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MINNESOTA PHAse ry <br />HOUSING <br />FINANCE <br />IJAGENCY <br />RP.HABr.LITATIOM LOAM PROGRAM <br />P[MRAM SUMMARY <br />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 Iive in the lmproved 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, Accessiblilty•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 level 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 />rr. Program eligibilitu <br />Applicants must meet five eligibility criteria In order to <br />qualify for this program. They are as follows: <br />I. 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 $I,000 per person. MHPA may <br />also allow an extra deduction for extraordinary medical <br />costs. <br />The appIlcane must own the property to be Improved and It <br />must be hls)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 />400 Sibley Street, Suite 300, St. P:+nl, Minnesota 55101 (612) 296•7Rn8 <br />