Housing Rehabilitation Loan Program
Housing Rehabilitation Loan Program
Loans of up to $35,000 are available to Bloomington homeowners.
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.
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.
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.
- Work in progress or completed prior to loan commitment.
- Additions or garages.
- Recreational facilities such as pools, gazebos, hot tubs, and patios.
Other Improvement Programs
Curb Appeal Loans (Up to $10,000)
Enhance your home's exterior appearance with a zero interest Curb Appeal Loan! 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.
Housing Improvement Area Program
HIA’s are City-funded loans that enable condo and townhome associations to complete needed improvements to common areas of their development that they are otherwise unable to finance.
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. A separate application must be filled out for the Housing Rehabilitation Loan Program.
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.
- Minnesota Housing Finance Agency contains information on products and services to help you buy and fix up homes.
- Tax credits for energy efficiency improvements offer big incentives for Bloomington homeowners.
- A Brush with Kindness – A home maintenance program for low-income homeowners, promoted by Habitat for Humanity
Watch past home maintenance seminars on YouTube and learn from the pros!