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Housing Rehabilitation Loan Program

Housing Rehabilitation Loan Program (Up to $35,000)

Loans of up to $35,000 are available to Bloomington homeowners. There are no monthly payments. The loan will accrue interest at an annual rate of 2 percent for a period of 10 years and will not have to be repaid until the owner sells, transfers title or the property is no longer the borrower's principle place of residence.

These loans are offered in an effort to help maintain the condition of housing and neighborhoods in the city.  All applications will be ranked and processed according to need. All homes built before 1978 will be required to have a Lead Risk Assessment.

You can find an application below, or you may call 952-563-8937 to ask for an application to be mailed to you.

PDF icon Housing Rehabilitation Loan Program Application

PDF icon Solicitud de Prestamo de Rehabilitacion de Vivienda


Am I eligible to apply?

  • All applicants must be owner-occupants of their homes.
  • Homes must be at least 10 years old.
  • You must have sufficient equity in your home to cover the loan amount.
  • All loans are served on a priority basis.
  • Applications will be accepted on an ongoing basis. For more information, call 952-563-8937.
  • Maximum Gross Income limits (subject to change)

    1 person - $70,000
    2 people - $80,000
    3 people - $90,000
    4 people - $100,000
    5 people - $108,000
    6 people - $116,000
    7 people - $124,000
    8 people - $132,000

* All residents of house, related and unrelated, including renters.

How much money can I borrow?

  • Maximum loan amount: $35,000, or the equity in your home, whichever is less.
  • Interest rate: 2% simple

How are these loans repaid?

  • There are no monthly payments.
  • The loan must be repaid upon sale, refinance, transfer or conveyance of the property, or when the property is no longer the legal residence of the applicant.
  • Interest will accrue for the first 10 years of the loan. Interest is not compounded.
  • Loans may be prepaid but this must be done in a lump sum.

What improvements are eligible?

  • Repairs for health and safety requirements.
  • Code repairs for electrical, heating and plumbing.
  • Lead paint stabilization. This is required for all homes built before 1978.
  • Energy efficiency improvements.
  • Exterior improvements such as siding, roofing, gutters and downspouts, windows, driveways, foundation repairs.

Not eligible:

  • Work in progress or completed prior to loan commitment.
  • Additions or garages.
  • Recreational facilities such as pools, gazebos, hot tubs, and patios.
  • Fences.

Home Improvement Fair 2016 Seminar - How to Finance Your Project with Deferred Loans

Curb Appeal Loans (Up to $10,000)

Enhance your home's exterior appearance with a zero interest Curb Appeal Loan! Recipients may borrow up to $10,000 interest-free for eligible improvements. This pilot program is available to Bloomington residents living the focus area bordered by American Boulevard East, Portland Avenue, E 90th Street and Old Cedar Avenue. This initiative begun in 2016 and has its own webpage.

Home Energy Squad Enhanced Program

Would you like to save money on your utility bills and learn what other improvements you could make to your home? The Home Energy Squad Enhanced program is here to help you. The program includes a home energy visit right to your house and we help you understand your home's energy use and save money on your utility bills.

At the visit, energy experts will install energy saving items such as programmable thermostats, door weather-stripping and CFL light bulbs, with a typical value of $50. A blower door test of the home will also be completed. The test will also show any major energy improvements that could be done, such as adding insulation or window replacement. Homeowners will be given a complete report on their home along low-cost loan information to help complete any bigger home improvement projects. Visit the Home Energy Squad Enhanced page for more information.

Housing and Environmental Loan Program (HELP)

The HRA has developed a citywide loan program to assist property owners with serious code or health safety violations. Properties considered for this program must be referred by City staff. The purpose of this program is to encourage problem properties to come into compliance with City requirements and to address emergency repairs. Homeowners must demonstrate an inability to borrow funds from a private lender. The Housing and Environmental Loan is deferred and does not require repayment until the recipient sells, transfers title or no longer lives in the home. The maximum deferred loan is $2,500.

Online resources