06-28-1989 Council Agenda - Laserfiche WebLink

Home Browse Search

PHASE V DEFERRED LOAN PROGRAM PROGRAM SUMMARY I. General Description The Minnesota Housing Finance Agency (MNFA) Deferred Loan Program (formerly known as the Rehabilitation Loan Program) provides deferred payment loans to low income homeowners for housing Improvements directly affecting the safety, habitability, energy efficiency and accessibility of their homes. A Deferred Loan is a loan which need not be repaid unless the borrower sells, transfers, or ceases to live in the Improved property within ten years of the date of the loan. After the ten -year period expires, the loan is forgiven. The program which was created in 1981 is entering its fifth phase. The program is primarily funded through appropriations from the State Legislature. The funding level for the 1989 -91 program phase will be $9 million. There will also be a special $500,000 fund specifically targeted for accessibility improvements. These funds are distributed statewide through local housing and redevelopment authorities, community action agencies, and other nonprofit organizations known as Administering Entities. II. Program Eligibility Applicants must meet five eligibility criteria In order to qualify for this program. They are as follows: 1. The applicant's household must have an adjusted gross income of $8,500 or less. Adjusted income is calculated by taking the gross Income (including all public assistance payments) of all members of the household, age 18 or over, and deducting from that amount $1,000 per person. MNFA may also allow an extra deduction for extraordinary medical costs. 2. The applicant must own the property to be Improved and it must be his /her principal place of residence. 3. The gross value of the applicant's assets (excluding the property to be Improved and two surrounding acres) cannot exceed $25,000. Page 86