- Fees paid within three years of the application date are eligible for reimbursement at a 75% rate.
- Housing units funded through this program are restricted from renting for a period of five years after the initial sale.
Home Ownership Creation Program
The Home Ownership Creation Program supports the development of owner-occupied housing units by either reimbursing City fees or providing an upfront subsidy to lower the final price of the home. When qualifying a proposal for reimbursement, the maximum fee reimbursement amount to be awarded is determined by eligibility and cannot exceed $20,000 per unit. Projects qualifying for upfront subsidies are not limited to maximum award amounts, but rather determined based on the independently proposed project and the discretion of the Rochester Community Development Department, with City Council approval.
Additional Requirements & Conditions
- Each applicant must complete this online application.
- Applicants may contact the Community Development Department at CommunityDevelopment@rochestermn.gov or 507-328-2950 if assistance is needed with completing the application.
To be eligible for funding support in this program the housing unit must be located within the City Limits. No one unit supported can exceed a sales price of $500,000.
Projects eligible for fee reimbursements are:
- New Construction or adaptive re-use with existing infrastructure services
- New Construction proposing to create a high volume of dwelling units
- Re-use of non-residential development to owner-occupied housing.
Projects can qualify for funding support in two different ways:
- Sale Price of Home: An owner-occupied housing unit is eligible for reimbursements if the sale price is at or below the maximum housing price a standard household earning 115% of the AMI could afford. The income limit is determined by the US Department of Housing and Urban Development, Section 8 Program. These numbers are updated annually. The current maximum sales price eligible for reimbursements in this program is $452,800.
- Creating High Volume of Housing: Upfront subsidies are available to support the creation of a high volume of owner-occupied housing units if at least 50 homes are proposed. To qualify for upfront subsidies, a portion of the homes is required to be priced at or below the maximum housing price a standard household earning 115% AMI could afford based on the number of proposed units as follows:
- 50-100 Proposed Units
- Minimum Requirement of 115% AMI Units: 60%
- 101-150 Proposed Units
- Minimum Requirement of 115% AMI Units: 30%
- 151-200 Proposed Units
- Minimum Requirement of 115% AMI Units: 20%
- 201-250 Proposed Units
- Minimum Requirement of 115% AMI Units: 15%
- 250+ Proposed Units
- Minimum Requirement of 115% AMI Units: 10%
- 50-100 Proposed Units
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