By Chad Koenen

Publisher

The City of New York Mills is seeking the help of local residents to potentially secure funding to continue the development of the community. In order to strengthen NY Mills’ case for a pair of grant applications, the city is asking residents and property owners to fill out one of two surveys for a small cities development program rental housing rehabilitation survey, as well as a small cities development program homeowner survey. Both surveys are due by March 31. 

As part of the rental housing rehabilitation survey, the City of NY Mills is partnering with the Otter Tail County Housing & Redevelopment Authority to survey commercial property owners within the city limits to see if enough interest exists to submit an application to obtain funding that will help property owners make essential repairs to their rental housing properties. This is not a remodeling program. Eligible improvements include roofing, windows, doors, weatherization and increased energy-efficiency, improvements of aged and/or failing mechanical systems and various improvements to common or shared areas. Correction of code violations such as ADA and health/safety are also eligible improvements. Utilities, mortgage payments, property taxes and property insurance must be current and in effect in order to participate. 

The Small Cities Development Program (SCDP) would provide a deferred loan (no payment or interest) for improvement needs. The funds provided through this program are a maximum of 70 percent of project costs and must be within the following per unit maximums:

• Single family rental: $25,000 per home

• Duplexes: $12,500 per unit (total of $25,000 for each property)

• Mixed-use: $12,500 per unit

• Multi-family: $12,500 per unit (or more based on a case by case basis approved by DEED Small Cities Unit

A lien will be placed on the property for the period of the deferred loan. If the property is sold, transferred or otherwise conveyed within five years, all or a portion of the principal amount of the loan is required to be repaid. After five years, no repayment is due, and the deferred loan is forgiven. The owners share will be collected at “loan closing” and will be placed into an escrow account to be paid directly to the contractor. Competitive bidding is required on all projects and federal wage rates (Davis Bacon) and terms will apply to multifamily buildings with 8 or more units. SCDP funds may not be used for work completed prior to loan approval.

As part of the small cities development program homeowner survey, the City of NY Mills is partnering with the Otter Tail County Housing & Redevelopment Authority to survey homeowners within the city limits to see if enough interest exists to submit an application to obtain funding that will help homeowners make essential repairs to their homes. This is not a remodeling program. Typical items that are repaired or replaced are shingles, siding, windows, exterior doors, electrical and heating systems. Handicap accessibility improvements can be made if a documented need exists. Utilities, mortgage payments, property taxes and property insurance must be current and in effect in order to participate. 

Each homeowner could receive up to $25,000 in the form of a 10-year deferred loan that is secured by a lien on the property. The deferred loan forgives at a rate of 10 percent per year. As long as you continue to own the home AND reside in it during the entire term of the deferred loan, these funds will be forgiven. Properties held in trust, that are transferable on death and mobile homes are not eligible.

Surveys to help the city’s case to get the grant funding to provide assistance in the community can be picked up at the city office. Both survey’s are due back to the city office no later than March 31.