Small Cities Development Program (SCDP)
With funds awarded by the Minnesota Department of Employment and Economic Development (DEED), this program provides financial assistance for low to moderate income individuals who are residing in substandard housing. This program also encourages the improvement of the general appearance and value of the housing stock while making a visible and substantial improvement in the quality of life and appearance of the community. Small Cities Development program also offers financial assistance to commercial and rental property owners. This program can provide upgrades to properties, helping them to meet code requirements and design standards.
*Commercial and Residential SCDP Grants are awarded annually to cities who have submitted applications.
- Eligible Units: Single-family homes, commercial, or rental units (depending on the grant). Mobile homes are not eligible.
- Ownership: The applicant must own or be purchasing a property within the targeted area of the project. Ownership of property may also includes life estates and Contract for Deeds depending on which grant, as long as the CFD vendors and the Life Estate remaindermen fall under the SCDP income guideline as well. Trusts and properties with reverse mortgages are not eligible.
- Occupancy: The home to be improved must be the applicant’s principal place of residency. The applicant must live in the home a majority of the year.
- Eligible Repairs: Repairs that are permanent and necessary are eligible. Examples include roofing, foundations, siding, heating units, electrical, plumbing, and other health and safety items. Additions are not allowed.
- Real Estate Taxes, Mortgage & Property Insurance: An applicant must be current with their real estate taxes and Mortgage and the home must be insured while the loan is in place in order to receive a Housing Repair Loan.
Deferred Loan Meaning
The loans will be loaned as 0% deferred loans. This deferred loan requires no monthly payments, no interest will accrue and it will revert into a grant if the property does not change ownership within the time specified in the grant guidelines. With the exception on life estates or contract for deeds, which have no descending forgiveness.
- Average Loan: Average loan amount depends on the grant. Usually 70-80% grant funds and 20-30% owner match for project funding. UCAP will assist in determining the match and other resources that may be available to fund the match, if applicable.
- Income: Income guidelines for homeowners are determined by HUD section 8 and are based on 80% area median income. There are no income guidelines for commercial projects. Rental projects have different income rules.
- First-Come-First-Serve: Applicants are served on a first-come-first-serve basis, with the exception on waitlist criteria.
Housing Repair Process
- UCAP will inspect the property, identify any housing problems, and will work with the applicant to determine what repairs should be done. LEAD RULES AND REGULATIONS DO APPLY.
- The homeowner will select the contractor from a list of UCAP approved contractors that they would like to bid on their project and bid packets will be distributed to these contractors.
- The owner shall enter into a repayment agreement with the City to accept the conditions of the loan. The repayment agreement will be filed at the County Recorder’s Office.
- Construction time length averages 90 days (contingent on favorable conditions).
- Upon project completion, a final inspection will be done and the project will be closed.
Current SCDP Projects
City of Jackson
- Jackson Owner Occupied SCDP Program Information (PDF)
- Jackson Commercial SCDP Program Information (PDF)
- Jackson Commercial Target Area (Image)
City of Lakefield
- Lakefield Owner Occupied SCDP Program Information (PDF)
- Lakefield Commercial SCDP Program Information (PDF)
- Lakefield Commercial Target Area (Image)
Jackson County Income Limits
City of Eden Valley
- Eden Valley Owner Occupied SCDP Program Information (PDF)
- Eden Valley Commercial SCDP Program Information (PDF)
- Eden Valley Commercial Target Area (Image)
Stearns & Meeker Counties Income Limits
City of Redwood Falls
- SCDP Target Areas Map (Image)
Open to Target Area “B” after August 1st, 2021
- Redwood Falls Owner Occupied SCDP Program Information (PDF)
- Redwood Falls Commercial SCDP Program Information (PDF)
Redwood County Income Limits
How to Apply
Minnesota Housing Finance Agency (MHFA) – Rehabilitation Loan Program
The Rehabilitation Loan Program, funded by the Minnesota Housing Finance Agency (MHFA), assists low income homeowners in financing basic home improvements that directly affect the safety, habitability, energy efficiency or accessibility of their homes.
- Maximum loan amount is $37,500.
- Maximum loan term is 15 years for properties taxed as real property and 10 years for mobile/manufactured homes that meet qualifying criteria.
- Can be used for rehabilitation of single-family homes, town-homes, condominiums and manufactured housing taxed as real or personal property.
- All loans are forgiven if the borrower does not sell, transfer title, or ceases to occupy the property during the loan term.
Eligible Home Improvements
Eligible Home Improvements
Basic improvements to the livability, accessibility, energy efficiency and addressing lead paint hazards are eligible. Electrical wiring, furnace replacement, plumbing and septic repairs are just some of the possible repairs.
Eligibility Requirements for Loan
- Owner occupies the property to be rehabilitated.
- Owner does not have assets that exceed $25,000.
- Owner is current with mortgage and property taxes.
- Household falls under the following income limits.
Size of Household – Income Limits
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How to Apply
For more information or to request an application please contact:
Women, Minority and Section 3 businesses are encouraged to apply. Preference is given to Women, Minority and Section 3 businesses. EOE/AA/ADA
If you are interested in working as a contractor with United Community Action Partnership’s Home Rehabilitation programs, please contact us to complete the Contractor Application.