Single Family Rehabilitation Loan Program

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The City of Rochester partners with the Olmsted County Housing & Redevelopment Authority (OCHRA) to offer a rehabilitation loan program for owner-occupied housing units in Rochester. The program provides homeowners with a 0% interest loan of up to $24,999 to address code deficiencies, make energy efficiency improvements, enhance accessibility, and improve general livability. This loan has a 30-year term and must be repaid either at the end of the 30-year period, upon the sale of the home, or if the property is no longer the primary residence of the homeowner.

This program currently has a waitlist. To be added to the waitlist, please complete the online waitlist form.

If you believe your home is in need of emergency repairs, please reach out directly to City staff at 507-328-2311 or communitydevelopment@rochestermn.gov. Examples of emergency repairs include burst pipes or major leaks, a broken furnace or HVAC system during extreme weather, and severe roof damage, among others.

Applicant Income Eligibility

1. To qualify for the loan program, residents’ income must be at or below 80% of the Area Median Income for Rochester.

1 Person Family	2 Person Family	3 Person Family	4 Person Family	5 Person Family	6 Person Family	7 Person Family	8 Person Family
$66,100	$75,550	$85,000	$94,400	$102,000	$109,550	$117,100	$124,650

2. Total liquid assets cannot exceed $25,000 per housing unit. The property being rehabilitated, vehicles, and home furnishings are not considered assets in this program.

Eligible uses of loan funds

Loan funds can be used to make a wide range of improvements to residences. This includes both exterior improvements like roofing, siding, and windows, as well as internal rehab work like bathroom or kitchen rehabilitation and accessibility improvements. The funding can also be used to address code violations and lead based paint hazards.

Loan funds cannot be used to rehabilitate detached structures, such as sheds or garages, nor be used for landscaping or pool repairs. Additionally, loan fund cannot be used to replace appliances.

View the full Single Family Rehabilitation Loan Program Policy Guidelines.

Property Eligibility

The applicant must be the owner of the property to be rehabilitated and must have title to the property for a minimum of 6 months prior to the date of application.
The property must be used for residential purposes and must contain no more than two dwelling units, one of them being owner occupied.
The property must be classified as homesteaded by the Olmsted County Assessor’s Office.
Eligible properties in the 100-year flood plain zone must carry flood insurance that will cover the cost of the improvements that are made to the property through the rehabilitation loan program for the remaining economic life of the improvements.
Property taxes and city utility bills must be current at the time of application.
The combined indebtedness secured by the property and the estimated cost of rehabilitation cannot exceed 110% of the property’s value after rehabilitation.
The total cost of the rehabilitation shall not exceed fifty percent (50%) of the dwelling’s estimated market value as determined by the County Assessor.