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NEW ULM – Homebuyer Assistance Loan Program policy and flat rent adjustments in New Ulm were approved during Tuesday's Economic Development Authority (EDA) meeting.
Following an August work session, changes were proposed for the Homebuyer Assistance Loan Program policy.
The loan program assists first time homebuyers with a downpayment plan.
Previously offering a maximum $10,000 loan amount, the new policy bumps that amount up to $15,000. With the increased maximum loan amount, a 2% interest rate was added. Prior to these changes there was no interest rate.
Applicants are no longer required to be living or working in New Ulm during their application for the loan.
Economic Development Director Heather Bregel said that a positive credit history is also no longer required as long as the buyer is preauthorized by a mortgage leader.
The policy clarifies that the home purchased must be within New Ulm city limits.
Bregel elaborated by saying that some houses located outside of city limits have a New Ulm address. These houses would not be eligible for the program.
The EDA also adjusted Brown County's Public Housing Program rates to be in accordance with the Department of Housing and Urban Development's new Fair Market Rent (FMR) changes.
Public Housing Program participants have the option to pay 30% of their adjusted income for their housing and utilities, or utilize the flat rent option.
The 2026 flat rent rates for one bedroom were $742, two bedrooms were $973, three bedrooms were $1,177, and four bedrooms were $1,609.
The 2027 rates up these rates to $819, $1071, $1,282, and $1,717 respectively.
New Ulm's EDA approved Brown County's flat rent to align with the rate set by the FMR.
Bregel recommended this to encourage participants who can afford to pay market rate rent to move into the private rental or home ownership market.
"[This] opens up those public housing units for someone on the waiting list who is in need," Bregel said.
The board also approved payment standards for the Section 8 Housing Choice Voucher Program.
The voucher program provides rental assistance to families that meet income requirements.
For this program, the Department of Housing and Urban Development gives leeway for rates to be set within 90-110% of the rate set by the FMR for the area.
EDA members stuck with the rates of three and four bedroom houses, but increased to 110% of the FMR rate for one bedroom apartments and 105% for two bedroom apartments.
"These changes will reduce rent burdens and allow the majority of program participants to pay approximately 30% of their income [which is] consistent with the intent of the program," Bregel said.