Laserfiche WebLink
REVOLVING LOAN PROGRAM <br />PROGRAM SUMMARY <br />T. General Description <br />PHASE V <br />The Minnesota Housing Finance Agency (MHFA) Revolving Loan Program <br />provides 3% loans to low income homeowners for housing improvements <br />directly affecting the safety, habitability, energy efficiency and <br />accessibility of their homes. The program was created to assist <br />households which are not eligible for the necessary assistance through <br />other state and federal programs. <br />The program is funded by MHFA. The funding level for the March 1989 -July <br />1991 program phase will be $3 million. These funds are distributed <br />statewide through local housing and redevelopment authorities, community <br />action agencies, and other nonprofit organizations which currently <br />contract for delivery of the Rehabilitation Loan Program. <br />II. Program Eligibility <br />Applicants must meet eight eligibility criteria in order to qualify for <br />this program. They are as follows: <br />1. The applicant's household must have an adjusted gross income of <br />$15,000 or less in the seven county metro area or $12,000 or less In <br />the rest of the state. Adjusted gross income is calculated by taking <br />the gross annual Income (Including all public assistance payments) of <br />all members of the household, age 18 or over, and deducting from that <br />amount $1,000 per person. MHFA may also allow an extra deduction for <br />extraordinary medical costs. <br />2. The applicant must own the property to be improved and it must be <br />his /her principal place of residence. <br />3. The value of the applicant's assets after deducting any outstanding <br />indebtedness secured by the assets, cannot exceed $25,000. Excluded <br />from the calculation of an applicant's assets are the following: <br />(a) The house to be repaired and the land upon which it Is located <br />up to two contiguous lots of platted land or 160 contiguous <br />acres of unplatted land. Language In the document securing the <br />loan will require that If any of the land 1s sold, profits from <br />the sale would be required to be used to reduce the Ioan balance. <br />(b) Real Estate, equipment, supplies and inventory used in a <br />business. <br />(c) Household furnishings, clothing and one automobile. <br />5. The structure, upon completion of necessary Improvements, will be <br />reasonably livable, safe, habitable, and energy efficient for the <br />term of the loan in the Administering Entities estimation. <br />Page 23 <br />