MHFA HOME RENTAL REHABILITATION PROGRAM

The Red Wing Housing & Redevelopment Authority currently has $140,000 available for rental property renovation.

The Minnesota Housing Finance Agency (MHFA) and the RWHRA are partners offering permanent rental property rehabilitation funding for rental property owners.  The program makes up to $14,000 per rental unit available to rental property owners at forgivable or deferred terms (terms are determined by the size of the project request).

Property owners/borrowers must provide a minimum of 25% of HOME eligible costs to participate in the program.  The program is directed at correcting deficiencies that affect safety, habitability, accessibility, or energy consumptions of a property.  The goal is to make rental housing reasonably livable, safe, habitable, energy efficient and lead-safe during the five year compliance period.  Items that are considered eligible under the program include siding, windows, insulation, flooring, paint, roofing, heating, and even landscaping.

Program participation requires the property owner to comply with rental and income limits with renters during a five year compliance period.  After that time the forgivable loan is completely forgiven.  The deferred program ($100,000 or more in program needs) requires no contribution from the owner and features 0% financing for a given time period with no repayment until certain actions trigger the repayment.

The RWHRA office receives allocated funding for this program yearly from MHFA.  The available funds are limited yearly and if a property owner is interested in the program it is suggested that they contact the RWHRA Community Redevelopment office to discuss availability or to request an application at (651)388-7571.