There are two different programs offered by the Fergus Falls HRA:
MHFA HOME Rental Rehab Program
The HOME Rental Rehabilitation Program provides funding for rehabilitation of permanent rental housing that is affordable to and occupied by, low-income persons and families. Generally, tenant income must be less than 60% of the area median income at the time of funding commitment. Tenants with incomes above guidelines may occupy units in the building; however, program funds may be expended only on units occupied by eligible tenants.
Loans may be assumable provided new owner agrees to continuation of above compliance areas for the balance of the loan term.
Upon preliminary review and approval of applications, the HRA will inspect the property and prepare scope of work for all proposed rehabilitation.
All rehabilitation work must be performed by licensed contractors. Both owner and HRA must inspect and approve work prior to contractor payments.
RENTAL REHAB PROGRAMS
Fergus Falls Rental Rehab Program
Loan funds are available at 3% interest to rehabilitate 1-5 unit rental properties in Otter Tail County. Loan Limits are $15,000 for single-family units and $10,000 per unit for 2-5 unit dwellings. Loan terms are simple interest with monthly payments beginning at completion of rehab and maximum term of 10 years.
Property owners agree with three compliance areas for the duration of the loan. Rent to tenants who have incomes below local Section 8 guideline limits. Keep rents at or below Section 8 rent limits. Promote fair housing in all advertising and leasing.
Otter Tail County Rental Rehab Programs:
Loan limits are $20,000 for single-family units and $14,000 per unit for 2-5 unit dwellings. Monthly payments begin at completion of the rehab with a maximum term of 10 years.
The following options are available to applicants:
25% of the loan forgivable, and 75% of the loan at 0% interest: For property owners that agree to three compliance areas for the duration of the loan (rent to tenants who have incomes below local Section 8 limits, keep rents at or below local Section 8 payment standard, and promote fair housing in all advertising and leasing). Loans may be assumable provided new owner agrees to continuation of the three compliance areas for the balance of the loan term.
or:
3% Loan: Loan program for those applicants that do not agree to the three compliance areas. Loan funds are available at 3% interest to rehabilitate 1-5 unit rental properties in Otter Tail County.
Contact
For more information, please contact Dennis Christenson at the Fergus Falls HRA office
1151 Friberg Avenue
Fergus Falls, MN 56537
Call (218) 739-3249
Fax (218) 736-4706
Email ffhra@prtel.com.
