Housing

Repayment Terms

• Loans carry 0% interest.
• Loans will be repayable in equal monthly installments over a period of five years.
• Loan repayments may be deferred for three months from the date of the approval letter
• Loans will be due and payable in full when the borrower refinances, sells the home, or the property is no longer a residential rental property.
• Loans made under the Rental Rehab Program are not assumable.  

Eligible Improvements

Improvements must be physically attached to the property and must be permanent in nature.

The following types of improvements are eligible:

• Improvements to and replacement of roofs, floors, exterior walls, interior walls, stairs, sidewalks, foundations, windows, doors and other basic housing features.
• Functional improvements to and the replacement of electrical systems, plumbing and plumbing fixtures, heating units, individual sewage treatment systems, etc.
• Improvements that address energy consumption and security.
• Structural additions.

The following improvements and costs are ineligible:

• Fireplaces or wood stoves.
• Decks, patios, or landscaping beyond that required in connection with foundation or basement work.
• Appliances or other improvements not permanently installed or attached to the structure.
• Improvements that are done prior to the approval of the loan from the Rental Rehab Program.
• Refinancing of existing indebtedness.
• Payment for labor of borrower.

Eligible Properties

Properties eligible for Rental Rehab funding must be located in Renville County, be the applicant’s rental income property and be used exclusively for residential rental purposes.

• Property must be renter occupied for the life of the loan.
• Property cannot be renter occupied by immediate family. (Children, step-children, spouse, parent, grandparent).
• Properties may not be under a contract for deed.
• Mobile homes shall not be eligible for Rental Rehab funds.
• No funds will be disbursed for the rehabilitation of a property on which property taxes are delinquent and unpaid.
• No funds will be disbursed for the rehabilitation of a property which is in default of a mortgage, contract for deed or comparable obligation or if the owner is currently engaged in bankruptcy proceedings.
• A property is eligible if it is owned by a private entrepreneur or housing co-operative.
• Rural Development and HUD properties are not eligible for this program.

Program Outline

Eligible applicants may qualify for county and/or city property tax abatement for residential properties built within Renville County boundaries, in accordance with Minn. Stat. 469.1813. This will include single family homes and multi-family residential units. This policy shall have limitations on taxable value per property, as well as the total aggregate amount that can be abated in any given year for all properties (as budgeted and approved by the County Board).

• Newly constructed single-family residences may receive abatement of up to $200,000 in assessed value for up to five (5) years.
• Multi-family residences may receive the same $200,000 assessed value 5-year property tax abatement, plus an additional $10,000 assessed value per additional unit. (For example: a 4-unit apartment complex may qualify for up to $230,000 in assessed value property tax abatement).

Abatement will be in the form of a tax rebate calculated by the County Auditor-Treasurer after timely payment of regular property tax payment is made. This abatement does not apply to any penalty or interest due resulting from late or delinquent payment of property taxes.

Eligibility and Application Processing

• Property must be located within Renville County.
• Project is built to building codes adopted at the time building permit is obtained.
• Property taxes must be current at time of application.
• Applicant must apply for abatement within six (6) months of obtaining the appropriate land use or building permit.
• Abatement may transfer with the sale of the property for the balance of the original five-year abatement period.
• Abatement only applies to the new residential property being built.  It does not apply to any special assessments, accessory structures, etc.
• Each Renville County city will have its own guidelines on if they allow abatement of their portion of their taxes.
• Applications will be received by the Auditor-Treasurer’s office and reviewed to confirm eligibility.
• If eligibility criteria are met, the Auditor-Treasurer’s office will calculate the estimated property tax eligible for abatement and forward details to Administration so the request can be addressed by the County Board, including the scheduling of a public hearing.