Hastings residents who own homes are now able to apply for zero-interest home improvement loans through the Dakota County Development Agency (CDA). These loans come from the Local Affordable Housing Aid (LAHA) funds municipalities received from the new sales tax created in the 2023 Housing Finance and Policy omnibus bill with Hastings set to receive $114,387.44 across two installments, one on June 20 and the second on Dec. 26.
The funds were designed to support the efforts of cities across the seven-county metro area to “develop and preserve affordable housing within their jurisdictions to keep families from losing housing and to help those experiencing homelessness find housing,” according to the Minnesota Department of Revenue website.
These funds were given over to the Dakota County CDA for administering into their Home Improvement Loans program which provides zero interest loans for home improvement projects. Loans range from $15,000-$35,000 and are generally used for replacing roofs, siding, windows, furnaces, doors, and driveways, according to the CDA’s flyer. Loans must be paid back only when the home is sold or if the resident no longer lives there. There are no monthly payments.
Despite the CDA administering these funds, Hastings’ LAHA funds, these funds are only for Hastings residents. At the Oct. 10 meeting of the Hastings Economic Development and Redevelopment Authority (HEDRA), Community Development Director John Hinzman spoke to the fact that municipalities partnering with the CDA each have different accounts for their LAHA funds and therefore won’t be pooling their money together, even if they are in the same program.
Qualifying homeowners must have sufficient equity, a satisfactory credit history and a gross annual income under certain limits as detailed in the application. For example, a household of two residents must not have a household income of more than $78,250 to qualify.
To apply, residents must submit an application to the CDA. Applications can be accessed at the CDA website at https://www.dakotacda.org/housing-resources/homeownership/home-improvement-loan-program/
Residents can also request an application be mailed to them by calling 651-675-4462.