Rehabilitating one’s home can be an expensive venture.

When one’s income becomes a barrier to making necessary repairs, homeowners can be left with few options.

With that in mind, the City of Redwood Falls has been working with United Community Action Partnership, Inc. (UCAP) to provide funding to help.

The City of Redwood Falls has been awarded grant funds that are being offered to targeted areas in the community, and in those areas zero percent interest housing repair loans are being offered.

Through UCAP’s Small Cities Development Program, repair loans are currently being offered for 20 income eligible homeowners living in two target areas encompassing portions of the city north of Bridge Street.

The grant was initially opened to a smaller segment of the community known as Target Area A, but as of August 1, Target Area B was also opened to the program.

Under the program, eligible homeowners receive a deferred loan covering 80 percent of the project cost. Should the homeowner at the time the loan is approved continue as the owner of the home for a period of 10 years that loan will be forgiven. The rate of the forgiveness is 10 percent each year.

The other 20 percent of the project is a required match from the homeowner.

Those whose income falls under the 50 percent area median income are eligible for a 100 percent program deferred loan.

The owner of the home must occupy the home that would be improved under the program, and they must have owned and resided in the home for at least six months before the work begins.

The owner must be current with their property taxes to be eligible and must meet income eligibility requirements – under the most current Redwood County 80 percent area median income limits established by HUD. That income limit can also be found on the UCAP Web site.

Repairs that are eligible must be permanent and deemed necessary, such as roof repairs, siding, heating units, electrical and plumbing repairs as well as other health and safety updates.

The average loan amount is $25,000.

Applications can be found on the City of Redwood Falls Web site at ci.redwood-falls.mn.us. Applications must be complete and accurate and will be ranked based on the date they arrive.

UCAP will conduct an inspection of the property and will assist the homeowner through the project.

Additional information regarding program can be found on the UCAP Web site at www.unitedcapmn.org or by calling (507) 537-1416.

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