St. Louis Park Multifamily Rental Rehabilitation Deferred Loan

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The City of St. Louis Park currently offers rehabilitation assistance to multi-family residential properties with 2 or more units. 

The guidelines below are subject to change at any time without notice. Loan funds are subject to availability. Email or call for complete details. 

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612-335-5884

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About the Loan

  • 0% (0.224% APR)*
  • No monthly payments.
  • 20 year term.
  • Loan amounts minimum of $5,000 per qualified restricted unit and up to $100,000 maximum per property.
  • Loan must be matched 1:1 with borrower funds.

*APR based on $50,000 for 20 years

Property Eligibility

  • Licensed rental properties with 2 or more units.
  • Property must be at least 30 years old.
  • Properties must not have any rental license revocations and must be properly insured.
  • Loan approval is subject to credit and program guidelines.

Loan Details

  • 0% (0.224% APR)*
  • This loan is secured by a mortgage on the property.
  • 1:1 project cost match.
  • Closing costs apply.
  • No income limits.
  • Owners who meet the Rent Restrictions and Requirements for 5 years or longer will have a portion of the loan forgiven, as follows: 25% of loan forgiven at 5 years, 50% of loan forgiven at 10 years, 75% of loan forgiven at 15 years, 100% of loan forgiven at 20 years if the owner has met the Rent Restrictions and Requirements .  The loan is 100% due and payable if the owner does not meet the Rent Restrictions and Requirements for at least 5 years. 

*APR is based on $50,000 for 20 years.

  • Eligible improvements include most interior or exterior improvements made to common areas and outstanding code violations. Improvements must not displace current residents during project.
  • 1 bid is required from a properly licensed contractor.
  • For do-it-yourself projects, a materials list including prices is required. The cost for labor and the purchase of tools may not be included in the loan.
  • The borrower must restrict rents for 20 years from the date of closing or if the property has been sold, refinanced or the ownership of the property has been transferred. 
  • Borrowers must file an annual self-certification to the City that rents charged do not exceed 60% AMI affordability levels.
  • Borrowers must agree to give equal consideration to renters with housing subsidy vouchers.
  • At least 18% of units with affordable rents to households with incomes at or below 60% AMI.
  • Annual rent increase for the assisted units may not exceed 5% of the previous rent charged, not to exceed 60% AMI affordable rent levels.

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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