This program provides incentives for sustainable building practices and energy efficiency improvements. This program may be combined with the Home Improvement Fund if the household meets all requirements for both programs.
Program Overview: The City of Woodbury has made low-interest home improvement loans available to encourage sustainable and energy-efficient green building practices in the City of Woodbury. Current available dollars for loans are based upon the fund balance for any given period.
Loan Amount: The maximum loan amount is $5,000. Minimum loan amount $1,000.
Interest Rate & Loan Term: We offer below-market interest rates. Maximum loan term is 5 years. Loan is due upon sale, transfer of title, refinance or if the property ceases to be owner-occupied. All loans will be secured by a mortgage in favor of the City. The Woodbury loan may be secured in a subordinate position behind other loans. Borrowers aged 65 or older or who are military veterans may qualify for a discounted rate.
- Debt to Income Limit: Borrowers’ monthly debts cannot exceed 50% of monthly income.
- Credit: Standard underwriting criteria apply.
- Income Limit: Applicant total gross annual household income shall not exceed $95,000
- Owner-occupied properties located within the City of Woodbury.
- Property value may not exceed $290,500.
- Single family housing units are eligible.
- Condominiums & townhouses are eligible for individual interior repairs only.
- Properties may not be within the flood plain as identified by FEMA.
- Borrower’s existing first mortgage must be a prime/A-rated fixed rate mortgage loan.
- The borrower’s combined mortgage debt including the Woodbury loan cannot exceed 100 percent of the property value, based on the taxable market value as determined by Washington County for the current year. Applicants may also submit a third party appraisal that has been completed within the last six months. Such an appraisal is to be obtained by the applicant at their expense.
Eligible Improvements: Eligible work shall include repairs, replacement and new construction using green building techniques, such as energy efficiency, resource efficiency (including durability), indoor environmental quality and water conservation improvements. A detailed list of eligible improvements is attached to the application packet.
Ineligible Improvements: Recreational/luxury improvements, working capital, debt service or refinancing of existing debts.
DO NOT SIGN ANY CONTRACTS OR START YOUR PROJECT UNTIL A CLOSING HAS TAKEN PLACE. ANY PROJECT BEGUN BEFORE A LOAN CLOSING HAS TAKEN PLACE WILL BE INELIGIBLE FOR PARTICIPATION IN THE PROGRAM.
Application Process: City of Woodbury is partnering with NeighborWorks Home Partners to process the loan funds. Please click the “Get Started” button to begin the process. Completed applications will be processed on a first-come, first-served basis, as funds are available until all program funds are committed. After loan approval you will be contacted regarding a loan closing to sign a Note and Mortgage.
Rehabilitation Consulting: Woodbury consultants will be available to advise borrowers about proposed projects and conduct an optional initial home inspection. Woodbury consultants will review bid(s) for reasonableness.
Loan Costs: Washington County Recording fee, and title insurance fee will be paid by the borrower(s) and may be paid from the Woodbury loan funds. Credit report fee will be paid by the borrower(s) at application. There is a $25 processing fee requested after the loan estimate is provided to the home owner.
Contractors & Permits: Contractors must be properly licensed by the state of Minnesota when required. Permits must be obtained when required by city code.
Total Project Cost: It is the borrower’s responsibility to obtain the amount of funds necessary to finance the entire cost of the work. If the final cost exceeds the loan amount, the borrower must obtain the additional funds. Borrower’s contribution to project cost must be paid prior to release of loan funds.
Work Completion: Weather permitting, work must be completed within 120 days of loan closing.
Disbursement Process: Loan funds will be paid directly to the contractor for completed work. The following items must be received before the funds can be released:
- Final Invoice from each contractor showing all amounts paid and due.
- Lien Waiver Original from each contractor.
- W-9 signed by each contractor.
- Completion Certificate signed by each contractor and the borrower.
- Permits Closed. Have the inspector sign the permit card, or have the inspector leave a message at the HRC (651) 486-7401.
- Final Inspection and approval by the Woodbury HRA.
- It may take up to 10 business days after receipt of above items to prepare checks. Payment checks to contractors must be countersigned by the borrower. Lien waivers must be provided before funds will be released.