Richfield Multi-Family Improvement Loan
The City of Richfield offers financing for residential rental properties to assist with improvements, energy upgrades, and code corrections.
The guidelines below are subject to change at any time without notice. Loan funds are subject to availability.
If applying in the name of a business, apply with our commercial loan application.
Hablamos Español: 612-335-5856
About the Loan
- Interest rate: 0% APR
- Loan amounts
- Properties with 4+ units: $5,000-$50,000 (maximum of $5,000 per unit)
- Properties with 1-3 units: $3,000-$25,000 (maximum of $3,000 per unit)
- Additional funds available, up to $1,000/unit for energy improvements identified through an energy audit or for accessibility improvements to accommodate tenants with disabilities.
- 15 year loan team
- No income limits
Property Eligibility
- Residential rental properties located within the City of Richfield
- Properties must be at least 30 years old and have a current rental license
- Properties can be owner-occupied (with at least 2 units) or absentee-owned. If the property is owner-occupied, funds can only be used on rental units. Properties can be owned by a Contract-for-Deed, but the owner of the Contract-for-Deed must sign the mortgage document.
- Properties with 1-3 units must have had a rental license for at least 3 years, and are not eligible until August 1st of each year.
- Loan approval is subject to credit and program guidelines.
Loan Details
- This loan is 100% forgiven after 15 years if the Borrower retains ownership, continues to rent the property, and maintains a current rental license. If the borrower sells or transfers the title of a 1-3 unit property to an existing renter with a household income under 80% AMI, the loan will be 100% forgiven at the time of transfer. If the property is sold or no longer holds a current rental license prior to 15 years, the loan is due in full.
- Borrower must be current on all mortgages and property taxes.
- More than one loan per property/borrower is allowed, but the total outstanding balance cannot exceed the maximum loan amount.
- Loan must be matched 1:1
- Eligible improvements include most interior or exterior remodeling and upgrades
- City code corrections and health and safety concerns
- Energy Star rated HVAC and water heaters, solar, and insulation
- If a property has open work orders from a rental licensing inspection report, items must either be addressed before loan application is submitted or as part of the loan rehabilitation plan
- Work must be completed within 180 days from closing the loan.
- 1 bid is required from a properly licensed contractor or registered with the MN Department of Labor.
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).
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