Rehabilitation Loan Program The Faribault Housing and Redevelopment Authority (HRA) has established a locally-funded housing rehabilitation loan program to assist local residents with rehabilitating their owner-occupied duplexes and single-family homes.
Loan amounts are between $5,000-15,000, at 3% interest and amortized over 7 years. Participants must make monthly payments based on an amortization schedule. Loans are secured with a Promissory Note and Mortgage.
Eligible improvements include health/safety items, upgrading of electrical, plumbing or HVAC systems, roof/siding replacement and energy efficiency improvements. Ineligible improvements include luxuries, cosmetic or non-permanent improvements such as decks/patios, landscaping, pools/spas/saunas and appliances.
A $100 non-refundable application fee is due when the application is submitted. The structure to be improved must be the applicant's principle place of residence and the applicant must have 199% interest in the fee title. The property must be in the City limits of Faribault and cannot be located within a floodplain. In addition, the applicant's combined gross household income must not exceed 100% of the county's median income adjusted for family size as determined by HUD. Current income limits are as follows (these can change at any time without notice):
Family Size Maximum Income 1 $52,800
Completed applications must be submitted to the Community Development Department.
Other Programs The U.S. Department of Agriculture Rural Development office typically has other home rehabilitation loan programs available. They can be contacted at 507.332.7418, ext. 4 or at www.rd.usda.gov/mn.