Home Improvement Loan Program | City of Bloomington MN

HELP (Housing and Environmental Loan Program) Loans

1. Program Summary

• Housing & Environmental Loan Program (HELP) provides Bloomington income qualifying owner-occupied households the ability to access forgivable loan funds to be used for emergency repairs without completing a full-scale rehabilitation project and signing a long-term repayment agreement.

2. Program Purpose

• To provide a sufficient supply of adequate, safe, and sanitary dwellings in order to protect the health, safety, morals, and welfare of the residents of Bloomington.
• To help residents not adequately served by the marketplace.
• To be able to respond quickly to urgent owner-occupied housing concerns.

3. Eligible Borrower

• Bloomington owner-occupants of an eligible property that has a condition which threatens or imperils health and/or safety and requires immediate and urgent attention.
• Referred by City of Bloomington staff (e.g., Environmental Health, HRA, Building and Inspections, Public Health and/or other staff who conduct inspections).
• Documentation of red flagged plumbing, heating and/or electrical system dated within 30-days prior to application date.

4. Eligible Property

• Single-family (attached or detached), townhome or condominium within city limits of Bloomington that has either:
  • A “Red flagged” plumbing, heating and/or electrical system by a utility company.
  • Orders of violation and/or requirement for immediate repair of health and/or safety items by City of Bloomington.

5. Loan Amount

• Loan amount is up to $9,999.
   

6. Eligible Use of Loan Funds

• A condition requiring immediate and urgent attention, which threatens or imperils the health and/or safety of the property and its occupants, such as:
  • Emergency health and safety.
  • Public sewer and water hook-up.
  • Major structural work, where the home’s structural integrity (i.e. foundation, beams, walls and roof) is compromised and is in need of prompt repair to prevent further damage or deterioration to the home.
  • Major internal systems (i.e. plumbing, heating, water, electrical) that are in need of repair, replacement or upgrading under current code requirements.
  • Other code violations as noted by City enforcement and/or inspectors.
     

7. Loan Terms

• Zero percent interest.
• No monthly payment.
• Loan is forgiven at a rate of 1/36th over three (3) years of occupancy as primary residence by borrower.
• The mortgage may be subordinated as part of a refinance of the primary loan. These loans are considered a “Special Mortgage” under the terms of Minnesota Statutes Section 58.13.
   

8. Loan Security

• This loan will be separately secured by a short term Repayment Agreement.
• This loan may be secured in a subordinate lien position.
• No title insurance is required.
• No mortgagee clause is required in the owner’s hazard insurance policy.
   

9. Catastrophic Event

• In the event the Mortgage holder or the servicer, in their sole and absolute discretion, after a loss mitigation analysis, find that a catastrophic event, including, but not limited to borrower’s death or extended illness, or the extended illness of a close family member who depends primarily on borrower for support, has occurred which substantially and permanently impairs their ability to repay the loan and requires a sale of the property for an amount less than the existing balance on the loan, that portion of the loan that cannot be satisfied from the proceeds of such sale shall be released.
   

10. How to Apply

• Applications are processed on a first come, first served basis until funds are exhausted.
• Applicants are referred by City of Bloomington staff.
• If applicant has a “red flagged” system by a utility company, applicant may complete an application and submit to HRA staff, [email protected], within 30 days of “red flagged” date.
• If appropriate, HRA staff may refer an applicant to a nonprofit for assistance with repair work or other social services.