Minnetonka panel backs $160,000 forgivable-loan fund to repair Homes Within Reach properties

The Minnetonka Economic Development Advisory Commission on a roll-call vote recommended the creation of a $160,000 forgivable-loan program intended to help owners of Homes Within Reach properties pay for home repairs.

Staff told the commission the program—funded from the Affordable Housing Trust Fund—would offer up to $10,000 per household and is expected to serve about 16 homeowners who have not previously accessed city repair programs or pulled permits. "This program would have funding that comes from the Affordable Housing Trust Fund and would total, a $160,000," a staff member said during the presentation. The proposed maximum per household increases the prior repair program’s $7,500 cap.

Why it matters: the earlier repair program (2021–2024), funded by Community Development Block Grant dollars, provided up to $7,500 per household and served 23 households before that funding stream expired in September 2024. Commission members said a larger per-household cap could better address the cost of common home repairs and help preserve naturally occurring affordable housing.

Eligibility and administration: staff described income eligibility as households at or below 120% of area median income. The proposal would be a forgivable-loan structure tied to eligible repairs; staff indicated loans would be administered by city staff rather than an outside administrator. On program oversight and safety, commissioners and staff discussed inspections and permitting: staff said inspections are tied to permit activity and that DIY work could qualify if applicants provide proof of completion.

Questions raised: commissioners pressed staff on asset limits in the eligibility criteria—current draft language lists a gross-asset cap of $25,000, and one member urged raising that to $50,000 to avoid excluding households with modest retirement accounts or other small investments. A commissioner also asked whether the Center for Energy and Environment (CEE) would administer the program; staff responded that city staff would handle administration because the anticipated volume (about 16 loans) is small.

The vote and next step: a motion to approve the EDAC recommendation was moved and seconded and carried on roll call; commissioners present voted to forward the program to the City Council for consideration. Staff said they expect to bring the program to council early next year and discussed timing for council review and implementation.