthly payments
- Loan amounts from $2,000 to $30,000
- Loan deferred for 20 years
- Work may NOT begin until after the loan is closed.
*APR is based on a loan of $30,000 over 20 years.
Property Eligibility
- 1–2 unit owner-occupied properties within the City of St. Louis Park
- Properties used for commercial purposes, manufactured (mobile) homes, cooperatives, with more than two units, and that are not occupied by the owner (absentee owned) are NOT eligible.
- Property value can NOT exceed $445,000 based on the most recent estimated property tax value.
Loan Details
- The borrower's total household income may not exceed 80% of the area median income (AMI). Income will be determined by the adjusted gross income from the most recent tax return.
- If the borrower is not required to file a tax return, the income will be based on projected income for the next 12 months for all owner occupants of the property.
- This loan is deferred for 20 years. If, after 20 years, the borrower still occupies the property, the loan is 100% forgiven. If the borrower sells the property, transfers the title, or no longer occupies the property as their primary residence, 100% of the loan is due.
- More than one loan per household is allowed, but the total amount borrowed may not exceed $30,000.
- 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 180 days of closing.
- A prioritization inspection will be completed by CEE to determine eligible improvements.
- The homeowner must schedule a Home Energy Squad® home energy audit.
- Most permanent interior and exterior improvements, maintenance, or remodeling projects are eligible, including energy efficient improvements and accessibility projects.
- Loan must be used to address health and safety concerns and/or outstanding code violations first, as determined by the prioritization inspection.
- Funds may NOT be used for common area improvements, work initiated prior to closing (except in emergencies), recreation or luxury projects, or non-permanent appliances.
- Do-it-yourself (DIY) projects, also known as sweat equity projects, are permitted, but funds can NOT be used to pay for homeowner labor or to purchase equipment needed to complete the project.
- One bid is required from a properly licensed contractor or registered with the MN Department of Labor.
- 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.
- When a permit is required, the work must be inspected by a City inspector. If no permit is required, the project is subject to an inspection by CEE.
- Work must be completed within 180 days of closing.
- Work may not begin until the loan has closed.
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).
