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County of Hennepin 1 City of Minneapolis 12

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					County of Hennepin                                                              1
  Economic Development                                                           1
    Common Bond Fund Revenue Bond Program (CBF)                                  1
  Strategic Initiatives and Community Engagement Department                      3
    Grantseeking and Management Resources                                        3
    Funding Finder Alert                                                         3
    Grantseeking Resources                                                       3
      Grants.gov                                                                 3
      Catalog of Federal Domestic Assistance (CFDA)                              3
      The Chronicle of Philanthropy                                              3
      Minnesota Council on Foundations                                           4
      The Foundation Center Online                                               4
      School Grants                                                              4
      The Minneapolis Public Library Foundation Center Cooperating Collection    4
  Housing, Community Works and Transit                                           4
    Housing Development Division                                                 4
  Health, Housing, & Social Services                                             5
    Human Services and Public Health Department                                  5
    Federal Housing Grants & Funding                                             5
      Urban Hennepin County Community Development Block Grant Program (CDBG)     5
      Continuum of Care (COC)                                                    5
      Home Investment Partnership Program (HOME)                                 5
    County Funding                                                               6
      Affordable Housing Incentive Fund (AHIF) Program                           6
      Priorities for Funding Supportive Housing and Related Services             7
      Supportive Housing Initiative Fund (SHIF)                                  8
      Affordable Housing Plus funding                                            9
    Transit Oriented Development (TOD) Funding                                   9
    Lead Hazard Reduction Funding                                               10
      Minnesota Lead-Safe Housing Partnership Grant                             10
      Round XI Lead Hazard Control Grant                                        11
    First-Time Homebuyers Program                                               11
City of Minneapolis                                                             12
  Economic Development                                                          12
  Community Planning and Economic Development (CPED) Department                 12
    Community Planning                                                          12
    Development Services                                                        13
    Economic Policy and Development Division                                    13
      Business Development                                                      13
      Business Finance                                                          13
      Minneapolis Employment and Training Program (METP)                        14
      Empowerment Zone                                                          14
      Brownfields Program                                                       14
    Starting a Business in Minneapolis                                          15
    Walk-In Information Centers                                                 15
  Minneapolis Public Library                                         15
  Minnesota Business Information Center (BIC)                        16
One-On-One Technical Assistance and Business Information Workshops   16
  MEDA Metropolitan Business Development Center (MBDC)               16
  Minneapolis Consortium of Community Developers (MCCD)              16
  Minneapolis SCORE                                                  16
  WomenVenture                                                       16
Multiweek Business Courses                                           16
  FastTrac                                                           16
  NDC Neighborhood Entrepreneurship Training                         17
Types Of Business Loans                                              17
Community Resources                                                  18
  Public Agencies                                                    18
  Minneapolis Community Planning and Economic Development (CPED)     18
  U.S. Small Business Administration                                 18
Nonprofits                                                           18
  Minneapolis Consortium of Community Developers (MCCD)              18
  Neighborhood Development Center (NDC)                              18
  Metropolitan Economic Development Association (MEDA)               19
  WomenVenture                                                       19
Minneapolis Zoning Code—Home Occupations                             19
Business Development Services                                        21
  Minneapolis Business Toolbox                                       21
  Great Streets Resources                                            21
  Capital Acquisition Revolving Fund                                 21
  Neighborhood Economic Development Fund                             21
  Community Economic Development Fund Program                        21
Business Finance Programs                                            21
  501(c)(3) Revenue Bonds                                            22
  Alternative Financing Program                                      23
  Bank Qualified Bank Direct Loans                                   24
  Business Development Fund Loans                                    25
  Capital Acquisition Loans                                          25
  Common Bond Revenue Bond Program (CBF)                             26
  Emerging Entrepreneur Capital Acquisition Loans                    28
  Loan Guaranty Program                                              29
  Revenue Bonds                                                      30
  Two-Percent Loans                                                  31
  Two Percent Commercial Corridor/Commercial Node Loans              32
Financial Resources                                                  34
  Community Loan Technologies                                        34
  St. Paul Metroeast Development Corporation (SPEDCO)                35
Minority-Owned Business Resources                                    35
  Metropolitan Economic Development Association (MEDA)               35
  Minnesota American Indian Chamber of Commerce (MAICC)              36
  Small & Underutilized Business Program                             36
    Women-Owned Business Resources                                    37
    WomenVenture (WV)                                                 37
  Small Business Resources                                            37
    Minnesota SBIR/STTR Assistance Program                            38
    Small Business Administration (SBA)                               38
    SCORE – Counselors to America’s Small Businesses                  38
    Whittier Community Development Corporation                        39
  Surety Bonding Resources                                            39
    Surety Information Office                                         39
    National Association of Surety Bond Producers (NASBP)             40
    Surety Association of America (SAA)                               40
    Minnesota Surety Association                                      40
    Pate Bonding, Inc.                                                40
  Housing Policy and Development Division                             41
  Multifamily Housing Development                                     41
    Low Income Housing Tax Credits (LIHTC)                            42
    Affordable Housing Trust Fund Program (AHTF)                      42
    Affordable Ownership Housing Development Program                  42
    Emergency Shelter Grant Program (ESG)                             43
    Housing Opportunities for Persons with HIV/AIDS Program (HOPWA)   43
    Higher Density Corridor Housing Initiative                        43
    Multifamily Housing Revenue Bond Program                          43
    Nonprofit Development Assistance Program                          44
    Tax Increment Financing                                           44
  Joint Multifamily Housing & Business Development Program            44
    Capital Acquisition Revolving Fund (CARF)                         44
  Single-Family Housing Development                                   44
    The Home Ownership Program                                        45
    Home Ownership Works Program (HOW)                                45
    Century Homes Program                                             46
    Distressed Properties - Vacant Housing Recycling Program          46
    Housing Replacement Tax Increment Districts (TIF)                 46
    Senior Housing Regeneration Program™ (SHRP)                       47
  Mortgage & Home Improvement Programs                                47
    CityLiving -Mortgage Loans                                        47
    Code Abatement Loans                                              48
    Home Repair Loans                                                 48
    American Dream Downpayment Initiative - Affordability Loan        48
    Real Estate & Construction Management                             49
  Historic Preservation                                               49
  Heritage Preservation Commission                                    49
  Use of Tax Abatement for Historic Properties                        49
Public Housing Authority (MPHA)                                       50
  Family/General Housing Programs                                     50
  Home Ownership Made Easy (HOME) Program                             51
  Suburban Housing Opportunities                                      52
    Seniors Housing Programs                               52
    Section 8 Programs                                     52
      How Section 8 Programs Benefits Participants         52
      How Section 8 Programs Benefits Property Owners      52
      Landlord Information                                 52
      Section 8 Participant Information                    54
City of Bloomington                                        55
  Comprehensive Plan 2000                                  56
    Housing Goals and Policy Objectives                    56
    Housing Implementation Program                         56
  Community Development Division                           62
    Planning and Economic Development                      63
    Planning Commission (PC)                               63
    Port Authority                                         63
  Housing and Redevelopment Authority (BHRA)               63
    Affordable Housing Programs                            63
      Housing Choice Voucher Program (Section 8)           63
      Public Housing Program                               64
      Rental Homes Program for Future Homebuyers           64
    Housing Rehabilitation and Neighborhood Preservation   64
      Bloomington Housing Rehabilitation Program           64
      Neighborhood Loan Program                            64
      Housing and Environmental Loan Program               65
    Redevelopment                                          65
      Commercial Revitalization                            65
      Residential Development/Redevelopment                65
City of Brooklyn Center                                    65
  Community Development Department                         66
    Economic Development Authority (EDA)                   66
    Economic Development Goals                             66
    Home Improvement Financial and Technical Assistance    66
    Northwest HousingResource Center™                      66
      MHFA Fix Up Fund Loan Program                        67
      MHFA Rental Rehab Loan Program                       67
    Community Development Block Grant Program              67
    First-Time Homebuyer Program                           68
    Minnesota City Participation Program (MCPP)            68
City of Brooklyn Park                                      68
  Community Development                                    68
    Economic Development Authority (EDA)                   69
    Brooklyn Park Development Corp                         69
      Loan Guarantee Program                               69
      Small Business Loan Fund Program                     69
      Fix-up Loans                                         70
      Capital Access Loans                                 70
      Twin Cities Community Capital Fund                                    70
      Hennepin County Bond Fund                                             70
      Common Bond Fund Revenue Bond Program (CBF)                           70
      Minnesota Investment Fund                                             71
      Central Minnesota Development Company (CMDC)                          71
      SBA 504 Loan                                                          72
      SBA 7(a) Loan                                                         73
      CMDC Initiative Fund                                                  73
    Small Business Resources                                                74
      Education Partners                                                    74
      Non-Profit Partners                                                   75
    Business Development                                                    76
    Housing                                                                 76
      Free Foreclosure Prevention Services                                  76
      Buying or Selling A Home                                              77
      First Time Home Buyer                                                 77
      Home Ownership Center                                                 77
      Community Action Partnership                                          77
      Housing Resource Center                                               77
      Fix Up Funds                                                          77
City of Crystal                                                             78
  Redevelopment                                                             78
  Housing and Property                                                      78
    First-Time Home Buyer Assistance                                        78
      Minnesota City Participation Program (MCPP)                           78
      Homeownership Assistance Fund (HAF)                                   79
      Homebuyer Training                                                    79
    Financial Assistance for Home Improvements                              79
      Home Improvement Incentive Rebate                                     79
      Deferred Home Improvement Loans                                       79
City of Eden Prairie                                                        79
  Economic Development Division                                             80
    Business Promotion and Retention                                        80
    Housing Development and Preservation Programs                           80
    Tax Increment and Bond Financing                                        80
    New Development / Redevelopment Site Location and Planning Assistance   80
    Transportation Advocacy                                                 80
  Housing and Community Services                                            80
    Housing Goals                                                           80
    Community Development Block Grant Program                               81
    Rental Housing                                                          81
      Section 8 Project-Based                                               81
      Section 8 Tenant Based                                                81
    Renter Resources                                                        82
    Housing Maintenance                                                     83
      Loans for Rental Housing                                  83
    Home Repair for Seniors                                     83
      Household and Outside Maintenance for Elderly Program     83
    Home Repair Loans                                           84
      Great Minnesota Fix-Up Fund                               84
      Housing Rehab Program                                     84
      First Time Home Buyer                                     84
City of Golden Valley                                           84
  Housing and Redevelopment Authority (HRA)                     85
City of Hopkins                                                 85
  Housing and Redevelopment Authority (HRA)                     85
   Commercial Rehab Low Interest Loan Program                   85
   Section 8 Rent Assistance Program                            86
   Public Housing                                               87
   Housing Rehabilitation Loans and Grants                      87
   First Time Homebuyer Program                                 88
   Mortgage Programs                                            88
   Homebuyer Education                                          88
City of Maple Grove                                             88
  Community Development Department                              89
    Housing Programs & Resources                                89
      Scattered Site Rental Housing                             89
      Apartments and Multi-Housing                              89
      Affordable Housing Information                            90
      Section 8 Housing                                         90
      Minnesota Housing Finance Agency                          90
      Smart Commute Mortgage                                    90
      Northwest Community Revitalization Corporation            90
      Energy Assistance Program                                 90
    Community Action Partnership of Suburban Hennepin (CAPSH)   90
      Homeownership Services                                    91
      Homebuyer Services                                        91
      Foreclosure Prevention                                    91
      Reverse Mortgage Assistance                               91
      Home Repair & Rehabilitation                              91
      Rental Support Services                                   91
      Homebuyer Education (Home Stretch Workshops)              91
      Financial Counseling Services                             91
City of Minnetonka                                              92
  Economic Development Authority (EDA)                          92
    Twin Cities Community Capital Fund                          92
    Housing                                                     92
      Affordable Housing                                        92
      Home Improvement Projects and Loans                       93
     Home Improvement Loans                                      93
     Emergency Home Rehabilitation Loan                          93
     MHFA Fix-Up Home Improvement Loan                           94
     H.O.M.E. Program                                            94
     Center for Energy and Environment Home Improvement Loans    94
     Minnesota Fix-Up Fund                                       94
     CEE Home Energy Loan                                        95
     Homeownership Programs                                      95
     First-time Homebuyer Programs                               95
     Minnesota Mortgage Program (MMP)                            96
     Downpayment and Closing Cost Assistance                     96
     Homebuyer Education                                         97
     Other Affordable Housing Programs                           97
     Homes Within Reach                                          97
     Habitat for Humanity                                        97
     Foreclosure Prevention                                      98
     Reverse Mortgage                                            98
     Rental Housing                                              98
     Section 8 Rental Assistance                                 98
City of New Hope                                                99
 Economic Development                                            99
   Tax Increment Financing                                       99
   Industrial Development Revenue Bonds (IDRB)                   99
   Gap Financing Loans                                          100
   Joint Venture Land Sales                                     100
 The Community Development Department                           100
   Business Resources                                           100
   Business Award Program                                       100
   Housing                                                      101
   Rental Registration Permit Program                           101
   Annual Residential Property Recognition Program              101
City of Plymouth                                                102
 Community Development Department                               102
   Housing Division                                             102
   Housing and Redevelopment Authority (HRA)                    102
   Section 8 Rent Assistance                                    102
   First Time Homebuyer Program                                 103
   Homestead Tax Credit                                         104
   Rehabilitation Loan Program                                  104
   Senior Home Repair Grants                                    106
County of Hennepin
 Government Center
 300 South 6th Street
 Minneapolis, MN 55487
 Phone: (612) 348-3000

Hennepin County forms part of one of the nation's major metropolitan areas ranking sixteenth in
the nation in population, and it is the largest of Minnesota's 87 counties in budget, in estimated
market value, and in population with almost a quarter of the state's population. The City of
Minneapolis is its largest city and the county seat.

Economic Development
Coordination of federal, state and Hennepin County economic development, redevelopment and
business finance programs designed to create jobs and stimulate private and governmental
investments. Coordination and administration of the Transit Oriented Development (TOD)
Program. Technical assistance, including grant preparation, to other Hennepin County
Departments and communities.

Common Bond Fund Revenue Bond Program (CBF)
The Common Bond Fund Revenue Bond Program is a loan fund for growing manufacturing
companies. Most of the major manufacturing projects completed in Minneapolis since 1982 have
been financed with tax-exempt or taxable revenue bonds issued through the CBF. In 2004 the
CBF was expanded throughout all of Hennepin County through a joint partnership between the
City of Minneapolis and the Hennepin County Housing and Redevelopment Authority (HRA).

Local government agencies may issue tax-exempt or taxable revenue bonds on behalf of private
borrowers to provide lower interest rates on long-term financing. Revenue bonds issued for
industrial/manufacturing projects are generally tax-exempt; those for commercial projects are
taxable.

Projects can include land acquisition, new-facility construction, additions to existing facilities,
purchase and renovation of existing structures and production equipment purchase.

What are the benefits of the CBF Revenue Bond Program?
  • Long-term fixed-rate financing to businesses at below-market interest rates.
  • Issuance of CBF revenue bonds on either a tax-exempt or taxable basis that can be used
      to finance industrial, commercial and medical facilities and some nonprofit activities.
  • Bonds issued through the CBF are investment-grade instruments with an “A+” bond
      rating from Standard & Poor’s based on the security provided by the CBF.
  • Lenders find that the CBF bonds help avoid credit concentrations while still allowing the
      lender to handle all the other short-term, working capital and other banking needs.

Who is eligible for CBF revenue bonds?
  • Any owner-occupied manufacturing business in Hennepin County.




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    •   The CBF is designed for established owner-occupied manufacturing facilities with a
        history of profitability, whose owners provide personal guaranties.
    •   The CBF can finance up to 90 percent of value, with the borrower providing a minimum
        requirement of 10-percent equity.
    •   The CBF can also provide financing for 501(c)(3) nonprofit organizations on a tax-
        exempt basis, and taxable bonds for commercial projects that would not qualify for tax-
        exempt bonds.
    •   Bars, restaurants, entertainment facilities and start-up firms are not eligible.

What are the rates, terms and fees?
  • CBF revenue bond financing is fixed-rate, with terms of 20 to 30 years, often at interest
      rates below market-interest rate.
  • The CBF offers competitive rates and terms on taxable revenue bonds.
  • Tax-exempt CBF revenue bonds can be issued below commercial-market interest rates
      because interest earnings to the purchaser are generally exempt from federal, state and
      local income taxes.
  • CBF revenue bond issuance expenses include bond counsel, underwriting, financial
      advisor, corporate counsel, inspecting architect, title insurance and other fees. These fees
      may be financed through the revenue bond up to certain limits.

How does the CBF Revenue Bond Program work?
  • Bonds issued through the CBF are investment-grade instruments with an “A+” Standard
     & Poor’s bond rating based on the security provided by the CBF, resulting in lower
     interest rates.
  • CBF revenue bonds are marketed to either institutional investors – insurance companies,
     banks and pension funds – or sold to the general public through a public offering. This
     results in interest cost savings to borrowers.
  • Bond underwriting firms prepare an official statement to market the bonds.

What is the CBF revenue bond process?
  • A City of Minneapolis and Hennepin County HRA staff person will handle your revenue
      bond request from initial inquiry through post-closing monitoring.
  • The complete public approval process takes about 90 days.
  • The City of Minneapolis and Hennepin County HRA approve CBF revenue bond projects
      based on financial strength; credit worthiness; public purpose served, such as preserving
      and creating jobs; and increasing the real estate tax base.

What information do you need to provide?
  • Narrative on the company and owner(s).
  • Financial statements for the past three years and any interim statements.
  • Personal financial statements of anyone owning more than 20 percent of the company.
  • General description of the proposed project, plans and estimates of project costs.
  • Appraisals and environmental reports about the proposed project.




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Strategic Initiatives and Community Engagement Department
 A-2308 Government Center
 300 S. 6th Street
 Minneapolis, MN 55487
 Phone: (612) 348-4466
 Fax: (612) 348-7423

Grantseeking and Management Resources
Grants from federal, state and local foundation sources are an important part of the revenue mix
that supports Hennepin County programs and services

The Strategic Initiatives and Community Engagement Department assists county departments
and their community partners as they work to identify, obtain and manage grant funding.
Services to departments include funding and prospect research, grant application development
assistance and editing, as well as general support and coordination with grant management and
compliance issues.

Grants can also serve as an opportunity to engage in innovative partnerships and collaborative
projects with community groups working to improve the quality of life for all residents. To this
end, the Strategic Initiatives and Community Engagement Department is eager to build
relationships with the county's larger nonprofit community. Hennepin County organizations
classified by the IRS as 501(c) may subscribe to the Hennepin County Funding Finder Alert
weekly e-mail newsletter containing information about current and upcoming grant opportunities
-- or may request custom funding research services by completing the Grant Research Intake
Form available for download at the bottom of this page.

Funding Finder Alert
You may add your name to the mailing list for our weekly e-listing of upcoming grant funding
opportunities by e-mailing kelly.clausen@co.hennepin.mn.us

Grantseeking Resources
Grants.gov
The federal government's one-stop shop to find an apply for the more than 1,000 grant programs
offered by all federal grant-making agencies. Please note: Organizations that wish to apply for
a federal grant through Grants.gov must complete a lengthy registration process. If you intend to
apply for a federal grant, please allow at least three weeks prior to the application due date to
complete the Grants.gov registration process for your organization.

Catalog of Federal Domestic Assistance (CFDA)
An online database including information about all federal funding programs and the types of
funding available, along with tips for developing and writing a successful federal grant proposal.

The Chronicle of Philanthropy
News for charity leaders, grantseekers and grantmakers, plus grant-related products and services,
online discussions, blogs, guides and nonprofit management advice



                                                                                                   3
Minnesota Council on Foundations
The source of information on Minnesota philanthropy, the Minnesota Council on Foundations
seeks to make connections between Minnesota grantmakers and grantseekers. The organization's
site includes both grantmaking and grantseeking resources including information about giving
trends and analysis, training events and seminars, online tutorials, as well as links to the
Minnesota Common Grant Application and Common Report Form. The organization also
maintains the Minnesota Grantmakers Online database, which can be accessed through the site
for a subscription fee.

The Foundation Center Online
A national organization often considered the authoritative source for philanthropy information,
The Foundation Center's site contains a wealth of information about foundations and fundraising,
proposal writing and nonprofit management, plus online training courses and a menu of
upcoming classroom learning opportunities. The organization also maintains the Foundation
Directory Online, which provides grantseekers with detailed information on grantmakers, grants,
and grant recipients, as well as access to grantmaker web sites and searchable 990s, for a fee.

School Grants
School Grants was created in 1999 as a way to share grant information with PK-12 educators.
The School Grants goal is to help the most kids possible by empowering those who teach them
with the knowledge and resources necessary to write successful grant proposals.

The Minneapolis Public Library Foundation Center Cooperating Collection
The Minneapolis Public Library is one of six libraries in the State of Minnesota that are part of
the Foundation Center's Cooperating Collection program. As a Cooperating Collection library,
the Minneapolis Public Library provides free access to grantmaker directories, books on
fundraising and nonprofit management, and access to the Foundation Center's electronic
grantseeking databases. Hennepin County residents who have a Minneapolis Public Library or
Hennepin County Library card can obtain free access to both the Minnesota Grantmakers Online
database and Foundation Directory Online by visiting the Minneapolis Public Library's Central
location at 300 Nicollet Mall, Minneapolis, MN.

Housing, Community Works and Transit
 County Environmental Services Building
 417 N. 5th Street, Suite 320
 Minneapolis, MN 55401-1397
 Phone: (612) 348-9260
 Fax: 612-348-9710
 Fax: 612-348-2920 (Housing Division)

Housing Development Division
This division is responsible for the administration of federal, state and Hennepin County
programs designed to address the housing and community development needs of lower income
households in the area. The division works closely with other organizations in carrying out its
responsibilities:



4
   •   Administer the federal HUD Community Development Block Grant (CDBG), HOME
       Investment Partnership Program (HOME) and Emergency Shelter Grant (ESG) Programs
       in suburban Hennepin County.
   •   Administer the Hennepin Housing Consortium Fair Housing Initiative.
   •   Administer the Continuum of Care Plan and Process to address homelessness.
   •   Administer the programs of the Hennepin County Housing and Redevelopment Authority
       (HCHRA), including the Minnesota Cities Participation First-Time Homebuyer Program,
       Minnesota Housing Finance Agency (MHFA) Housing Rehabilitation Programs,
       Hennepin County Affordable Housing Incentive Fund (AHIF), Minnesota 4d Property
       Tax Classification and other programs. The HCHRA is governed by the seven members
       of the Hennepin County Board of Commissioners.

Health, Housing, & Social Services
 525 Portland Avenue South
 Minneapolis, MN 55415
 Phone: (612) 348- 4111

Human Services and Public Health Department
Federal Housing Grants & Funding
Urban Hennepin County Community Development Block Grant Program (CDBG)
Under the terms of the existing agreement with 42 suburban communities, 11 participants receive
a CDBG planning allocation, based upon the federal entitlement formula, and 31 have access to
funding from a consolidated pool. Local public hearings are conducted and the city council
approves proposed activities for those communities receiving a planning allocation. An advisory
committee, consisting of municipal representatives, formulates a funding recommendation for
the consolidated pool. Multi-community activities are encouraged.

Continuum of Care (COC)
The McKinney-Vento Continuum of Care (COC) for the Homeless in Hennepin County was first
developed in 1995 in response to the concept and principles for an effective Continuum of Care
introduced by the U.S. Department of Housing and Urban Development (HUD).

The McKinney-Vento Continuum of Care Program provides resources for the development
of supportive and transitional housing for homeless single adults, families and children, and
youth. Anticipated funding is from HUD Homeless Assistance Programs - Supportive Housing
Program (SHP), Shelter Plus Care (S+C) and Section 8 Mod-Rehab Single Room Occupancy
(SRO).

Home Investment Partnership Program (HOME)
The HOME Investment Partnerships Program (HOME) is authorized under Title II of the
Cranston-Gonzalez National Affordable Housing Act, as amended. The HOME Program
regulations are at 24 CFR Part 92 and can be accessed on HUD's website. In general, under the
HOME Program, the U.S. Department of Housing and Urban Development (HUD) allocates
funds by formula among eligible state and local governments to strengthen public-private
partnerships and to expand the supply of decent, safe, sanitary, and affordable housing, with
primary attention to rental housing, for very low-income and low-income families. Generally,


                                                                                                5
HOME funds must be matched by nonfederal resources. The state and local governments eligible
for the funds are called participating jurisdictions. A participating jurisdiction may use HOME
funds to carry out multi-year housing strategies through acquisition, rehabilitation, and new
construction of housing, and tenant-based rental assistance. Participating jurisdictions may
provide assistance in a number of eligible forms, including loans, advances, equity investments,
interest subsidies and other forms of investment that HUD approves.

The Hennepin Housing Consortium ("the Consortium") is the participating jurisdiction that
receives HOME funds for suburban Hennepin County. Hennepin County administers the HOME
Program on behalf of the Consortium. Annually, the Consortium issues a Request for Proposals
(RFP) for the funds it will receive from HUD through the HOME Program. Eligible applicants
include governmental agencies, nonprofit and for-profit entities. Consortium staff reviews all
funding proposals. The proposals are then forwarded to a selection committee to formulate
recommendations. The 2005-2009 Hennepin County Consortium Consolidated Plan
identifies priority activities that create, provide and preserve affordable housing on a long-term
basis for very low and low-income families and individuals, homeless families and individuals
and persons with special needs.

County Funding
Affordable Housing Incentive Fund (AHIF) Program
The Affordable Housing Incentive Fund Program was created by the Hennepin County Housing
and Redevelopment Authority (HCHRA) Board of Commissioners to work with municipalities,
other government and nonprofit agencies, private and nonprofit housing developers, and lenders
to encourage the preservation and/or creation of long-term affordable housing throughout
Hennepin County.

The AHIF Program operates under the direction of the Hennepin County Housing and
Redevelopment Authority Board of Commissioners. Priorities for AHIF funding include:
   • Construction and rehabilitation of long-term housing at or below 50 percent of area
      median income, with priority given to units affordable to households at or below 30
      percent of the area median income (AMI).
   • Support for projects in alignment with county priorities and goals.
   • Promotion of links among affordable housing, transit, local employment opportunities,
      schools, and supportive services.
   • Utilize funding for gap financing as a means to leverage private and public funding.

AHIF has provided $27.6 million in funding for over 90 projects and has leveraged over $520
million in total development costs since the year 2000.

Hennepin County Department of Housing, Community Works and Transit issues an
annual Consolidated Request for Proposals (CRFP) to provide a centralized source of
development assistance. Along with the Affordable Housing Incentive Fund, the CRFP
includes the following programs:
    • Continuum of Care (COC) for development of new supportive and transitional housing
       throughout Hennepin County.



6
   •   HOME Investment Partnership Program (HOME) for housing projects in suburban
       Hennepin County.
   •   Supportive Housing Initiative Fund (SHIF) for supportive housing projects.
   •   Transit Oriented Development (TOD) Program funds projects within or along Hennepin
       County Transit Corridors.

Priorities for Funding Supportive Housing and Related Services
The overarching objective for Hennepin County Human Services as it relates to housing is to
assure safety and stability for children, youth, and adults. Stable, safe and affordable housing
contributes significantly to reducing crises and achieving success in other program areas for
many Human Services clients. The Human Services departments (Children, Family, and Adult
Services, Economic Assistance, Center for Health Policy and Community Services Integration,
Training and Employment Assistance, Community Health, and Veterans’ Service) work closely
with the county’s Department of Housing, Community Works, and Transit to address the need
for affordable housing and housing with supports for residents of Hennepin County.

