NEW ULM – Following last month’s loan program review, the New Ulm Economic Development Authority (EDA) agreed to allocate funds to the “Get It Ready Single Family Rehab” and the “Multi-Family Rental Rehab” programs.

Get It Ready Single Family Rehab and the Multi-Family Rental Rehab loan programs are designed to make improvements for housing in New Ulm. The former is for a single family home with the later being used for apartments and other multi-family units. Typically, the two programs would receive funding allocations from the EDA at the start of the year, but this year the board chose to table funding the two programs to determine if a change was needed.

During a work session, the board decided the Get It Ready loan needed to be updated. The original idea behind the Get It Ready loan was to preserve New Ulm’s housing stock by offering low-interest loans and help seniors cover needed maintenance on a home they hope to sell before downsizing.

EDA Director Heather Bregel said the program was intended as a revolving loan. Loan repayments would be used to fund the program for the next year. The problem is the original program did not require homeowners over 65 to pay back the loan until the house was sold. In theory, a person over age 65 could use the loan to fix a leaky roof and then live in the house for another 10 years and not pay back the loan in that time.

The board decided to amend the program to cap the number of years payments would be deferred.

Bregel brought back a proposed change to the Get it Ready loan program. The change would limit deferred payments for borrowers 65 and older to three years. If the home has not been sold within three years, the borrower must start making monthly payment with interest.

Board member Lindsey Henn made the motion to approve the program change. It was unanimously accepted by the board.

“I like the additions we made and I think that will make the program work better and work the way it was intended,” board chair Michelle Markgraf said.

Bregel clarified that individuals who currently have this loan would be grandfathered in under the old rules. This change would only apply to new applicants.

Following changes to the program, the board agreed to allocate funds to the Get It Ready loan for 2025. Each year, $120,000 is put into the loan program. The board needed to approve an additional $96,981.17 to bring the loan fund back to its full balance.

The board approved allocating $65,857.45 to the Multi-Family Rental rehab loan program, bringing it back to $150,000 for 2025.

The multi-family loan program was also reviewed by the EDA, but the board decided to make no changes to the program, except to better promote the program.