Home Repairs

Prairie Five offers Housing Home Repair Programs through Minnesota Housing Finance Agency and the Department of Employment and Economic Development.

Minnesota Housing Finance Agency (MHFA) Rehab Loans

Funded through the Minnesota Housing Finance Agency (MHFA), these are income based deferred loans for improvements for basic, necessary housing repair to owner occupied properties.  There is no interest or monthly payment until such a time you sell, transfer or move from the property or until after the 15th year when the deferred loan is 

Loan Features

Maximum loan amount is $27,000. Maximum loan term is 15 years for properties taxes as real property and 10 years for mobile/manufactured homes taxed as personal property located in a mobile home park. All loans are forgiven if the borrower does not sell, transfer title or cease to occupy the property during the loan term. 

Home Before Home Repairs Loan

Before

Home After Home Repairs Loan

After

Eligible Home Improvements:

Basic improvements to the livability, accessibility and energy efficiency, as well as addressing lead paint hazards are eligible.  Examples of repairs that may be eligible are roofing, foundations, siding, windows, heating units, electrical, plumbing, health and safety items.  A property inspection is done by the Housing Inspector and a lead test and a radon test are done to determine if lead and radon exist in the home.  From this inspection and test results, it is determined what improvements can/will be done.

Eligibility

  • The property must be owner occupied     
  • The ownership of the property must be verified, and includes contract for deeds and life estates and trusts
  • The household cannot have assets over $25,000
  • The household must be current on property taxes and have current homeowner’s insurance coverage on the home

The household must be the following 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

These income limits are adjusted yearly

For Additional Information On The MHFA Program Please Call:  320-269-6579

Small Cities Development Program (Small Cities) Rehab Loans

Funded through the Department of Employment and Economic Development (DEED), the Small Cities Program provides income based deferred grants to low to moderate income households living in substandard housing.  The Small Cities Programs also encourages the improvement of the general appearance and value of the housing stock, while making a visible and substantial improvement in the quality of life in the community. 

Small Cities Development Program funds are also available to commercial and rental property owners.  This program can provide upgrades to properties, helping them meet code requirements and design standards.

Small Cities’ grants require a match from the owner of the property.  Most grants are written as a 70-80% grant funds and a 20-30% owner match for project funding.  There is a maximum amount of funds that a project can receive as well.  Prairie Five will assist in determining the match and other funding sources or options that may be available to fund the match requirement, if needed.

Small Cities Development Program funds are awarded annually by DEED to communities that have submitted an application.  Funds are only available in those communities and there will be target areas in the communities where the funds can be used.

Current Small Cities Grants:

Clinton Graceville Beardsley
Owner Occupied and Commercial
grant closes 9-30-19

Montevideo Owner Occupied and Commercial 

Clarkfield Owner Occupied and Commercial

Granite Falls Owner Occupied, Rental and Commercial

For Additional Information on the Small Cities Program Please Call:  320-269-6579

Eligible Improvements:

Repairs that are permanent and necessary as well as addressing lead paint hazards, are eligible repairs.  Examples of repairs that may be eligible are roofing, foundations, siding, windows, heating units, electrical, plumbing, health and safety items.  A property inspection is done by the Housing Inspector identifying any housing problems.  A lead test is done to determine if lead exists, in the home.  From this inspection and test results, the Housing Inspector will work with the owner to determine what improvements can/will be done. The owner will select the contractors from a list of Prairie Five approved contractors that they would like to bid the project.  Bids and bid packets are sent to 3 contractors by Prairie Five.

Eligibility Requirements:

  • Single-family homes, commercial, or rental units (depending on the grant) are eligible units.  Mobile homes are not eligible.
  • The applicant must own or be purchasing the property.  The ownership of the property must be verified and may contract for deeds and life estates if the grant allows them.  If the grant allows, the contract for deed holder and the life estate remainder men must meet the income guidelines for the property to be eligible.
  • The property must be owner occupied (for Owner Occupied grants).
  • The household must be current on property taxes and have current homeowner’s insurance coverage on the home.
  • The household must meet the following income limits (for Owner Occupied grants and Rental grants).  

Big Stone, Lac qui Parle and Yellow Medicine Counties

  • 1 person      $36,600
  • 2 persons    $44,050
  • 3 persons    $49,550
  • 4 persons    $55,050
  • 5 persons    $59,500
  • 6 persons    $63,900
  • 7 persons    $68,300
  • 8 persons    $72,700

Chippewa and Swift Counties

  • 1 person      $37,800
  • 2 persons    $43,200
  • 3 persons    $48,600
  • 4 persons    $54,000
  • 5 persons    $58,350
  • 6 persons    $62,650
  • 7 persons    $67,000
  • 8 persons    $71,300

These income limits are changed yearly. Income is determined for the household for owner occupied projects; for the tenant’s household for rental properties.  There are no income guidelines for commercial properties.

Deferred Loans:

The Small Cities grant funds will be loaned as a 0% interest deferred loan.  A Repayment Agreement with the community that has the grant will be signed and filed with the County Recorder’s Office.

  • This deferred loan requires no monthly payments and no interest will accrue.
  • It will put a lien on the property for 7-10 years, depending on the grant.
  • The deferred loan will be forgiven 1/7th – 1/10th per year for the time of the grant and lien.
  • It will revert into a grant if the property does not change ownership within the time specified in the grant and lien.
  • If you should sell, transfer title or cease to occupy the property before the 7-10 years are up, you will need to pay back the remaining percentage of unforgiven lien.
  • If there is a life estate ownership on the property, there is no descending forgiveness on the grant.
  • If there is a contract for deed or life estate ownership on the property, the contract for deed holder(s) and all life estate remaindermen must be income eligible for the property to be eligible.
  • Contract for deeds on Rental properties are not eligible ownership.

Home Stretch

Homestretch is a home buyer education program which provides information on home purchasing loan options, purchase agreements, loan closings, and budgeting and home maintenance after the purchase.  After class completion, a certificate is obtained which may be required to apply for certain loan programs.

For more information contact:
Southwest Minnesota Housing Partnership at 1-507-836-1602  at www.SWMHP.org  (click in the upper left corner for the drop down and go to Buy a Home and then Take a Class for information on Home Stretch).

Minnesota Homeownership Center at www.HOCMN.org  (click on Buying a Home and then Homebuyer Education and Home Stretch Workshops).

Fair Housing

Equal Housing Opportunity Rights

Contractors

If you are interested in working as a contractor with Prairie Five’s Housing Program, please contact us to complete the Contractor Application.   Applications to be a Housing Rehabilitation Contractor are accepted at any time.
Women, Minority and Section 3 businesses are encouraged to apply. If qualified, preference may be given to Women, Minority and Section 3 businesses. EOE/AA/ADA

HOUSING REHABILITATION/BUILDING CONTRACTORS
Must be skilled in building construction and building codes and regulations.

Must have a current contractor license, current insurance, lead firm certification, lead safe practices certification.
Must have the tools and equipment and the ability to complete all work in accordance with State and Local Codes.
Work will be contracted on a bid basis.

MECHANICAL OR ELECTRICAL CONTRACTORS 
Must have a current license (if required), current insurance and bond, lead firm certification (if required), lead safe practices certification (if required).
Must have the equipment and tools and the ability to complete all work in accordance with code.
Work will be contracted on a bid basis.

For Additional Information On Becoming A Contractor Please Call:  320-269-6579