Here’s a neighborhood revitalization tool that could be easily replicated in virtually any town or city suffering from outdated housing stock.
Gate City Bank and the city of Moorhead, Minnesota are partnering to offer the Neighborhood Impact Program, a $2 million loan pool that will be available through September 1, 2017.
The primary purpose is to renovate and preserve the city’s existing housing stock. The Neighborhood Impact Program offers low-interest loans and technical assistance to homeowners for major home improvement projects.
Program Goals:
Address housing safety
Prevent deferred maintenance and property deterioration
Preserve the character of older neighborhoods
Invest in the City’s affordable housing stock
Reverse or slow the trend toward conversions of single family homes to rental property
Program Priorities:
The proposed housing rehabilitation should preserve the integrity of the house and add to the long-term value and life of the property and the neighborhood.
- Health and safety code deficiency correction
- Accessibility modifications for persons with disabilities or elderly households
- Structural improvements
- Weatherization and energy efficiency
- General home improvements
- Eligible Improvement Costs
Funds may be used to correct existing code deficiencies, structural deficiencies, weatherization, accessibility, and general property improvements. All code issues must be addressed as part of the improvement project. Loans are available to finance new improvements not yet under construction.
Rehabilitation work must include at least one of the following:
- Foundation work (drain tile, bracing, new foundation)
- Major exterior improvements (siding, roofing, windows)
- Addition of bedroom or new living space
- Major interior remodeling or replacement of major mechanical systems (furnace, electrical system)
- Conversion of rental unit to owner-occupied home
- Eligible Households
Loan applicant must be the owner-occupant of the home and meet Gate City Bank’s credit standards for repayment of the improvement loan.
Eligible Properties:
- Located within the City of Moorhead municipal boundaries
- Built before 1990
- Assessed value under $250,000
- Zone for residential use
- Outside of the 100-year flood plain
- Owner-occupied one or two unit residences (if there is a second unit, it must be a registered rental unit)
- Current on property tax and special assessments
Terms of Loan Assistance:
- 2.25% fixed interest (2.26% APR), repayable over 10 years
- Minimum loan value $10,000; maximum loan $75,000
- Maximum loan-to-value 90% (GCB guidelines)
Photo of Moorhead City Hall by Bobak Ha’Eri via Wikipedia.