Rental Rehabilitation Loan Program

January 10, 2013


Note: This program is currently out of funds. A new round of funding is expected in the fall of 2013.

The Minnesota Housing Finance Agency (MHFA) Rental Rehabilitation Loan Program provides low interest financing for making energy conservation and other basic improvements to residential rental properties located in participating Minnesota communities. Loans exceeding $5,000 are evaluated on the basis of the building’s revenues, which must show a positive cash flow after rehabilitation. Loans of $5,000 or less may be evaluated on the basis of the borrower’s personal credit/financial status. A mortgage is required on loans exceeding $5,000.

To be eligible for the loan, the structure must require improvement to meet State Energy Conservation Standards for Rental Housing. Mixed-use (commercial/residential) structures are eligible if more than 50% of the building’s total floor area is devoted to residential use, and if the improvements will primarily benefit the residential portion. The residential portion of the structure must be occupied primarily by people of low- to moderate-income (see applications for further details). There are no income requirements; however, applicants must have good financial standing and demonstrate the ability to repay the loan.

Structures less than 15 years old are eligible only for funds to finance the necessary improvements to bring the structure into compliance with the state energy standards for rental housing. Structures more than 15 years old are eligible for other moderate rehabilitation, provided they must also be brought into compliance with the energy standards. Conversion from non-residential use to residential use is not permitted, nor is the construction of additional dwelling units.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Minnesota
Incentive Type: Loan Program
Web Site:
Administrator: Center for Energy and Environment
Start Date:
Eligible Renewable/Other Technologies:
Maximum Loan: Single-Family and Two-Unit Structures: $25,000
Multi-Family: Lesser of $10,000/unit or $100,000/structure
Loan Term: 6% interest rate with loan terms up to 15 years


Name: Customer Services
Organization: Center for Energy and Environment
Address: 212 3rd Ave North
Minneapolis MN 55401
Phone: (612) 335-5858

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.