Willmar Small Cities Development Program housing rehabilitation loans

How it works

The City of Willmar received a Small Cities block grant of $1,205,177 approved by the Minnesota Department of Employment and Economic Development. The homeowner portion of the program is administered by the Kandiyohi County Housing and Redevelopment Authority (HRA) and provides no-interest, deferred loans for eligible rehabilitation projects.

What the money covers

The page says the loans are for homes in the area north of downtown Willmar and can be used for a variety of residential rehabilitation projects, as long as the property is within the program focus area. The article specifically says the district heating shutdown was one of the reasons the city applied, to help affected homeowners pay for a new heating system.

Eligible uses listed on the page include:

• window and door replacement
• roof replacement
• siding replacement
• foundation repairs
• repairs or replacements of electrical systems
• repairs or replacements of plumbing systems
• repairs or replacements of heating systems
• insulation
• handicap accessibility improvements
• corrections for building code violations

Amounts and matching

The page states that the homeowner loans are 0 percent interest, seven-year deferred loans not to exceed $25,000. It also says approximately 13 homeowner loans are available from the block grant allocation of $286,000.

How to apply

A waiting list of interested commercial and residential property owners had already been started, and the page says people are still welcome to get on the wait list by contacting the agency. Once funds are available, the HRA will accept applications from parties who are on the waiting list.

Timing and deadlines

The article says several steps were still required before money would be available, including city policy approvals, a contract between DEED and Willmar, an administrative contract between the city and the HRA, and approval of the environmental review by DEED. Bengtson said it was probably going to be September or October before applications began. The page does not provide a final application deadline or indicate that the program is currently closed.