Housing Rehabilitation Programs
The three programs listed below provide financing to lower-income households to make improvements to the structure of homes they own and occupy:
OCHRA Housing Rehabilitation Loan Program
The Olmsted County Housing & Redevelopment Authority (OCHRA) has officially launched the Housing Rehabilitation Program. This program will provide financial assistance to qualifying low and moderate-income homeowners to assist in maintaining, repairing, and improving the safety, livability, and energy efficiency of their homes.
With funds provided by the OCHRA, the Housing Rehabilitation program will offer two types of assistance available on a first-come, first-served basis to qualifying households:
- Rehabilitation Loan: Rehabilitation Loan funds can be used to correct hazardous conditions and code violations, eliminate safety hazards, repair or replace major systems, correct interior or exterior deficiencies, energy improvements, modifications for persons with disabilities, and eliminate lead-based paint hazards. The minimum loan amount is $5,000. The maximum amount available is $25,000. Loans come with an interest rate of 2%, although no principal or interest payments are made until the home is sold.
- Accessibility Loan: Accessibility Loan funds can be used for the elimination of architectural barriers and the installation of special equipment and appliances for physically disabled or elderly homeowners. Allowable installations and repairs include but are not limited to the construction of ramps, alteration of doorways, lowering of sinks, lavatories, cabinets, installation of special faucets, doorknobs, switches, and installation of handrails. There is no minimum amount. The maximum loan amount available is $5,000. Accessibility loans are forgiven over a seven-year period and with a zero percent interest rate.
To be eligible for assistance, your home needs to be located in Olmsted County (please note, homes located in Stewartville are not eligible), and you must have owned your home for at least six (6) months prior to receiving assistance. You must be current on your mortgage and in the payment of your real estate/property taxes. In addition, you cannot exceed the household income limits listed below:
MHFA Rehabilitation Program
The Minnesota Housing Finance Agency's (MHFA) Rehabilitation Loan program assists low to moderate-income homeowners in financing home improvements that directly affect the safety, habitability, energy efficiency, and accessibility of their homes.
Eligible applicants must occupy the home to be rehabilitated. Applicants' assets must not exceed $25,000. Rehabilitation Loan Program income limits are based on federal median family income estimates and calculated at 30% of the Minneapolis/St. Paul area median income. The income limit for 2025 is $39,700 for a family of four.
The maximum loan amount is $27,000 with a 15-year term, and 10 years for mobile/manufactured homes taxed as personal property. Loan payment is forgiven if the house is not sold or transferred, and remains occupied, during the loan term.
Single-family homes, duplexes, and manufactured housing taxed as real or personal property are eligible for this program.
Most improvements to the livability, accessibility, or energy efficiency of a home are eligible. Electrical wiring, a new roof, plumbing, and septic repairs are just some of the possibilities.
Rochester Community Development Block Grant (CDBG) Rehabilitation Program
This program assists low to moderate-income homeowners living in the target area with financing home improvements that directly affect the safety, habitability, energy efficiency, and accessibility of their homes.
The loans are interest-free. The maximum loan amount is $25,000 loan max with 2% interest. The loan is paid back when the borrower sells, transfers title, or no longer lives in the property.
Most improvements to the livability, accessibility, or energy efficiency of a home are eligible. Electrical wiring, a new roof, and plumbing are just some of the possibilities.
Applicants eligible for this program must occupy the home to be rehabilitated. Applicants' assets must not exceed $25,000. The eligible Adjusted Gross Annual Household Income Limit for a Rehabilitation Loan is based on the size of the household. The household income limits are set by the U.S. Department of Housing & Urban Development (HUD) and are revised annually. Annual income cannot exceed the Low-income limits set by HUD's Housing Choice Voucher Program. The number of persons in each household determines income limits.
The Rochester City Council has allocated approximately $250,000 of its Community Development Block Grant funds to this program annually. This program typically improves 10-12 homes per year. There is usually a waiting list for this program. Funds are usually allocated in the fall and are available the following spring. Typically, the rehabilitation work begins in the summer.
Income Limits for 2025 HRA Rehab Loan Program
See below.
| % of median income | 30% | 50% | 60% | 80% |
|---|---|---|---|---|
| 1-person family | $26,400 | $44,000 | $52,800 | $70,350 |
| 2-person family | $30,200 | $50,250 | $60,300 | $80,400 |
| 3-person family | $33,950 | $56,550 | $67,860 | $90,450 |
| 4-person family | $37,700 | $62,800 | $75,360 | $100,500 |
| 5-person family | $40,750 | $67,850 | $81,420 | $108,550 |
| 6-person family | $43,750 | $72,850 | $87,420 | $116,600 |
| 7-person family | $48,650 | $77,900 | $93,480 | $124,650 |
| 8-person family | $54,150 | $82,900 | $99,480 | $132,700 |
To learn more about the program and obtain an application, contact Luke Tessum - OCHRA Rehabilitation Program Coordinator at 507-328-7124 or luke.tessum@olmstedcounty.gov.