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PHASE VI <br /> • <br /> DEFERRED LOAN PROGRAM <br /> PROGRAM SUMMARY <br /> I. General Description <br /> The Minnesota Housing Finance Agency (MHFA) Deferred Loan Program <br /> provides deferred payment loans to low income homeowners for housing <br /> improvements directly affecting the safety, habitability, energy efficiency and <br /> accessibility of their homes. A Deferred Loan is a loan which need not be repaid <br /> unless the borrower sells, transfers, or ceases to live in the improved property <br /> within ten years of the date of the loan. After the ten-year period expires, the loan <br /> is forgiven. The program, which was created in 1981, is entering its sixth phase. <br /> The program is primarily funded through appropriations from the State <br /> Legislature. The funding level for the 1991-93 program phase will be $8 million. <br /> There will also be a special $500,000 fund specifically targeted for accessibility <br /> improvements. These funds are distributed statewide through local housing and <br /> redevelopment authorities, community action agencies, and other nonprofit <br /> organizations known as Administering Entities. <br /> II. Program Eligibility <br /> Applicants must meet five eligibility criteria in order to qualify for this program. <br /> They are as follows: <br /> 1. The applicant's household must have an adjusted gross income of $8,500 or . <br /> less. Adjusted income is calculated by taking the gross income (including all <br /> public assistance payments) of all members of the household, age 18 or <br /> over, and deducting from that amount $1,000 per person. MHFA may also <br /> allow an extra deduction for extraordinary medical costs. <br /> 2. The applicant must own the property to be improved and it must be his/her <br /> principal place of residence. <br /> 3. The gross value of the applicant's assets (excluding the property to be <br /> improved and two surrounding acres) cannot exceed $25,000. <br /> • <br /> 4. The property cannot contain more than two dwelling units.'1 <br /> 5. The structure, upon completion of necessary improvements, will be <br /> reasonably livable, safe, habitable, and energy efficient for the term of the <br /> loan. <br /> • <br /> 5/31/91 -1- 2797/D <br />