/windom: home improvement loan program

 

 

The Windom Community Council (WCC) is making available NRP funds that have been designated for home improvements in the Windom Neighborhood.  This program is designed to complement existing loan programs available from the City of Minneapolis, MHFA, CEE, private lenders and other housing resources.  It is not intended to be the sole source of rehab funds available to the neighborhood. 

 

Loan Terms

Eligible properties:  Properties must be located in the Windom neighborhood and must be an owner occupied single family or duplex.

 

Income Limit:  Income cannot exceed 75% of HUD annual income limits adjusted for family size.  Income shall be determined by the projected income over the next 12 months.

 

Interest Rate:  2%.

 

Loan Amount:  Minimum loan size of $5,000 and maximum of $15,000. 

 

Loan term:   Maximum term will be 10 years (no penalty for prepayment).

 

Prior Participation:  Households that have previously received a WCC NRP-funded loan or grant are eligible to receive a loan through this revolving loan program.  However, the cumulative outstanding balance of the previous loan and the original balance of the new loan cannot exceed $15,000.

 

Eligible Improvements:  Loans may be used to finance a wide range of interior and exterior improvements.  Examples of such improvements: 

 

  1. Correction of any outstanding violations of the City of Minneapolis Housing Codes and correction of other hazardous codes, health or safety-related conditions as identified by CEE;

  2.  Safe and healthy housing including accessibility improvements for accommodating disabilities or aging in place, radon remediation, water and mold elimination such as sump pump, drain tiles, permanently fixed dehumidifiers;

  3. Energy efficiency –related improvements that help lower on-going energy costs.  Energy efficiency-related improvements include but are not limited to:  windows, doors, heating and air conditioning systems, solar panels, insulation, and water heaters; and

  4. Improvement of the physical condition of the property in order to enhance the livability, durability or appearance of the property, including;

 

  • Roofing

  • Painting

  • Siding

  • Insulation

  • Trim

  • Window replacement or updates

  • Masonry work

  • Steps (repair or replacement)

  • Driveways (repair or replacement)

  • Garage repair or replacement (including roof)

  • Garage electrical (line extension, lights, outlets, door opener, chargers for electric cars)

  • Exterior electrical (motion sensor lights, sidewalk lights, yard lights, doorbells)

  • Sidewalk

  • Gutters

  • Landscaping projects that are permanent improvements such as trees, bushes, sod, terracing, ground water tiling, etc. that are part of a larger project

  • Interior projects and additions that increase the size of the square footage (but don’t increase footprint) such as basement or attic finishes or dormers

  • Fences, decks, patios, retaining walls.

  • Other projects that fit within stated “Purposes” of loan fund, and as approved by the Windom Community Council Housing Committee.

 

Ineligible Improvements:  Projects not eligible shall include:  gazebos, work initiated prior to the loan application being received by CEE, recreation or luxury projects (pools, playground equipment, whirlpools, etc.), furniture, non-permanent (not built-in) appliances, cosmetic improvements not associated with other eligible improvements, funds for working capital, debt service or refinancing existing debts.  CEE will refer to the Windom Community Council Housing Committee whenever eligibility of an improvement is uncertain.  WCC’s decision on project eligibility shall be final.  Any questions about whether an improvement is NRP eligible must be resolved by the City of Minneapolis.

 

Debt - to - Income Ratio:  Applicants must have the ability to repay the loan.  Applicants who have a debt to income ratio in excess of 50% will be denied loan financing.

Loan - to Value Ratio:  The ratio of all loans secured by the property, including the new loan, must not exceed 110% of the property value. 

 

Loan Security:  All NRP loans will be secured with a mortgage in favor of the City of Minneapolis.  Loans are not assumable.  Borrowers will pay all filing fees.

 

Underwriting Decision:  Loans will be approved or denied based upon review of applicant’s credit report.  Applicants must have acceptable credit history:  Borrowers may not have had a bankruptcy in the last 18 months, (without reasonable explanation).  Property owners must be current on mortgage payments and property taxes.  Applicants who have judgements/liens against the property, without reasonable explanation, will be denied financing.  Except in unusual circumstances, CEE’s decision shall be final.

Loan Administrator

WCC has contracted the services the Center for Energy and Environment (CEE), a 501(c)(3)-designated nonprofit organization, to serve as the Windom Community Council Home Improvement Loan Administrator.  CEE's mission is to promote energy efficiency to strengthen the economy while improving the environment. CEE offers low interest home energy loans for Minnesota homeowners to make energy improvements in their homes.

For more information on applying please click here:  

©2016 Windom Community

Our Vision: The Windom Community seeks to be recognized, locally and beyond, as an attractive, supportive and involved neighborhood that takes pride in its cultural diversity and rich history. We are a community of people who strive to provide a safe, clean, educational and prosperous haven for all our residents and businesses.