With funds awarded by the Minnesota Department of Employment and Economic Development (DEED), this program provides financial assistance for low to moderate income individuals who are residing in substandard housing. This program 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 and appearance of the community.
Small Cities Development program also offers financial assistance to commercial property owners. This program can provide upgrades to properties, helping them to meet code requirements and design standards.
Program Documents
Target Area
City of Ortonville
Timeline
The program will take applications until approximately April 1, 2025, or when funds run out, whichever comes first. The timeline to complete projects can take 12 – 30 months, depending on the project size and scope, so start early!
Deferred Loan Amount
Maximum Loan – The maximum housing improvement assistance is $25,000 and is offered through a 0% “Deferred” loan over 7 years or 84 months.
A deferred loan is a loan with no monthly payments, which will be forgiven 1/7th per year or will revert into a grant if the property does not change ownership within 7 full years. The balance is reduced by 1/7th each year that the homeowner lives in the home. If the property is sold before the 7-year deferment period, the outstanding balance of the loan is paid to the city.
Eligibility Requirements
Ownership – The applicant must own or be purchasing a single-family home within the city limits of the city of Ortonville.
Income –Eligibility for the housing improvement program is based on household size and income with guidelines set annually by HUD.
Eligible Improvements – Improvement that are permanent and necessary are eligible. Examples include roofing, foundations, siding, heating units, electrical, plumbing, and other health and safety items. Additions are not allowed.
More requirements are listed in the fact sheet and application materials.
Process for Eligible Applicants
Submit a complete application with supporting documents to the UMVRDC in a timely manner.
- Work with the Southwest Minnesota Housing Partnership (SWMHP) housing inspector, decide what improvements to make and find a contractor.
- Sign contracts and enable the contractor to work on your home.
- Pay any matching funds that you would be responsible for. These would include:
- Any project cost above $25,000
- 10% of the total project cost if you fall in the Tier 2 income guidelines
- Filing fee ($46)
NOTE: There are requirements within each of these improvements. The inspection will outline eligible and ineligible expense. SCDP ineligible improvements (page 7) must be Owner financed and may count towards the 20% match requirements.
Program Documents
Target Area
The target area for the commercial SCDP deferred loans is the designated slum and blight district:
- Bounded on the north by Jefferson Ave.
- Bounded on the east by 3rd St.
- Bounded on the south by the southmost intersection of Hwy 7 (Sioux Trail) and Hwy 12.
- Bounded on the west by 1st St and Scale Rd.
The slum and blight district includes buildings contiguous to 2nd St/Ingersoll Ave/Hwy 7 within the downtown business district.
Timeline
The program will take applications until approximately April 1, 2025, or when funds run out, whichever comes first. The timeline to complete projects can take 12 – 30 months, depending on the project size and scope, so start early!
Deferred Loan Amount
Maximum Loan – The maximum is $40,000 and is offered through a 0% “Deferred” loan over 5 years or 60 months.
A deferred loan is a loan with no monthly payments, which will be forgiven 1/5th per year or will revert into a grant if the property does not change ownership within 5 full years. If the property is sold before the 5-year deferment period, the outstanding balance of the loan is paid to the city.
Eligibility Requirements
- Only the owner of the property can apply for a commercial rehabilitation loan.
- There are no income restrictions for either the owner or the tenant.
- The building must be located in the target area.
- The property must be occupied by a business during the rehabilitation or have an executed lease indicating that the property will be occupied prior to the end of the grant period. A Unique Entity Identifier (UEI) must be submitted. The UEI recently replaced the DUNS number.
More requirements are listed in the fact sheet and application materials.
Process for Eligible Applicants
- Submit a complete application with supporting documents in a timely manner.
- Work with the building inspector, decide what improvements to make and find a contractor.
- Adhere to all rules and regulations (Davis Bacon, SHPO).
- Sign contracts and enable the contractor to work on your property.
- Pay any matching funds that you would be responsible for. These would include:
- 20% of the total project
- Any project cost above $40,000
- Filing fees ($46) and mortgage registry tax (.23%)
Eligible Improvements
Eligible Improvements include, but are not limited to the following:
- Roofing
- Façade
- Tuckpointing/siding
- Windows
- Doors
- Foundation
- Signage attached to the building.
- Code violations
- Elimination of lead-based paint and asbestos.
- Address structural and health and safety issues.
- Minnesota Historical Society/SHPO mandated repairs for historically significant buildings.
- ADA modifications to make building accessible.
Eligible only if there is a documented code violation/safety issue/ADA
- Interior repairs
- Electrical System Repairs
- Mechanical repairs
- Heating/HVAC systems (must be documented to be at the end of its useful life)
- Insulation (case by case basis)
- Air Conditioners
- Ventilation
- Floors
- Ceilings
- Lighting
- Energy improvements
NOTE: There are requirements within each of these improvements. The inspection will outline eligible and ineligible expense. SCDP ineligible improvements (page 7) must be Owner financed and may count towards the 20% match requirements.