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County reports $1.7 million in housing‑trust loans; My Neighbor to Love project financed
Summary
Crow Wing County housing trust fund has funded about $1.7 million across 22 loans since 2022, including rehab loans, down‑payment assistance and development financing for My Neighbor to Love (16 units built, 12 more started). Loans are typically 20‑year, deferred balloon notes, often 0% interest for rehab borrowers.
The county's housing trust fund has closed 22 loans totaling just over $1.7 million, officials told the Committee of the Whole during a midyear update.
Eric, speaking for the HRA, said the fund has supported 13 owner‑occupied rehabilitation loans, eight down‑payment assistance loans and two development financing loans. "We funded our first loan in '22," he said, adding that three loans—two rehab and one down‑payment assistance—have already been repaid and returned about $65,000 to the fund.
Eric identified My Neighbor to Love Coalition as a recent development-financing borrower: the nonprofit has completed about 16 units and has started another 12. Loan terms across the trust fund are typically a 20‑year deferred (balloon) repayment with no monthly payments; HRA loans for owner‑occupied rehab have been authorized at 0% interest to accommodate fixed‑income homeowners.
The HRA also described income‑qualification practice: the county program can finance households up to about 115% of Area Median Income (AMI) for some loans, while Minnesota Housing programs typically serve lower AMI bands (50–80%). Eric said the HRA tries to deploy other state funds first before using the trust fund.
Why it matters: The trust fund recycles repayments to support additional home‑repairs, down‑payment help and small development projects that county leaders say keep housing stock livable and increase affordable options.
