Proposed changes

We seek to make changes to the Home Improvement Program in the first quarter of 2024:

• Update the Home Improvement Program (HIP) guidelines
• Adopt a Temporary Relocation Policy

What to know

Comments are due by October 10.
See timeline for comments and City meetings about changes

• See proposed changes to the Home Improvement Program (HIP) guidelines
• See proposed Temporary Relocation Policy
• Read the draft documents

About the Home Improvement Program program

The program offers home improvement financing. Funding is for owner-occupied households at or below 80% average median income (AMI).

Program goals:

• Improve livability conditions
• Encourage investment in renovation
• Respond to the rising cost of construction materials
• Provide flexible options for complex health and safety projects
• Decrease financial hardship for homeowners

See Minneapolis Homes programs

Emergency repairs

• Includes a $25,000 deferred loan at 0% interest:
  • Repayable in 30 years
  • Revolves for future loans
• No longer lowers the amount available for health and safety repairs

Health and safety renovations

• Includes a $25,000 deferred loan at 0% interest:
  • Repayable in 30 years
  • Revolves for future loans

Lead mitigation

• Grant amounts limited to $50,000.
• Repairs must be identified in a third-party risk assessment.

General renovation

We're seeking funding support from a Minnesota Housing Impact Fund grant now under application. Financing options:

Amortizing loan

• $75,000 at 0% interest amortized up to 20 years.
• Continue a subsidy grant for 0% percent interest on a Minnesota Housing or bank amortizing loan.

Deferred loan

• $25,000 deferred loan at 0% interest that is repayable in 30 years.
• This deferred loan serves as a pathway for:
  • Homeowners who may not qualify for an amortizing loan
  • Reducing the monthly payment on an amortizing loan

Other guideline changes

Six-month residency rule

Homeowners would:

• No longer need to own and occupy the property for six months before applying
• Need to own and occupy their property when they apply

110% after improved loan to value

We would:

• Limit total amounts secured to no more than 110% of the property’s value after improvements
• Lower the financial impact on the property owner from excessive secondary loans