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MINNESOTA <br />HOUSING <br />FINANCE <br />AGENCY <br />PHASE IV <br />REHABILITATION LOAN PROGRAM <br />PROGRAM SUMMARY <br />r. General Description <br />The Minnesota Housing Finance Agency (MHPA) Rehabilitation Loan <br />Program provides deferred payment loans to low income homeowners <br />for housing improvements directly affecting the safety, <br />habitability, energy efficiency and accessibility of their <br />homes. (A deferred payment loan (Deferred Loan) is a loan which <br />need not be repaid unless the borrower sells, transfers, or <br />ceases to live In the improved property within ten years of the <br />date of the loan_ After the ten -year period expires, the loan <br />is forgiven). The program was created in 1981 to replace the <br />Agency's Home Improvement Grant Program, Accessibility-Program, <br />and Emergency Energy conservation Grant Program, and is entering <br />its fourth phase. <br />The program is primarily funded through appropriations from the <br />State Legislature. The funding Ievel for the 1987 -89 program <br />phase will be $9 million. There will also be a special $750,000 <br />fund specifically targeted for accessibility improvements. <br />These funds are distributed statewide through local housing and <br />redevelopment authorities, community action agencies, and other <br />nonprofit organizations known as Administering Entities. <br />II. Program Eligibilitu <br />Applicants must meet five eligibility criteria in order to <br />qualify for this program. They are as follows: <br />1. The -.applicant's household must have an adjusted gross <br />income of $7,000 or less. Adjusted income is calculated by <br />taking the gross income (including all public assistance <br />payments) of all members of the household, age 18 or over, <br />and deducting from that amount $1,000 per person. MHPA may <br />also allow an extra deduction for extraordinary medical <br />costs. <br />2. The applicant must own the property to be improved and it <br />must be his /her principal place of residence_ <br />3. The gross value of the applicant's assets (excluding the <br />property to be improved and two surrounding acres) cannot <br />exceed $25,000. <br />Page 65 <br />400 Sibley Street, Suite 300, St. Paul, Minnesota 55101 (612) 296 -7608 <br />