Community Development Loan - Red Wing HRA
The Red Wing Housing and Redevelopment Authority is an important organization to help make projects happen. This is directly from their website. you can learn more here: https://redwinghra.org/communtity-redevelopment/
The staff and directors of the HRA are continually researching, monitoring, and developing new programs that will assist the residents of Red Wing in preserving the quality of life and beauty of the city. The HRA has played and will continue to play a strong role in the redevelopment of our historic community. By partnering with other City organizations the HRA will continue to be an advocate for the property owners of the Red Wing community in housing and commercial redevelopment into the future.
Small Cities Program Income Fund
(A revolving loan fund)
Community Development Loan Application
As of December 31, 2018, the Red Wing HRA has about $1.67 million in Small Cities amortized and deferred loans lent out to commercial businesses and homeowners to improve their properties. Amortized loans have an annual or monthly payment to the HRA’s Small Cities Program Income (SCPI) fund. The HRA revolves SCPI funds to commercial businesses for eligible rehabilitation projects in our target areas. The typical loans are $50,000 total of which $25,000 is amortized for payback over 10 years and the other $25,000 is deferred with a 10-year forgiveness clause if conditions are met. Both loans have 0% interest rates. Because there is a high demand for these funds and limited supply, commercial business property owners should contact the HRA to discuss their proposal and see if funds are available. Typically, we are able to make one to two Small Cities Program Income fund loans per year depending on the payback of the existing loans.
The HRA has partnered with local lenders, property owners, and State of Minnesota agencies to make available commercial rehabilitation funds for the improvement of downtown and Old West Main Street properties. Since 1996 the HRA has made over $3,000,000 in commercial rehabilitation loans. Many of those loan recipients received funding that was accompanied by forgivable conditions. Of the $3,000,000 in funding that has been provided, over $2,000,000 fell under those terms. The result of this program is visible to the residents on a daily basis with the extensive improvements to the historic buildings that comprise the heart of Red Wing.
Contact Information:
Red Wing Housing and Redevelopment Authority
428 West Fifth Street
Red Wing, MN 55066
Phone: 651-388-7571
Fax: 651-385-0551