Clay County HRA

Rental Rehabilitation Deferred Loan (RRDL)     

Phone: 218-233-8883

Fax: 218-233-9491


PO Box 99

116 Center Avenue East

Dilworth, MN 56529

The Rental Rehabilitation Deferred Loan Program assists owners of smaller rental properties located outside the seven county metropolitan area, to finance moderate rehabilitation of structurally sound residential rental units.
Eligibility Requirements

· The property is residential rental property including single family homes, duplex or larger apartments, as long as four or more units or single family homes are located within a single community or program area

· The property space is at least 51% utilized for rental housing

· The property is occupied by households with incomes less than 80% of the statewide median income

· The rent is lesser 30% of data on wages (2012 average) from the MN Department of Employment and Economic Development (DEED) wage data and rents based on affordability at 80% AMI         

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© The Housing and Redevelopment Authority of Clay County, All rights reserved.

Eligible Improvements:
Eligible improvements must be permanent general improvements, with the exception of appliances, that have not been started prior to the loan closing. Permanent general improvements include renovations or repairs to an existing structure which materially preserve or improve the basic livability, safety, or utility of the property.

How To Apply:

Click on the links below, complete the application and return it to the Clay County HRA.  Depending on availability, a meeting may be set up to discuss eligibility.  RRDL Application      RRDL Checklist     2015 RRDL Rent Limits    Certificate of Environmental Issues    RRDL Lender Letter     2015 Income Limits

HRA Clay County Logo

There are two different RRDL Loan Programs available in 2016.

100% Forgivable Loan RRDL Program

Loans of $100,000 or less to an eligible Borrower may be fully forgiven when all the following conditions are met:


The Project contains four or fewer units and is located in Clay County.

The owner is a Natural Person, Sole Proprietorship, or legal entity made up of only a Natural Person and his or her spouse, when applicable.

The RRDL Loan addresses health, safety, and energy conservation improvements.

The Project is owner-operated.

Loan Limits and Terms

Minimum 10 year loan term.

Loan can be completely forgiven at the end of the loan term as long as owners stay in compliance with rent and income reporting requirements.

0% Interest Deferred Loan

Minimum loan: $25,000, Maximum Loan: $100,000

The maximum loan per unit is $25,000. For single-family homes and duplexes, the maximum loan is $35,000 per unit.

10% Forgivable Loan RRDL Program

             Eligible Applicants:

                    Housing and Redevelopment Authorities (HRAs)

                    Community Action Programs (CAPs)

                    Nonprofit Organizations

                    Local Units of Government and Tribal Governments

                    A Joint Powers Board

                    A Natural Person who owns or will own the housing

                    Private Developers


Loan Limits and Terms

0% Interest Deferred Loan

Loan Term 10 to 30 years.

10% of the total loan amount may be forgiven if project maintains program compliance for the full term of the loan.


Minimum loan: $25,000, Maximum Loan: $300,000

The maximum loan per unit is $25,000. For single-family homes and duplexes, the maximum loan is $35,000 per unit.