Housing Rehab

Are you looking for funds to fix up your house?  The Brainerd HRA administers several different housing rehabilitation programs.

Rehabilitation Loan Program
The Rehabilitation Loan Program assists low income homeowners in financing basic home improvements that directly affect the safety, habitability, energy efficiency or accessibility of their homes.

Eligibility Requirements for a Rehabilitation Loan Program Loan

  • owner occupies the property to be rehabilitated;
  • owner does not have assets that exceed $25,000;
  • owner meets the following 2016 income limits:
 Size of Household  2016 Income Limits
 1 Person  $18,100
 2 Persons  $20,600
 3 Persons  $23,200
 4 Persons  $25,800
 5 Persons  $27,900
 6 Persons  $29,900
 7 Persons  $32,000
 8 Persons  $34,000

Loan Features

  • Maximum loan amount is $27,000
  • Maximum loan term is 15 years for properties taxed as real property and 10 years for mobile/manufactured homes taxed as personal property located in a mobile home park.
  • Can be used for rehabilitation of:
    • single-family homes
    • an eligible one-unit dwelling in an eligible Planned Unit Development (PUD)
    • townhomes
    • a condominium unit
    • duplexes
    • manufactured housing taxed as real or personal property
  • All loans are forgiven if the borrower does not sell, transfer title, or ceases to occupy the property during the loan term.

Eligible Home Improvements

Basic improvements to the livability, accessibility, energy efficiency and addressing lead paint hazards are eligible.  Electrical wiring, furnace replacement, plumbing and septic repairs are just some of the possible repairs.

Emergency and Accessibility Loan Program

Deferred, zero percent interest Emergency and Accessibility Loans are available to low income single family homeowners through participating Lenders. These loans address Emergency Conditions in the home or essential Accessibility Improvements for a Disabled Household Resident.

  • owner occupies the property to be rehabilitated;
  • owner does not have assets that exceed $25,000;
  • owner meets the following 2016 income limits:
 Size of Household  2016 Income Limits
 1 Person  $18,100
 2 Persons  $20,600
 3 Persons  $23,200
 4 Persons  $25,800
 5 Persons  $27,900
 6 Persons  $29,900
 7 Persons  $32,000
 8 Persons  $34,000

Loan amount:
Maximum loan amount is $15,000.
Minimum loan amount is $1,000

Eligible Improvements

The proceeds of a loan under this Procedural Manual shall be used to finance improvements which:

  • Are permanent and meet the minimum provisions contained in all applicable state, county and municipal health, housing, building, fire prevention, and housing maintenance codes, or other public standards;
  • Are completed by building contractors that are licensed in the State of Minnesota;
  • Are used for repairs to a property damaged as a result of events beyond the Borrower’s control or as necessitated by a systems or structural failure such as:
  • Failure of the heating, electrical, ventilation, or plumbing/septic system;
  • Roof leaks that have led to significant secondary damage to the home’s interior;
  • A structural failure of the foundation, walls, or roof of the home that could cause collapse;
  • An Environmental Intervention Blood Lead Level (EIBLL) of a household resident; or,
  • An accessibility need that prevents a disabled person from inhabiting the home.

Other Emergency Conditions that could cause the home to be or become uninhabitable will be considered by Minnesota Housing on a case-by-case basis.
Contact John Schommer at (218) 824-3432 or john@brainerdhra.org for more information.