Priorities
Hennepin County recognizes the need for a variety of housing supports ranging from individual
to community supports. Following is a list of priorities for funding supportive housing and
related services:
    • Housing with Services
        o Funding will focus on housing with services for families or individuals at 30% at or
           below the area median income.
    • Individual Supports
        o Funding will focus on permanent housing for:
        o Children and adults who have been, or are at high risk of becoming, abused or
           neglected
        o Vulnerable seniors
        o Vulnerable youth
        o Persons with disabilities (including but not limited to mental illness, chemical
           dependency, developmental disabilities, HIV/AIDS, physical disabilities, etc.)
        o Persons involved with multiple human services systems
        o Funding should provide a range and balance of locational and service choices—
           including promoting housing retention—that offer opportunities to live in
           community-based, integrated settings.
        o Funding will provide for the development of housing support models that are
           effective, culturally appropriate, and individualized. To that end, contracts for
           supportive housing services and related activities are client-centered and focused on
           client outcomes.
    • Site-based Supports
        o Funding will focus on supports for housing that meets one or more of the following
           criteria:
        o Permanent housing that offers a mixed setting, with at least 1/3 of the residents clients
           of the Children, Family, and Adult Services Department
        o Permanent housing that provides supports for individuals and families experiencing
           long-term or multiple episodes of homelessness


                                                                                                   7
        o Permanent or transitional housing for at-risk young adults
        o Funding should provide a range and balance of locational and housing choices—
           including housing retention—and provide opportunities to live in community-based,
           integrated settings.
        o Funding will provide for the development of housing models that are effective and
           culturally appropriate. To that end, while contracts for housing supports and related
           activities are project-based, they are focused on individual-centered outcomes for
           residents.
    •   Affordable Housing Plus
        o Funding will focus on services that promote permanent housing for low-income
           households at or below 50% of area median income.
        o Funding will strengthen natural supports in the community of choice and will support
           established community priorities and identified needs.
        o Funding will encourage the consideration of local employment opportunities, schools,
           and transportation needs.

Funding Commitments
Hennepin County is a partner in maximizing all possible sources of intergovernmental and
private funding. Applications and projects for support services will be reviewed and selected
based on criteria consistent with the above priorities. In addition, applications will be reviewed
for consistency with the City/County Homeless Task Force Recommendations, the Hennepin
County Housing and Redevelopment Authority (HRA) Strategic Plan, and Hennepin County’s
Affordable Housing Incentive Fund criteria.

Contract Information
The type, terms, and conditions of funding provided will vary depending on the needs of the
clients, the availability of funding resources, and type of activity. Hennepin County utilizes
competitive contracting. Housing program/service providers should expect to negotiate contract
parameters, including client/individual outcome expectations, for any funding managed by
Hennepin County Human Services. If a client is unable to achieve adequate client/individual
outcomes, Hennepin County may exercise its option to contract with another provider.

Supportive Housing Initiative Fund (SHIF)
The Supportive Housing Initiative Fund (SHIF) monies will be used to address one-time and
time-limited gaps in supportive housing services for both project and community-based,
affordable housing initiatives. Funds will be allocated through contracts with the Hennepin
County Human Services and Public Health Department.

Site-Based Funding
Will pay for supportive housing efforts for residents living at or below 30 percent of area median
income only. The majority of residents served must receive assistance from at least one of the
Hennepin County Human Services Program Areas. Projects must contribute to the goals
outlined in the City/County Homeless Task Force Recommendations, and add to the number of
supportive housing units currently available. Funding may be sought to supplement services not
reimbursable through mainstream funding and other services that promote housing stability and
could be utilized by all residents regardless of their individual eligibility for mainstream



8
funding. Funding for these services is directed to the provider for use in supportive housing
settings, including scattered-site projects. Examples include, but are not limited to:
    • Case management services for residents who are not eligible for these services under
        existing programs.
    • Front desk coverage.
    • Resident groups.
    • Support services that contribute to housing stability.
    • Vocational education that assists residents in finding and maintaining work.

Affordable Housing Plus funding
Will pay for efforts that address the needs of residents in affordable housing developments where
income is at or below 50 percent of area median income, or up to 60% of area median income for
developments with low-income tax credits. Funding may be sought for supports that are focused
on strengthening the resident community as a whole and are available to all residents. Funding is
focuses on early intervention and prevention activities and would remain with the development
or resident community. Examples include, but are not limited to:
    • After-school programs.
    • Computer labs that provide resume and job search assistance.
    • Support services that contribute to housing stability.
    • Resource rooms that assist residents in locating and obtaining supportive services.
    • Vocational education that assists residents in finding and maintaining work.

Hennepin County Department of Housing, Community Works and Transit issues an annual
Consolidated Request for Proposals (CRFP) to provide a centralized source of development
assistance. Along with the Supportive Housing Initiative Fund, the CRFP includes the
following programs:
    • Affordable Housing Incentive Fund (AHIF) Program for the preservation and/or creation
        of long-term affordable housing throughout Hennepin County.
    • HOME Investment Partnership Program (HOME) for housing projects in suburban
        Hennepin County.
    • Continuum of Care (COC) for the development of supportive and transitional housing
        throughout Hennepin County.
    • Transit Oriented Development (TOD) Program funds projects within or along Hennepin
        County Transit Corridors.

Transit Oriented Development (TOD) Funding
What is the Transit Oriented Development (TOD) Program?
The Hennepin County Board of Commissioners included $2,000,000 in bonding for Transit
Oriented Development (TOD) in the approved 2007 Capital Budget. TODs, supported with this
funding, must be in redevelopment areas, have multi-jurisdictional impacts, and enhance transit
usage. The criteria and guidelines for this fund are designed to support both redevelopment and
new construction. TOD projects and developments reinforce both the community and the transit
system, exhibit a compact and efficient use of available space, rather than auto oriented sprawl,
and contain a diversity and mix of uses with daily conveniences and transit at the center. The
pedestrian-friendly, physical design encourages walking, bicycling and access by people with



                                                                                                9
physical disabilities. The spatial extent of TOD is the maximum comfortable walking distance,
roughly 1/4 mile for existing transit stops or 1/2 mile for rail-based TOD.

Who is Eligible for TOD Funding?
Statutory or home rule charter cities or towns and development authorities (e.g., Housing and
Redevelopment Authority, Economic Development Authority or Port Authority), private entities,
Hennepin County and the Hennepin County Housing and Redevelopment Authority (HCHRA)
are eligible applicants.

What Areas are Eligible for TOD Funds?
Funding is only available to those multi-jurisdictional programs and projects that occur within or
directly adjacent to Hennepin County Transit Corridors, and/or where new or enhanced transit
services supporting county strategies are taking place. Eligible multi-jurisdictional projects must
be located in either a county or local redevelopment area or housing district. The multi-
jurisdictional program must include plans for one or more of the following: housing
rehabilitation and removals, industrial polluted land cleanup, environmental cleanup, community
corridor connections, corridor planning, acquisition of property, development and redevelopment
of housing and existing commercial projects, and job creation.

What Activities are Eligible for TOD Funding?
Projects must serve a public purpose and address one or more of the following:
   • Community corridor connections;
   • Housing rehabilitation and removals;
   • Property acquisition;
   • Development and redevelopment of housing and existing commercial; and,
   • Job creation.

Eligible activities and use of funds include
(Preference Given To Activities Directly Increasing Transit)
    • Acquire real property for the purpose of removing, preventing, or reducing blight,
       blighting factors or the causes of blight;
    • Clear acquired property and install streets, utilities, and site improvements for uses in
       accordance with the redevelopment project;
    • Sell or lease acquired land for uses in accordance with the redevelopment or housing
       plan;
    • Other purposes as authorized by Minnesota Statutes, Section 469.002.

What Funding is Available?
For 2007, $2,000,000 in Capital Bond Funding is available for TOD projects as either grants or
loans.

Lead Hazard Reduction Funding
Minnesota Lead-Safe Housing Partnership Grant
Lead-Based Paint Grant Funds are available for Property Owners who own pre-1978 rental units.

Reimbursable Lead Reduction Activities Include the Following:


10
   •   Window replacement
   •   Paint stabilization
   •   Exterior trim enclosure or replacement
   •   Siding enclosure or replacement
   •   Soil treatments

Resources Available Per Dwelling Unit:
   • Up to $4,000.00 match for lead hazard reduction work in 1-4 unit buildings.
   • Multi-Unit buildings with greater than 4 units are eligible for matching funds up to
      $2,000.00 per unit.
   • Free lead testing services provided by Hennepin County valued over $800.00.
   • Up to $300.00 for occupant relocation expenses.

Eligible Properties:
    • Pre-1978 residential dwelling units.
    • Homestead or rental property.
    • Occupant family income below 80 percent of the median income.
    • Priority is given to units with children under the age of six.
    • Do not receive "Project Based Section 8" assistance.

Training Opportunities
The HUD 8 Hour Lead-Safe Work Practices training is held periodically for contractors, rental
property owners and homeowners interested in performing residential maintenance and
rehabilitation in a lead safe manner.

Round XI Lead Hazard Control Grant
Hennepin County has been awarded a Round XI Lead Hazard Control Grant from the US
Department of Housing and Urban Development, Office of Healthy Homes and Lead Hazard
Control. The purpose of the grant program will be the implementation of a comprehensive and
sustainable Lead Hazard Control Program that will focus on protecting children from lead
poisoning and significantly increase lead hazard control in at-risk communities. Funds will be
used for Lead Hazard Reduction activities in in-home daycares and in homes occupied by
children with Elevated Blood Lead Levels, the relocation of occupants, contractor training and
education and outreach.

In order to qualify for the HUD Round XI LHC Grant, the property must be occupied by an
income eligible family with a child less than six years of age. Priority will be given to elevated
lead levels. Contractors may be eligible for free or subsidized lead training courses. For more
details, contact (612) 348-2020.

First-Time Homebuyers Program
The First-Time Homebuyers Program operates on a first-come, first-serve basis. For additional
information on the first-time homebuyers programs, downpayment and closing costs assistance
and homebuyer training, contact the Minnesota Housing Finance Agency Consumer Information
Line at 651-296-8215 or 1-800-710-8871.



                                                                                                     11
City of Minneapolis
 City Hall
 350 South 5th Street
 Minneapolis, MN 55415
 Call 311 within the city limits
 Phone: (612) 673-3000

Minneapolis lies contiguous to Saint Paul. Together, Saint Paul and Minneapolis comprise the
central cities of the seven county Twin Cities metropolitan area.

Economic Development
Community Planning and Economic Development (CPED) Department
 Suite 200, Crown Roller Mill Building
 105 Fifth Avenue South
 Minneapolis, MN 55401-2534
 Phone: (612) 673-5095

Economic Development was established by a City Council ordinance that became effective on
August 24, 2003. Several entities combined to form the new department – the Minneapolis
Community Development Agency, the Planning Department, the Empowerment Zone office, and
the Minneapolis Employment and Training Program.

The new CPED office was part of the City's "Focus Minneapolis" initiative aimed at making
Minneapolis planning and community development more effective, responsive and accountable.

The primary functions of CPED - Planning Division are:
   • to develop and maintain the City's comprehensive plan, to plan for geographic areas of
      the City at the neighborhood or community level, and to plan in functional areas such as
      transportation, economic development, housing, etc.;

CPED’s primary business lines and service activities:

Community Planning
 City Hall, Room 210
 350 Fifth Street South
 Minneapolis, MN 55415-1316
 Phone: (612) 673-2597

     •   Provide support to elected officials, residents, City departments, neighborhood groups,
         developers and others to encourage participation in City processes.
     •   Conduct research and analysis on trends affecting City policy and development.




12
   •   Coordinate City-sponsored arts and cultural activities and serve as a liaison between
       private cultural efforts and City services.

Development Services
 Public Service Center, Room 300
 250 Fourth Street South
 Minneapolis, MN 55415-1335
 Phone: (612) 673-5836

   •   Administer and interpret the zoning code and land subdivision regulations.
   •   Review and prepare findings and recommendations on applications for approvals as
       required by the zoning code, land subdivision regulations and state law.
   •   Administer and interpret the City's heritage preservation regulations.
   •   Prepare and recommend to the City Council amendments to the City's land use
       regulations.

Economic Policy and Development Division
CPED’s Economic Policy & Development Division focuses on business retention, expansion,
creation, and attraction—both downtown and in Minneapolis’ neighborhoods. CPED provides
financing and tools for commercial, mixed-use and industrial development and expansion. CPED
assists with building necessary physical infrastructure, community amenities and cultural
resources. The division works to enhance the city’s tax base, preserve and create living wage
jobs, redevelop blighted and contaminated areas, provide commercial services to city residents,
and promote Minneapolis as a world class business community.
    • Identify, pursue, and promote long-term catalytic redevelopment projects, priority
        initiatives, and economic development opportunities.
    • Build relationships with businesses.
    • Provide sites and financing for neighborhood commercial, mixed-use and industrial
        development.
    • Provide financing and technical assistance to for-profit and not-for-profit businesses.
    • Maintain and promote a vital downtown and central riverfront.
    • Manage real estate assets and contractual obligations.

Business Development
 Suite 200, Crown Roller Mill Building
 105 Fifth Avenue South
 Minneapolis, MN 55401-2534
 Phone: (612) 673-5169

Business Finance
 Suite 200, Crown Roller Mill Building
 105 Fifth Avenue South
 Minneapolis, MN 55401-2534
 Phone: (612) 673-5094



                                                                                               13
Minneapolis Employment and Training Program (METP)
 Suite 200, Crown Roller Mill Building
 105 Fifth Avenue South
 Minneapolis, MN 55401-2534
 Phone: (612) 673-6237

The Minneapolis Employment and Training Program provides employment programs in
Minneapolis that specialize in job training and placement services that lead to economic self-
sufficiency.

Programs are designed specifically for the following:
   1. Adult Workers
   2. Youth Ages 14 to 21 (Summer and Year Round
   3. MFIP Recipients (Welfare to Work)
   4. Dislocated Workers (layoffs, plant closings, etc.)
   5. Mature Workers (over 55)

Empowerment Zone
 Suite 200, Crown Roller Mill Building
 105 Fifth Avenue South
 Minneapolis, MN 55401-2534
 Phone: (612) 673-5017

The Minneapolis EZ program offers incentives for businesses to locate or expand within the
zone, which includes portions of 19 of Minneapolis’ 81 neighborhoods, and has partnered with
the Minneapolis Employment and Training Program for job training and placement.

The federal EZ designation has resulted in $25.7 million in direct funding to Minneapolis, $100
million in tax incentives and $130 million in tax-exempt bonding authority.

The Minneapolis EZ Program is administered by the Minneapolis Community Planning and
Economic Development Department and Minneapolis Empowerment Zone Governance Board,
which includes leaders in government, business, industry, neighborhood organizations,
foundations, faith based organizations and education.

Brownfields Program
Are you the owner or developer of a property (located in the City of Minneapolis) that is known
(or suspected) to be contaminated? If so, you are encouraged to investigate the possibility of
obtaining grant funds to assist with the cost of investigation and/or cleanup (remediation).

Twice a year, grant applications for environmental remediation projects are solicited by
Minnesota’s Department of Employment and Economic Development (DEED), the Metropolitan
Council, and Hennepin County. The City’s Department of Community Planning and Economic
Development (CPED) works with potential applicants to review proposed projects and, using
City criteria, determines funding priorities based on factors that include development potential,


14
consistency with City and neighborhood plans, job and/or affordable housing creation, and the
availability of other funding resources.

Starting a Business in Minneapolis
Where to go for help
If you have never operated a business before, the prospect of putting all the pieces together can
be overwhelming. But you don’t have to do all the work by yourself. There are many resources
available to make the job of starting a business easier, though finding them can be a challenge.
This section tells you where you can find the help you need to get started.

Professional Services
New owners often take full responsibility for all aspects of their business operations. Because
their funds are limited, these owners believe that hiring professional services is a luxury they
cannot afford.
Make room in your budget for legal and accounting advice. Given the complex regulatory
processes facing even the simplest sole proprietorships in Minnesota, you will want to consult a
lawyer before your business is up and running. To put your business on a firm financial footing,
consult an accountant as well. Several of the organizations listed at the end of this chapter may
be able to help you find reduced-price legal and accounting services.

Community Resources
A broad range of community agencies provides technical assistance for new and aspiring
business owners in Minneapolis. Most of these organizations provide business assistance
services at little or no charge.

You can walk into certain of the following agencies to find a wealth of written and online
information useful in starting and maintaining your business. Other listed nonprofit and
community-based organizations provide one-on-one technical assistance, half-day and evening
workshops, and multi-week courses and training sessions on business development.

Some of these organizations target their services to specialized populations and designated inner-
city neighborhoods. Others provide services to all current and prospective business owners in
Minneapolis. Most of them generally provide services at little or no cost. Current fees are listed
for those agencies charging for services, but some fees are subject to change.

Walk-In Information Centers
Minneapolis Public Library
The library’s business and economics department has an extensive collection of books,
pamphlets, and magazines providing advice and information for start-up businesses. Topics
range from general how-to business guides to more specialized publications dealing with
franchising, importing/exporting, and buying or selling a business. Many of the resource guides
do not circulate, which means that you can use them only at the library. But the business
department librarians can help you find books that you may check out and take home. No fees.




                                                                                                15
Minnesota Business Information Center (BIC)
This walk-in center, sponsored by the Minneapolis office of the U.S. Small Business
Administration (SBA), provides free on-site counseling, information, and technical assistance for
local entrepreneurs. BIC is the place to find the latest in high-tech hardware and software,
database research capability, and graphics and reference materials. BIC also has close links to
Minneapolis SCORE (the Service Corps of Retired Executives).

One-On-One Technical Assistance and Business Information Workshops
MEDA Metropolitan Business Development Center (MBDC)
MBDC is operated by the Metropolitan Economic Development Association (MEDA), a
nonprofit organization serving businesses owned by people of ethnic minorities, including
Hispanics, American Indians, Asian Americans, and African Americans. MBDC provides one-
on-one services in areas such as business-plan development, financial planning, and loan
packaging. MBDC also links its clients with other MEDA programs, including the MEDA loan
program and the Minnesota Minority Supplier Development Council. Fees vary by project—
normally $10 per hour for consultations.
Minneapolis Consortium of Community Developers (MCCD)
MCCD is an association of nonprofit community development organizations in Minneapolis
providing housing and economic development services. Eight MCCD member organizations
provide direct technical assistance to neighborhood-based businesses. They include the African
Development Center, the Latino Economic Development Center, the Northeast Community
Development Corporation, the Neighborhood Development Center, Northside Residents
Redevelopment Council, Seward Redesign, and the Whittier Community Development
Corporation. MCCD member organizations can also help prospective and current business
owners access MCCD business-loan programs. No fees.

Minneapolis SCORE
SCORE (the Service Corps of Retired Executives) is a nationwide organization of active and
retired business owners who provide volunteer assistance to small businesses and entrepreneurs.
SCORE partners with the U.S. Small Business Administration (SBA) to offer free counseling
and low-cost workshops on a variety of business topics. SCORE offers its short courses at the
Minneapolis SBA office, the Minneapolis campus of Metropolitan State University, and
Minneapolis Community and Technical College. Fees for the two-hour workshop generally
range from $8 to $15. Some half-day and all-day workshops cost $35 to $40.

WomenVenture
The mission of WomenVenture is to help women secure economic success. But this Saint Paul-
based nonprofit organization offers business development services for men as well as women.
WomenVenture sponsors regular seminars about going into business and offers free one-on-one
consultations to those who attend. The organization also offers a broad range of classes covering
topics such as financial management, marketing, business, and home-based businesses.

Multiweek Business Courses
FastTrac
The University of St. Thomas Center for Entrepreneurship sponsors two multiweek training
programs aimed at helping potential and current entrepreneurs create and develop successful



16
business ventures. FastTrac I is a nine-week course designed for people intending to start
businesses. Participants identify business opportunities and complete feasibility plans for start-up
ventures. FastTrac II is an 11-week course for people wanting to more fully develop existing
businesses. Fees are currently $375 for FastTrac I and $595 for FastTrac II.

NDC Neighborhood Entrepreneurship Training
This neighborhood-based program is operated by the nonprofit Neighborhood Development
Center (NDC). NDC partners with community-based organizations in Minneapolis target
neighborhoods to offer a 16-week business development course twice a year in the spring and
fall. Participants who complete the training course prepare a written business plan and may
access NDC’s loan programs and technical assistance. The course fee is on a sliding scale from
$75 to $600 based on family income and family size. People who are not target-area residents
may participate in the course for the full $600 fee. Participants who do not live or own
businesses in the target neighborhoods, however, will not be eligible for NDC’s loans or
technical assistance.

Types Of Business Loans
Twin Cities-area lenders offer two basic types of business financing:
1. Revolving credit lines operate like credit-card accounts. The lender sets a limit on how much
you can borrow. Typically, you borrow against the credit line when you need cash and pay off
the credit line when you have surplus cash. That can vary from month to month.

The credit line is usually set up on an annual basis, and most lenders expect you to pay off the
line fully at least once a year. While you draw money on the credit line, you pay interest on the
outstanding balance. Revolving credit lines work well for businesses with seasonal swings in
sales. Florists are a good example. Their sales usually peak around Valentine’s Day and again
around Mother’s Day. A floral business may need to draw on its credit line to purchase flowers
before February 14 and pay down the credit line after February sales have peaked.

2. Term loans operate like home mortgages. You borrow over a multiyear period and start
making regular payments, usually the month after you receive the loan. The loan amortizes,
which means that each month part of your loan payment covers a portion of the amount you
borrowed (the principal), and part of it pays the interest. During the early months of your loan
term, most of the amount pays interest. At some point during the loan term the balance shifts so
that more of the payment goes for principal and less for interest.

Term loans used to buy small equipment or fund general business operations are usually made
for no more than five years. Some loans for building improvements extend as long as 10 years. If
you use a term loan to finance the purchase of a commercial building, the lender may calculate
the monthly payments as if you were paying the loan over 20 years.

Or the lender may balloon the loan at five or 10 years. A balloon means that the lender has the
right to request full payment of the remaining balance on a specified date. Usually, the lender
will extend the loan after the balloon date upon request—if you have made the loan payments on
time. But as a borrower, you run the risk that the lender may choose not to extend the loan.




                                                                                                 17
Community Resources
While most local businesses are able to use a local bank to meet their borrowing needs, startup
businesses often must boost their borrowing capacity through an arrangement known as credit
enhancement. This means that an outside organization or individual helps to support the loan,
either through a guarantee or a joint-funding partnership with a private lender.

Public Agencies
Minneapolis Community Planning and Economic Development (CPED)
As the development arm of the City of Minneapolis, CPED promotes community and economic
development in the city’s 81 neighborhoods. CPED’s Business Finance Section helps small
businesses obtain commercial loans, in partnership with local banks. While CPED loans are not
targeted at start-up businesses, start-ups can access these loans if they have the capacity to repay.
These loan programs are designed to help younger, smaller businesses.

CPED provides more information about its business-loan programs, as well as a listing of other
community resources in its “Guide to Loans and Grants for Minneapolis Businesses”. You can
get a copy of this guide by contacting CPED (612-673-5094).
U.S. Small Business Administration
This federal agency works through a network of banks and community agencies. SBA no longer
provides direct loans to small business owners.

Nonprofits
Minneapolis Consortium of Community Developers (MCCD)
MCCD partners with CPED’s Business Finance Section to provide small business loans in
Minneapolis. It offers direct loans of up to $25,000 and works with banks to provide additional
financing. MCCD loans are funded through a variety of capital sources, including CPED, the
Minneapolis Empowerment Zone, the State of Minnesota Urban Initiative Program, and Wells
Fargo Community Development Corporation.

Neighborhood Development Center (NDC)
NDC provides financing in inner-city neighborhoods in Minneapolis and Saint Paul to help
emerging entrepreneurs develop successful businesses. In general, NDC borrowers must
complete NDC’s micro-entrepreneurship training program in order to access loan funds. In
Minneapolis, NDC loan programs are targeted at these neighborhoods: Phillips, Whittier, Cedar-
Riverside, Seward, Near North, Sumner-Glenwood, Harrison, Willard Hay, Jordan, Hawthorne,
McKinley, Folwell, Cleveland, Victory, Camden, Shingle Creek, and Lind Bohanon.

NDC also offers a profit-based financing program operated in accordance with Islamic law. This
program is available to existing and start-up businesses through buy/sell agreements with
deferred payments and royalty investments.

Other nonprofit organizations provide loans for targeted populations or designated
neighborhoods:




18
Metropolitan Economic Development Association (MEDA)
MEDA provides small business loans through the Twin Cities metropolitan area to businesses
with at least 51 percent minority ownership.

WomenVenture
This Twin Cities-wide organization helps women to achieve economic success. But it provides
small-business loans to businesses owned by women or by men. Several Minneapolis
community-development organizations offer small-business loans limited to businesses in their
target neighborhoods. These include the Northside Residents Redevelopment Council, the
African Development Center, and the Whittier Community Development Corporation.

Minneapolis Zoning Code—Home Occupations
Home occupation regulations are established to ensure that home occupations do not adversely
affect the character and livability of the surrounding neighborhood and that a home occupation
remains accessory and subordinate to the principal residential use of the dwelling. The
regulations recognize that many types of home occupations can be conducted with little or no
adverse effect on the surrounding neighborhood.

535.450. Home occupation standards. Home occupations shall be subject to the following
standards, except that licensed family day care and licensed group family day care shall be
exempt from the provisions of sections (2), (6), (11), (12), (13), and (15):
    1. The home occupation shall be an activity which is customarily associated with the use of
       a dwelling.
    2. Only the residents of the dwelling unit, and not more than one (1) nonresident employee,
       shall be employed by or engaged in the conduct of the home occupation on the premises.
       For the purpose of this section, nonresident employee shall include an employee, business
       partner, independent contractor or other person affiliated with the home occupation who
       is not a resident of the dwelling unit, but who visits the site as part of the home
       occupation. Not more than one non-resident employee shall be permitted per dwelling
       unit or two-family dwelling, regardless of the number of home occupations.
    3. Exterior alterations or modifications that change the residential character or appearance
       of the dwelling, any accessory buildings or the zoning lot shall be prohibited.
    4. Interior alterations or modifications that eliminate the kitchen, living room, all of the
       bathrooms, or all of the bedrooms of the dwelling shall be prohibited.
    5. The home occupation shall be conducted only within an enclosed area of the dwelling.
       However, beginning in the R4 zoning district, in multiple-family dwellings of five (5) or
       more units the home occupation may be allowed within a specific area of the principal
       building designated for such home occupation by conditional use permit, as provided in
       Chapter 525, Administration and Enforcement. In addition to the conditional use
       standards, the planning commission shall consider, but not be limited to, the following
       factors:
       o Nature of the home occupation and its impacts of noise, light, odor, vibration and
           traffic.
       o Conformance with applicable zoning requirements, including but not limited to,
           yards, gross floor area, and specific development standards.
       o History of complaints related to the property.



                                                                                                 19
     6. Outdoor storage or display of materials, goods, supplies, or equipment related to the
         conduct of a home occupation shall be prohibited.
     7. The required off-street parking area provided for the principal use shall not be reduced or
         made unusable by the home occupation.
     8. Signage shall be restricted to one non-illuminated, flat wall, identification sign not to
         exceed one (1) square foot in area. On a corner zoning lot, two (2) such signs, one facing
         each street, shall be allowed.
     9. No equipment, machinery or materials other than of a type normally found in or
         compatible with a dwelling shall be allowed.
     10. No retail sale and delivery of products or merchandise to the customer or client shall
         occur on the premises except where accessory to any services provided (such as hair care
         products sold accessory to hair cutting or computer disks accessory to accounting
         services).
     11. No home occupation shall be visible from any public right of way, except for allowed
         signage.
     12. The hours open to the public shall be limited to between 8:00 a.m. and 8:00 p.m.
     13. The home occupation shall not generate excessive customer or client traffic that is
         detrimental to the residential character of surrounding properties or the neighborhood.
         For purposes of this provision, more than five (5) customers or clients per day may be
         determined to be an excessive and detrimental level of traffic. This number shall apply
         per dwelling unit, regardless of the number of home occupations, except that in the case
         of two (2) family dwellings, the number shall apply to the two (2) family dwelling. The
         factors to be used for such a determination shall include but not be limited to:
         o The characteristics of the neighborhood, including land uses, lot sizes and lot widths.
         o Street type, width and traffic volumes.
         o The availability and location of off-street parking and the extent to which the home
             occupation contributes to on-street parking congestion.
     14. Shipment and delivery of products, merchandise, or supplies shall be limited to between
         9:00 a.m. and 6:00 p.m. and shall regularly occur only in single rear axle straight trucks
         or smaller vehicles normally used to serve residential neighborhoods.
     15. No sound or noise created by the operation of the home occupation shall be audible
         beyond the boundaries of the zoning lot.
     16. Hazardous materials in excess of consumer commodities which are packaged for
         consumption by individuals for personal care or household use shall be prohibited.

