OLMSTED COUNTY G.A.I.N. (GROWING AFFORDABLE INCLUSIVE NEIGHBORHOODS) PROGRAM

Growing Affordable Inclusive Neighborhoods

Program Description

The purpose of this program is to spur new construction throughout the County.  This program is intended to work in partnership with other existing home buyer programs, as well as additional incentives provided by communities throughout the County, in order to provide a collaborative package aimed at reducing barriers to homeownership.

Qualifying applicants include:

  • Income qualified households must be at or below 80% area median income (AMI) at time of loan approval (see chart); OR
  • Construct a home in a qualified census tract as defined by the USD Dept. of Housing and Urban Development (see map)

Qualifying applicants receive a $10,000 down-payment assistance forgivable loan, available for a qualifying applicant who commits to build or purchase a newly constructed residence.

  • The anticipated cost to construct the residence must not exceed $300,000.   The cost to purchase land on which the residence is built and other related costs such as appliances and furnishings for the residence once constructed will not be included in the $300,000 limit.
  • The County will use program allocations to ensure that all parts of Olmsted County benefit. Proposed allocations of newly constructed residences per jurisdiction:
    • Rochester      200
    • Byron              50
    • Stewartville    50
    • All Townships 50
    • Chatfield*       30
    • Dover              25
    • Eyota               40
    • Oronoco         25
    • Pine Island*   30

                * - Loan funds will only be provided for new construction of residences in the portions of Chatfield and Pine Island which are in Olmsted County.

Communities are encouraged, but not required, to offer their own programs to further reduce the cost to construct an affordable new residence such as waivers or reductions of WAC and SAC fees, building permit fees, lots at reduced prices, etc.

Qualifying properties will include the following types of owner-occupied homesteaded residences:

  • Single Family Homes
  • Duplexes
  • Modular and manufactured homes that are taxed as real estate, i.e., modular homes which are placed on a permanent foundation and become permanently affixed to real estate.
  • Program funds may not be used to tear down an existing residence and construct a new residence on the same site.  Funds may not be used to acquire a modular or manufactured home to be placed on leased land which is not permanently affixed to the real estate.  

Income Limits: Effective 4/1/2021 and updated annually
  1 Person 2 Person 3 Person 4 Person 5 Person 6 Person
80% AMI $55,850 $63,800 $71,800 $79,750 $86,150 $82,550 

Supporting documents coming soon

Further details of the GAIN program can be found in the following documents:

  • Program Overview and Timeline
  • Program Manual
  • Income Chart
  • Map of Qualified Census Tracts
  • Program Application

Program Deadlines

Qualifying applicants have until December 31, 2023, to submit applications for program funding to the County and “use up” the allocated funding.  At that time, the County reserves the right to reallocate program funding to other jurisdictions in the County with qualified applicants that will be able to use the funding for new construction and meet the required ARPA program deadlines.

  • The County must approve all applications to provide funding for new residential construction on or before December 31, 2024.
  • Construction of all new residences using program funding must be completed on or before December 31, 2026.