Community Development : Housing Rehab Programs

Semcac offers several programs to assist homeowners and rental property owners to fix up their home or property. To determine if you qualify and learn more about each program, please call Cindy or Vonda at (507) 864-7741.

Small Cities Development Program:

Semcac has partnered with local governments and housing & redevelopment authorities to administer Small Cities Development Program projects in several Southeast Minnesota communities. These projects offer no interest, deferred loans for eligible homeowners to make necessary home repairs. A homeowner could use the loan funds for general improvements, including the foundation, siding, gutters, electrical system, plumbing or heating system. Lead assessment and abatement is also a special focus, especially for households with young children. Other state and local funds are leveraged to help with additional improvements. Current projects for which Semcac is coordinating housing rehab work include the following:

• Albert Lea—owner-occupied housing rehab
• Rushford—owner-occupied and rental housing rehab
• Ostrander—owner-occupied housing rehab
• Canton—owner-occupied housing rehab
• Peterson—owner-occupied housing rehab
• Whalan—owner-occupied housing rehab

Loan Programs for Homeowners:

Fix-Up Fund Loan Program
This Minnesota Housing Finance Agency loan program is available for the rehabilitation or renovation of an owner-occupied home. Households can borrow up to $35,000 at a below market interest rate. The maximum household income limit for this program is $96,500.

HOME Rehab Loan Program
This Minnesota Housing Finance Agency loan program helps low-income homeowners make their homes more livable, accessible, and energy efficient. Eligible improvements include plumbing, electrical wiring, roofing, heating, accessibility improvements, and remedy of any defect preventing the structure from meeting code requirements. This loan places a 15-year mortgage on the property and is forgivable after 15 years only if it has remained the owner's principal place of residence. For mobile homes in a mobile home park, the term of the loan is 10 years.

Loan Program for Rental Property Owners:

Rental Rehabilitation Loan Program
This Minnesota Housing Finance Agency (MHFA) loan program assists owners of smaller rental properties with financing improvements to their properties. An owner may receive up to $25,000 for a one or two unit property, or $10,000 per unit for larger properties, with a maximum loan amount of $100,000. The interest rate is 6%, and the term of the loan may be up to 15 years.