535.460. Prohibited home occupations. Recognizing that there are some uses which have
serious objectionable operational characteristics and thereby adversely affect the surrounding
neighborhood, the following shall be prohibited as home occupations:
    1. Motor vehicle repair, service or painting, or any repair or servicing of vehicles or
       equipment with internal combustion engines (such as snowmobiles, lawnmowers, chain
       saws and other small engines).
    2. A barber shop or beauty salon that is designed to serve more than one (1) client at a time.
    3. The sale, lease, trade or other transfer of firearms or ammunition by a firearms dealer.
       Firearms dealers existing on or before October 7, 1995, and in all other respects in
       conformance with the provisions of this ordinance, shall be permitted to continue as




20
      nonconforming uses in accordance with the provisions of Chapter 531, Nonconforming
      Uses and Structures.
   4. Sexually oriented uses, as defined in Chapter 549, Downtown Districts.
   5. Headquarters or dispatch centers where persons come to the site and are dispatched to
      other locations.
   6. Uses first allowed in the C4 General Commercial District or any industrial district.

Business Development Services
Minneapolis Business Toolbox
The Minneapolis Business Toolbox contains information on a wide range of resources and
services to help Minneapolis companies get started and thrive.

Employment and training tools:             jobs@ci.minneapolis.mn.us
Business finance loans:                    business.finance@ci.minneapolis.mn.us
Business expansion & relocation resources: business.development@ci.minneapolis.mn.us

Great Streets Resources
In 2007 the Minneapolis City Council approved the “Great Streets” Neighborhood Business
District program, a coordinated effort to help businesses develop and succeed along commercial
corridors and at commercial nodes throughout the city. City resources are available for business
loans, real estate development gap financing and business district assistance such as façade
improvement programs, market studies and retail recruitment efforts.

Capital Acquisition Revolving Fund
CPED is seeking nominations for a new acquisition assistance funding source for development
projects located on commercial and transit corridors and at commercial nodes. Open application
period – no deadline

Neighborhood Economic Development Fund
The NEDF provides a means of assisting commercial redevelopment efforts in neighborhood
commercial areas by providing funding to eligible groups for activities that accomplish the
rehabilitation, revitalization, or expansion of neighborhood commercial centers.

Community Economic Development Fund Program
The City’s comprehensive plan, The Minneapolis Plan, identifies eleven commercial corridors
and encourages their development and revitalization. The CEDF guidelines were revised in 2004
to provide funding for economic development and area technical assistance on commercial
corridors.

Business Finance Programs
The city of Minneapolis offers a wide array of financing tools for Minneapolis businesses of all
sizes. Loans range from $1,000 to $10 million, and many are offered in partnership with private
lenders and nonprofit organizations.




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501(c)(3) Revenue Bonds
The City of Minneapolis provides low-cost, tax-exempt bond financing for capital improvement
projects to nonprofit organizations. Projects can include land acquisition, new-facility
construction, additions to existing facilities, purchase and renovation of existing structure and
purchase of fixed equipment.

Typical borrowers include hospitals, nursing homes, health care providers, educational
institutions, museums, performing arts organizations and other community organizations who are
tax exempt under Section 501(c)(3) of the Internal Revenue Code.

How does the 501 (c) (3) Revenue Bond Program work?
  • Revenue bonds are issued either free-standing or through the Common Bond Fund
     (CBF).
     o Free-standing revenue bonds are issued with the strength of the project dictating
         terms and conditions of financing and interest rate.
     o Bonds issued through the CBF are investment-grade instruments with an "A+"
         municipal-bond rating based on the security provided by the CBF, resulting in lower
         interest rates for the borrower.
  • Revenue bonds are marketed to either institutional investors (insurance companies, banks
     and pension funds) through a private placement, or sold to the general public through a
     public offering of the bonds.
  • A City staff person will handle the revenue bond request from initial inquiry through
     post-closing monitoring.
  • The complete public approval process takes about 90 days.
  • The City of Minneapolis approve revenue bond projects based on financial strength,
     credit worthiness and public purpose served.

What are the rates, terms and fees?
  • Tax-exempt revenue bonds can be issued below commercial-market interest rates because
      interest earnings to the purchaser are generally exempt from federal, state and local
      income taxes.
  • Revenue bond issuance expenses include bond counsel, underwriter, corporate counsel,
      inspecting architect, title insurance and other fees. These fees may be financed through
      the revenue bond up to certain limits.
  • Revenue bond financing can be fixed rate, with terms of 20 to 30 years, often at interest
      rates below or equal to market interest.

What information do you need to provide?
  • Narrative on the organization.
  • Financial statements for the past three years, any interim statements and projections for
      the next two years.
  • General description of the proposed project, plans and estimates of project costs.
  • Description of funding sources.
  • Appraisals and environmental reports about the proposed project.
  • Borrower must have 501(c)(3) status.



22
Alternative Financing Program
The Alternative Financing Program offers profit-based financing to Minneapolis business owners
where no interest is paid or collected. The rate of return is based on an up-front profit payment
that is added to the front end and amortized over the life of the financing. While this type of
financing may be especially attractive to Muslim business owners whose religious beliefs restrict
them from receiving traditional interest-based financing, the program is open to all small
Minneapolis businesses (neighborhood retail, service or light manufacturing) to purchase
equipment and/or make building improvements.

A private lender provides half the financing at their rate of return, and the City provides the rest,
up to $50,000, at a 2 percent rate of return. The term (up to 10 years) is set by the lender. Private
lender fees vary. The City charges an origination fee of 1 percent of the City’s principal amount
with a minimum of $150, due at closing.

After an application and a lender-commitment letter are received, preliminary approval takes
about one week, with an additional two weeks to close the financing. The city cannot finance any
work started prior to the closing.

Who is eligible for the Alternative Financing Program?
In the event program funds are not sufficient to meet all eligible applications, priority will be
given to businesses unable to expand without the Alternative Financing, and to businesses 1)
located in target areas of Minneapolis; 2) benefiting low- to moderate-income persons by
creating jobs or improving services; 3) rehabbing or reusing a vacant structure; and 4) whose
owner has a personal net worth less than $1 million. All eligible applicants must:
    • Repay the funds and be an acceptable credit risk (determined by the lender).
    • Comply with the Minneapolis zoning ordinances.
    • Make efforts to hire Minneapolis residents by working with the City’s Workforce
        Coordinator.
    • Use contractors licensed in Minneapolis.
    • Proceeds cannot be used for billboard advertising.

How can the funds be used?
All rehab work or equipment installations must meet Minneapolis city codes.

 Interior improvements                               Exterior improvements
     • Lighting                                         • Roofing
     • Architectural change                             • Accessibility
     • Electrical                                       • Masonry
     • Walls, ceilings and floors                       • Cleaning, painting and staining
     • Plumbing                                         • Streetscape and parking lot
     • Air conditioning                                 • Entrances, doors, awnings, windows,
     • Mechanical                                           cornices, decorative details and signs
     • Energy efficiency

Production equipment
(For businesses with no health, safety or building-code violations)


                                                                                                    23
     •   Cannot be replacement equipment.
     •   Equipment must provide new jobs to run or manage equipment
     •   Equipment must be fixed – computers are approved on a case-by-case basis only.

Bank Qualified Bank Direct Loans
The City of Minneapolis offers a financing program to provide cost-effective tax-exempt
financing for capital projects for smaller 501 (c)(3) organizations for projects in the $1 million to
$2 million range. Traditionally, tax-exempt revenue bonds have often not been a practical
financing option for small organizations or companies’ projects in the past. By providing a
streamlined application and documentation process, the red tape is significantly reduced resulting
in lower borrowing costs when using this program.

What are the benefits of the program?
  • Lower than typical conventional interest rates as a result of the tax-exempt status of
      interest to the bank purchasing the bonds.
  • Lower cost of issuance and less lead-time from application to actual funding since the
      program documents are pre-approved by the City of Minneapolis and Bond Counsel.
  • The City and other participants are committed to ensuring a smooth and efficient process.
  • Reduced fees, compared to standard tax-exempt bond financing.

What are the rates, terms and fees?
  • Bank Qualified Bank Direct tax-exempt revenue bonds can be issued below commercial-
      market interest rates due to the tax-exempt status of interest to the bank purchasing the
      bonds.
  • The interest rate can either be variable or fixed.
  • All documentation is prepared by bond counsel. All parties are represented by their
      respective counsel.
  • Bank Qualified Bank Direct tax-exempt revenue bond issuance expenses include bond
      counsel and sometimes a financial advisor. These fees may be financed through the bonds
      up to certain limits.

What is the Bank Qualified Bank Direct Loan Program process?
  • A City staff person will handle your loan application from initial inquiry through post-
      closing monitoring.
  • The complete public approval process takes about 45-60 days after the application is
      received, if a bank has committed to purchasing the bonds.
  • The City approves bank direct loans based on the public purpose served, such as
      preserving and creating jobs, increasing the real estate tax base, and providing
      community services.

Application process
Loan applicants should return a completed Bank Qualified Bank Direct Loan Program
application to the City with the following information:
   • Financial statements for the past two years and any interim statement
   • Appraisals and environmental reports about the proposed project



24
Business Development Fund Loans
The BDF is a financial tool provided to Minneapolis based businesses for assistance in
redevelopment projects that have a potential for the creation of jobs that will be filled by
Minneapolis residents. The BDF provides Minneapolis business loans of up to $75,000 and the
opportunity for prepayment credits to be earned for each Minneapolis resident hired (during the
first three years of the loan) and employed at least one year.

BDF loans, provided by the City of Minneapolis through participating lenders, can be used in
tandem with other City business assistance programs, such as Industrial Revenue Bonds and
Capital Acquisition Loans. BDF loans are also provided to companies building or expanding on
City industrial sites. BDF loans are intended to provide gap financing and must be leveraged
with other financing.

Who is eligible for BDF loans and how can they be used?
Businesses located within the city limits of Minneapolis or moving into Minneapolis may apply.
BDF loans are targeted at companies that provide full-time jobs that pay $11 to $15 per hour plus
benefits. Most participating BDF businesses have at least 20 employees and expect to add 12
jobs within the first three years of the loan.

BDF loans cannot exceed $75,000 or 50 percent of total project costs, whichever is less.
BDF loan can be used for:
  • Inventory
  • Production equipment
  • Acquisition of business assets
  • Move-In Costs
  • Leasehold improvements
  • Real estate or building expansion

BDF loan guidelines, terms and conditions
Businesses receiving BDF loans must sign a Job Linkage Agreement that the business will
attempt to fill vacant positions with Minneapolis residents. For each resident hired (during the
first three years of the loans) and employed full-time for a year, the business may receive a
prepayment credit toward the principle balance of the loan.
     • A business with a $75,000 BDF loan may receive a maximum of $37,500 in prepayment
         credits.
     • Prepayment credits are based on the amount of the BDF loan.
     • Prepayments are credited 18 months after closing the loan in the year the resident is
         hired, and every 12 months over the next two years.
     • Interest rates shall not exceed participating lender’s interest rate.
     • Maximum term is 10 years.
     • Interest and terms are determined on an individual basis.

Capital Acquisition Loans
The Capital Acquisition Loan Program enables small business owners to purchase and
rehabilitate small commercial and industrial properties. The City of Minneapolis, through this


                                                                                                 25
program provides financing in tandem with private banks for projects of up to approximately
$700,000. The lender finances at least 50 percent of the project, the City finances up to 40
percent, and the business borrower provides the remaining funds in the form of equity. The
City’s participation is capped at $300,000, but there is no limit on the bank’s share.

How is the program funded?
CAL is funded through a loan purchase agreement with the Community Reinvestment Fund
(CRF). CRF injects funds into the CAL program by purchasing the City’s share of each loan.
Because CRF purchases loans for resale on the secondary market, CAL loans must be priced to
yield a market return for investors.

Who is eligible for loans and how can they be used?
Small business owners seeking to purchase property in which to operate their business in the
City of Minneapolis are eligible for financing through this program. No geographical restrictions
within Minneapolis apply to the program. The business must occupy at least 25 percent and in
some cases 51% of the space.

Loans can be used to:
   • Acquire commercial and/or industrial properties
   • Rehabilitation of commercial/industrial properties in conjunction with property
      acquisition. If rehabilitation is involved, the private lender must provide the construction
      financing and the City will provide the 40% in the form of permanent financing and the
      time the construction has been completed.
   • Acquire and rehabilitate mixed commercial/residential buildings when at least 50 percent
      of the floor space is used for commercial purposes
   • Refinance contracts-for-deed for commercial/industrial properties.

Loan terms and conditions
   • Up to 20 year amortization
   • Interest rate varies with market conditions
   • All loans are secured by a second mortgage on the property being financed.
   • 1% origination fee on City’s portion of the loan is due at the time of closing

Application process
Loan applicants should return a completed loan application with the following information:
   • Prior two year business financials and tax returns.
   • Business owners’ personal financial statement and prior two years tax returns
   • 12-month cash flow projection
   • Business plan (if available).

Common Bond Revenue Bond Program (CBF)
The Common Bond Fund Revenue Bond Program is a loan fund for growing manufacturing
companies. Most of the major manufacturing projects completed in Minneapolis since 1982 have
been financed with tax-exempt or taxable revenue bonds issued through the CBF. Starting in
2004, the CBF has been expanded throughout all of Hennepin County through a joint partnership
between the City of Minneapolis and the Hennepin County Housing and Redevelopment


26
Authority (HRA). Local government agencies may issue tax-exempt or taxable revenue bonds on
behalf of private borrowers to provide lower interest rates on long-term financing. Revenue
bonds issued for industrial/manufacturing projects are generally tax-exempt; those for
commercial projects are taxable. Projects can include land acquisition, new-facility construction,
additions to existing facilities, purchase and renovation of existing structures and production
equipment purchase.

How does the Common Bond Revenue Bond Program work?
  • Bonds issued through the CBF are investment-grade instruments with an “A+”
     municipal-bond rating based on the security provided by the CBF, resulting in lower
     interest rates.
  • CBF revenue bonds are marketed to either institutional investors – insurance companies,
     banks and pension funds – or sold to the general public through a public offering. This
     results in interest-cost savings to borrowers.
  • Bond underwriting firms prepare an official statement to market the bonds.

Who is eligible for CBF revenue bonds?
  • Any owner-occupied manufacturing business in Hennepin County.
  • Bars, restaurants, entertainment facilities and startup firms are not eligible.
  • The CBF is designed for established owner-occupied manufacturing facilities with a
      history of profitability, whose owners provide personal guaranties.
  • The CBF can also provide financing for 501(c)(3) nonprofit organizations on a tax-
      exempt basis; and taxable bonds for commercial projects that would not qualify for tax-
      exempt bonds.
  • The CBF can finance up to 90 percent of value, with the borrower providing a minimum
      requirement of 10 percent equity.

What are the rates, terms and fees?
  • Tax-exempt CBF revenue bonds can be issued below commercial-market interest rates
      because interest earnings to the purchaser are generally exempt from federal, state and
      local income taxes.
  • CBF revenue bond financing is fixed-rate, with terms of 20 to 30 years, often at interest
      rates below market-interest rate.
  • The CBF offers competitive rates and terms on taxable revenue bonds.
  • CBF revenue bond issuance expenses include bond counsel, underwriting, fi nancial
      advisor, corporate counsel, inspecting architect, title insurance and other fees. These fees
      may be financed through the revenue bond up to certain limits.

What is the CBF revenue bond process?
  • A City of Minneapolis and Hennepin County HRA staff person will handle your revenue
      bond request from initial inquiry through post-closing monitoring.
  • The complete public approval process takes about 90 days.
  • The City of Minneapolis and Hennepin County HRA approve CBF revenue bond projects
      based on financial strength; credit worthiness; public purpose served, such as preserving
      and creating jobs; and increasing the real estate tax base.



                                                                                                27
What information do you need to provide?
  • Narrative on the company and owner(s).
  • Financial statements for the past three years and any interim statements.
  • Personal financial statements of anyone owning more than 20 percent of the company.
  • General description of the proposed project, plans and estimates of project costs.
  • Appraisals and environmental reports about the proposed project.

What are the benefits of the CBF Revenue Bond Program?
  • Long-term fixed-rate financing to businesses at below-market interest rates.
  • Issuance of CBF revenue bonds on either a tax-exempt or taxable basis that can be used
      to finance industrial, commercial and medical facilities and some nonprofit activities.
  • Bonds issued through the CBF are investment-grade instruments with an “A+” municipal
      bond rating from Standard & Poor’s based on the security provided by the CBF.

Emerging Entrepreneur Capital Acquisition Loans
The City of Minneapolis is partnering with the Community Reinvestment Fund (CRF) and
banks, to help newer businesses (two years or newer) purchase and rehabilitate small
commercial, multi-use or industrial properties in the City. Large production or research
equipment may also qualify. The City may lend up to $400,000, or 40 percent of the appraised
value. A bank finances 50 percent (or greater) and holds a first mortgage. Equity of 10 percent is
required. Underwriting standards are slightly more lenient then conventional commercial loans.
A minimum debt service ratio of 1.1 to 1 for the last two years is required. There can be no late
payments by the business or any of the owners for the past year.

Who is eligible for an Emerging Entrepreneur CAL?
Small commercial and industrial businesses located in or moving to Minneapolis are eligible.
The borrowing business must occupy at least 51 percent of the space.

Loans may be used to:
   • Acquire and improve commercial and/or industrial properties.
   • Finance rehabilitation of commercial or industrial properties in conjunction with property
      acquisition.
   • Refinance contracts-for-deed for commercial or industrial properties in conjunction with
      acquisition.
   • Finance new fixed equipment.

Loan terms and conditions
   • Up to 20-year amortization.
      o Interest rate on the City’s portion is marked to US Treasuries. The bank charges a
          normal commercial rate, with a seven-year balloon.
   • All loans are secured with mortgages on the property and by personal guarantees of the
      owner(s). The City’s loan is subordinate to the lender’s first position.
   • There is a $500 document preparation fee and a 1 percent origination fee charged on the
      City’s portion. There are no servicing fees. A 1.50 percent prepayment penalty applies on
      the City’s portion. The bank charges its normal commercial loan fees. Overall fees are
      less then SBA 504s.


28
Application process
Loan applicants should return a completed loan application along with the following
information:
    • Prior two year’s tax returns for the business
    • Business owners’ personal financial statement and prior two years tax returns
    • 12-month cash flow projections and business plan (if available)
    • An online application is available at:
       http://www.ci.minneapolis.mn.us/cped/business_finance_home.asp

Loan Guaranty Program
Minneapolis’ Loan Guaranty Program helps access additional capital for small businesses that
may find it difficult to obtain credit from conventional sources. The City partners with the
Minneapolis Consortium of Community Developers (MCCD) to obtain bank financing by
providing a guaranty equal to 33 percent of a bank’s loan, up to a maximum City Guaranty of
$25,000. The MCCD may provide up to $25,000 from its existing capital sources and may also
obtain credit enhancement from the Small Business Administration (SBA) or another third party.
A commercial lender also must provide funds.
Who is eligible for loans and how can they be used?
Applicants should have been in business for at least one year and have provided an initial equity
into the business of between 10 percent and 30 percent. The borrower will participate in on-
going monitoring and technical assistance as needed. If the business moves out of the City of
Minneapolis, the loan will become immediately due.

Loans may be used for:
   • Working capital
   • Production contracts
   • Inventory
   • Receivables financing
   • General business operations
   • Equipment
   • HVAC
   • (Loans cannot refinance existing debt, bars, liquor stores or billboards)

What are the loan terms and conditions
  • Loan Types: term loans of up to five years (or 10 years if using the MCCD’s
      Commercial Corridor’s Impact Program) and lines of credit (revolving loans). The
      revolving loan initial guaranty will be for two years, and then may be extended for
      another two years upon written request and approval.
  • Interest Rate - determined by the bank and the MCCD, not to exceed Prime plus three
      percent.
  • City Guaranty Fee - the City will collect a one percent guarantee fee based on the
      amount it guarantees (minimum fee of $150).
  • Additional fees - may be charged by the bank and the MCCD.




                                                                                               29
What is the application process?
Borrowers will complete the City-MCCD application and a bank loan application and provide
the following financial information:
    • Two years personal taxes
    • Prior year’s business financials and taxes
    • Interim financials
    • A 12 month cash-flow projection
    • A business plan or narrative (when requested) and
    • Appropriate lien and collateral pledge agreements

Revenue Bonds
Revenue bonds can be used to finance industrial, commercial and medical facilities, multifamily
rental housing, nursing homes and some nonprofit activities. Projects can include land
acquisition, new-facility construction, additions to existing facilities, purchase and renovation of
existing structures and production-equipment purchase.

State and local government agencies may issue tax-exempt or taxable revenue bonds on behalf of
private borrowers to provide lower interest rates on long-term financing. Revenue bonds issued
for industrial/manufacturing, medical facility, 501 (c) (3) nonprofit or nursing-home projects are
generally tax-exempt; those for commercial projects are taxable.

Who is eligible for revenue bonds?
  • Any owner or business in Minneapolis.
  • Any business owner or developer planning to locate in Minneapolis.
  • Businesses with facilities outside Minneapolis, primarily if they are Minneapolis-based
      firms with facilities both in and outside the city or for projects that serve a public
      purpose.
  • Bars, restaurants, entertainment facilities and start-up firms are not eligible.

How does the revenue bond program work?
  • Revenue bonds are marketed to either institutional investors - insurance companies,
     banks and pension funds or sold to the general public through a public offering. This
     results in interest-cost savings to borrowers.
  • Bond underwriting firms will prepare an official statement to market the bonds to the
     public.
  • Revenue bonds are issued either free-standing or through the Minneapolis Common Bond
     Fund (CBF).
  • Free-standing revenue bonds are issued with the strength of the project dictating terms
     and conditions of financing and interest rate.
  • Bonds issued through the CBF are investment-grade with an "A+" municipal-bond rating
     based on the security provided by the CBF, resulting in lower interest rates.

What are the rates, terms and fees?




30
   •   Revenue bond issuance expenses include bond counsel, underwriter, corporate counsel,
       inspecting architect, title insurance and other fees. These fees may be financed through
       the revenue bond up to certain limits.
   •   Tax-exempt revenue bonds can be issued below commercial market interest because
       interest earnings to the purchaser are generally exempt from federal, state and local
       income taxes.
   •   Revenue bond financing can be fixed rate, with terms of 20 to 30 years, often at interest
       rates below or equal to market interest.

What is the revenue bond process?
  • A City of Minneapolis staff person will handle your revenue bond request from initial
      inquiry through post-closing monitoring.
  • The complete public approval process takes about 90 days.
  • The City of Minneapolis approve revenue bond projects based on financial strength;
      credit worthiness; public purpose served, such as preserving and creating jobs; and
      increasing the real estate tax base.

What information do you need to provide?
  • Narrative on the company and owner(s).
  • Financial statements for the past three years and any interim statements.
  • Personal financial statements of anyone owning more than 20 percent of the company.
  • General description of the proposed project, plans and estimates of project costs.
  • Appraisals and environmental reports about the proposed project.

Two-Percent Loans
Two-Percent Loans provide financing to small Minneapolis businesses (retail, service or light
manufacturing) to purchase equipment and/or to make building improvements. A private lender
provides half the loan at market rate and the MCDA provides the rest, up to $40,000 at 2 percent
interest. The loan term is set by the private lender and can be for up to 10 years. Bank fees vary,
but the City charges a 1 percent origination fee with a minimum of $400 due at closing.

After the Business Finance Division of the Department of Community Planning and Economic
Development receives an application with supporting financial information and a lender-
commitment letter, preliminary approval takes about one week, with up to two weeks to close the
loan. The City cannot finance any work started prior to the loan closing.

Who is eligible for a Two-Percent Loan?
  • All businesses located in the City of Minneapolis
  • The applicant may be individual owners, partnerships, corporations, tenant operators or
      contract for deed partners.
  • Businesses that benefit low-to-moderate income persons by creating jobs or improving
      services

All Two-Percent Loan recipients must:
    • Repay the loan and be an acceptable credit risk



                                                                                                 31
     •   Use contractors licensed in Minneapolis
     •   Meet Minneapolis city codes for all rehab work or equipment installations
     •   Comply with Minneapolis zoning ordinances
     •   Make efforts to hire Minneapolis residents through cooperation with the CPED
         Workforce Coordinator, the Minneapolis Employment and Training Network as well as
         JobLink.
     •   Not use funds for billboard advertising

Eligible improvements include:
     • Lighting                                         •   Streetscape and parking lot
     • Walls, ceilings, floors                          •   Windows, cornices
     • Roofing                                          •   Electrical
     • Cleaning, painting, staining                     •   Air conditioning
     • Entrances, doors, awnings                        •   Masonry
     • Architectural changes                            •   Production equipment
     • Plumbing                                         •   Signage
     • Accessibility

Equipment must be fixed and may not be replacement equipment.

Financing of computers are approved on a case-by-case basis.

Two Percent Commercial Corridor/Commercial Node Loans
Two–Percent loans provide financing to small Minneapolis businesses (retail, service or light
manufacturing) to purchase equipment or to make building improvements on commercial
properties located in designated Commercial Corridors and Commercial Nodes. A private lender
provides half the loan at market rate and the City provides the rest, up to $75,000 at 2-percent
interest. The loan term is set by the private lender and can be up to 10 years. Bank fees vary, but
the City charges a 1 percent origination fee with a minimum of $400 due at closing.

After the Business Finance Division of the Department of Community Planning and Economic
Development receives an application with supporting financing information and a lender
commitment letter, preliminary approval takes about one week, with up to two weeks to close the
loan. The City cannot finance any work started prior to the loan closing.

Who is eligible for a Two-Percent Commercial Corridor/Commercial Nodes Loan?
  • All businesses located in a designated Commercial Corridor or Commercial Node
  • The applicant may be individual owners, partnerships, corporations, tenant operators or
      contract for deed partners.
  • Businesses that benefit low-to-moderate income persons by creating jobs or improving
      services

All Two-Percent Commercial Corridor/Commercial Nodes Loan recipients must:
    • Repay the loan and be an acceptable credit risk
    • Use contractors licensed in Minneapolis


32
   •   Meet Minneapolis city codes for all rehab work or equipment installations
   •   Comply with Minneapolis zoning ordinances
   •   Make efforts to hire Minneapolis residents through cooperation with the CPED
       Workforce Coordinator, the Minneapolis Employment and Training Network as well as
       JobLink.
   •   Not use funds for billboard advertising

Eligible improvements include:
     • Lighting                                      •   Streetscape and parking lot
     • Walls, ceilings, floors                       •   Windows, cornices
     • Roofing                                       •   Electrical
     • Cleaning, painting, staining                  •   Air Conditioning
     • Entrances, doors, awnings                     •   Masonry
     • Architectural changes                         •   Production equipment
     • Plumbing                                      •   Signage
     • Accessibility

Equipment must be fixed and may not be replacement equipment.

Financing of computers are approved on a case-by-case basis.
Designated Commercial Corridors:
   • West Broadway, Mississippi River to Penn Avenue
   • Central Avenue, 18th Ave. NE to 29th Ave. NE
   • E. Hennepin Avenue, Mississippi River to 6th St. SE
   • Franklin Avenue, Mississippi River to I-35W
   • Lake Street, 36th Ave. S to Abbott Ave. S
   • Excelsior Blvd, 32nd St. W to Lake Street
   • Lagoon Avenue, Dupont Ave. to Humboldt Ave.
   • Nicollet Avenue, I-9 to Lake St.
   • Lyndale Avenue, Franklin St. to Lake St.
   • Hennepin Avenue, Franklin St. to Lake St.

Designated Commercial Nodes:
   • 42nd St. No and Fremont Ave. No ( 44th & Humboldt)
   • 44th St. and Penn Ave. No.
   • 46th St. and Lyndale Ave. No
   • Camden (41st St. No. and Lyndale Ave. No.)
   • Lowry Ave. and Penn Ave. No.
   • Lowry Ave. and Emerson Ave. No.
   • Lowry Ave. and Lyndale Ave. No.
   • Plymouth Ave. and Penn/Oliver Ave. No.
   • Glenwood Ave. and Cedar Lake Road
   • 13th St. NE/Broadway/University Ave.
   • Como Ave. & 16th Ave SE.



