Minnesota Housing Finance Agency rehabilitation grants

How it works

Section 462A.05, subdivision 15 authorizes the Minnesota Housing Finance Agency to make rehabilitation grants to persons and families of low and moderate income. The grants can be used to pay or help pay a loan made under subdivision 14, or to rehabilitate or help rehabilitate existing residential housing owned or occupied by those persons or families.

What the money covers

The statute says the grant must be used primarily to:

• make the housing more desirable to live in,
• increase market value,
• comply with state, county, or municipal building, housing maintenance, fire, health, or similar codes and standards, or
• accomplish energy conservation, decarbonization, climate resiliency, or other qualified projects.

The statute also allows the agency to establish codes and standards for unincorporated areas and municipalities without codes and standards, solely for administering the program.

Amounts and matching

The amount of any grant must not exceed the lesser of $6,000, the actual cost of the work performed, or the portion of rehab cost the agency determines cannot otherwise be paid without an unreasonable share of income.

Repayment and administration

The agency determines whether any part of the grant will be repaid and what security is required if repayment is needed.

Special note

Owner-occupied housing cannot be denied solely because the work will not achieve full compliance with all applicable codes and standards.