Pine County has been selected to apply for Small Cities Development Program funding to fix-up housing and commercial properties

Pine County Board to review program guidelines, which were tweaked by the State, on December 15, 2009 at 1 p.m. in Sandstone

November 30, 2009: Pine County, with assistance from Lakes & Pines Community Action Council, Inc., submitted a pre-application this past September to the Minnesota Department of Employment and Economic Development (DEED) for grant funds from the U.S. Department of Housing & Urban Development’s (HUD) Small Cities Development Program (SCDP). These grant funds are proposed to be used to rehabilitate: owner-occupied housing (must be of low and moderate income), rental housing (51% of the units must be occupied by low and moderate income persons) and commercial buildings within the County. When the County submitted their pre-application to the State, the County requested funds to be available to the entire County. On October 20, 2009 the County received notification that their pre-application was successful and that they could begin the full application process, if they changed one component of the program. The State is requiring that the County target the funds to the communities of Willow River, Finlayson, Sturgeon Lake, Bremen Township, Kettle River Township and Sturgeon Lake Township for the first 15 months of the 30 month program, after which time the funds would be made available to properties throughout the entire county. If interest in the program exceeds the amount of grant funds received, the County can submit a short form application to the State for additional funds. The Small Cities Development Program is a very competitive grant program, with 76 rural communities requesting funding this year. Because the funding is limited, the State requires that all communities requesting grant funds show that there is significant interest in the program from property owners.

Owner-occupied housing rehabilitation: Grant funds are loaned to individual property owners for 10 years, at which time, if the property is still owned and occupied by the original borrower, the funds are forgiven and considered a grant. The grant will pay up to 90%, or a maximum of $23,100, towards improvements that make the home more livable, energy efficient, safe and accessible for occupants. These improvements can include replacing defective plumbing, heating or electrical systems; replacing roofing, siding, windows and doors. The remaining 10% of the total project cost is the responsibility of the property owner, but no household will be denied on the sole basis that they cannot meet this requirement. To qualify, applicants must live in Pine County, own the home and live in it as their primary residence (land must be taxed as a homesteaded property), be current with property taxes, have proof of current insurance on the property, and meet the income requirements below:

Family Size/Annual Income

1    $32,950

2    $37,700

3    $42,400

4    $47,100

5    $50,850

6    $54,650

7    $58,400

8    $62,150

Rental Housing Rehabilitation: Grant funds are loaned to individual property owners for 10 years, at which time, if the property is still owned by the original borrower, the funds are forgiven and considered a grant. The grant will pay up to 2/3, or a maximum of $11,550, per unit towards improvements that make the rental property more livable, energy efficient, safe and accessible for occupants. These improvements can include replacing defective plumbing, heating or electrical systems; replacing roofing, siding, windows and doors. The remaining 1/3 of the total project cost is the responsibility of the property owner. To qualify, the property must be located in Pine County, the applicant must be current with property taxes, have proof of current insurance on the property, and the property must have at least 51% of the units occupied by low and moderate income persons at Fair Market Rents established by HUD:

2009 Fair Market Rent

Family Size/ Income

1 person    $32,950: Efficiency - $465

2 persons    $37,700: One-Bedroom - $504

3 persons    $42,400: Two-Bedroom - $651

4 persons    $47,100: Three-Bedroom - $850

Commercial Building Rehabilitation: Grant funds are loaned to individual property owners for 10 years, at which time, if the property is still owned by the borrower or occupied by the same business, the funds are forgiven and considered a grant. The grant will pay for up to 2/3, or a maximum of $31,100, per building towards improvements that improve the exterior appearance of the building, correct code violations, improve energy efficiency or provide accessibility for employees and patrons. To qualify, the property must be located in Pine County, the applicant must be current with property taxes, have proof of current insurance on the property and the property must be in substandard condition.

Interested property owners should contact the Energy-Housing Department at Lakes & Pines CAC, Inc. at 800-832-6082 or 320-679-1800, by email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it , or by mail at 1700 Maple Avenue East, Mora, MN 55051 to have the above mentioned activity Fact Sheets mailed to them. Property owners that complete and return the Intent to Participate form will be contacted directly by Lakes & Pines, should the grant receive funding to begin the full application process for property owners. Funding notification from the State is anticipated to be in March or April of 2010, therefore Lakes & Pines would begin contacting interested property owners in May and June of 2010.