Community and Redevelopment
Our Mission
“Community Redevelopment is an innovative, financial resource and catalyst in business development and housing rehabilitation assisting in the economic growth of Red Wing and the HRA”
The Red Wing Housing and Redevelopment Authority has a long history of working with the community to improve housing stock in Red Wing. Many however do not realize that the RWHRA also plays an active role in renovating and rehabilitating commercial property in the City.
AFFORDABLE HOUSING TRUST FUND
Homebuyers Assistance Loan Program
The Red Wing HRA is accepting applications for its AHTF Homebuyers Assistance Program.
Funding for this program is made available through the Red Wing Affordable Housing Trust Fund (AHTF). The AHTF Memorandum approved by the HRA and City has a preference for funding opportunities for workforce housing, which means at least one member of the applying household must be employed as full-time to be eligible for this loan.
The purpose of the program is to assist low and moderate-income workforce families with the purchase of affordable housing in the City of Red Wing. This program will provide financial assistance to households who have income at or below 115% of the area median income. Eligible households can receive up to $9,000 for homebuyer assistance based on need. The applicant must have at least $1,000 of their own equity in the home purchase.
The homebuyer assistance will act as a deferred loan at zero percent interest. This means that the borrower will not need to make monthly payments on this loan. However, the loan is not forgivable. It must be paid back by the homeowner upon the sale of the house, vacating the house as a primary residence, or at the expiration of the 30-year term.
Applicants will be processed as received on a pipeline basis.
The AHTF Guidelines, Budget Worksheet, and Application links are here: Homebuyer Assistance program AHTF Guidelines June 2023(guidelines), Budget worksheet, AHTF Homebuyer Assistance Program Application. We recommend reading the Guidelines before beginning the application process. Program is subject to change.
MCPP allocation
On February 1, 2024, the Red Wing HRA was notified by Minnesota Housing that we were allocated $305,211 for first time homebuyers in the City of Red Wing.
Small Cities Local Fund
(A revolving loan fund)
CMA Properties received $50,000 in 2022
Cut Above Home received $22,275 in 2021
Community Development Loan Application
As of December 3, 2023, the Red Wing HRA has about $1.7 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.
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.
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.