                                                                                       33
     •   29th Ave. NE and Johnson St. NE.
     •   22nd Ave. NE and Johnson St. NE.
     •   University Ave. and Bedford St. SE.
     •   Bloomington Ave and 25th Ave. So.
     •   38th St. and 42nd Ave. So.
     •   38th St. and Minnehaha Ave. So.
     •   38th St. and 23rd Ave. So.
     •   38th St. and Cedar Ave. So.
     •   38th St. and Bloomington Ave. So.
     •   38th St. and Chicago Ave. So.
     •   38th St. and 34th Ave. So.
     •   Cedar Ave. So. And Minnehaha Parkway
     •   48th St. and Chicago Ave. So.
     •   56th St. and Chicago Ave. So.
     •   36th St. and Bryant Ave. So.
     •   38th St. and Nicollet Ave. So.
     •   43rd and Nicollet Ave. So.
     •   46th St. and Nicollet Ave. So.
     •   46th St. and Bryant Ave. So.
     •   50th St. and Bryant Ave. So.
     •   50th St. and Penn Ave. So.
     •   50th St. and France Ave. So.
     •   54th St. and Penn Ave. So.
     •   54th St. and Lyndale Ave So.
     •   Nicollet Ave. and Diamond Lake Rd.
     •   60th and Nicollet Ave. So.
     •   Linden Hills (Sheridan Ave. So. And 43rd St W.)
     •   Morningside (44th and France Ave. So.)

Financial Resources
Community Loan Technologies
 A Program of Loan Tech
 2801 21st Avenue South, Suite 210
 Minneapolis, MN 55407
 (612) 278-7180
 (651) 278-7181 fax

Community Loan Technologies provides referrals, technical assistance and lending services to
non-profits in seven Minneapolis neighborhoods. New or expanding for-profit businesses in
Phillips, Whittier, Stevens Square-Loring Heights, Elliot Park, Near North, Harrison, and
Sumner-Glenwood neighborhoods of Minneapolis are eligible to receives services through CLT.
Businesses receiving assistance must benefit or contribute to their neighborhood.




34
The goal of the program is to have a dramatic impact on these neighborhoods over ten years –
not to simply be a source of funds. Program information and loan applications are available in
Hmong and Spanish. Interpretation services are available at no cost to the client. Technical
assistance in other areas (i.e., business plan review) is also available and recommended for loan
applicants.

The borrower pays minimal loan closing costs.

St. Paul Metroeast Development Corporation (SPEDCO)
 2459-15th St. NW Suite A
 New Brighton, MN 55112
 (651) 631-4900
 (651) 631-9498 fax

SPEDCO assists SBEs in obtaining long-term financing for fixed assets. Existing and start-up
SBEs in Ramsey, Washington, and Dakota counties are eligible for services through SPEDCO.
SPEEDCP allows SBEs to gain long-term financing with a minimum of 10% equity injection.
The financial assistance is through SBA 504 Loan Program.

There is a refundable cash deposit of $1,500 and the funding fee is approximately 3% of loan. A
legal deposit of $1,000 is also required.

Minority-Owned Business Resources
Metropolitan Economic Development Association (MEDA)
 250 Second Avenue South, Suite 106
 Minneapolis, MN 55401
 (612) 332-6332
 (612) 317-1002 fax
 www.meda.net & www.mmsdc.org

MEDA is a non-profit organization that provides assistance to businesses owned and managed
by ethnic minority residents of Minnesota. Mission is to help the Minnesota minority
entrepreneur succeed and achieve profitability in the free enterprise system. MEDA provides
management and leadership training and acts as a communication link between the majority and
minority business communities.

New or existing Minnesota minority businesses whose owners are committed to generating long-
term profitable growth and employment opportunities can avail of these services. The business
must be 51% owned by one or more ethnic minority individuals (or, in the case of any publicly
owned business, one or more minority individuals own the majority of the voting stock). The
minority owner must also manage the daily business operations.

MEDA and MMSDC provide all services for minority-owned businesses, from inception,
through growth stages, to executive development. Initial business consultation with MEDA is
generally free. Subsequent consulting time is charged depending on annual sales volume. Other
fees include:


                                                                                                35
Minnesota Minority Supplier Development Council (MMSDC): $125 yearly certification

MBES, $1,000 corporate membership fee yearly

Training Seminars: $10-$40

Other programs offered include BusinessLinc, Mentor Program, Pacesetter Program, Partnering
for Success, Loan Program, and a Volunteer Program

Minnesota American Indian Chamber of Commerce (MAICC)
 1113 East Franklin Avenue
 Minneapolis, MN 55404
 (612) 870-4533
 (612) 870-1060 fax
 E-mail: maicc1@mcleodusa.net
 Web-site: www.maicc.org

MAICC is a non-profit organization supporting American Indian entrepreneurs and the Native
American community through programs and services providing education, training, and
employment services to Native American youth and adults.

MAICC primarily supports Native Americans, but non-Native American individuals and/or
businesses are also very welcome to join and support the Chamber.

Education and networking opportunities
skill building through conferences and events by offered by MAICC. They also offer technical
assistance in many functional areas. Construction Exchange is available to help companies learn
of bidding opportunities. Establish mentor-protégé relationships. MAICC will refer to an outside
source if help is directly not available. Membership dues very, but start at $200 for businesses.
Individual memberships cost $100.

Small & Underutilized Business Program
It is the policy of the City of Minneapolis to promote diverse participation on projects or
purchases financed in whole or part by City funds. To this end, the Minneapolis City Council
established the Small & Underutilized Business Program (SUBP) in June of 1999. The program
was created to address the effects of past discrimination in contracting and to promote equal
opportunities for all citizens to participate in contracts generated by the City.

The program identifies and supports small businesses, including those owned by women or
minority persons located within our marketplace. Certification of ownership is provided by the
CERT program collaborative. The CERT program is a joint partnership between Minneapolis,
Saint Paul, Hennepin County and Ramsey County. Applications for certification or a list of
certified businesses can be obtained at the CERT web site.




36
Contracts for goods or services in excess of $50,000 or construction activity in excess of
$100,000 must comply with the Small & Underutilized Business Program. Participation goals are
established on a contract by contract basis, based on identified businesses ready, willing and able
to participate. Businesses are expected to apply every reasonable effort to comply with targeted
participation. The City promotes technical assistance, workshops and networking sessions for
certified businesses.

Women-Owned Business Resources
National Association of Women Business
Owners (NAWBO) (MN Chapter)
1880 Livingston Avenue, Suite 101
West St. Paul, MN 55422
(952) 929-7921
(952) 926-0074 fax
E-mail: info@nawbo-mn.org
Web-site: www.nawbo-mn.org

NAWBO is a dues-based national organization representing the interests of all women business
owners in all types of industries. This organization supports women who own established
businesses, a growing or expanding business, or a new business.

NAWBO provides networking, events and MasterMind program – an informal advisory board
made up of a small group of women business owners from various industries and areas of
expertise running businesses of approximately the same size and stage. Annual national dues are
$75. There is a registration fee of $25. Annual chapter dues are $250. The MasterMind program
is free for members.

WomenVenture (WV)
2324 University Avenue, Suite 200
Saint Paul, MN 55114
(651) 646-3808
(651) 641-7223 fax

WomenVenture provides employment, career and business development services to women and
men in the ten-county metro area. Specialized Programs (i.e., loans) more targeted to certain
groups and communities. Services address all needs of emerging small businesses – from
inception to continuing consultation. Career services for individuals in transition, non-traditional
employment programs in construction, printing and cable installation are also provided.

Small Business Resources
 Small Business Development Centers (SBDC)
 University of St. Thomas
 1000 La Salle Avenue, Suite TMH 100
 Minneapolis, MN 55403
 (651) 962-4500



                                                                                                  37
 (651) 962-4508 fax
 E-mail: sbcd@stthomas.edu

SBDC provides free on-on-one consulting for small businesses and start-ups in the areas of
strategy and business planning market research, financial planning and analysis, debt and equity
financing, cash flow management, new product development and human resources. SBDC
sponsors moderately-priced seminars for Twin Cities small businesses and also provides
assistance with feasibility studies and business planning. There is no consulting fees or fees to
access business information but there is a nominal fee to attend SBDC sponsored seminars
(usually under $50).

Minnesota SBIR/STTR Assistance Program
 1st National Bank Building
 332 Minnesota Street, Suite E200
 Saint Paul, MN 55101-1351
 (651) 282-6714
 (800) 657-3858
 (651) 296-5287 fax

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer
(STTR) Programs will provide over $2 billion in grants and contracts to small and start-up
companies to develop new products and services based on advanced technologies.
The foundation of both programs is to fund small businesses in their R&D efforts leading to
commercialization of products and services. Think about the SBIR & STTR programs as the
R&D budget to develop products that fit within the strategic mission of the small business.

Small Business Administration (SBA)
 SBA District Office
 Butler Square Building, Suite 210
 100 North 6th Street
 Minneapolis, MN 55403
 (612) 370-2324
 (612) 370-2303 fax

SCORE – Counselors to America’s Small Businesses
 SCORE Chapter #2
 Bremer Bank Building
 8800 Hwy 7, Suite #103
 Saint Louis Park, MN 55426
 Hours: Monday - Friday 8:30 - 12:00 noon
 (952) 938-4570
 (952) 938-2651 fax

The SBA offers a variety of financing options to small businesses. The agency is primarily a
guarantor – guaranteeing loans made by banks or other private lenders to small business clients.


38
The agency guarantee reduces the magnitude of a losses to the lender and makes it easier for a
small business client to borrow money.

The SBA and SCORE must meet all the needs of a small business, including planning, financing,
marketing and operations. There is no charge for SBA non-financial services. Loan guarantee
fees are generally assessed to the borrower by the lender. SCORE services are free, except for
nominal charges for their workshops.

Whittier Community Development Corporation
(WCDC – WEB Center)
2845 Harriet Avenue South, Suite 208
Minneapolis, MN 55408
(612) 879-0109
(612) 871-2923 fax

The WEB Center primarily services low-income (less than $1 million in annual gross sales)
early-stage–development small businesses in the Whittier neighborhood with intensive,
integrative help for small business development. The WEB Center hopes to expand into other
neighborhoods in the near future. WCDC makes loans to small businesses in the Whittier
neighborhood. Whittier Works Program is an employment program that places Whittier residents
in positions with Whittier companies.

Hands-on support/help for clients for most, if not all, facets of their business is provided here.
The WEB Center’s goal is to have clients come out of the class with something they can use (i.e.,
a business plan). The WEB Center operates an incubator site in the Whittier neighborhood as a
low cost space alternative for small businesses. They will refer clients to outside sources if they
are unable to provide the required service. Costs vary depending on the service provided. Often,
expensive seminar fees are subsidized for low-income business owners (as low as $30).

Surety Bonding Resources
Surety Information Office
 5225 Wisconsin Avenue, NW - Suite 600
 Washington, DC 20015-2014
 Phone: (202) 686-7463
 Fax: (202) 686-3656

The Surety Information Office (SIO) is the information source on contract surety bonds. SIO was
formed in 1993 with the mission:
"to increase the use of contract surety bonds in the private sector, and foster dissemination of
positive information on the important role of corporate suretyship in public and private
construction."

SIO is supported by the National Association of Surety Bond Producers (NASBP) and the Surety
Association of America (SAA).




                                                                                                 39
National Association of Surety Bond Producers (NASBP)
 5225 Wisconsin Avenue, NW - Suite 600
 Washington, DC 20015-2014
 Phone: (202) 686-3700
 Fax: (202) 686-3656

The National Association of Surety Bond Producers (NASBP) is the international organization of
professional surety bond producers and brokers. NASBP represents over 5,000 personnel who
specialize in surety bonding, provide performance and payments bonds for the construction
industry, and issue other types of surety bonds for guaranteeing performance, such as license and
permit bonds. NASBP's mission is to strengthen professionalism, expertise, and innovation in
surety and to advocate its use worldwide.

Minnesota Members: http://www.nasbp.org/getcompany.cfm?stateabbr=MN

Surety Association of America (SAA)
 1101 Connecticut Avenue, NW, Suite 800
 Washington, DC 20036
 Phone: (202) 463-0600
 Fax: (202) 463-0606
 www.surety.org/content.cfm?lid=2&catid
 =1

The industry served by The Surety Association of America consists of insurance companies that
provide surety and fidelity bonds. These are the bonds that facilitate commerce, assist economic
development and protect consumers in a variety of ways elaborated upon throughout the website.
Annually the industry generates approximately $3.5 billion in written premiums from surety
bonds and $930 million from fidelity bonds. The industry has been in existence in the United
States for over 100 years. The first corporate surety company was the United States Fidelity and
Casualty Company of New York, which was established in 1880. Since that time the industry has
been serving the needs of businesses, public bodies and individuals.

Minnesota Surety Association
Minnesota Surety Association is a voluntary, non-profit association of surety related companies
with a vested interest in the business of surety ship in the state of Minnesota.

Pate Bonding, Inc.
 1276 South Robert Street
 West St. Paul, MN 55118
 Phone: (651) 457-6842
 Fax: (651) 457-7531

Pate Bonding, Inc. is a construction surety bonding. Their site contains contact information, bid
bond request and underwriting forms, and more information about the services they provide.



40
Housing Policy and Development Division
CPED’s Housing Division:
  • provides financing and administers programs for housing development, preservation and
      rehabilitation;
  • provides financing for home improvement and home mortgages through a vendor
      contract;
  • and encourages and supports private market activity in the production and preservation of
      housing for all income levels.

CPED administers a number of programs for the development and preservation of affordable and
mixed-income rental and ownership housing. Funds are targeted to meet City housing priorities,
including supportive/special needs, senior/elderly, large family, long-term/perpetual
affordability, corridor/transit/density, and mixed-use. Preservation of currently affordable
housing is a top priority for insuring continuing housing affordability in the city. In particular,
CPED will focus on preserving federally subsidized affordable housing that may be subject to
conversion to market rate due to expiring federal programs or prepayment of federal mortgages.

CPED administers programs to return vacant lots and vacant and/or boarded structures to the
city's housing supply.

CPED undertakes initiatives to remove obstacles, promote growth and support private sector
housing development efforts.

Through vendor contracts, CPED provides financing to Minneapolis homeowners who might not
otherwise be financially able to carry out home improvements or code repairs. Staff support for
this activity is provided by the Development Finance Division of the Finance Department.

CPED provides down payment and closing cost assistance to homebuyers within the
Empowerment Zone. CPED also provides down payment, affordability and closing cost
assistance through the HOW Program and the GMHC Home Ownership Program.
Mortgage financing is provided under agreements with private lenders. Staff support for this
activity is provided by the Development Finance Division of the Finance Department.

Multifamily Housing Development
 Suite 200, Crown Roller Mill Building
 105 Fifth Avenue South
 Minneapolis, MN 55401-2534
 Phone: (612) 673-5274

The Multifamily Housing Development section of CPED administers financing programs to
develop and preserve affordable housing throughout Minneapolis. The programs focus on mixed-
income multifamily rental housing and ownership housing projects with 10 or more units.

The City of Minneapolis Unified Housing Policy requires that all projects of 10 or more units
receiving assistance under any of these programs set aside 20 % of the units as “affordable.”
“Affordable” is defined as housing costs (rent or mortgage payment), which are less than or


                                                                                                41
equal to one-third (30 %) of the gross income of households earning less than 50 % of the
metropolitan median income (MMI).

Important note: numerous City and federal funding requirements will apply to the multifamily
financing programs. Program applicants will find more detailed information on funding
requirements in the respective request for proposals (RFP) and program documents.

Low Income Housing Tax Credits (LIHTC)
CPED is a “sub-allocator” of Low-Income Housing Tax Credits (LIHTC) for the state. The
program offers a reduction in the owners and investors’ tax liability for eligible new
construction, rehabilitation and/or acquisition of existing rental buildings that offer housing
affordable to people earning 60% or below of the metropolitan median income (MMI).

Who is Eligible: Nonprofit and for-profit developers

Affordable Housing Trust Fund Program (AHTF)
The AHTF Program provides gap financing (the difference between conventional financing and
project costs) for affordable and mixed-income rental housing production and preservation
projects. Program funds include HOME, Community Development Block Grant (CDBG) and
other sources. Minneapolis neighborhoods may elect to dedicate their Phase II Neighborhood
Revitalization Program (NRP) funds to the new “Affordable Housing Investment Fund,” which
is administered under the CPED AHTF program. CPED makes these funds available through a
periodic competitive RFP process that is generally coordinated with Minnesota Housing Finance
Agency RFPs. The purpose of this program is to finance the production and
preservation/stabilization of affordable and mixed-income rental housing projects in
Minneapolis. Program funds are targeted to housing for large families, supportive housing for
homeless adults and families, and senior/elderly populations.

Who is Eligible: Nonprofit and for-profit developers

Affordable Ownership Housing Development Program
This program is a joint effort between the Single Family and Multifamily Housing sections to
create affordable single family, duplex, and multifamily ownership units in Minneapolis.
Program funds are available to developers to cover construction gap – the difference between
total development costs and the sales price of a completed unit/ home (appraised value) – or
affordability gap. Developers must provide documentation that the project will remain affordable
to the same income group for more than 30 years. Cooperative funds generally will be structured
as long-term, low-interest deferred loans, either as a blanket loans to the cooperative or as
individual share loans.

In no case shall CPED assistance exceed $45,000 per unit for units affordable to households
earning 50% or below of the metropolitan median income (MMI) and $30,000 per unit for units
affordable to households earning 60% or below of MMI. For all projects with 10+ units, at least
20% of the units must be affordable to and occupied by households earning 50% or below of
MMI. Land trust models or limited equity cooperatives are encouraged to apply.




42
Who is Eligible: Nonprofit developers, for-profit developers, and low- to moderate-income
households

Emergency Shelter Grant Program (ESG)
Emergency Shelter Grant Program (ESG) funds may be used to renovate, rehabilitate, and
convert buildings for use as emergency shelters or transitional housing for homeless people. The
properties may be located either in the City of Minneapolis or in an adjacent Hennepin County
suburb. These ESG funds, provided to the City by the U.S. Department of Housing and Urban
Development (HUD), may not be used for new construction. ESG program funds may be used
for furniture, security, and equipment (up to a certain maximum amount) in a new construction
project.

Who is Eligible: Nonprofit and for-profit developers

Housing Opportunities for Persons with HIV/AIDS Program (HOPWA)
The HOPWA program provides funding resources for not-for-profit organizations and
government housing agencies to provide housing options and services for persons living with
HIV/AIDS. There is approximately $808,000 of program funding available for 2007.

Please be aware that the Emergency Shelter Grant (ESG), Affordable Ownership Housing
Development, and HOPWA RFPs have specific program materials and application requirements.
Prospective applicants pursuing ESG, Affordable Ownership Housing Development, or HOPWA
funds need to review those specific program materials.
Higher Density Corridor Housing Initiative
The program provides a new funding source for public (CPED) acquisition of sites for
multifamily housing development on or near community, commercial and transit corridors
(defined in “The Minneapolis Plan”). Funds will be used to assemble larger sites for new mixed-
income rental and ownership multifamily housing development. CPED solicits site-specific
suggestions in the spring via a site nomination form. Leverage/matching acquisition funds
encouraged.

Who is Eligible: Site nominations accepted from neighborhood organizations, nonprofit and for-
profit developers, CPED staff and other interested parties. Public (CPED) acquisition required.

Multifamily Housing Revenue Bond Program
The Multifamily section administers the City’s Multifamily Housing Revenue Bond (HRB)
program. Tax-exempt financing is provided for affordable and mixed-income rental housing for
families and seniors. The City receives an annual entitlement allocation of Housing Revenue
Bonds with automatic 4% Low-Income Housing Tax Credits. The Multifamily section also
administers ongoing requests for nonprofit 501(c)(3) and refunding bonds.

Who is Eligible: Nonprofit and for-profit developers




                                                                                              43
Nonprofit Development Assistance Program
This program provides funding to offset nonprofit housing developers’ administrative costs when
developing affordable multifamily rental, ownership and cooperative housing projects. Up to
$30,000 is awarded per project, depending on the number of proposed units.

Who is Eligible: Nonprofit developers

Tax Increment Financing
Tax Increment Financing (TIF) assists the development of new affordable rental and ownership
housing projects. Projects must comply with all requirements of the Minnesota Tax Increment
Financing Act, as amended.

Joint Multifamily Housing & Business Development Program
Capital Acquisition Revolving Fund (CARF)
Loans to finance property acquisition for redevelopment of sites located on commercial and
transit corridors and at commercial nodes (designated in “The Minneapolis Plan”) for mixed
commercial and residential use. Funds will be used to assemble or aid in assembly of larger sites
for new mixed-use and mixed-income rental and ownership multifamily housing and commercial
development. At least 20% of the housing units must be affordable at or below 50% of the
metropolitan median income (MMI). Loan repayment proceeds and interest will return to the
fund.

Who is Eligible: Nonprofit and for-profit developers for commercial and mixed-use
development.

Single-Family Housing Development
 Suite 200, Crown Roller Mill Building
 105 Fifth Avenue South
 Minneapolis, MN 55401-2534
 Phone: (612) 673-5245

The Single Family Housing Development section of CPED facilitates the elimination of
blighting influences in Minneapolis through the acquisition of substandard, vacant, boarded,
obsolete, or non-conforming structures. The Single Family Housing Development section
provides financing and administers programs that promote and facilitate housing development,
preservation and rehabilitation for projects less than 10 units.

In addition, the Single Family Housing Development section encourages private market activities
through the marketing and disposition of land inventory. The section markets the available
inventory through the “Lot List” on the CPED website and via monthly advertisements in the
“Minneapolis Star Tribune” and “Finance & Commerce”. Copies of the “Lot List” are also
available at the Single Family Housing Development section office at 105 Fifth Avenue South,
Suite 450, or by calling the marketing line at 612-673-5225, or by email at
residentiallots@ci.minneapolis.mn.us




44
The Home Ownership Program
This program offers affordable home ownership opportunities in non-impacted areas of the city
to buyers with incomes at or below 80% of the metropolitan median income (MMI). This
program is funded using community development block grant (CDBG) funds with the entire gap
covered by the City. In addition to funds available to the developer for the construction gap, the
City provides up to $30,000 per home in affordability gap financing to the homebuyer in the
form of a deferred loan due and payable at the time of sale of the property.

Who is Eligible: A partnership between the City of Minneapolis and the Greater Metropolitan
Housing Corporation (GMHC)

Home Ownership Works Program (HOW)
Using federal funds, CPED buys older homes in Minneapolis that need moderate to substantial
rehabilitation. In 2006, a new construction component of the program was introduced. CPED
contracts with nonprofit developers for the construction and rehabilitation of the projects. The
homes are then sold to first-time homebuyers with income at or below 80% of the metropolitan
median income (MMI). Homebuyers have the luxury of moving into a home that offers the
convenience of a newer home

General Guidelines:
If you are interested in one of these houses contact Erin Green, HOW marketing representative,
at (612) 721-7556 x. 12

The HOW marketing representative will show you available homes that are affordable to you
and explain the HOW program requirements. The HOW marketing representative will work with
you one-on-one throughout the purchase process or you may obtain your own agent to represent
you.

Prior to purchasing a home through HOW you will need to complete two Home Buyer Education
Workshops.

The Pre Purchase Workshop coordinated by the Home Ownership Center, (651) 659-9336,
provides comprehensive information about the home buying process and prepares you for home
ownership. Counselors will work with you to determine how much home you can afford, counsel
you with credit issues and refer you to a lender.

The Housing Maintenance Workshop conducted at Northside Neighborhood Housing Services
(612) 521-3581 provides training on general property maintenance such as furnace function and
minor plumbing repairs.

Who is Eligible?
  • Development funds: CPED contracts with nonprofit developers to oversee construction
      and market the completed projects.
  • HOW homes: Moderate and low-income first-time homebuyers




                                                                                                45
Century Homes Program
The Century Homes Program is a partnership between the City of Minneapolis and GMHC. It
was established in 1997 to rehabilitate and develop new homes within the City of Minneapolis.
The partnership develops high quality market-rate homes for sale exclusively for owner
occupancy. The homes are sold for their full fair market value. The program provides for the
partners to share equally in the profits and losses.

Century Homes features
GHMC builds a variety of Century Homes floor plans. Buyers enjoy:
   • Large bedrooms and spacious closets
   • Baths with ceramic tile
   • Bright, modern kitchens
   • Oak trim, door and cabinetry
   • Unique architectural characteristics
   • Security systems
   • Double-car garages (some attached)
   • High-quality carpet and floor coverings
   • Maintenance-free siding
   • Two-story, split-levels and other models
   • Energy-efficient features
   • Urban house designs

Who is Eligible: A partnership between the City of Minneapolis and the Greater Metropolitan
Housing Corporation (GMHC)

Distressed Properties - Vacant Housing Recycling Program
CPED has an inventory of properties in the city for sale for housing. New properties are initially
offered for sale in the “Star Tribune”, on Sundays in the classified section #717 and in “Finance
and Commerce”. Properties remaining after the original advertising are added to the lot list. The
lot list, including the address of the property, lot dimensions and selling price, is available at the
link listed above, by calling (612) 673-5225 or by visiting CPED offices in Minneapolis at 105
Fifth Ave. S., Crown Roller Building, Suite 450, during regular office hours.

The sale of properties to prospective buyers is contingent on design criteria and is subject to the
approval of CPED’s Board of Commissioners. Prices are determined by appraisals and are not
negotiable. CPED has the right to refuse any and all proposals received.

Who is Eligible: Nonprofit and for-profit developers

Housing Replacement Tax Increment Districts (TIF)
The Housing Replacement Tax Increment Finance District is a tool that allows the City of
Minneapolis to be reimbursed for costs incurred in acquiring blighted properties and preparing
them for redevelopment. Parcels/sites will be redeveloped as market-rate single family housing.
Unlike other tax increment districts, the Housing Replacement District’s geographic boundary is
citywide and allows for the inclusion of properties throughout the city (non-contiguous parcels
known as “scattered sites”).


46
Who is Eligible: Development partners of the Northside Home Fund Clusters

Senior Housing Regeneration Program™ (SHRP)
The Senior Housing Regeneration ProgramTM is a partnership between the City of Minneapolis
and the Greater Metropolitan Housing Corporation (GMHC) under the Century Homes program.
GMHC created the SHRP program in 2003, and in cooperation with CPED expanded the
program to Minneapolis in 2006. SHRP assists seniors in their transition to new housing options
that better meet their lifestyle such as condos, town homes, or assisted living. SHRP offers to
purchase the properties from the owner at fair market value and renovates the home where
necessary. The property is then sold to persons earning an income at or below 115% of the
metropolitan median income (MMI), adjusted for family size. The program provides for the
partners to jointly make important decisions and share in the costs. This program is designed to
work in conjunction with other already existing City programs.

*Universal Design -- For seniors, as well as others, needing special accommodations to make
their homes more livable, i.e. accessible bathrooms, wider doorways, etc., free consultation and
construction management assistance is available through the Greater Metropolitan Housing
Corporation’s three HousingResource Centers which can be reached at 612-378-7895 in
Minneapolis.

Who is Eligible: Senior homeowners, 55+ years old, living within the City of Minneapolis,
whose property is in the lower to median valued range, who are experiencing a need to transition
to housing options better suited to accommodate senior living. The homes may need repairs or
updates.
Mortgage & Home Improvement Programs
CPED offers special financing to help low and moderate income households purchase a home in
the city or if they already own a home, to complete the repair of any housing maintenance code
violations.

The CityLiving Home Program was created in partnership with the City of Saint Paul to help low
and moderate income households buy a home. This innovative program typically offers an
interest rate that is ½ percent or more below interest rates normally found in the marketplace, In
addition, CityLiving provides other assistance that accompanies the primary mortgage that is
used to help pay for closing costs and down payment for the home buyer.

For homeowners whose household income is within 80% of the area median, there is help with
the cost of completing the repair code violations. The City has arranged for the Greater
Metropolitan Housing Corporation to take applications for financing and to even guide the
homeowner through the process of obtaining bids for the work to be completed.

