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Contact Information

201 4th Street SE
Room 266
Rochester, Mn 55904 (Map)

Phone: 507-328-2000
Fax: 507-328-2727

Mon-Fri 8:00 am to 5:00 pm

Development District: 507-328-2003
Department Contacts

Green Initiatives for Housing

Information on Housing Rehabilitation Programs and Incentives for Energy Efficiency Improvements

With the recent emphasis on “green” design and energy efficiency, the Mayor and City Council would like to provide Rochester homeowners with information related to home improvement loan and /or incentive opportunities that may be available to them for “energy efficiency” related improvements to their homes. 

The following information is intended to provide a brief overview of those programs and links to web sites where additional information may be obtained.  The Council hopes this information is beneficial to our citizens.

Community Development Block Grant (CDBG)

A program which is available for qualifying City homeowners is the City’s single family rehab loan program, which utilizes a portion of the City’s annual allocation of Community Development Block Grant funds. This program is administered by the Planning Department staff.  Some of the specific terms of the program are as follows:

  • Program Eligibility – Income limit not to exceed 80% of area median income   (for 2009 the income level is $62,300 for up to family of 4 persons)
  • Loans are provided for home improvements related to safety, energy efficiency and accessibility to existing homes. The loans are interest free. The maximum loan amount is $30,000 with no monthly loan payments. The loan is paid back when the borrower sells, transfers title, or no longer lives in the property. (There is presently a waiting list for this program.).
 

Additional program and contact information may be found at the following web location:  www.co.olmsted.mn.us/links/rehabilitation_programs.asp 

Minnesota Housing Finance Agency

Minnesota Housing Finance Agency (MHFA) offers several programs for homeowners to do energy efficiency related rehab to existing homes.  The most well known is the “Fix Up Fund” loan program.

  • Program Eligibility -  Annual income limit of $96,500.
  • Loans are provided for home improvements related to the livability, accessibility, or energy efficiency of a home.  The loan amount limit is $35K. The maximum loan term is 10 or 20 years, based upon the loan amount.
  • At this time, the loan interest rate is 6.5%
 

MHFA also offers a Rehab Loan Program for low to moderate income households. This program has a maximum loan amount of $15K for various home improvements, including energy efficiency improvements.  This program has a maximum 20 year loan term.

Additional program and contact information may be found at the following web location:   www.mnhousing.gov/consumers/home-owners/HomeImprovementLoans/index.aspx  

Minnesota Center for Energy and Environment

The Minnesota Center for Energy and Environment offers a home energy loan program that offers low interest loans to homeowners that want to make energy improvements to their properties.

  • Program Eligibility – No maximum income limit
  • Loan Terms – Maximum loan amount is $10,000 with an interest rate of 6.25% and a maximum loan term of 5 years.
  • Eligible structures – Homes must have been built prior to May 1, 1989
 

ARRA Economic Stimulus

Under the ARRA economic stimulus package, a program that received significant funding resources($132M) in Minnesota is the Weatherization Assistance program. In Minnesota, this program is administered by the Minnesota Department of Commerce Office of Energy Security.  Weatherization assistance for Rochester and Olmsted County homeowners is provided through SEMCAC in Rushford.  There is a limit of $6500 in improvements per home under this program.  Additional program information is as follows:  

Weatherization Assistance Program
The Weatherization Assistance Program (WAP) uses energy conservation techniques to reduce the cost of home energy by an estimated percent. Correcting health and safety hazards and potentially life-threatening conditions is the first consideration in WAP activities.

  • Households where one or more members have received TANF (Temporary Assistance for Needy Families) or SSIC (Supplemental Security Income) within the last 12 months.
  • Households who are at or below 50 percent of the state median income are eligible.
  • All homeowners and renters who are income eligible for EAP are income eligible for WAP.
  • Priority is given to households with at least one elderly or disabled member and to customers with the highest heating costs.
  • Federally funded through the U.S. Department of Energy and the Department of Health and Human Services.

Additional program and contact information may be found at the following web location:   www.state.mn.us/portal/mn/jsp/home.do?agency=Energy

Other Incentives

In addition to the rehab programs mentioned above, there are other incentives available to all homeowners as well.  Examples of these are the Energy Efficiency and Renewable Energy tax credits worth 30% of the purchase and installation costs, up to $1500 for various improvements as follows:   

  • HVAC systems                                   
  • Small wind systems
  • Insulation                                         
  • Fuel cells
  • Roofs                                                
  • Solar panels
  • Windows & doors                              
  • Solar water heaters

Additional information may be found at: http://energytaxincentives.org/consumers/

Locally, RPU also offers a Residential Conserve and Save Rebate program as an incentive for residential owners to purchase energy efficient home appliances. Additional information may be obtained at: www.rpu.org/your_home/rebates_and_incentives/