The HOME Rental Rehabilitation Program administered by the Minnesota Housing Finance Agency (MHFA) is solely for the rehabilitation of existing rental properties that contain a minimum of five rental units. New construction and acquisition are not eligible under this program.
All HOME developments needing $100,000 or more in HOME funds will receive a 0% deferred payment loan that will be coterminous with their existing first mortgage. Borrowers may obtain 100% financing as long as HOME expenditures do not exceed $14,000 per unit.
All HOME developments needing less than $100,000 will receive a 0% deferred loan that is forgiven after a 5-year period of compliance with affordability and property standards requirements. Borrowers must supply a 25% match towards the rehabilitation on the property.
Private individuals, corporations, partnerships, non-profit organizations, and Community Housing Development Organizations are eligible to apply for these funds. Non-federally subsidized, existing rental property with any number of housing units are eligible for funding.
Owner occupied units are not eligible for HOME Rental Rehabilitation Program funds. Properties must be at least 51% residential and must meet Housing Choice Voucher (formerly Section 8) Housing Quality Standards and Agency Rehabilitation Standards after rehabilitation. They must also meet HOME Rental Rehabilitation Program Rent and Income Requirements for a compliance period of five years.
There is usually a waiting list for this program. The amount of funds available to the OCHRA is usually determined in the spring of the year. The funding level varies, but has been about $250,000 for the past few years.
Rob Mathias, OCHRA Staff: information about the OCHRA program
507 328-7154 or by email
Brian Riley, Minnesota Housing Finance Agency (MHFA):general program information
800 710-8871 or by email