CityLiving -Mortgage Loans
CityLiving, a program sponsored by the cities of Minneapolis and Saint Paul, provides mortgage
financing and special assistance for down payment and closing costs. CityLiving loans offer
homebuyers an opportunity to buy Minneapolis homes at an interest rate that historically has




                                                                                               47
been below market. More program details and FAQs can be found at;
www.ci.minneapolis.mn.us/cped/city_living.asp

Who is Eligible: Any homebuyers that meet the income and property sale price guidelines

Code Abatement Loans
The City of Minneapolis offers interest-free loans to owner-occupants of properties with three
units or less which have repairs ordered by the City of Minneapolis Department of Inspections.
Eligible households must earn 50% or below of the metropolitan median income (MMI). The
maximum loan amount is $20,000. The loan is repaid at the time the house is sold. Loan funds
may only go toward City-ordered repairs.

Who is Eligible: Low-income owner-occupants of a home with three units or less that needs
repairs ordered by the City of Minneapolis Department of Inspections. Funds may only go
toward City-ordered repairs.

Home Repair Loans
The City of Minneapolis offers amortizing loans for home repairs. Eligible applicants must own
and live in the home, whether it is a single family home or a rental property with four units or
less. The maximum loan amount is $25,000, depending upon household affordability guidelines
and amount of equity in the home. This program has an interest rate of one percent and the
maximum term is 20 years. The maximum household income to qualify for these loans is 80% of
the metropolitan median income (MMI). This loan can only be used to complete City-ordered
repairs.

Who is Eligible: Low- and moderate-income households
American Dream Downpayment Initiative - Affordability Loan
American Dream Downpayment Initiative (ADDI) assistance comes in the form of a 0% interest
affordability loan with no monthly payments. The maximum loan amount is 6% of the sale price
or $10,000, whichever is greater; the minimum loan amount is $1,000. The loan will be forgiven
over a five year time period from the date of closing with forgiveness occurring at a rate of 20%
each year on the anniversary of closing date. The loan is due on sale, transfer of title, or when the
primary mortgage is paid off, except in the case of a refinance. The loan may be subordinated
subject to the CPED Subordination Policy in effect at the time of the request for subordination.

The funds may be used towards a downpayment or normal and usual closing costs. Eligible
properties are located in Minneapolis and have been constructed during or after 1978 or have
been newly rehabilitated. The maximum purchase price must be at or below the following limits:
$251,750 for a single family house (including condominium or townhome). If the house is newly
renovated, it must have been rehabilitated to a standard that eliminates any health and safety
deficiencies and addressed lead abatement or containment according to federal regulations
associated with federal funding sources. Existing structures that were not constructed during or
after 1978 and have not been renovated recently (including renovation of the common areas of a
townhome or condominium) are not eligible.




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Applicants must complete home ownership counseling through an approved organization and
must provide a certificate indicating completion of the home ownership counseling prior to
closing of the loan.

The loan must be secured by a Promissory Note and a Mortgage. The loan may be secured in a
lower lien position behind other program funds. No title insurance is required. No mortgagee
clause is required in the owner’s hazard insurance policy.

Who is Eligible: First-time homebuyers, displaced homemakers or single parents who earn less
than Section 8 limits set by the Department of Housing and Urban Development for the
Minneapolis-St. Paul Standard Metropolitan Statistical Area (SMSA). Preference given to
applicants who currently reside in government subsidized public housing or who are recipients of
Section 8 rental assistance

Real Estate & Construction Management
 1335 Water Street Northeast
 Minneapolis, MN 55413-1048
 Phone: (612) 673-5163

Historic Preservation
 City Hall
 350 S 5th Street, Room 210
 Minneapolis, MN 55415
 Phone: (612) 673-2597
 Fax: (612) 673-2728

Heritage Preservation Commission
The Minneapolis Heritage Preservation Commission and the Minneapolis Department of
Planning and Economic Development (CPED) invite you to enjoy free guided walking tours of
historic sites in Minneapolis. The one and two hour tours are led by expert guides through some
of the most historically and architecturally significant places in the city. Tours will explore areas
that range from elegant Victorian neighborhoods and handsome residential districts, to bustling
commercial and industrial areas, to the theaters of Hennepin Avenue and the remnants of the
city’s once extensive streetcar system.

Use of Tax Abatement for Historic Properties
This tax Abatement Policy identifies the circumstances in which the City of Minneapolis will use
Tax Abatement to support the substantial rehabilitation of historic properties.

Pursuant to Minnesota Statutes Sections 469.1812 to 469.1815, the City of Minneapolis is
authorized to grant abatement of all or a portion of the City property tax amount on specified tax
parcels. The City of Minneapolis may abate taxes only after holding a public hearing and
adopting an abatement resolution that stipulates the specific terms of the abatement agreement
and the nature and extent of the public benefits that the City expects to result from the abatement.




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The City Council must find that the expected benefits to the City of the proposed
abatement agreement at least equal the costs to the City of the proposed agreement. The
City Council must also find that the abatement is in the public interest because it will
facilitate at least one of the following objectives:
    1. Increase or preserve tax base;
    2. Provide employment opportunities in the City of Minneapolis;
    3. Provide or help acquire or construct public facilities;
    4. Help redevelop or renew blighted areas;
    5. Help provide access to services for residents of the City of Minneapolis;
    6. Finance or improve public infrastructure; or
    7. Phase in a property tax increase on the parcel resulting from an increase of 50 percent or
        more in one year on the estimated market value of the parcel, other than increase
        attributable to the improvement of the parcel.

Public Housing Authority (MPHA)
 1001 Washington Avenue North
 Minneapolis, MN 55401-1043
 Phone: (612) 342-1400

The Minneapolis Public Housing Authority (MPHA) is the public agency responsible for
administering public housing and Section 8 rent assistance programs for eligible individuals and
families in Minneapolis. MPHA is governed by a nine-member Board of Commissioners. The
Board Chairperson and four Commissioners (one of whom is a public housing high rise resident)
are appointed by the Mayor of Minneapolis; four Commissioners (one of whom is a public
housing family resident) are appointed by the Minneapolis City Council.

Family/General Housing Programs
The Minneapolis Public Housing Authority (MPHA) is the public agency responsible for
administering public housing for eligible individuals and families in Minneapolis. We provide
well-managed, high quality housing for our residents.

MPHA currently has forty apartment communities with a total of 4,856 studio and 1 bedroom
apartments.

We are currently taking applications for age 50+ and disabled for our studio and 1 bedroom high
rise apartments. We currently have 6,400 applicants on the high rise waitlist and are not taking
new applications at this time for singles under age 50 and not disabled.

If you are 50+ and/or disabled and wish to apply for our studio and 1 bedroom high rise
apartments, please stop by our office at 1001 Washington Avenue North between 8:00 a.m. and
3:30 p.m.

Our family housing program is available to adults with dependent children. We have one family
development located in the Prospect Park neighborhood in Southeast Minneapolis near the
University of Minnesota with 184 town homes.



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We also offer 734 scattered site homes with bedroom sizes ranging from 2-6 bedrooms. MPHA
offers fully handicapped accessible apartment and family homes.

We currently have about 5,200 applicants on the family waiting list, and are taking new
applications for our family waiting list on the third Wednesday of each month.

Home Ownership Made Easy (HOME) Program
The Home Ownership Made Easy (HOME) Program was introduced in 1994, and is designed to
help make homeownership possible for public housing families and families participating in
MPHA's Section 8 Housing Choice Voucher program. The program joins together people and
resources from the Minneapolis Public Housing Authority (MPHA), Family Housing Fund
(FHF) and now Wells Fargo Bank and Wells Fargo Home Mortgage.

Resident families of MPHA public housing and Section 8 tenant-based voucher programs are
eligible to participate. Potential participating families must have a good rental record, proven
history of responsible bill-paying, good prospects for increasing income, stable income history
and a demonstrated ability to maintain their housing property. Families must eventually qualify
for the mortgages to be provided by public or private lenders.

The HOME Program is administered by MPHA through Thompson Associates, a real estate
consulting firm based in the Twin Cities. These professional consultants coordinate outreach
counseling programs for participating families. Program administrators teach potential
homebuyers what it takes to buy a home, while offering individual counseling to families. When
families are prepared to buy a house, they will be put in contact with a participant lender to apply
for a mortgage loan offering competitive or lower than market fund interest rates and a trained
member of the Minneapolis Area Association of Realtors to begin looking for their home. Not all
families will become homebuyers immediately, so counselors will continue to work with them to
prepare them for eventual homeownership.

Outreach efforts do not stop once a family closes on a house. Follow-up counseling continues to
provide the program's homebuyers with information and education that both promotes and
enhances responsible homeownership - a vital component of this program that differentiates
HOME from other homeownership efforts.

Homebuyers are required to make a certain percentage of the down payment with their own
funds, with HOME providing an equity participation loan to assist with the down payment. This
loan will be repaid (with interest) once the home is resold in the future. If a prospective family is
unable to come up with the full down payment, they may qualify for a down payment grant from
the HOME Program - to be paid back through volunteer work in their community. Families may
also receive interest-free, closing-cost loans which will be required to be paid back once their
home is resold in the future.

The HOME Program produces a “win-win” result with regard to affordable housing for families
in our community. Each time a family successfully purchases a home, the public housing unit
they were living in or Section 8 rent assistance they were utilizing now becomes available for a
family off of MPHA’s waiting lists – thus benefiting two families at once.



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Suburban Housing Opportunities
The Minneapolis Public Housing Authority (MPHA) has been working with various other
partners and entities in developing new public housing units in suburban communities that are
for both Minneapolis and other metro area families. These homes are being developing in
suburban areas as part of the Hollman lawsuit that mandates the de-concentration of public
housing in Minneapolis.

To date, very attractive and comfortable suburban homes (with a range of bedroom sizes) have
been developed in communities such as Minnetonka (west suburbs), Eden Prairie (south),
Watertown (north) and Woodbury (east). MPHA also has or will have family units in Chaska,
Coumbia Heights, Golden Valley, Moundsview, Plymouth and elsewhere in the metropolitan
area.

Seniors Housing Programs
More and more seniors are finding that the best affordable housing option in Minneapolis is
through the Minneapolis Public Housing Authority’s (MPHA) seniors housing program. This
nationally-award-winning program features seven attractive, safe rental complexes with
comfortable apartments and on-site amenities and services designed for adults 50 years and
older. MPHA also operates assisted living programs for frail or elderly adults at four other of its
apartment facilities in the city.

Section 8 Programs
How Section 8 Programs Benefits Participants
The Section 8 Programs offers financial assistance for rental housing to low income families.
The rental assistance provides opportunities to low income families by partnering with owners of
existing housing units. This opportunity enables families the affordability to rent all housing
types throughout the city, thus avoiding a concentration of assisted housing.

How Section 8 Programs Benefits Property Owners
The Minneapolis Public Housing Authority (MPHA) guarantees owners a portion of the rent
through the participant's rental assistance. The intent of the program is to lessen the burden on
the family’s budget for housing costs, helping them to better afford their rental payment. This
results in more consistent, timely and full payments to owners. Additionally, periodic inspections
of the unit helps to alert owners of required and/or recommended repairs.

Landlord Information
How Does An Owner Get Involved In The Program?
An owner becomes involved in the program through a family who has Housing Choice Voucher
from MPHA. The family looking for a rental unit will ask the owner if he/she is willing to
participate in the program.

What Is The Process If An Owner Has A Rental Unit And He/She Wishes To Rent To A
Section 8 Program Participant?
The owner should call the Section 8 office at (612) 342-1480 select option 3, then press 1 to get
information and to be added to the Section 8 Housing Vacancy List. Program participants



52
looking for housing will be informed of this vacancy. MPHA states that the unit is still subject to
an inspection prior to leasing.

Is An Owner Required To Participate In The Section 8 Program?
An owner has the same right to select Section 8 tenants as any other tenants. Federal, State, and
Local Laws, however, prohibit housing discrimination based on race, color, creed, sex, national
origin, source of income, martial status, and/or disability.

How Much Rent Can An Owner Charge For His/Her Unit?
With the Housing Choice Voucher Program a unit’s contract must be within the bounds of being
both reasonable and affordable. Rent Reasonableness is based on HUD guidelines and is
documented by comparable rents for units of same size, type and location.

How Is The Tenant Rent Portion And The MPHA Rent Subsidy Amount Determined?
A maximum MPHA subsidy is calculated and the family is responsible for the remainder of the
rent. The maximum subsidy is the difference between the Payments Standard set by MPHA (by
unit type and bedroom size) and an amount equal to 30% of the family’s adjusted monthly
income. However, there is a rent limitation that varies with tenant income. The tenant’s portion
of the monthly rent may not exceed 40% of adjusted monthly income at the initial lease up.

Staff complete the affordability calculation when a Request for Tenancy Approval (RTA) is
submitted. The family’s portion of the rent is affected by their income and the rent charged.
Some units may not be affordable for a particular family, but could be affordable by another,
with both families having Section 8 assistance.

How Is The Utility Allowance For Tenant Paid Utilities Determined?
The utility allowance for tenant paid utilities (excluding telephone and cable) is calculated by
using average consumption data by bedroom size, structure type, energy source and current
utility rate information. This data is updated annually.

When Will I Know What The Tenant Family Is Supposed To Pay Towards The Rent?
Each participant attends a program briefing upon initial approval of participation in the program
and each time they transfer units. At the briefing, Section 8 staff determines the income
affordability for each participating family. The participating family is provided a Rent Burden
Worksheet which identifies 30%of the family’s income and the maximum rent portion (40%) the
family can pay and still meet affordability. The family’s estimated rent portion is calculated
based on gross rent of the unit (rent plus utilities) and family income.

Section 8 will notify both you and your tenant, in writing of the actual tenant portion and the
Section 8 portion of the rent. The actual portions may not be determined immediately. It may
take up to 45 days for owners to receive the written notice. Your tenant may be due a refund or
they may owe the owner some additional rent money. The estimate is based on the information
they have provided. The actual amounts are be based on the verification of the provided income.
Participant families are instructed to pay the estimated rent portion to the owner until the final
calculations are completed.




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What Will Cause The Family’s Or MPHA’s Rent Portion To Change?
Rent portions may change at the family’s annual re-examination or mid year due to a change in
the family’s income, expenses, composition and/or a change in the contract rent. The owner and
the family will be notified in writing of any change in the rent portions.

When Will I Receive The Subsidy Payments?
The FIRST payment for a tenant moving in to your unit will come to you in 45-60 days after the
unit has passed the Move-In Inspection. It will pay you retroactive to the month following the
inspection pass date. Owners receive subsequent payments by the 1st of each month.

What Are Examples Of Fraud Involving Owners/Managers?
The U.S. Department of Housing and Urban Development and the Minneapolis Public Housing
Authority are seriously concerned about fraud in the Section 8 Programs. Incidence of fraud,
willful misrepresentations, or intent to deceive with regard to the Section 8 Programs are
criminal acts and will lead to cancellation of program participation and legal actions.

The following are some examples of fraud:
   • Requiring tenant to have his/her name on utility accounts and/or pay for utilities and
       services that are the responsibility of the Owner in accordance with the lease.
   • Collecting assistance payments for units not occupied by Section 8 tenants.
   • Bribing MPHA employees to certify substandard units as standard.
   • Collecting extra amounts for tenant rent.

What To Do When You Suspect Tenant Fraud
Please contact the Section 8 Administration at (612) 342-1200

What Should An Owner Do If A Tenant Seriously And/Or Repeatedly Violates The
Provisions Of The Lease?
Lease violations by Section 8 tenants must be handled in the same manner as those with
unassisted tenants and in accordance with applicable laws. The lease is between the tenant and
the owner. MPHA is not a party to the lease.

MPHA advises the owner to notify the family “in writing”, of any lease violations, request the
necessary change(s), and state a deadline for the correction of the violations. A copy of this
correspondence MUST be forwarded to MPHA. After written correspondence, if the family does
not correct the problem, If the family does not comply with the written correspondence, the
owner must initiate a legal court eviction by contacting the Clerk of Court and filing an Unlawful
Detainer Action. The owner must notify MPHA, in writing, of the commencement of termination
procedures. This can be done by furnishing MPHA with a copy of the Unlawful Detainer. The
owner must notify MPHA of the outcome of the Unlawful Detainer action and the actual vacate
date.

Section 8 Participant Information
MPHA Section 8 Participants Planning A Move




54
Section 8 participants are allowed to move once per 12-month period to another unit after the
initial lease has expired. If you have been at your current residence for 12 months or more and
you wish to move, you are required to give your current landlord a proper notice to vacate.

Please follow these procedures to ensure proper notice and to be issued move paperwork
timely:
   • You will state in writing your name, address and the date you will vacate the property.
   • The date you leave the property must be the on last day of the month.
   • This notice must be given to your landlord based on your lease requirements. Your lease
       will either state a 30 or 60 days written notice to vacate required.
   • The landlord must sign and date the notice to vacate, acknowledging when they received
       it from you.
   • Next, call your Eligibility Technician to make an appointment.

Be Prepared For Your Appointment
   • For your appointment bring a copy of the signed, dated vacate notice. If your landlord has
      refused to sign your proper written notice, you must mail a copy of the notice via
      certified mail to the landlord. You will be required to bring the certified mail receipt and
      a copy of addressed envelope to your appointment to verify the attempt to notify was
      made.
   • At the appointment, you will be scheduled for a transfer briefing to recieve your moving
      papers.
   • All families moving in or out of Minneapolis are required to attend the transfer briefing
      before we will issue a new voucher. If you do not attend your scheduled transfer briefing
      or if you fail to follow these moving procedures, you may subject your family to
      termination from the program.

How Much Is My Rent Portion?
If you are a Minneapolis Section 8 Participant who has recently moved, and you have questions
regarding how much your new rent portion please refer back to your briefing packet. At the time
of your briefing, Section 8 provided a Rent Burden Worksheet in which we assisted calculating
your estimated rent portion. You need to pay this estimated rent portion to your owner.

Section 8 will notify both you and your landlord, in writing of your actual tenant portion and the
Section 8 portion of the rent. The actual portions may not be determined immediately. It may
take up to 45 days until you receive the written notice. Pay the owner the estimated amount in
the meantime. You may be due a refund or you may owe the landlord some additional rent
money.

The estimate is based on the information you have provided. The actual amounts will be based
on the verification of your income

City of Bloomington
 1800 West Old Shakopee Road
 Bloomington, MN 55431-3027
 Phone: (952) 563-8700


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 TTY: (952) 563-8740

Located in southern Hennepin County, the city is bound by Interstate 494 to the north, Highway
169 to the west and the Minnesota River to the south and east.

Comprehensive Plan 2000
Housing Goals and Policy Objectives

Goal 1: Preserve and enhance the vitality and desirability of Bloomington’s residential
neighborhoods

Policy Objectives
1.1 Continue the City’s Community Enhancement Program.
1.2 Increase the amount of owner occupied housing rehabilitation.
1.3 Increase the amount of rental housing rehabilitation.
1.4 Remove substandard homes.
1.5 Reduce the number of substandard structures and code violations within residential areas
through active code enforcement.
1.6 Review the existing housing codes and enforcement procedures. Make revisions as
necessary.
1.7 Promote community commitment to neighborhood vitality and inspire continued consumer
confidence in the future of Bloomington’s residential neighborhoods.
1.8 Develop and link information sources for neighborhood analysis.
1.9 Support anti-crime initiatives.
1.10 Foster neighborhood ties and encourage neighborhood interaction.

Goal 2: Provide life-cycle housing opportunities for all age groups, household sizes and income
levels.

Policy Objectives
2.1 Increase the number of units oriented to the special needs of seniors.
2.2 Encourage redevelopment of low density housing to medium and high density housing in
appropriate areas.
2.3 Create a redevelopment fund through annual City contributions.
2.4 Preserve existing affordable housing opportunities.
2.5 Provide and promote additional affordable rental housing.
2.6 Continue to actively pursue federal, state, and regional financial resources for affordable
housing.
2.7 Support home ownership for low income residents.
2.8 Use Livable Communities Act benchmark indicators for communities of similar location and
stage of development as affordable and life-cycle housing goals for the period 1996 to 2010.

Housing Implementation Program
Housing Goal 1: Preserve and enhance the vitality and desirability of Bloomington’s
residential neighborhoods



56
Policy Objective 1.1: Continue the City’s Community Enhancement Program
The City’s existing Community Enhancement Program targets older neighborhoods for an 18
month period of intensive code enforcement in conjunction with neighborhood input meetings
and educational newsletters. Additional rehabilitation resources are available for owner occupied
and rental units within the targeted neighborhoods.

Implementation Actions
  • Complete Community Enhancement inspections in all 19 designated neighborhoods by
      the year 2005.
  • Provide funds to rehabilitate 50 owner occupied homes within each targeted
      neighborhood.
  • Offer seminars on housing maintenance for property owners within the targeted
      neighborhoods.

Policy Objective 1.2: Increase the amount of owner occupied housing rehabilitation

Implementation Actions
  • Provide 100 loans for low income households to rehabilitate their homes each year. Many
      homeowners have the desire to make major repairs to their property but simply do not
      have the resources. Bloomington will encourage rehabilitation by providing home
      improvement loans to low income residents who would otherwise not have access to
      credit. The loans can be used for basic repairs or energy improvements on items such as
      roofs, insulation, siding, windows, and doors.
  • Encourage private funds for rehabilitation efforts through coordinated marketing and
      education efforts with private lenders. The City will work with private lenders and
      agencies to hold home improvement fairs and workshops where residents can learn of
      public and private resources and loans available for home improvement projects.
  • Provide 50 purchase/rehabilitation loans by the year 2005. The City will offer purchase or
      refinancing assistance to families who agree to rehabilitate an older home.
  • Provide information on materials and services for “do-it-yourself” property owners
      undertaking home improvement projects.

Policy Objective 1.3: Increase the amount of rental housing rehabilitation

Implementation Actions
  • Provide loan incentives for the maintenance and rehabilitation of 50 rental units per year.
      Older rental complexes are particularly prone to falling into decline. As the major
      systems and amenities of rental properties age, monthly rent levels fall. Falling rental
      income in turn makes it even more difficult for a property owner to find the money to
      make improvements and reverse the trend. To help escape the cycle of decline or avoid it
      altogether, the City will provide loan incentives to property owners for maintenance and
      rehabilitation of older rental property.
  • Continue the City’s quarterly rental housing collaborative. The meetings include
      educational speakers on rental housing topics, promotion of available City assistance, and
      opportunities for feedback on the City’s policies.



                                                                                              57
     •   Discourage crime in rental complexes through education on tenant screening and the
         Police Department’s Crime Free Multi-Family Housing Program.

Policy Objective 1.4: Remove substandard homes

Implementation Action
  • Provide funds for the acquisition and demolition of six substandard homes per year.
      Isolated structures which have deteriorated beyond repair should be identified, promptly
      removed, and replaced with uses compatible with the neighborhood.

Policy Objective 1.5: Reduce the number of substandard structures and code violations
within residential areas through active code enforcement

When enforced, housing, nuisance, and zoning codes provide assurance to property owners and
lending institutions that neighboring structures will not be allowed to impair their investment by
deteriorating beyond standards established in the codes. This investment protection gives
homeowners the confidence to make major improvements in their own homes.

Implementation Actions
  • Continue code enforcement inspections within targeted neighborhoods as part of the
      Community Enhancement Program.
  • Provide routine inspection on a systematic basis to increase the timeliness of code
      compliance.
  • Perform citywide education and enforcement inspections on specific, high priority code
      violations. As certain code violations become prevalent, enforcement personnel will
      identify violations citywide, educate the violating parties on the code requirements,
      encourage compliance, and follow up with enforcement action on properties that did not
      come into compliance.
  • Maintain sufficient code enforcement staff.
  • Continue the City’s Time-of-Sale Inspection Program.
  • Study the effectiveness of code enforcement procedures, notably neighborhood
      enhancement inspections and time-of-sale enforcement.
  • Educate residents regarding code compliance complaint procedures.
  • Sponsor periodic events where residents can drop off rubbish which they might otherwise
      store outside.
  • Assist residents who do not have the financial or physical ability to correct code
      violations.
  • Enforce non-residential codes. Run down nearby commercial or industrial areas can
      negatively impact neighborhood confidence in the same manner that dilapidated homes
      can.

Policy Objective 1.6: Review the existing housing codes and enforcement procedures.
Make revisions as necessary.

A code enforcement program is only as strong as the Code it enforces. For example, it is possible
for a house to meet the requirements of the Uniform Housing Code but still have a negative


58
impact on its neighborhood. Such a home might be fine structurally but have peeling paint,
falling shutters, and other cosmetic concerns.

A major difficulty with current code enforcement procedures is the lengthy time period often
required to bring resolution to a code violation. Code violations proceed slowly through the
courts and compete for City attorney time with other pressing legal matters.

Implementation Actions
  • Complete a housing code review and present recommended changes to the City Council
      before the end of the year 2000.
  • Create a civil process in which judgments and fine assessments for nuisance and housing
      code violations can be decided outside of the court system. In the case of repeated
      violations, the authority to initiate corrective action and assess the costs of such action to
      the violating property would be available.

Policy Objective 1.7: Promote community commitment to neighborhood vitality and inspire
continued consumer confidence in the future of Bloomington’s residential neighborhoods.

The City will establish a coordinated marketing initiative to make residents aware of the many
resources available for housing maintenance and rehabilitation and to increase consumer
confidence by publicizing the community’s commitment to successful neighborhoods.

Implementation Actions
  • Perform market research. As the base for the initiative, periodic research will be
      conducted on what characteristics attract residents to Bloomington, what improvements
      residents desire in their neighborhoods, and why other residents choose to leave the city.
  • Package the City’s many efforts to spur rehabilitation, improve the physical
      infrastructure, and fight crime under the umbrella of a single, easily recognizable title.
  • Coordinate marketing efforts with the Bloomington School District. A quality school
      system is a key community attribute sought by most residents. Bloomington is fortunate
      to have highly regarded schools and will work with the School District to emphasize this
      fact in its promotional efforts.
  • Continue the distribution of promotional and educational newsletters to residents of
      targeted neighborhoods. Send promotional and educational newsletters to neighborhoods
      that are active in the Community Enhancement Program. The newsletters will feature
      recent public investments, document levels of private rehabilitation and maintenance,
      provide information on available public assistance programs, and encourage residents to
      join their neighbors in fixing up their homes.
  • Distribute regular information releases to the local and regional media and to existing
      homeowner’s associations and neighborhood groups. As positive information about
      neighborhood revitalization is received, the information will be shared with the media
      and neighborhood groups as another example of the initiative’s success.
  • Conduct community outreach. Educate residents on City requirements and available
      resources and promote the City’s commitment to neighborhood vitality.

Policy Objective 1.8: Develop and link information sources for neighborhood analysis


                                                                                                  59
Information on neighborhood indicators has always been tracked by the City. Unfortunately this
data is difficult to use in a comprehensive fashion since it is collected by several departments in
different formats for varying geographic areas. Development of a computerized geographic
information system presents the opportunity to structure the data in a format that is accessible
and more useful for policy and program analysis.

Implementation Actions
  • Track neighborhood stability indicators in conjunction with the geographic information
      system. Track data such as property value changes, crime levels, nuisance complaints,
      and building permits issued for maintenance and rehabilitation projects.
  • Create permanent neighborhood level geographic areas for data tracking purposes.
      Bloomington is currently subdivided in a variety of ways such as census tracts, traffic
      analysis zones, neighborhood enhancement areas, and police sectors, many of which
      change boundaries over time. In order to compare data over time, permanent
      neighborhood level geographic areas are needed.

Policy Objective 1.9: Support anti-crime initiatives

Crime is a major factor affecting neighborhood confidence. Few residents will invest in home
improvements if there is a major crime problem down the block. Bloomington has been
successful in keeping crime levels low. Crime prevention is a vital tool for inspiring consumer
confidence and Bloomington must continue to be tough on crime and respond immediately when
crime levels rise in specific areas.

Implementation Actions
  • Continue the Police Department’s crime prevention and public relations efforts including
      the Neighborhood Watch Program; quarterly newsletters to block captains; annual block
      captain workshops; home security checks; Crime Free Multi-Family Housing training;
      Operation Identification; National Night Out; weekly reports in the local newspaper; and
      a weekly show on the local cable access TV station.

