The Home Ownership Creation Program supports the development of owner-occupied housing units by either reimbursing City fees assessed or providing an upfront subsidy to lower the final price of the home built. When qualifying a proposal through reimbursement, the maximum fee reimbursement amount to be awarded is determined by eligibility, but not to exceed $20,000 per unit. Projects qualifying for upfront subsidies are not limited to maximum award amounts, but rather determined based on the independently proposed project and discretion of Rochester Community Development Department with City Council approval.  

View the full program guidelines for the Home Ownership Creation Program.

Eligibility

To be eligible for funding support in this program the housing unit must be located within the City Limits. No one unit supported can exceed a sales price of $500,000.

Projects eligible for fee reimbursements are:

• New Construction or adaptive re-use with existing infrastructure services
• New Construction proposing to create a high volume of dwelling units
• Re-use of non-residential development to owner-occupied housing.

Projects can qualify for funding support in two different ways:

1. Sale Price of Home: An owner-occupied housing unit is eligible for reimbursements if the sale price of the unit is at or below the maximum housing price a standard household earning 115% AMI could afford. The income limit is determined by the US Department of Housing and Urban Development, Section 8 Program. These numbers are updated on a yearly basis. The current maximum sales price eligible for reimbursements in this this program is $426,100.
2. Creating High Volume of Housing: Upfront subsidies are available to support the creation of a high volume of owner-occupied housing units if at least 50 homes are proposed. To qualify for upfront subsidies, a portion of the homes are required to be priced at or below the maximum housing price a standard household earning 115% AMI could afford based on the number of proposed units as follows:

Additional Requirements & Conditions

• Fees paid within three years of the date of application are eligible for reimbursement at a 75% rate.
• Housing units funded through this program are restricted from renting for a period of five years after the initial sale.

Application Process

• Each applicant must complete this online application.
• Applicants may contact the Community Development Department at CommunityDevelopment@rochestermn.gov or 507-328-2950 if assistance is needed with completing the application.