Detroit Lakes HRA offers home rehab help for local property owners

DETROIT LAKES — Is your home's roof, electrical systems, HVAC or plumbing in need of a little rehab? Does it need new windows, insulation, siding, or foundation repair work?

If the answer to any of these questions is yes, and you own a home within city limits, then a new housing rehabilitation loan program being offered by the Detroit Lakes Housing and Redevelopment Authority may be the answer.

"We're trying to get the word out to the folks that might need it," says Detroit Lakes HRA Executive Director Susan Bjorklund. "This is a really good deal to help someone maintain their house."

There are some income and ownership restrictions, but for homeowners who do qualify, the TLC (Tax Levy City) Homeowner Rehab Program could provide between $3,000-$12,000 for any of the following improvements:

• Roofing
• Insulation and/or siding (energy efficient)
• HVAC/mechanical/plumbing improvements or repairs
• Electrical system upgrades (to bring them up to code)
• Windows (energy efficient)
• Foundation repair

All the work must be done by licensed contractors, Bjorklund noted, and a city building permit will be required before work can begin.
She added that homeowners must meet all of the following requirements in order to qualify for the program:

• Must own and live in the home, which must be classified as a homestead;
• Must be located within Detroit Lakes city limits;
• Must be a single-family home, on a permanent foundation;
• Must be current on all property taxes, property insurance and mortgage payments;
• Gross annual income cannot exceed $46,700 for a single-person household; $53,350 for a family of two; $60,000 for a family of three; or $66,650 for a family of four.

Homes purchased through a contract for deed or rent-to-own agreement are not eligible, nor are those subject to a reverse mortgage or life estate.
"It's a zero-interest loan, due when the property is sold, transferred or otherwise conveyed (to another owner)," Bjorklund said.

Funding for the program, which comes from city tax levy funds, is limited, she added. "If I receive more applications than there are funds available, they will be placed on a waiting list in the order in which they are received. We will contact (the applicant) when more funding becomes available."

Bjorklund said that those who would like to apply for a loan through the TLC program should either call 218-847-7859, or stop into the Detroit Lakes HRA offices at 1111 Washington Ave. (inside the Pleasant View Apartments building).