Policy Objective 1.10: Foster neighborhood ties and encourage neighborhood interaction

Residents will be more likely to make investments in their homes if they are tied in to the social
fabric of their neighborhoods.

Implementation Actions
  • Expand the Neighborhood Watch Program. With over 300 active watch groups, nearly 50
      percent of all households currently participate in the Neighborhood Watch Program. This
      program brings neighbors together to reduce crime in their communities.
  • Continue recreation programs at the neighborhood park level.
  • Continue to provide funding for clean up days in targeted neighborhoods.
  • Work with neighborhood groups to facilitate block parties through efforts such as
      Neighborhood Night Out.



60
Housing Goal 2: Provide life-cycle housing opportunities for all age groups, household sizes
and income levels

Policy Objective 2.1: Increase the number of units oriented to the special needs of seniors

Bloomington’s senior citizen population has grown rapidly in recent years and is expected to
continue growing. Seniors frequently desire such special housing characteristics as one level
living space, associations to handle maintenance and snow removal, services within walking
distance, or easy access to transit. In order to live independently, seniors may need assistance
with basic home maintenance tasks.

Implementation Actions
  • Encourage the development or redevelopment of life cycle housing for seniors.
  • Continue the City’s assistance program to enable seniors to continue living in their homes
      by providing home maintenance and in-home health care services.
  • Develop an “Adopt-A-House” program. This program will match seniors who require
      basic home maintenance assistance with organizations and neighborhood groups willing
      to volunteer such services.
  • Complete a senior study. The Bloomington Housing and Redevelopment Authority will
      undertake a comprehensive study of senior demographics, housing demand, and housing
      supply.

Policy Objective 2.2: Encourage redevelopment of low density housing to medium and high
density housing in appropriate areas

Implementation Actions
  • Retain existing opportunities for medium density, high density, and mixed use residential
      redevelopment in appropriate areas through land use controls. For several years, the City
      has guided selected low density areas along transit corridors and near commercial service
      areas for medium density, high density, and mixed use redevelopment.

Policy Objective 2.3: Create a redevelopment fund through annual City contributions

To remain vital, cities must engage in a continual process of updating and renewal. In order to be
in a position to quickly respond to redevelopment opportunities or needs as they present
themselves, the City will establish a redevelopment fund.

Policy Objective 2.4: Preserve affordable housing opportunities

Bloomington currently provides a reasonable level of affordable housing. The city falls within
Metropolitan Council benchmark affordability levels for both owner occupied and rental
housing. The best method for providing needed levels of affordable housing is to preserve viable
existing affordable housing.

Implementation Actions



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     •   Through neighborhood planning efforts and land use controls, ensure that viable existing
         areas of affordable housing are preserved.
     •   Encourage the use of available affordable housing resources to preserve housing with
         expiring federal rent assistance contracts. Changes in federal housing policy have the
         potential to reduce levels of affordable housing within Bloomington. The City will
         facilitate the preservation of these units by encouraging an extension of the program
         under current or alternative ownership.

Policy Objective 2.5: Provide or promote additional affordable rental housing

The need for affordable housing is a function not only of housing cost but also of work skills and
employment opportunities. While government’s first priority should be to develop resident’s
skills to provide for themselves, the City recognizes that there are residents without the ability to
work and afford market rate housing.

Implementation Actions
  • Provide or promote 100 additional units of affordable small family (two to four persons)
      rental housing.
  • Provide or promote 50 additional units of affordable large family (five or more persons)
      rental housing.
  • Provide or promote 30 additional units of affordable special needs rental housing.

Policy Objective 2.6: Continue to actively pursue federal, state, and regional financial
resources for affordable housing

Policy Objective 2.7: Support home ownership for low income residents

Implementation Action
  • Offer downpayment and mortgage assistance for 20 first time homebuyers per year who
      would otherwise not be able to obtain conventional financing.

Policy Objective 2.8: Use Livable Communities Act benchmark indicators for communities
of similar location and stage of development as affordable and life-cycle housing goals for
the period 1996 to 2010
Benchmark indicators for Bloomington established through the Livable Communities Act are
included in the Technical Appendix.

Community Development Division
 1800 W. Old Shakopee Road
 Bloomington, MN 55431
 Phone: (952) 563-8948
 Fax: (952) 563-8949

The Community Development Department:
   • Defines future City directions through long-range plans and zoning requirements.
   • Reviews development proposals for compliance with City standards.


62
   •   Protects public health and safety by ensuring compliance with State and City codes
   •   Implements housing and redevelopment plans.
   •   Educates customers and encourages voluntary compliance
   •   Coordinates with other government units

Planning and Economic Development
 1800 West Old Shakopee Road
 Bloomington, MN 55431
 Phone: (952) 563-8920
 Fax: (952) 563-8949
 TTY: (952) 563-8740

Planning and Economic Development guides Bloomington's future direction through studies and
zoning controls. The division reviews and prepares recommendations on applications for
development, rezoning, use permits and variances and works closely with the Planning
Commission.

Planning Commission (PC)
The Bloomington Planning Commission advises the City Council on matters related to the
capital development, improvement and maintenance of city parks as well as recreation and
cultural arts programs.
Port Authority
 Phone: (952) 563-8541
 Fax: (952) 563-8949

The Bloomington Port Authority coordinates orderly commercial and industrial development
throughout the City. The Port Authority's efforts currently are concentrated on the McGough
transit oriented development, Mall of America Phase II and surrounding lands in the Airport
South Development Area

Housing and Redevelopment Authority (BHRA)
 Phone: (952) 563-8937
 TTY: (952) 563-8740
 Fax: (952) 563-4977

The HRA's programs accomplish its mission through rental assistance, housing rehabilitation,
first-time homebuyer assistance and other development and redevelopment programs. Funding
comes from federal, state, regional and local sources.

Affordable Housing Programs
Housing Choice Voucher Program (Section 8)
The HRA’s Housing Choice Voucher Program (previously Section 8) assists over 525
households with rent assistance in privately owned rental units, such as apartments, duplexes and
single-family homes. The program is open to all income qualified people, including seniors,



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families and persons with disabilities. The Voucher Program provides affordable housing to the
greatest number of people of any housing program in the city.

The participant household pays a minimum of 30 percent of household income as rent, with the
Voucher Program paying the difference to the landlord. The rental unit must also pass annual
Housing Quality Standards (HQS) inspections to qualify. The unit selected must be a non-luxury
unit and rent for a reasonable amount in comparison to other similar units in the market.

Public Housing Program
The HRA owns 20 units of Public Housing for families of two to six people, who pay a
maximum of 30 percent of household income toward rent and utilities. The program is made up
of 20 three-bedroom, single-family homes scattered throughout Bloomington. In addition, the
HRA contracts for six townhome units in a larger development. The townhomes are made up of
three two-bedroom and three three-bedroom units.

All families on the Public Housing Program will be fully screened for suitability and must have
good credit and rental histories. In addition, the HRA will review any criminal records and verify
that all household members have citizenship or eligible immigration status.

Rental Homes Program for Future Homebuyers
The Rental Homes Program for Future Homebuyers helps families save money to buy a home,
while renting one of 21 single-family homes in Bloomington. When accepted to the program, the
HRA will save a portion of the family’s rent each month to use as a down payment when they
buy a home. Participants must be willing to enter into a five-year contract to identify the goals
they need to complete to become a homeowner.

All families must have at least three and not more than six family members. Qualified families
must also earn at least $23,550 per year and have good credit and rental histories. Families must
be able to pay the minimum rent and utilities of approximately $785 per month. In addition, the
HRA will review any criminal records and verify that all household members have citizenship or
eligible immigration status.

Housing Rehabilitation and Neighborhood Preservation
Bloomington Housing Rehabilitation Program
The HRA annually provides deferred home improvement loans to 30 to 40 low- and moderate-
income homeowners. These loans provide funds for energy and housing code improvements.
Typical improvements include roofs, siding, windows, doors, electrical and plumbing upgrades.
The maximum deferred loan is $30,000. All loans are repaid at the time the home is sold or
transferred. Applications are typically taken once a year in February or March. Call to place your
name on a list to receive an application or for information.

Neighborhood Loan Program
Each year the City of Bloomington selects an area of approximately 1,000 homes for its
Community Enhancement Program. The purpose of the program is to improve and stabilize
existing neighborhoods through a range of city programs. As part of the City of Bloomington's
Community Enhancement Program, the HRA provides neighborhood loans to qualified



64
homeowners. These loans are deferred and may be up to $30,000. The loans can be used for
code, energy improvements or other remodeling such as room additions.

Housing and Environmental Loan Program
The City Council, through the HRA, has developed a citywide loan program to assist property
owners with serious code or health safety violations. Properties considered for this program must
be referred by City staff. The purpose of this program is to encourage problem properties to
come into compliance with city requirements.

Redevelopment
Commercial Revitalization
The HRA is responsible for redevelopment within the City except for the Airport South District
east of TH77. One of the best known projects of the HRA is the Oxboro Redevelopment District.
The HRA undertook a leadership role to select developers, acquire parcels, and facilitate
landscape and infrastructure improvements within the Oxboro district. To date, over 40 million
dollars in new development has occurred.

As the community ages, the HRA will continue to play a role in assuring that Bloomington's
commercial areas remain vital.

Residential Development/Redevelopment
One of the roles of the HRA is to provide land for the private development of affordable housing
for low- and moderate-income households. The HRA has done this for both renters and
homeowners.

Among some of the HRA's residential projects are Gideon Pond, Knox Landing, Ridgeview
Terrace and Bloomington Family Townhomes.

The HRA also purchases substandard residential properties, demolishes them and resells the lots
to builders for the construction of new homes. The goal of the program is to improve
neighborhoods by eliminating structures that negatively impact surrounding homes.

Community Education
The HRA provides information to homeowners and landlords through seminars. The HRA's
education initiatives include:
   • The Home Improvement Fair held in February. People are able to discuss their home
       improvement needs with a variety of contractors. Seminars on home improvement are
       presented.
   • The Rental Housing Collaborative seeks to educate rental property owners and managers
       on laws and ordinances affecting their property and management practices. Meetings are
       held once a quarter.
   • The HRA provides speakers to any group interested in learning more about the HRA,
       redevelopment and affordable housing issues.

City of Brooklyn Center
 City Hall


                                                                                              65
 6301 Shingle Creek Parkway
 Brooklyn Center, Minnesota 55430
 Phone: (763) 569-3300

Brooklyn Center is located along the banks of the Mississippi River just a few miles from
downtown Minneapolis.

Community Development Department
 City Hall
 Phone: (763) 569-3330
 Fax: (763) 569-3360

The Community Development Department oversees the functions of protective inspections, land
planning, development plan review, redevelopment, and economic development. The
department also administers land use controls and implementation of the Comprehensive Plan in
a manner consistent with City policies. The department also reviews all zoning, conditional use,
and building permit applications to ensure that all City plans, City codes, State Building Code,
and fire codes are met as well as the inspection and issuance of rental licenses.

Economic Development Authority (EDA)
Economic development is a function of the Community Development Department. The purpose
of the Economic Development Authority is to preserve and improve the City's neighborhoods so
there continues to be a high level of resident satisfaction with City neighborhoods and housing.
Additionally, the EDA works to undertake such programs and policies that assist in the
development of the City's industrial, commercial, and retail businesses to maintain the City's
regional position with regard to these businesses.

Economic Development Goals
   • Focus on redevelopment opportunities within Highway 100 / Brooklyn Boulevard / I-694
     triangle
   • Development of EDA-owned single family lots including Minnesota Department of
     Transportation turnback property along I-94

Home Improvement Financial and Technical Assistance
Are you thinking about making some improvements around the house? Before you begin your
home improvement project call the HousingResource Center™ at (612) 588-3033. They could
assist you with financing options or construction advice. The HousingResource Center™ offers
several financial programs for Brooklyn Center residents: MHFA Fix Up Fund Loan or a Rental
Rehab Loan.

Northwest HousingResource Center™
 2140 44th Ave North
 Minneapolis, MN 55412
 Phone: (612) 588-3033




66
The Northwest HousingResource Center™ was created in partnership with the Greater
Metropolitan Housing Corporation (GMHC), the city of Brooklyn Center, and other suburban
communities, along with community financial institutions and state, regional, and county
agencies. HousingResource Center™ is funded in part by the City of Brooklyn Center.

MHFA Fix Up Fund Loan Program
The HousingResource Center™ offers low interest loans including Minnesota Housing Finance
Agency (MHFA) Fix Up Fund, up to $25,000 at 5.25% interest. The household gross annual
income limit is $75,000. These loans can be used to repair, remodel or keep your home warm…
and save money too! The loan term may go up to 20 years but loans are usually set up at a rate of
$1,000 per year.

MHFA Rental Rehab Loan Program
You may receive up to $25,000 for a one or two unit property, or $10,000 per unit for larger
properties, with a maximum loan amount of $100,000. The interest rate is 6%, and the term of
the loan may be up to 15 years. At the time the property improvements are completed and the
units are rented, 75% of the units must be occupied by persons with an income less than 80% of
the median income.

The HousingResource Center™ provides FREE construction consultations to residents of
Brooklyn Center. The Construction Managers will provide information on construction; conduct
site visits with homeowners regarding home improvements; prepare a written scope of work or a
list of work for contractors to bid from; assist in reviewing contractor bids, proposals and
estimates in the planning stage; and assist homeowners during the construction process.

In addition, the HousingResource Center™ provides information on a variety of housing related
topics: referrals for first time homebuyers and rental information, home maintenance and safety;
and mortgage foreclosure prevention programs. Call or visit the HousingResource Center™ for
help with any home improvements.

Community Development Block Grant Program
As a participant in the Urban Hennepin County Community Development Block Grant (CDBG)
Program, Brooklyn Center receives an annual appropriation of federal CDBG funds. The monies
assist in developing and maintaining a viable urban community by providing a suitable living
environment and expanded economic base. The funds are also used to eliminate slum and blight
and to meet other Community Development needs having a particular urgency.

The City's CDBG allocation for 2006 is $199,764. The federal fiscal year 2005 runs from
July 2005 through July 2006. There are two principal activities to be undertaken with
CDBG funds in 2005 through July 2006.
   1. A Public Service Project delivered to qualified City residents by Senior Community
       Services and Community Emergency Assistance Program (CEAP). The Household
       Outside Maintenance for the Elderly (H.O.M.E.) program administered by Senior
       Community Services, will provide assistance with minor household repair items
       including interior and exterior painting. In addition to household maintenance, SCS will
       also, through involvement of its Senior Outreach Program's licensed social workers, work



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        to gain voluntary compliance of elderly and disabled residents who have violations in
        areas of the City's housing code. CEAP will provide household chore services to eligible
        seniors and disabled persons and, along with Senior Community Services, will address
        the resolution of code compliance items for eligible residents in the City.
     2. The Housing Rehabilitation Program funds the rehabilitation of existing homes of low
        and moderate income households. This is a program to support the rehabilitation of
        existing owner occupied single-family dwellings. Since the program's inception in the
        mid-1970s, over 300 homes have been rehabilitated

First-Time Homebuyer Program
Minnesota City Participation Program (MCPP)
The Minnesota City Participation Program (MCPP), offering below market rate mortgage
financing to first-time homebuyers purchasing homes in Brooklyn Center, is anticipated to start
this spring.

The MCPP is offered through and funded by the Minnesota Housing Finance Agency (MHFA).
You must be a first-time homebuyer, defined as a person who has not had an ownership interest
in a principal residence, other than the property being purchased, during the last three years.
Also, borrowers cannot exceed income guidelines established for the program.
Eligible properties include single family, qualified condominiums, townhomes, and two unit
duplexes. In addition to below market mortgage loans, down payment and closing cost
assistance will be available to qualified buyers who meet specific income guidelines.

City of Brooklyn Park
 5200 85th Ave N
 Brooklyn Park, MN 55443
 Phone: (763) 424-8000
 Fax: (763) 493-8391
 TDD: (763) 493-8391

Brooklyn Park is located on the banks of the Mississippi River, just minutes from Minneapolis
and St. Paul.

Community Development
 5200 85th Ave N
 Brooklyn Park, MN 55443
 Phone: (763) 493-8059
 Fax: (763) 493-8391

The Community Development Department is dedicated to improving the physical, social and
economic health of the community by anticipating and managing change. The department is
divided up into three divisions:

Code Enforcement & Public Health (CEPH) aims to protect and improve the environmental
conditions and quality of life for those who live in, work in, and visit Brooklyn Park through



68
strategic planning, communication, education, proactive inspections, and response to service
requests.

Economic Development, Housing and Redevelopment promotes investment in Brooklyn Park
with four goals: new commercial, industrial, and residential development; expansion of existing
commercial/industrial businesses; redevelopment of under performing or blighted areas; and
enhancement of living environment for apartment residents and their neighbors.

Planning conducts long range planning for future city growth and assists the Planning
Commission in reviewing zoning and site design of current projects.

Economic Development Authority (EDA)
The Brooklyn Park EDA will preserve and create jobs, enhance the City’s tax base, promote the
general welfare of the people of the City and assume primary responsibility for development
activities within the City. The EDA shall be governed by a board of seven commissioners who
shall be the members of the City Council and elected and qualified in the same manner as the
members of the City Council.

The Brooklyn Park Economic Development Authority (EDA) promotes and facilitates economic
development within the city. The EDA considers business and housing development proposals
on a case-by-case basis and uses a broad range of competitive financing programs to achieve its
development goals. Below is a sampling of financing programs that the city has to offer.

Brooklyn Park Development Corp
Brooklyn Park’s small businesses can take advantage of two unique loan programs offered
through the Brooklyn Park Development Corporation. Following is information on each of the
programs.

Loan Guarantee Program
The loan guarantee program allows business owners to access additional capital by providing
guarantees for loans made by lenders. BPDC will issue a guarantee to your lender which will
enable you to obtain the amount of money you need.

What kind of loans are eligible for the loan guarantee program?
  • Real Estate
  • Machinery and Equipment
  • Fixtures and Furnishings
  • Inventory
  • Working capital
  • Lines of credit
  • Startups

Small Business Loan Fund Program
The loan fund provides loans for Brooklyn Park businesses in partnership with your lender. The
BPDC will work with your lender to set up a loan package at a reduced interest rate (lower than
market rate). Two types of loans are available:


                                                                                               69
Fix-up Loans
Available to retail, service and light manufacturing small businesses located in Brooklyn Park
for exterior improvements. Eligible loan uses include:
    • Signage, landscape and streetscape
    • Entrances, doors, awnings, windows, cornices
    • Roofing and lighting
    • Parking lot improvements
    • Masonry and exterior surfacing

Capital Access Loans
Available to Brooklyn Park businesses, including start-ups. Loan uses include:
   • Working capital
   • Real estate
   • Construction/rehabilitation
   • Site improvements
   • Machinery and equipment

Twin Cities Community Capital Fund
TCCCF is a nonprofit loan fund that offers customized, flexible financing solutions that are
designed to fit most every business need. Its long-term, subordinated, fixed rate loans are made
in partnership with local lenders and the Brooklyn Park Economic Development Authority. The
goal is to put together a financing package that meets the needs of both the borrowers and
participating lenders. Loans are competitively prices and offer the flexibility of negotiable
interest rates and terms. The application approval process – from the receipt of a completed loan
application to the loan commitment – provides for loan approvals usually within 2-4 weeks,
depending on the amount of the loan.

With a TCCCF loan you can finance:
   • Fixed assets, including land and building purchases.
   • Building construction (permanent financing only).
   • Leasehold improvements and building renovations.
   • Machinery and equipment purchases, renovation, and moving expenses.
   • Working capital

For more information about how to apply for a TCCCF loan, contact the Brooklyn Park Business
Developer at 763-493-8058 or the Twin Cities Community Capital Fund at 952-546-0949 and
ask to speak with one of the loan officers. Loan applications, including detailed financing
policies and credit criteria can be found at www.tcccf.org.

Hennepin County Bond Fund
Common Bond Fund Revenue Bond Program (CBF)
The Common Bond Fund Revenue Bond Program is a loan fund through Hennepin County for
growing manufacturing companies. Most of the major manufacturing projects completed in
Minneapolis since 1982 have been financed with tax-exempt or taxable revenue bonds issued



70
through the CBF. Local government agencies issue tax-exempt or taxable revenue bonds on
behalf of private borrowers to provide lower interest rates on long-term financing.

Revenue bonds issued for industrial/manufacturing projects are generally tax-exempt; those for
commercial projects are taxable. Projects can include land acquisition, new-facility construction,
additions to existing facilities, purchase and renovation of existing structures, and production
equipment purchase.

 Contact Hennepin County at 612-348-2215 for
 more information

Minnesota Investment Fund
The Minnesota Investment Fund is a program through the state Department of Employment and
Economic Development. The program's purpose is to provide grants that create and retain high-
quality jobs, with a focus on industrial, manufacturing, and technology-related industries, to
increase the local and state tax base and improve the economic vitality for all Minnesota citizens.

Grants are awarded to local units of government who provide loans to assist expanding
businesses. Loans for land, buildings, infrastructure improvement, equipment, and training to
support businesses located or intending to locate in Minnesota are eligible. Working capital,
retail business, and industrial park development projects are ineligible. All projects must meet
minimum criteria for private investment, number of jobs created or retained, and wages paid.
There is a maximum of $500,000 per grant. At least 50 percent of total project costs must be
privately financed through owner equity and other lending sources (most applications selected
for funding have at least 70 percent private financing). Grant terms are for a maximum of 20
years for real estate and 10 years for machinery and equipment and interest rates are negotiated.

Visit www.deed.state.mn.us/programs/mninvestfund.htm for more information.

Central Minnesota Development Company (CMDC)
 1885 Station Parkway NW
 Andover, MN 55304
 Phone: (763) 784-3337
 Fax (763) 784-3338

Central Minnesota Development Company is a private non-profit certified development
company that was established to provide special financing to small and mid-sized
businesses. The U.S Small Business Administration has designated CMDC as a Premier
Certified Lender (PCLP); one of only a select few certified development companies in the
nation with this designation. CMDC is your best source for "owner occupied" commercial real
estate financing. We specialize in providing financing through the SBA 504 Loan Program.

Financing commercial projects through CMDC will provide you with the following
benefits:
   • Lower down payments preserving precious capital for operations.



                                                                                                71
     •   Longer terms which can help to maximize cash flow.
     •   Below market fixed rates providing you, the business owner, with the ability to
         accurately predict your future capital needs.
     •   Rapid turnaround as a result of CMDC's Preferred Lender status and "best in class"
         service.

CMDC's experienced staff specializes in identifying and understanding the financing programs
that best meet your needs. Loan programs available through CMDC include:

SBA 504 Loan
The 504 Loan Program is an extremely attractive financing tool. The program provides growing
businesses with long-term, fixed-rate financing for major fixed assets such as land, buildings,
machinery and equipment. A typical 504 project includes a loan secured with a senior lien from a
private-sector lender covering up to 50 percent of the project cost, a loan secured with a junior
lien from CMDC (backed by a 100 percent SBA-guaranteed debenture) covering up to 40
percent of the cost, and an equity injection of at least 10 percent from the small business.

Maximum Debenture
The maximum SBA debenture is $1,500,000 when meeting certain job creation criteria or
community development goals. Generally, a business must create or retain one job for every
$50,000 provided by the SBA except for "Small Manufacturers" which have a $100,000 job
creation or retention goal.

The maximum SBA debenture is $2.0 million when the project meets a public policy goal.
The public policy goals include:
   • Business district revitalization
   • Expansion of exports
   • Expansion of minority business development
   • Rural development
   • Increasing productivity and competitiveness
   • Restructuring because of federally mandated standards or policies
   • Changes necessitated by federal budget cutbacks
   • Expansion of small business concerns owned and controlled by veterans (especially
      service-disabled veterans)
   • Expansion of small business concerns owned and controlled by women

The maximum debenture for "Small Manufacturers" is $4.0 million. A Small
Manufacturer is defined as a small business concern that has:
   1. Its primary business classified in sector 31, 32, or 33 of the North American Industrial
      Classification System (NAICS); and
   2. All of its production facilities located in the United States.

What Funds May Be Used For
Proceeds from 504 loans must be used for fixed asset projects such as: purchasing land and
improvements, including existing buildings, grading, street improvements, utilities, parking lots



72
and landscaping, construction of new facilities, or modernizing, renovating or converting
existing facilities or purchasing long-term machinery and equipment.

The 504 Program cannot be used for working capital or inventory, consolidating or repaying
debt, or for refinancing.

Terms, Interest Rates
Interest rates on 504 loans are pegged to an increment above the current market rate for five-year
and 10-year U.S. Treasury issues. Maturities of 10 and 20 years are available.

SBA 7(a) Loan
7(a) loans are the most basic of SBA's business loan programs. Its name comes from section 7(a)
of the Small Business Act, which authorizes the Agency to provide business loans to American
small businesses.

7(a) loans are only available on a guaranty basis. This means they are provided by lenders who
choose to structure their own loans by SBA's requirements and who apply and receive a guaranty
from SBA on a portion of their loan. The SBA does not fully guaranty 7(a) loans. The lender and
SBA share the risk that a borrower will not be able to repay the loan in full. The guaranty is a
guaranty against payment default. It does not cover imprudent decisions by the lender or
misrepresentation by the borrower.

Under the guaranty concept, commercial lenders make and administer the loans. The business
applies to a lender for their financing. The lender decides if they will make the loan internally or
if the application has some weaknesses which, in their opinion, will require an SBA guaranty if
the loan is to be made. The guaranty which SBA provides is only available to the lender. It
assures the lender that in the event the borrower does not repay their obligation and a payment
default occurs, the Government will reimburse the lender for its loss, up to the percentage of
SBA's guaranty. Under this program, the borrower remains obligated for the full amount due.

A key concept of the 7(a) guaranty loan program is that the loan actually comes from a
commercial lender, not the Government. In order to obtain positive consideration for an SBA
supported loan, the applicant must be both eligible and creditworthy.

CMDC Initiative Fund
The purpose of the CMDC Initiative Fund is to encourage private investment, create jobs and
promote economic development in certain Twin City metropolitan communities. The program
works by providing incentive financing for new and expanding businesses.

Eligible Applicants
Most businesses and industries are eligible if they are located or will locate in the cities of
Minneapolis, St. Paul, Anoka, Blaine, Bloomington, Brooklyn Center, Brooklyn Park, Columbia
Heights, Crystal, Fridley, Hopkins, Lauderdale, Lexington, New Hope, Osseo, Richfield, St.
Anthony, St. Francis, St. Louis Park, Spring Park, South St. Paul and West St. Paul.

Minimum Requirements



                                                                                                  73
All projects must have a private financing match. Owner equity must be 10% or greater.

Eligible Projects
Financing is available for land and buildings, machinery, equipment and working capital.

Maximum Available
CMDC currently has a $200,000 lending limit depending on funding availability.

Other Funds Required
In most cases at least 50% of total project costs must be privately financed through owner equity
and other lending sources. Most applications approved for funding have at least a 50% private
financing match.

Interest Rate
The interest rate will be a function of the risk associated with the loan and project. Rates are
currently ranging from 2% to 10%.

Terms
For projects involving real estate the maximum term is 20 years. Loans for machinery and
equipment have a maximum of 10 years.

Small Business Resources
Education Partners
North Hennepin Community College
 7411 85th Ave N
 Brooklyn Park, MN 55445
 Telephone: 763.424.0886
 www.nhcc.edu/ctd

Offers training on how to start a small business, individual coaching for the new entrepreneur,
and other training courses and workshops

Hennepin Technical College
 9000 Brooklyn Boulevard
 Brooklyn Park, MN 55445
 Telephone: 763.550.7160
 www.hennepintech.edu/

Offers several small business and entrepreneur classes in their Small Business Academy program

University of St. Thomas Small Business Development Center
 TMH 100
 1000 LaSalle Avenue
 Minneapolis, MN 55403
 Telephone: 651.962.4500



74
 www.stthomas.edu/sbdc/

Offers limited free consulting, where clients can receive assistance with strategic business plans,
market research, financial planning and analysis, loan packaging and cash flow management

Sponsors moderately-priced seminars and provides networking opportunities for small business
owners and entrepreneurs

Non-Profit Partners
Minneapolis Consortium of Community Developers (MCCD)
 3137 Chicago Ave.
 Minneapolis, MN 55407
 Telephone: 612.789.7337 ext. 11
 www.mccdmn.org/

Association of nonprofit community development organizations that works to promote
entrepreneurship and small business development

Small business program helps new and early stage businesses access the capital and technical
assistance they need to grow and prosper

Neighborhood Development Center (NDC)
 651 ½ University Avenue
 Minneapolis MN
 Telephone: 651.291.2480
 www.ndc-mn.org

Offers business training, financing, and ongoing support and business incubation to ensure that
alumni businesses succeed through start-up and growth phases of their businesses

African Development Center (ADC)
 1808 Riverside Ave S., Suite 200
 Minneapolis, MN 55454
 Telephone: 612.333.4772
 www.adcminnesota.org

Helps African immigrants and refugees start and sustain their own businesses

Helps its clients to plan, build, and finance their own businesses; and provides home ownership
and financial literacy workshops.

