Categorized | IN OUR COMMUNITY

NENA re-launches its popular home loan programs

Posted on 20 February 2018 by calvin

By MARGIE O’LOUGHLIN
The Nokomis East Neighborhood Association (NENA) continues its popular home loan programs with the assistance of a new partner: the Center for Energy and Environment (CEE). NENA is now offering both an Emergency Repair Loan and a Home Improvement Loan.

Homes in the Keewaydin, Minnehaha, Morris Park and Wenonah neighborhoods are eligible. Loan applications are being processed on a first-come-first-served basis.

Photo left: According to the NENA website, “The housing stock in East Nokomis is relatively good and stable. The majority of single-family houses in the neighborhood were built between 1920 and 1960.” (Photo by Margie O’Loughlin)

Lauren Hazenson, NENA’s Program and Communications Manager said, ”Our rates are lower by a percentage point or two than what a homeowner would get at a bank. We’ve been partnering with CEE since October 2017. Prior to that, we had a partnership with the Greater Metropolitan Housing Corporation since 2015. Plenty of funds are still available. We expect to be disbursing funds for the next couple of years. We were pleasantly surprised by the number of applicants right out of the gate last October.”

“For the Emergency Repair Loans,” Hazenson continued, “projects are typically seasonal, like ice dams or related to basements flooding. They’re the kinds of things that homeowners get caught off guard by, and don’t have money set aside to deal with.”

A limited amount of funds is available for emergency repairs and improvements. Only owner-occupied households are eligible, and income restrictions apply. Applicants need to be current on mortgage and property taxes. The maximum loan amount is $7,500. The loan is 0% interest, and there are no monthly payments. The loan is due in total on the sale of the property or a transfer of the title.

Home Improvement Loans are available for owner-occupied residential structures (1-4 units). Individual condominium, cooperative, and townhouse units are all eligible. Properties under construction or held in trust are not eligible. Loan amounts range from $2,000–$15,000. Applicable criteria are:
• 3.5% (3.514 APR*) or 4.5% (4.514 APR*) fixed interest rate, depending on income;
• no maximum income limit;
• terms up to 10 years;
• this loan is secured by a mortgage on the property; and
• closing costs apply.

Eligible projects include most interior and exterior permanent improvements. Two bids are required from qualified, licensed contractors for projects over $5,000.

For do-it-yourself projects, a materials list (including prices) is required. The cost for labor and equipment purchased or rented may not be included in the loan. Funds are held in a non-interest bearing escrow account at CEE from loan closing until the work is completed and all final documentation is received.

Ashley Roberston, Assistant Marketing Manager with CEE, said, “When it comes to our neighborhood loan partnerships, the goal is to improve the housing stock of the neighborhood. What’s great is that NENA has a revolving low-interest Home Improvement Loan of up to $15,000, and CEE has other statewide financing opportunities that can be paired with the NENA loan to add to that amount. We’ve already had two households close in the East Nokomis neighborhood with those finds since January 2018.”

Robertson continued, “The Emergency Repair Loan addresses something specific like a furnace failing, an ice dam actively damaging the home with water on the inside, or a sewer line backing up. To qualify for the Emergency Repair Loan, you have to have been deemed ineligible for the Home Improvement Loan. CEE defines an emergency as an imminent condition that makes a house uninhabitable, dangerous to the occupants, or is capable of causing severe health problems. Repairs that will remedy such emergency repairs are eligible for consideration for Emergency Repair Loans.”

For more information or to request an application, call the Center for Energy and Environment at 612-335-5884, or visit the CEE website.

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