Homeowner Rehabilitation Program

The City of Monticello’s Home Rehabilitation Program is a forgivable loan program designed to help eligible homeowners make critical improvements to their homes. The program supports Monticello’s existing housing supply, preserving safe and well-kept neighborhoods within the community.

An individual forgivable loan may be made in an amount ranging from $5,000 to $25,000. If the residence is sold within two years of receiving the grant, the forgivable loan must be repaid to the City. 

This is a first-year pilot program with limited funding administered by the City of Monticello Economic Development Authority (EDA). Applications will be reviewed on a first-come, first served basis, subject to EDA discretion.

The EDA has allocated a maximum of $200,000 for the initial loan program. The funds are from an allocation provided to cities by the State of MN for the purpose of creating local housing programs.

In order to be eligible for this program, the following requirements must apply: 

  • Must be an owner-occupied homes within the City of Monticello
  • Household income must be at or below 115% Area Median Income (income limit chart available on application) 
  • Property taxes and property insurance must be current
  • Property must not be in default or owner involved in bankruptcy proceedings
  • Applicant must be able to provide at least 5% of the project cost in cash
  • Applicants age 55 or older preferred, but the program is open to all above 18 years of age
  • Homes located north of I-94, with exceptions subject to EDA discretion

Improvement Categories

  • Electrical improvements (updating wiring, electric light fixtures/systems)
  • Energy efficiency, insultation and weatherization (weather stripping, ventilation, ceiling fans, etc.)
  • Exterior repairs (painting, roofing, siding, etc.)
  • Accessibility modifications (bathroom modifications, lowering cupboards and countertops, widening doorways)
  • Heating and ventilation improvements (air exchanger, central air conditioning, chimney repair)
  • Plumbing improvements (bathroom fixtures/connections, bathtubs/shower doors, water conditioner, water heater)
  • Structural additions and alterations (chimney repair, entryway, foundation repair)

How to Apply

Before Proceeding with Application

  • Submit a letter of interest to the City of Monticello via in-person at City Hall, 505 Walnut Street, Suite 1, or via mail
  • Schedule a Pre-Loan Meeting with City Staff

After Completion of application and submission to City Hall

  • Verify income, age, project budget, quotes, insurance and 5% match requirement