Latino Economic Development Corporation (LEDC)
 1516 East Lake Street #201
 Minneapolis MN 55407
 Telephone: 612.724.5332


                                                                                                  75
 www.ledc-mn.org/

Provides assistance on areas of entrepreneurial activity, from a micro-entrepreneur training
course to how to write a business plan, business opening phase assistance, real estate purchase
and lease contracts, financial assistance, etc

African Assistance Program
 7714 Brooklyn Blvd., Suite 206
 Brooklyn Park, MN 55443
 Telephone: 763.560.8995

Works with African immigrants to achieve self-sufficiency through employment services,
community organizing and micro business development

Provides funds for entrepreneurial training and technical assistance

Business Development
 Phone: 763-493-8058
 Fax: 763-493-8391

The economic development team works to help companies make the most of growth
opportunities. The experienced team can assist with business location services, as well as provide
services to existing Brooklyn Park business and new business start-ups.

The services include:
   • Identifying financing alternatives
   • Assisting in identifying available commercial and industrial locations
   • Coordinating various city approvals
   • Organizing meetings with appropriate public and private sector representatives
   • Serving as a reliable, responsive information resource.

Housing
Brooklyn Park has housing options for everyone. From historical houses to new state of the art
condos, town home communities to scenic river acreage lots, entry level affordable housing to
award winning executive homes, Brooklyn Park has it all!

Whether you are considering Brooklyn Park for your new home or want to remodel your current
home, the resources on this website will be of assistance. If you have additional questions please
contact the Housing Division at 763-493-8054.

Free Foreclosure Prevention Services
Do you have trouble making your mortgage payments? Homeowners at risk of losing their home
can receive free, one-on-one confidential foreclosure prevention counseling. It’s through the
Community Action Partnership of Suburban Hennepin, also known as CAPSH.



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The counseling will provide early delinquency intervention, budgeting, lender negotiations and
financial assistance. Individual meetings with certified counselors are available at city hall every
Tuesday from 9:30 a.m. to 6:00 p.m. Information packets are available during city hall business
hours. Call CAPSH at 952-697-1302 for more information.

Buying or Selling A Home
Buying or selling a home is one of life’s major events. The information provided here is will
assist you through the process.

Visit the state attorney general's office for their Home Buyer’s Handbook and Home Seller’s
Handbook.

First Time Home Buyer
The organizations listed below serve the needs of first time home buyers and people needing
financial management assistance to prevent foreclosure in our community.

Home Ownership Center
Home Ownership Center promotes sustainable home ownership for low and moderate income
Minnesotans through the development and delivery of quality, standardized education,
counseling and related support services. www.hocmn.org

Community Action Partnership
Community Action Partnership of Suburban Hennepin offers a variety of services to individuals
and organizations in suburban Hennepin County to create and support links between the
individual and the community. www.capsh.org/programs.htm

Housing Resource Center
The Housing Resource Center is a program of the Greater Metropolitan Housing Corporation.
GMHC's mission is to preserve, improve and increase affordable housing for low and moderate
income families, as well as assist communities with housing revitalization.
www.housingresourcecenter.org

Fix Up Funds
Free information and assistance for Home Improvement Loans, Repairs, Purchase & More

A number of absolutely free services are available to help Brooklyn Park residents repair or
improve their home, secure an affordable home improvement loan, buy their first home, prevent
foreclosure and more.

The HousingResource Center™ (HRC) will help you navigate the sometimes complex mine
field of home repair. What’s a lien waiver and how does it protect you?* How can you find
qualified contractors? Do you have to pull a permit to build your deck? Why is a scope of work
important in a home repair or project? And what exactly is a scope of work, anyway? Contact
HRC at 612-588-3033 or www.housingresourcecenter.org




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CEE Financial Resources offers home improvement and energy loans for owner occupants and
rental owners. Loans offer below market interest rates and are available for all types of homes
with special rates for those built prior to 1970, typically Cape Cod and Rambler style
homes. Contact CEE Financial Resources at 612-335-5884 or www.mncee.org

* A lien waiver places legal responsibility on the contractor to cover costs related to your project.
That way, you don’t get sued if the contractor fails to pay his or her suppliers and sub-
contractors.

City of Crystal
 City Hall
 4141 Douglas Drive N
 Crystal MN 55422
 Phone: (763) 531-1000
 Fax: (763) 531-1188

Crystal is located only minutes northwest of Minneapolis.

Redevelopment
The City of Crystal does not offer direct assistance for small businesses. However, there are
other agencies and organizations that do. To help you connect with those resources, we offer the
following:
U.S. Small Business Administration: http://www.sba.gov/
Minneapolis Consortium of Community Developers: http://www.mccdmn.org/

Housing and Property
First-Time Home Buyer Assistance
Minnesota City Participation Program (MCPP)
The property must be located in suburban Hennepin County.

You must be a first-time homebuyer, defined as anyone who has not owned a home or an interest
in a home in the past three years.

The mortgage interest rate is 6.25% for a 30-year mortgage, zero (0) points as of April 26, 2006.
(Please note that this rate is subject to change at anytime.)

Program operates on a first-come, first-serve basis from April 18, 2006 to December 18, 2006.

Maximum gross household income limit is:
$63,000 - 1-4 persons    $83,500 - 8 person
$68,500 - 5 person       $88,500 - 9 person
$73,500 - 6 person       $93,500 - 10 person
$78,500 - 7 person

Maximum home purchase price is $298,125



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Eligible properties include single-family, qualified condominiums, townhomes and 2-unit
duplexes.

Financing is only available through a participating lender.

Local Assistance
For properties located in the following cities, you may qualify for downpayment assistance:
   • Edina, for details call 952-826-0462.
   • Plymouth, contact the Plymouth HRA at 763-509-5410

Additional Help
Homeownership Assistance Fund (HAF)
To assist you further, extra help is available for entry cost (downpayment and closing cost)
assistance and monthly payment assistance through the Homeownership Assistance Fund (HAF).
You may qualify for downpayment and closing costs assistance up to a maximum of $3,000 and
for $60 a month in monthly payment assistance if you meet all the eligibility/ underwriting
requirements. Contact a participating lender for details.

Homebuyer Training
Community Action Partnership for Suburban Hennepin, a suburban nonprofit agency, offers the
four-part Home Stretch Workshop. The cost is $20 per person and you must pre-register by
calling CAPSH at (952) 933-9639 x281. Learn about the home buying process, determine how
much home you can afford, identify and overcome barriers to homeownership, and receive a
comprehensive homebuyer’s guidebook.

Financial Assistance for Home Improvements
Home Improvement Incentive Rebate
Crystal residents may be eligible for 15% rebate on the cost of a home improvement project. To
receive the rebate, you must apply for the rebate and receive approval before you begin your
home improvement project. Contact the Housing Resource Center at (612)588-3033 for more
information.

Deferred Home Improvement Loans
Deferred home improvement loans are available for lower income households. For more
information, contact Hennepin County (612) 348-2235.

Don't forget, the Housing Resource Center (612) 588-3033 is available to help you with home
improvement projects. Its services are free of charge to residents of Crystal. Their website is
www.housingresourcecenter.org

City of Eden Prairie
 City Center
 8080 Mitchell Road
 Eden Prairie, MN 55344
 Phone: (952) 949-8300



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Eden Prairie is located on the southwestern fringes of the Twin Cities area.

Economic Development Division
The Economic Development Division is responsible for services that promote business growth
and support the overall economic vitality of the community. Services provided include:
Business Promotion and Retention
Housing Development and Preservation Programs
Tax Increment and Bond Financing
New Development / Redevelopment Site Location and Planning Assistance
Transportation Advocacy

Housing and Community Services
 (Lower level of Eden Prairie Center)
 125 Eden Prairie Center
 Eden Prairie, MN 55344
 Phone: (952) 949-8394

The Housing and Community Services Division provides assistance, information and referrals to
the residents of the City of Eden Prairie. All members of the community can utilize the services
of this division, including immigrants, seniors and children. Housing and Community
Services helps people access programs and get the information they need to lead a healthy and
full life in the community.

Housing Goals
Livable Communities
In an effort to expand affordable housing opportunities throughout the region, particularly in
communities with high employment concentrations, the Minnesota Legislature in 1995 passed
the Livable Communities Act. It requires that cities develop specific affordable and life cycle
housing goals to meet between the years 1996 and 2010. Participation is voluntary. However,
cities must participate to be eligible for funding offered by the Metro Council and the Minnesota
Housing Finance Agency (MHFA) for housing, mixed use developments, and environmental
clean up projects. Eden Prairie has been enrolled in the Program since its inception.

Life Cycle Housing
Life cycle housing is defined by the Metro Council as housing for people through all different
stages of their life, or a mix of housing to meet the changing needs of population throughout the
lifetime its individuals.

Livable Communities Goals
The City has been on target in meeting its affordable and life cycle housing goals that were
adopted by the Metropolitan Council on January 14, 1996. Each of the six goals the City has
agreed to pursue is listed below. Complete copies of the Action Plan are available upon request.

Goal #1 - Ownership Housing




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Fifteen hundred and seventy five new ownership units built between 1996 and 2010 should have
initial values at or below the affordability threshold (currently $132,000). This represents 30%
of all new ownership units (5,250) expected to be built within this time period.

Goal #2 - Rental Housing
Three hundred and fifty new rental units constructed between 1996 and 2010 should be
affordable to persons with incomes below 50% of the median income for the metro area. This
represents 20% of the 1,750 total rental units expected to be built over this time period.

Goal #3 - Affordable and Life Cycle Housing Opportunities Amount
The City must agree each year to spend a certain amount of local funding to meet its housing
goals. This funding, referred to by the Metro Council as the "Affordable and Life Cycle Housing
Opportunities Amount (ALHOA), is determined by the Metro Council.

Goal #4 - Rental Housing Mix
Total rental housing at full development should represent 35% of all housing units.

Goal #5 - Life-Cycle Housing Mix
Multiple family housing at full development will represent 43% of the total City housing stock.

Goal #6 - Housing Density
The average housing densities in new Single Family detached developments will be at least two
units per acre. The average density in new Multiple Family attached developments will be at
least 10 units per acre

Community Development Block Grant Program
Created by HUD in 1974, this program provides annual entitlements to cities based on a
population, age of housing, and poverty level formula. The City has participated in the Urban
Hennepin County CDBG Program since 1975. Cities have the flexibility to use these funds in a
variety of ways to address issues affecting primarily low-income persons. About 65% of all
CDBG funds received by the City of Eden Prairie since 1975 were allocated to housing related
activities. CDBG financed projects must provide rents that are affordable to persons with income
below 80% of the median for the metro area.

Rental Housing
Section 8 Project-Based
Section 8 Project-Based refers to housing units subsidized by the Department of Housing and
Urban Development (HUD) where tenants pay no more than 30% of their income toward rent.
The subsidies stay with the units or project (Project-Based). To qualify for Section 8, tenant
incomes must be less than 50% of the median income for the metropolitan area as determined by
HUD.

Section 8 Tenant Based
Tenant-Based housing refers to Vouchers and Certificates that allow tenants to live in market-
rate housing and have their rents subsidized so that only 30% of their income goes toward tent.
Apartment owners do not have to accept Vouchers or Certificates - participation is voluntary. To



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find out who accepts them, see the list provided under "Rental Communities". Certificates and
Vouchers are issued by the Metropolitan Council Housing and Redevelopment Authority (HRA).
They accept calls for applications on the last Thursday of each month. For applications, call
651-602-1553. For general information about the program, call 651-602-1428.

Subsidized Rental Communities Income Limits
Most subsidized rental communities require that incomes be at or below either 50% or 60% of
the median income for the metropolitan area. These limits are adjusted from time to time.

Renter Resources
As a renter, you have certain responsibilities. These responsibilities include:
   • Read and understand your renter's lease
   • Know the rules of your rental property complex
   • Respect your rental property neighbors

Common Problems
Neighboring Tenants
Many times the problems that arise for you as a renter do not stem from the rental property itself,
but instead from other tenants in your complex. From barking dogs to speeding cars, numerous
actions of one tenant often disturb others. If you have a problem with another tenant, the
following steps should be taken:

Talk with the other tenant.
If Step 1 does not resolve your situation, go to the property manager. It is the property manager's
responsibility to mediate your situation. If the property manager does not intervene, call one of
the following: HOMELine, West Suburban Mediation Center, or the Attorney General's Office.

Housing Discrimination
The law states that people cannot be treated differently in certain areas of life because of certain
personal characteristics. One of these areas of life is housing.

Fair housing rights are violated when you are prevented from doing the following because
of race, color, creed, religion, national origin, gender, marital status, sexual or affectional
orientation, familial status, disability, or reliance on public assistance:
    • Viewing or Renting an Apartment
    • Viewing or Purchasing a Home
    • Applying For or Securing a Loan
    • Purchasing Renter's Insurance

If you feel you have been discriminated against, call the Eden Prairie Human Rights and
Diversity Commission Staff Liaison, the State Department of Human Rights, or HOMELine.
Discrimination will not be tolerated in Eden Prairie.

Property Repairs
Repairs to your rental property can often be a hassle. Most rental property managers repair rental
property quickly and properly. If you feel you are not receiving adequate service from your


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manager, remember this, rental property managers are required by law to keep rental property in
good repair. The law supplies you with the power needed to make sure repairs are being taken
care of in a timely fashion.

To learn what you can do to get your manager to fix repairs properly, call HOMELine or the
Eden Prairie Inspections Department. Do not attempt to make any repairs without first getting
the approval (preferably in writing) from the property manager!

Payment Plans
In a financial crunch? Between jobs and need an extra week to pay your rent? This is just one
legitimate situation that makes it difficult for renters to pay rent on time.

Do not hesitate to ask your rental property manager to work out a payment plan for you. If you
have been making all your payments prior to your shortage of finances, there is a good chance
that your rental property manager will work something out with you. Most rental property
managers are willing to work out some sort of payment plan, as long as you do pay in full.

If you would like to discuss your situation with someone before you approach your rental
property manager, call HOMELine.

Health & Safety Violations
The City of Eden Prairie takes great interest in the safety, as well as the physical structure, of
your rental property. We respond promptly to any violation of health and safety standards and
codes that you may suspect.

Some examples of violations which you should be aware of as a renter include:
   • Inadequate Lighting and Ventilation
   • Inadequate Sanitation
   • Structural Hazards
   • Faulty Weather Protection
   • Hazardous Electrical Wiring

If you are concerned that a safety code is being violated, call the Eden Prairie Inspections
Department. The City will then send out an inspector to evaluate the situation. If there is a
violation, an order of correction will be written to the manager of your rental property.

Housing Maintenance
Loans for Rental Housing
This program is designed to increase the supply of safe and sanitary affordable rental housing in
Hennepin County. Eligible properties must have at least five or more housing units. For more
information call the Hennepin County Office of Planning and Development at 952-541-7980.

Home Repair for Seniors
Household and Outside Maintenance for Elderly Program
This Household and Outside Maintenance for Elderly (HOME) program provides chore and
maintenance services to seniors sixty and older who live in Eden Prairie. Recipients pay for


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services on a sliding fee scale basis. Contributions to the cost of services are based on client’s
ability to pay. The primary goal of this Program is to help elderly homeowners maintain
independence by remaining in their homes.

 Senior Community Services Agency of
 Hopkins administers this program, for more
 information call them at 952-888-5530.

Home Repair Loans
Great Minnesota Fix-Up Fund
Any resident that is not income eligible for the City's Housing Rehab program is referred to this
program offered through the Minnesota Housing Finance Agency (MHFA). Lower interest
installment loans of up to $15,000 are available to income eligible persons to improve the
livability and energy efficiency of their homes. The interest rate varies between 2% and 8%
depending the applicant's gross annual income. For further information about this, and other
similar programs offered through MHFA, call 651-297-3121.

Housing Rehab Program
The City of Eden Prairie provides low interest loans of up to $15,000 on a first-come, first-serve
basis to residents whose homes need repair. Eligible improvements include safety, energy,
building code, and general maintenance related items. To be eligible you must own and live in
your home and have a gross annual income below the following limits:
 1 person                 $38,100                  5 persons                 $58,750
 2 persons                $43,500                  6 persons                 $63,100
 3 persons                $48,950                  7 persons                 $67,450
 4 persons                $54,400                  8 persons                 $71,800

The loans include a 5% simple interest that accrues for a maximum of ten years. Loan repayment
is deferred until you sell your home, or in thirty years, whatever occurs first. You can repay the
entire loan before this time, or make payments, if you desire. The loan is secured through a
repayment agreement filed with Hennepin County as a valid lien on the property.

For an application, call 952-949-8482, and an application will be sent to you promptly. For more
information on the Program call Program Administrator at 952-949-8484

First Time Home Buyer
The Minnesota Cities Participation Program provides below market interest rate financing and
access to Home ownership Assistance Fund (HAF) for down payment and monthly payment
assistance. For more information contact the MHFA Consumer Information Line at 651-296-
8215 or 1-800-710-8871.

City of Golden Valley
 7800 Golden Valley Road
 Golden Valley, MN 55427
 Phone: (763) 593-8000



84
Found in Hennepin County, Golden Valley is a first-ring suburb of Minneapolis and is
conveniently located five miles west of downtown.

Housing and Redevelopment Authority (HRA)
Golden Valley's HRA is a separate legal authority that directs redevelopment projects in the City
to remove blight, clean up environmental contamination, and provide for new development to
enhance the community and increase the City's taxable valuation.

City of Hopkins
 City Hall
 1010 1st Street South
 Hopkins, MN 55343
 Phone: (952) 935-8474

Hopkins is located west of Minneapolis.

Housing and Redevelopment Authority (HRA)
 City Hall / 952-548-6340

The Hopkins City Council serves as the Housing and Redevelopment Authority (HRA). Its
responsibility is to address housing and economic development issues for the City. The HRA
also serves as the governing body for the City of Hopkins public housing operation.

Commercial Rehab Low Interest Loan Program
The Hopkins Housing and Redevelopment Authority (HRA) has below market interest rate
funding available to encourage building renovation and to improve the overall appearance of
commercial buildings within the downtown area.

Purpose
The purpose of the Commercial Rehabilitation Program is to provide low interest loans to
commercial/retail businesses as incentives for tenants and building owners to expand, upgrade,
and improve the appearance of commercial/retail-oriented properties.

Provides up to $25,000 in matching loan funds to complete exterior improvements to commercial
buildings within the program boundaries which extend from Fifth Avenue to Shady Oak Road
and from First Street South to First Street North. The interest rate is fixed at 3 percent below
prime rate on the day of closing, and the term can be up to 10 years.

Loan Improvements
   • Improvements may include the following:
   • Improvements to front, rear or sides of a commercial building
   • Cleaning, painting and staining of exterior surfaces
   • Repair or replacement of cornices, entrances, doors, windows, decorative details and
      awnings


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     •   Sign repair, building identification, parking lots, roofs, landscaping and other
         miscellaneous improvements

Loan Terms and Conditions
   • Maximum amount of any loan will be $25,000
   • Minimum amount of any loan will be $10,000
   • Maximum term of loan will be 10 years
   • Interest rate will be set at 3 percent below prime rate compounded on an annual basis
   • No loan shall exceed 80 percent of the market value of the property upon completion of
      the rehabilitation (based upon proposed costs of improvements)

Eligibility
Building must be located within the program boundaries, and contain small or medium-sized
businesses with a principal commercial or retail character. Building must not be one which has
been identified by the HRA/City for possible acquisition as part of a pending or proposed
redevelopment project.

Building and businesses within the building must be "conforming uses" under the City’s Zoning
Ordinance. Applicants must be an acceptable credit risk as determined by City staff.

Please contact Housing & Development Coordinator, 952-939-1395 for more information and
application.

Section 8 Rent Assistance Program
What is the Section 8 Rent Assistance Program?
The Section 8 Housing Program helps senior citizens, disabled individuals, families and single
individuals pay their rent in a privately-owned rental unit. The Hopkins Section 8 Program is
administered on behalf of the Metro HRA in St. Paul and is funded through the Department of
Housing and Urban Development (HUD). The City of Hopkins currently has 400 households
receiving rent subsidies through the Section 8 Housing Program.

How does a person apply for Section 8 assistance?
Currently, the Section 8 Program is not accepting applications. Once the list is reopened,
applications will be available and accepted at the Metro HRA offices is St Paul. The Metro HRA
information line is 651-602-1428. The City of Hopkins does not distribute or accept Section 8
applications.

Are there income restrictions for the Section 8 program?
To be eligible for the program, total household income must fall within the guidelines
established by HUD. A qualified household may rent any type of unit suitable for their family
size and type. Any type of rental unit can be rented, however, it must meet the Section 8
standards and pass an inspection.

Are there rent limits?
Rent limits are based on two factors:
   • Payment Standard Amount. Which is set by the number of bedrooms in the unit.


86
   •   Household Income. The higher the household income, the higher the approvable rent.

Who is the Hopkins HRA Section 8 contact?
The Section 8 Program Coordinator, can be reached at 952-548-6346

Public Housing
The Hopkins Housing and Redevelopment Authority provides rental apartments for low income
persons and families. Dow Towers, a subsidized high-rise, located at 22 5th Avenue South, has
76, one-bedroom apartments. The HRA also has 10 subsidized rental town home units for
families.

Who is eligible?
Applicants must meet the income guidelines established by the Department of Housing and
Urban Development (HUD) in addition to meeting the resident selection criteria. Income
guidelines are available through their web site. Eligible households pay 30% of their monthly
adjusted income for rent.

Who is the Public Housing Contact?
The Public Housing Manager, can be reached
at 952-548-6345.

Housing Rehabilitation Loans and Grants
The City of Hopkins provides funding to assist low and moderate income homeowners improve
their homes.

Who Is Eligible?
To qualify for a loan or grant the following requirements are necessary:
   • Must be a Hopkins' homeowner residing in the property to be improved.
   • Must not exceed the income limits as listed below.
   • Must have equity in the property equal to or greater than the loan or grant amount

             Income Limits
             Number in Household      Grant          Half           Loan
             One                      $26,850        $33,550        $40,250
             Two                      $30,700        $38,350        $46,000
             Three                    $34,500        $43,125        $51,750
             Four                     $38,350        $47,925        $57,500
             Five                     $41,400        $51,750        $62,100
             Six                      $44,500        $55,600        $66,700
             Seven                    $47,550        $59,425        $71,300

Terms
The maximum grant or loan is $20,000. The grant/loan is filed as a second mortgage on the
property and is not assumable upon the sale of the home.


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Loans are offered at 3% interest over a 12-year period. Grants do not require repayment,
provided the homeowner lives in the home for six years after the work is completed.

Eligible Improvements
Improvements must be permanent. Such improvements include alteration or repairs to the
property which correct defects or deficiencies in the property that affect the safety and
habitability of the home. Work can also include upgrading the home's energy efficiency.

Examples of eligible improvements include:
   • furnaces
   • roofs
   • windows
   • electrical
   • hot water heaters
   • structural repair
   • plumbing
   • insulation

The program is funded through the Community Development Block Grant program under the
Department of Housing and Urban Development.

First Time Homebuyer Program
Mortgage Programs
More information on first time home buyer mortgage funds is available through the Minnesota
Housing Finance Agency.

Information including the following is available under HOMES:
   • Minnesota City Participation Program
   • Minnesota Mortgage Program
   • Accessibility Home Fund
   • Calculating a monthly mortgage payment

Homebuyer Education
Community Action for Suburban Hennepin (CASH), a non-profit agency, offers a three-part
home buyer education program called Home Stretch. It's FREE. Learn about the home buying
process, determine how much home you can afford, identify and overcome barriers to
homeownership, and receive a comprehensive homebuyer's guidebook. Call (952) 933-9639
x209 for the current class schedule.

City of Maple Grove
 12800 Arbor Lakes Pkwy N
 Maple Grove, MN 55311
 Phone: (763) 494.6000




88
Maple Grove is located in the North Hennepin County area.

Community Development Department
 Phone: (763) 494-6040 / Fax: (763) 494-6425

Is responsible for planning, zoning, site inspection, rental housing inspection/license issuance
and housing activities

Staff reviews residential and non-residential development proposals and prepares written reports
on comprehensive planning, zoning and development matters for presentation to the Planning
Commission and City Council.

Is also responsible for enforcement of the zoning, subdivision, rental housing and sign
ordinances, and implementation of the comprehensive plan.

Housing Programs & Resources
Whether you prefer the convenience of renting an apartment, buying a townhouse or living in a
single family home you’ll find selections ranging from a more suburban setting to neighborhoods
in urban settings.

Scattered Site Rental Housing
The City of Maple Grove owns and rents property.

Eligibility
The Maple Grove SSRHP serves families with incomes at or below 50% of the area median
household income. The SSRHP units have lower than market rents and participating family
incomes must be at least three times the rent to qualify. Employment, income, credit, previous
rental history and criminal backgrounds are determined to consider eligibility.

Availability
When properties are available a letter is sent to a notification list of interested families, the
Metropolitan Council, HousingLink, Plymouth HRA, Christians Reaching Out in Social Service
(CROSS) and Star Tribune that applications are being accepted. Applicants are then selected on
a lottery basis.

Contact information
 Call (763) 494-6043 or email at
 gsmith@ci.maple-grove.mn.us at the City of
 Maple Grove for more information.

Apartments and Multi-Housing
A list and map of apartments, multi-rental townhomes; and senior housing including
apartments, coops, condos and detached townhomes




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Affordable Housing Information
A primary distributor of affordable housing information to service agencies, housing providers,
and policymakers in the Twin Cities metropolitan area

Section 8 Housing
Administered by the Metropolitan Council

Minnesota Housing Finance Agency
Provides information on home mortgage loans, first time homebuyer loans, home
improvement loans, down payment and closing costs, foreclosure prevention and homebuyer
training

Smart Commute Mortgage
Find out about this and other programs sponsored by the Metropolitan Council.

Northwest Community Revitalization Corporation
A nonprofit partner with the cities of Brooklyn Park, Maple Grove, New Hope and Robbinsdale
in addressing the growing challenge of workforce housing in the community

Energy Assistance Program
The Energy Assistance Program can help you pay energy costs-- such as a heating bill-- between
October 1st and September 30th each year. If you qualify, you could receive a grant to cover
some of your energy expenses.

Additionally, if you receive Energy Assistance, you may qualify for weatherization services.
These services can improve your home's energy efficiency and lower your energy bill. Furnace
repair or replacement assistance is also available.

Who can apply for energy assistance?
Both homeowners and renters may be eligible for assistance. Renters that don't pay their heat
may also be eligible for energy assistance.

Do you have to pay the money back?
No. Energy Assistance is given as a grant, not a loan. You do not need to repay it.

Community Action Partnership of Suburban Hennepin (CAPSH)
Community Action Partnership of Suburban Hennepin is a community action agency working in
all of Suburban Hennepin County to improve the lives of low-income people. We offer services
to individuals through outreach, energy assistance programs, homeownership services and
financial counseling. Additionally, our Planning and Development department assists nonprofit
and other service entities in becoming more effective. The department offers a variety of
innovative services that are both responsive and adaptable to your organization's needs. These
services include technical assistance, strategic planning, organizational support and community
development.




90
Homeownership Services
Community Action Partnership of Suburban Hennepin provides full-cycle homeownership
services to help low- and moderate-income households become and remain successful
homeowners. Our experienced Housing Counselors will respectfully and confidentially review
your situation so that you can choose the best option for your housing needs.

