East Harriet: Low-Interest Loan

Loan Terms

• Minimum loan amount: $2,000
• Maximum loan amount: $20,000
• Interest rate: 2% for households with incomes below 80% of the AMI (see chart below)
• Interest rate: 4% for households with incomes between 80% and 150% of the AMI (see chart below)
• Maximum repayment term 7 years.
• Loan may be prepaid at any time without penalty.
• Additional terms, conditions and closing costs may apply and are subject to change without notice.  Financing is secured by a mortgage on the property.  
  
  

Income Limit

Based on family size, no higher than 150% of AMI (see chart below).  Income will be based on the Adjusted Gross Income of your most recent Federal Tax Return.

Family Size	80% of Median	150% of Median
1	$47,050	$88,200
2	$53,750	$100,800
3	$60,500	$113,400
4	$67,100	$125,850
5	$72,550	$136,050
6	$77,900	$146,100
7	$83,300	$156,150
8+	$88,650	$166,200

Eligible Borrowers

1-2 unit owner-occupied or absentee-owned residential structures located in the East Harriet Farmstead neighborhood.

Eligible Improvements

Most improvements are eligible, interior or exterior maintenance or remodeling.  One bid is required for projects under $5,000 and two bids are required for projects over $5,000.

Proof of Income

• If you are employed: submit copies of your two most recent paystubs.
• If you are retired: submit a copy of your social security benefits or pension.
• If you are self-employed: submit copies of your Federal Tax Returns for the last 2 years.

Contractors

Loan recipients must submit bids or materials lists. All contractors must be properly licensed to work in the City of Minneapolis if required and the Center for Energy and Environment will verify that contractors are licensed. It is important that you are satisfied with the bid or estimate you have selected, CEE offers assistance in helping you compare and understand the estimates you collect.

Optional Sweat Equity (for the do-it-yourselfer)

Applicants must clearly demonstrate the ability to complete high quality work within the required time period. Loan funds will be allowed for materials only, property owners will not be compensated for their labor. Note: Loan funds will not be disbursed until the project is complete.

Disbursement of Funds

You will have 120 days (depending on the loan program) from the date of your loan closing with CEE to complete your improvements. You must close on the loan prior to beginning project(s). Loan funds will be paid only after the work is completed and inspected and the following is provided:

• Signed completion certificate by the homeowner indicating satisfaction with the work and authorizing payment to the contractor
• Signed completion certificate by the contractor
• Final contractor invoice
• Lien waiver from the contractor for the entire amount of the project; homeowner must turn in receipts for sweat equity projects
• Evidence of required building permits
• CEE inspection of the property to verify the completion of the work when required by the neighborhood

The current loan terms and conditions stated, including interest rates, do not constitute a commitment to lend or an offer to enter into an agreement, and that such an offer may only be made pursuant to Minnesota Statutes, Section 47.206(3) and (4).

Remodeling Advisor

If you need assistance in identifying and prioritizing improvements, the Center for Energy and Environment offers a Remodeling Advisor Service where you can receive objective remodeling advice. The service is free to East Harriet residents and includes an informational visit to your property and assistance with collection and evaluation of bids. To schedule an appointment call 612-335-5856.