CAPSH's Center for Homeownership offers pre- and post-purchase counseling, foreclosure
prevention assistance, reverse mortgage counseling, and information concerning home
maintenance. We are a HUD-approved housing counseling agency and our home buyer
curriculum meets or exceeds the requirements of HUD, MHFA, Fannie Mae and Freddie Mac
programs.

Homebuyer Services
CAPSH's Home Ownership services provide valuable counseling regarding the home-buying
process. The Home Stretch workshop teaches potential buyers about each step of the home
buying process.

Foreclosure Prevention
The Foreclosure Prevention Program helps homeowners who are in danger of losing their homes
due to an approaching foreclosure. The Program provides counseling, advocacy, referrals to
additional resources and other assistance to households facing foreclosure.

Reverse Mortgage Assistance
CAPSH offers reverse mortgage counseling to guide older homeowners (62+) through the
process and assist in getting equity from your home. A reverse mortgage is a special type of
mortgage that may enable older homeowners to remain in their home for as long as they choose.
It is a loan against home equity that provides homeowners with cash advances according to the
plan they select.

Home Repair & Rehabilitation
CAPSH's Rehab advisors assist homeowners in prioritizing projects to improve the structural
integrity of their home.

Rental Support Services
CAPSH's Rental Support Services assist homeless families in securing safe and stable housing.

Homebuyer Education (Home Stretch Workshops)
The four-part series, led by a professional instructor, guides potential homebuyers step-by-step,
through the home buying process. After completing the workshop series, individuals may be
eligible for special Minnesota Housing Finance Agency (MHFHA) financing, down payment
and/or closing cost assistance.

Financial Counseling Services
Developing a sound financial plan is very important to one's current and future well being. At
CAPSH we understand the importance of a budget and taking care of your credit record. We




                                                                                                 91
offer valuable advice on what type of financial commitments to stay away from as well as two
ways to improve your financial outlook:

CAPSH has teamed with Lutheran Social Service Financial Counseling, a highly respected non-
profit organization, to provide budget counseling, debt repayment plans, and financial education.
Services are provided by certified credit counselors in our Hopkins office.

LSSFC Steps to Financial Budget Counseling
  • Gather your financial information such as paychecks, bills, credit card statements and all
     other information. You can download a budget worksheet to help you in this process.
  • Our certified financial counselors do a complete budget review of all your income and
     expenses, and develop a budget that works for you.
  • Over your head with debt? Our counselors will help you find options to debt problems

An online tool called Managing My Money offers loads of information on budgeting, debt,
retirement planning, the use of credit, insurance, taxes, and more.
    • Please call 1-888-577-2227 to make an appointment.
    • Budget counseling is free and confidential

City of Minnetonka
 City Hall
 14600 Minnetonka Blvd.
 Minnetonka, MN 55345
 Phone: (952) 939.8200
 Fax: (952) 939.8244

Minnetonka is located in Hennepin County just eight miles west of Minneapolis.

Economic Development Authority (EDA)
The Economic Development Authority (EDA) advises the city council regarding economic
development, housing, and redevelopment matters, and exercises certain powers as authorized by
the council.

Twin Cities Community Capital Fund
The city of Minnetonka is a member of the Twin Cities Community Capital Fund, a new
economic development financing resource for the seven county Twin Cities Metropolitan Area.

Housing
Affordable Housing
In order to achieve it’s strategic goals, the city of Minnetonka and the Metropolitan Council have
worked together to create affordable housing development goals.


 Affordable owner-occupied and rental housing goals




92
                                 Long Term Goals         Results to      Percent of
 Goal Type                       1995–2010               Date            Long-Term Goals

 Owner-Occupied New              180 units               234 units       130%
 Construction

 Rental New Construction         324 units               200 units       62%

 Total                           504 units               434 units       86%

Home Improvement Projects and Loans
Home improvement projects such as decks, garages, fences, and additions, must be approved by
the planning division. If you are considering this type of project, call 952.939.8200 to find out
what kinds of changes are allowed on your property.

Next, you must obtain the proper building permits for your project.

The final stage of a home improvement project is to have the construction inspected by the
building inspections division
Home Improvement Loans
Emergency Home Rehabilitation Loan
This is an emergency, deferred loan without interest or monthly payments for qualifying
households. The amount of the loan must be repaid only if you sell your home, transfer or
convey title or move from the property within 10 years of receiving the loan. After 10 years, the
loan is completely forgiven.

Eligible emergency repair activities include: roof repair, furnace, hot water heater, etc.

Program: Deferred Emergency
Maximum Loan: $4,999

Maximum Household Income:
1 Person  $27,475                      5 Persons      $42,390
2 Persons $31,400                      6 Persons      $45,530
3 Persons $35,325                      7 Persons      $48,670
4 Persons $39,250                      8 Persons      $51,810

Asset Limit: $25,000
Interest Rate: None
Lien: 10 years

For more information, please contact the Community Action Partnership for Suburban Hennepin
at 952.933.9639, ext. 210




                                                                                               93
MHFA Fix-Up Home Improvement Loan
The Minnesota Housing Finance Agency (MHFA) Fix-Up Fund allows homeowners to make
home, energy efficiency, and accessibility improvements through a low-interest loan.

Examples of improvement that can be made include:
   • Room addition or new garage
   • Furnace/air conditioning installation
   • Roof replacement
   • New paint job/siding
   • Upgrade/replace electrical wiring
   • Septic system/plumbing repairs
   • Energy conservation (such as windows, doors, insulation)
   • Accessibility improvements (bathrooms, ramps)

Program:                               Fix-Up Fund
Maximum Loan:                          $35,000
Maximum Household Income:              $88,000
Interest Rate:                         7.25%
Lien:                                  15-20 years depending on loan amount

 For more information contact Wells Fargo
 Bank at 612.667.1566 or visit MHFA's
 website.

H.O.M.E. Program
The H.O.M.E. program is a homemaker and maintenance program that is designed to assist the
elderly. The goal is to assist those who are age 60 and older, or those with disabilities in order to
allow them to remain in their homes. Services include: house cleaning, food preparation, grocery
shopping, window washing, lawn care, and other maintenance and homemaker services.

 For more information, please call (952)
 939.8363 on Monday or Wednesday
 afternoons from 12:30pm to 3:30pm.

Center for Energy and Environment Home Improvement Loans
Minnesota Fix-Up Fund
The Minnesota Fix-up Fund offers loans at below market interest rates to homeowners. The fix-
up fund was established to improve the basic livability and/or energy efficiency of the
borrower’s home.

Eligible projects
    • Includes interior or exterior improvements, general remodeling or maintenance items.
    • If the improvement is being made for accessibility purposes for a family member who is
       disabled the maximum household income does not apply and the loan may be higher.



94
Eligible borrowers
    • Gross annual household income of $90,000 or less
    • Borrowers must own the property or be purchasing it through a mortgage or contract for
       deed

Eligible structures
    • Owner-occupied, 1–4 unit properties
    • Up to 49% of the residence may be used for business
    • Property must be a completed structure

Maximum Loan:         $35,000
Interest Rate:        7.25% APR
Loan mortgages:       Loans over $10,000 will be secured by a mortgage
Lien:                 20 years

 For more information, contact (612) 335.5884

CEE Home Energy Loan
The Home Energy Loan program offers low interest loans to homeowners that want to make
energy improvements to their properties.

Eligible improvements
Includes heating system replacement, insulation, windows, doors, and water heaters

Eligible borrowers
    • No maximum annual household income limit.
    • Borrowers must own the property or be purchasing it through a mortgage or contract for
       deed

Eligible structures
    • Owner-occupied, 1–4 unit properties
    • Up to 49% of the residence may be used for business
    • Property must have been built prior to May 1, 1989.

Maximum Loan:         $10,000
Interest Rate:        7.25% APR
Lien:                 5 years
Loan mortgages:       All loans will be secured by a mortgage
Maximum term:         5 years

 For more information, contact (612) 335.5884

Homeownership Programs
First-time Homebuyer Programs
The Minnesota Housing Finance Agency offers a lower-interest loan for first-time homebuyers.


                                                                                           95
Minnesota Mortgage Program (MMP)
The MMP program is a first-time homebuyer program that offers lower-interest rate loans. In
order to qualify for the loan you must:
   • Be a first-time homebuyer (anyone that has not owned a home or interest in a home in the
       past three years).
   • Meet income requirements.
   • Purchase an eligible property (single-family, condominium, townhouse, or 2-unit
       duplex).
   • Have federal income tax return copies for the last three years.
   • Have acceptable credit.

Additional information on the MMP Program is available from the Minnesota Housing Finance
Agency. Please contact 651.296.8215 or barb.collins@state.mn.us or visit the MHFA’s
information page on MMP

Income and home purchase-price requirements for MMP programs

Maximum gross household income:
1–4 persons $63,000
5 persons   $68,500
6 persons   $73,500
7 persons   $78,500
8 persons   $83,500

Maximum home purchase price: $298,125

Downpayment and Closing Cost Assistance
The Minnesota Housing Finance Agency (MHFA) offers downpayment and closing cost
assistance to qualifying first-time homebuyers who participate in a MHFA first-time homebuyer
loan program to purchase a home.

The Home Ownership Assistance Fund (HAF) offers a zero-percent deferred loan for help
with:
   • Entry cost assistance up to $3,000 (such as downpayment or closing cost expenses)
   • Monthly payment assistance up to $75 per month (help paying part of the monthly
      mortgage)

HAF loans are repaid when one of the following occurs:
  • Property is sold
  • Refinance
  • Transfer property
  • Property is no longer owner-occupied
  • First mortgage is paid off

To qualify for a HAF loan:


96
   •   Must participate in a MHFA first-time homebuyer loan program (MCPP or MMP)
   •   Purchase either a single-family home or a duplex within the maximum purchase price
       limits for the MCPP or MMP programs.
   •   Meet income requirements.

 Additional information on the HAF Program is
 available by contacting Barb Collins of the
 Minnesota Housing Finance Agency at
 651.296.

Homebuyer Education
Community Action for Suburban Hennepin (CASH) offers home buyer education through a series
of four classes which focus on the home-buying process. Subjects covered in the classes include:
    • How much house you can afford
    • Barriers to homeownership and overcoming them
    • How to find the right home
    • Problems (such as plumbing, heating, electrical, etc.) that may occur and how to identify
        them

There is a fee of $20 and pre-registration is required. To find out more information about the
Homestretch Workshops, or to see a schedule of classes, or to register for a class, visit CASH’s
website or call 952.933.9639, ext. 281.

Other Affordable Housing Programs
Homes Within Reach
Homes within Reach is a non-profit Community Land Trust that provides affordable
homeownership opportunities by purchasing single-family homes and selling them to qualified
first-time homebuyers at a reduced price (average sales price is approximately $140,000). Homes
within Reach then retains ownership of the land and leases it to the homeowner for a small fee.

To qualify:
   • Must be a first-time homebuyer
   • Qualify for a mortgage from a commercial lender
   • Meet income qualifications

To learn more about the Homes within Reach program or to find out how to apply, contact them
at 952.401.7071 or visit homeswithinreach.org.

Habitat for Humanity
Habitat for Humanity is a non-profit agency that provides homeownership opportunities.
Homeowners contribute to the cost of their home through sweat-equity hours and through a no-
interest mortgage. Interested households must complete an application and a homebuyers’
education class.

 For more information on Twin Cities Habitat


                                                                                               97
 for Humanity or to find out how to apply,
 contact them at 612.331.4090

Foreclosure Prevention
Community Action for Suburban Hennepin offers foreclosure prevention services to help
homeowners who may be facing foreclosure. Homeowners work with counselors to get
information, referral, and support through services such as:
    • Early intervention
    • Budget counseling
    • Answers to foreclosure questions
    • Information on refinancing and escrow accounts
    • Pre-foreclosure sale information

As a last resort, financial assistance may be given to qualifying homeowners in the form of an
interest-free loan.

To learn more about the foreclosure prevention program, contact Community Action for
Suburban Hennepin at 952.933.9639, ext. 202, or visit www.cashenn.org/foreclosure.htm. If
you are facing foreclosure, please call immediately.

Reverse Mortgage
Community Action for Suburban Hennepin offers reverse mortgage counseling that allows
homeowners to receive a loan against the home for additional cash. The loan is then repaid
when the homeowner moves or sells the house. To qualify for a reverse mortgage you must:
   • Be at least 62 years of age or older.
   • Own a single-family home, townhouse, condominium, duplex, triplex, or four-plex.
   • The home must be owned free and clear or have a mortgage balance that can be paid off
       with the cash from the reverse mortgage.

To learn more about the reverse mortgage program, contact Community Action for Suburban
Hennepin at 952.933.9639, ext. 202 or 227, or visit www.cashenn.org/reversemortgage.htm.

Rental Housing
Section 8 Rental Assistance
The Metropolitan Council administers the federal Section 8 rent-subsidy program, which
qualifies tenants who meet certain guidelines to live in either privately-owned, market-rate rental
housing or housing built or rehabbed through Section 8. Participants pay no more than 40 percent
of their income for rent and utilities.

To register for Section 8 assistance, please call the Metropolitan Council at 651.602.1553 the last
Thursday of each month between 8:00 a.m. and 4:30 p.m.

 For questions about the Section 8 housing
 program, call the Metropolitan Council at
 651.602.1428 or view the information at



98
 www.metrocouncil.org/housing/hra/hra.htm
 .

City of New Hope
 City Hall
 4401 Xylon Avenue North
 New Hope, MN 55428
 Phone: (763) 531-5100

New Hope is located just 10 miles from downtown Minneapolis, along Highway 169.

Economic Development
Tax Increment Financing
Tax increment financing is a planning and financing tool which has been used by local units of
government since 1973. Tax increment financing was originally designed by the Minnesota
Legislature to replace the federal urban renewal programs of the 1960s which were gradually cut
back and eventually eliminated. Tax increment financing uses the increase in property taxes
resulting from new development to finance qualified public improvement costs related to that
development. It is this increase or difference between the current property tax on a parcel of land
and the estimated property tax after development, that is the tax increment. Other sources of
revenues may also be classified as tax increment. Permitted uses of the tax increment generated
vary according to the type of tax increment financing and the year during which the tax
increment financing district was certified. The three different types of TIF Districts include:
    • Redevelopment Districts
    • Housing Districts
    • Economic Development Districts

New Hope has established seven TIF Districts over the past years and they are all
Redevelopment Districts. The longest geographic TIF District is located along 42nd Avenue. The
City assisted the development of the Gill Brothers Funeral Chapel on 42nd Avenue with the use
of TIF funds, due to the difficulty of developing that parcel related to soil conditions and the lot
size configuration.

Industrial Development Revenue Bonds (IDRB)
Tax exempt industrial development revenue bonds are still a valuable financing tool for
manufacturing companies. Tax exempt IDRBs still enjoy most of their economic advantages
over traditional taxable financing. Companies that use IDRBs can receive long-term, fixed-rate
financing at interest rates below the taxable market. The issuer of an IDRB can either be a city,
HRA, or other similar type of political subdivision. Once the bonds are issued, the proceeds are
loaned to the company and used to finance the project. The company then enters into a loan
agreement with the issuer which requires the company to make payments to the trustee which
equal the payments on the bonds.

The tax reform act of 1986 limited the use of IDRBs to small manufacturing companies. Small is
defined as a company not exceeding $10,000,000 of total capital expenditures over a six-year



                                                                                                 99
window, three years before the issuance of the bonds and three years after issuance. Capital
expenditures include buildings and equipment located within the boundaries of the political
subdivision. Manufacturing is not defined, but as long as a raw product going in is different from
the finished good leaving the company, it is generally defined as manufacturing.

In 1986, Congress also limited the total number of private purpose bonds each state could issue.
Requests for allocation are sent to the State along with a deposit application and a scoring
worksheet. In New Hope, an application form provided by the City, must also be completed. In
order to receive all of the requested allocation, a company must score at least 50 points on this
worksheet. A project will earn points by creating jobs, increasing payroll, increasing tax base,
and creating jobs in communities with high unemployment rates. Each January the State has a
new allocation to be used for IDRBs.

Over the past several years, the City of New Hope has utilized IDRB financing to assist Paddock
Laboratories, Gaines and Hanson Printing, West Pac Manufacturing and Ware Manufacturing. If
you are interested in pursuing this type of financing, contact City Manager 763-531-5112, or
Community Development Director 763-531-5119, or

Gap Financing Loans
The Economic Development Authority occasionally makes gap financing loans in conjunction
with programs offered by the Small Business Administration and in conjunction with
conventional financing.

Joint Venture Land Sales
The Economic Development Authority occasionally participates in joint ventures to acquire
property to promote surface water quality improvements and to promote business expansion or to
bring new business to the City. One example of this is the Conductive Containers, Inc. project at
4500 Quebec Avenue, where the City acquired property to develop a storm water quality pond
and sold the remaining land to facilitate a new business to locate in the City.

The Community Development Department
   • Defines future city development through long-range planning and zoning requirements.
   • Reviews commercial and industrial development proposals for compliance with city
      standards.
   • Coordinates all construction and remodeling activities in the city.
   • Protects public health and safety by ensuring compliance with city, county, state, and
      federal codes.

Business Resources
New Hope is built on a strong industrial tax base. The City is proud to be home to 450 thriving
industrial and commercial businesses. There are many wonderful resources available to help
maintain and grow economic activity in the City.

Business Award Program
The New Hope City Council recognizes New Hope businesses for their contributions to the
community. The New Hope Outstanding Business Award Program acknowledges businesses for


100
noteworthy accomplishments, such as expanding or improving a building or property, creating
new jobs for New Hope residents, reaching a milestone year (i.e. 30 year anniversary in New
Hope), or providing outstanding community service.

The program features a quarterly award to an outstanding business, determined through a
nomination process. In addition to receiving an award plaque, award recipients will have their
business name engraved on a permanent plaque in City Hall and recognition articles will be
posted on the city website and in city publications. For more information and to obtain an
application contact (763) 531-5110

Housing
Rental Registration Permit Program
The city of New Hope requires all residential rental properties to register with the city annually.
The purpose of the Rental Registration Permit Program is to help maintain the quality of the
rental housing stock in the city and protect the city’s neighborhoods.

Small rental properties (including single-family homes, condos, and duplexes)
Rental properties that are one to two units receive a one year permit valid July 1 through the end
of June.

Multifamily rental properties (three or more units)
Rental properties with three or more units receive a one year permit valid January 1 through the
end of December.

Once registered, rental property owners will be sent a renewal notice prior to the expiration of
the registration permit. Rental property owners are responsible for contacting the Inspections
Department (763-531-5110) upon change of contact information, such as new address or new
phone number.

Annual Residential Property Recognition Program
The New Hope Residential Property Recognition Program recognizes the efforts of New Hope
residents who put a lot of time and energy into maintaining or improving their homes to make
them something special. The New Hope City Council encourages residents to nominate a
neighbor who takes exceptional pride of ownership or who is particularly attentive to
maintaining their residential property. Self nominations are also encouraged.

 Contact the Community Development
 department at 763-531-5110

Award categories
Awards are available in multiple categories, including:
  • Outstanding general property maintenance and improvements
  • Outstanding remodel, renovation, or addition
  • Outstanding landscaping and/or gardens
  • Outstanding environmentally sensitive improvements (i.e. use of rain gardens, green
      building materials, and storm water management strategies)


                                                                                                101
If a nominated residential property does not fit into a category listed above, nominators are
welcome to create additional categories.

City of Plymouth
 City Hall
 3400 Plymouth Blvd.
 Plymouth, MN 55447
 Phone: (763) 509-5000
 TDD: (763) 509-5065
 Fax (General Offices): 763-509-5060

Plymouth is located ten miles northwest of downtown Minneapolis.

Community Development Department
City Hall
Phone: (763) 509-5400
Fax: (763) 509-5407

Planning Division: 763-509-5450 / planning@ci.plymouth.mn.us
Building Division: 763-509-5430 / inspections@ci.plymouth.mn.us
Housing Division: 763-509-5410 / housing@ci.plymouth.mn.us

Housing Division
 City Hall
 Phone: (763) 509-5410
 Fax: (763) 509-5407

Housing and Redevelopment Authority (HRA)
The HRA manages the City's housing and community development programs, and administers
federal, state, and local grants for housing programs. The HRA also manages a senior apartment
building, Plymouth Towne Square.

Members of the HRA are appointed for five-year terms expiring at the end of January or until a
new commissioner has been selected as a replacement.

For more information on the Plymouth HRA and its programs, please contact the Housing
Division.

Section 8 Rent Assistance
The Plymouth Housing and Redevelopment Authority works with the federal Department of
Housing and Urban Development to provide housing subsidies for low income persons through
its Section 8 program. There is a waiting list for this program.




102
First Time Homebuyer Program
If You Are A First Time Homebuyer And You Want To Buy A Home In Plymouth, You May
Qualify For A Program That Will Help Assist In The Costs Of Purchasing A Home.
    • This Is A Zero Interest Deferred Loan Of Up To $25,000, With The Plymouth Hra
        Holding A Second Mortgage On The Property.
    • Financial Assistance Can Be Used For Up To 50% Of The Required Down Payment,
        100% Of Allowable Closing Costs Up To $5,000 And For Reduction Of The Mortgage
        Principle.
    • Repayment Of The Loan Is Required If The Home Is Sold Or No Longer Homesteaded
        Within The First 30 Years Of Ownership. After 30 Years, The Loan Becomes Due And
        Payable.
    • Applicants Will Be Accepted On A First-Come, First-Serve Basis.
    • Program Guidelines And Income Requirements Are Subject To Change.



Eligibility Criteria
    • You must be a first time homebuyer. (Have not owned a home in the last three years or
        have been displaced due to a divorce situation.)
    • You must buy a home in Plymouth.
    • You must register and attend all homebuyer-training sessions with Community Action
        Partnership of Suburban Hennepin (CAPSH) prior to closing.
    • Use only one of the Participating Lenders for your primary mortgage.
    • Your household income must not exceed the maximum income limits* by household
        size. This is based on your gross earnings and includes all income received, such as
        wages, child support, alimony, etc. Income limits are revised yearly.

*$41,700 for a one person household
*$47,700 for a two person household
*$53,650 for a three person household
*$59,600 for a four person household
*five or more, please call 763-509-5410.

How to Participate
  1. Make Sure You're Eligible. The first step is to determine if you are eligible. See the
      Eligibility Criteria above.
  2. Educate Yourself. The second step is to attend the homebuyer classes provided by
      Community Action Partnership of Suburban Hennepin (CAPSH). You must attend all of
      the homebuyer education classes as well as a free personal counseling session. Register
      for the classes by calling 952-933-9639. The information provided in the sessions will
      help you determine if owning a home is right for you.
  3. Get Pre-Approved. The third step is to meet with one of the Participating Lenders to get
      pre-approved for a mortgage. The lender will also work with you to determine the
      mortgage product that is right for you. Call the Plymouth HRA, 763-509-5410, for a
      current list of Participating Lenders.



                                                                                           103
   4. Apply to the HRA. After you are pre-approved, you can submit an application for the
      Plymouth program. Call the Plymouth HRA at 763-509-5410 for an application. HRA
      staff will then work with you and your lender to coordinate the assistance.
   5. Find a Home. You should then begin looking for a home in Plymouth. Contact your
      lender and the HRA when you sign a purchase agreement. For more information, call
      763-509-5410.

Homestead Tax Credit
If you are a new homeowner or qualifying relative of a homeowner, you can save on property
taxes by filing for homestead classification. The deadline to file for the homestead tax credit
changes each year, but it typically falls in mid-December. Please call the Assessing Division at
763-509-5350 for the current year's deadline.

Eligibility Requirements
You must occupy the home by Dec. 1 to be eligible for the homestead tax credit for taxes
payable the following year. To qualify, you must meet all of the following requirements.
    • You must own the property, or be a qualifying relative of at least one of the owners.
        Qualifying relatives are the owner's child, daughter/son-in-law, stepchild, parent, parent-
        in-law, stepparent, grandchild, grandparent, grandparent-in-law, sibling, sister/brother-in-
        law, aunt, uncle, niece or nephew.
    • You or your qualifying relative must occupy the home as a primary residence; and
    • You must be a Minnesota resident. If the property is the primary residence of a qualifying
        relative of the owner, the owner does not need to live in Minnesota. You may be
        considered a Minnesota resident if all or some of the following apply:
        o You are registered to vote in Minnesota;
        o You have a valid Minnesota driver's license or Minnesota picture I.D. card;
        o You list a property in Minnesota as your permanent mailing address;
        o You are employed by a business located in Minnesota;
        o Your children, if any, attend school in Minnesota; and/or
        o You are not a legal resident of any other state or county.

The law requires that a "Certificate of Real Estate Value" must be filed before a homestead can
be granted (Minn. Stat 272.115).

Rehabilitation Loan Program
If your home needs repairs or energy efficiency improvements, you may qualify for a zero
interest, home improvement deferred loan from the Plymouth Housing and Redevelopment
Authority (HRA).

The Plymouth Home Improvement Deferred Loan Program is available to low and moderate
income households to maintain, repair and improve their homes. The Plymouth HRA administers
the program with funds appropriated from Community Development Block Grants. The program
seeks to improve the safety, livability and energy efficiency of homes owned by low and
moderate income families in Plymouth.

Eligible Improvements


104
Eligible improvements include repairs necessary to make your home a safer, more energy
efficient place to live. This may include new roofs, siding, windows, electrical, plumbing,
heating, and insulation. Other repairs may also be eligible.

Funding cannot be used for cosmetic remodeling, or to refinance any existing debt or previous
rehab work.

Qualification Requirements
  • You must be a resident of Plymouth and own your home.
  • You must be current on mortgage payments, deed payments, property taxes and home
       owners association dues (if applicable).
  • Your current annual gross income must not exceed the income limits* set for the
       program. (Pensions, Social Security, disability, and other regular payments are
       considered part of regular income.)

*$32,950 for a one person household
*$37,700 for a two person household
*$42,400 for a three person household
*$47,100 for a four person household
*$50,900 for a five person household
*$54,650 for a six person household
*$58,400 for a seven person household
*$62,150 for a eight person household
Call 763-509-5410 with any questions

Terms of the Loan
A "deferred" loan means that the total amount of funds you receive for your home improvements
are repaid to the HRA only if you move, transfer your title or change the title to your property.
No interest accrues on the loan and there are no monthly payments. The amount of the deferred
loan depends on the cost of eligible improvements. The maximum loan amount is $20,000.
Additional funds are available for accessibility improvements to your home for disabled
household members.

Repayment
You must be willing to sign a repayment agreement with the Plymouth HRA that will require
you to repay a portion or all of the loan amount (without interest) should you move from your
house in the next 20 years. A decreasing portion of it would have to be repaid if you sell or move
after 10 years, but before 20 years. If you do not move or sell your house in 20 years, you will
not have to repay any portion of the loan.

How Do I Start?
  1. Complete an application and provide proof of eligibility.
  2. Meet with the HRA staff to review the program.
  3. After you are approved for the program, your home will be inspected by a certified City
     of Plymouth inspector to determine what work is needed. Eligible improvements will
     then be prioritized. Priorities are:


                                                                                              105
   4. Health and Safety Hazards: This may include correcting or replacing faulty or inadequate
      plumbing, electric wiring, or malfunctioning/aged furnaces.
   5. Energy Improvements: This may include installing insulation, storm windows, storm
      doors, weather-stripping and caulking.
   6. Obtain at least two quotes for the work from qualified contractors. In most cases, the
      lowest bid is selected.
   7. Final inspections will be made on all work as well as some interim inspections, if
      necessary. Payment will be made directly to the contractor.

Senior Home Repair Grants
If you're age 55 or older and you own a home in Plymouth that needs small or emergency
repairs, you may be eligible for a grant of up to $5,000.

Make Emergency Repairs
  • Water Heaters
  • Furnaces
  • Roof Repairs
  • Broken Windows
  • Doors & Door Locks
  • Water & Sewer Repairs

Address Non-Emergency Items
  • Accessibility Upgrades - Grab Bars & Handrails
  • Stair Repair
  • Minor Electrical & Plumbing Work
  • Critical Kitchen & Bath Repairs

You must have a total household income under these limits to qualify:
  • One person household - less than $32,950
  • Two person household - less than $37,700
  • Three person household - $42,400
  • Four person household - $47,100




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