Housing Renovation

At this time, only rental conversion applications are being accepted.


The City of La Crosse is launching a new program that has NO income eligibility requirements. After a successful housing rehabilitation program that targets low-moderate income households, we are now able to expand our program to all households living within a targeted area (see map). The purpose of this program is to encourage property owners to upgrade and update their homes. The new Housing Renovation Program can also be paired with the La Crosse Promise Program

You can receive up to $40,000 to repair or replace items such as roofing, siding, windows, electrical, upgraded kitchens and bathrooms, and more. The City of La Crosse offers a 1% deferred loan, payable after 10 years or when home transfers ownership. Property owners who convert a duplex or a triplex into single family owner-occupied home will be eligible to have 20% of their principal forgiven upon repayment. Property owners who renovate a single family rental will be eligible to have 10% of their principal forgiven upon repayment. The maximum loan amount for rental conversions is determined by the scope work, loan to value ratio, and approved by the Community Development Committee.


 

Program Eligibility

To be eligible to participate in the City's Housing Renovation Program you must meet these requirements:

1. The home must be located within the required boundaries of the Powell-Poage-Hamilton neighborhood, Washburn neighborhood or between West Avenue and 16th Street and Ferry Street and Green Bay Street (other locations apply, please see map, all properties within "buffer" are eligible) 

2. The home will be used as the Borrower's principal residence within 12 months from program loan closing or the subject property will be sold to an owner occupant buyer within 12 months from program loan closing.  

3. Home must be assessed at a minimum of $70,000

4. Property will be owner-occupied continuously for 10 years after loan closing (guaranteed through a land-use restriction agreement recorded against property) 

Other Requirements 

1. May not borrow more than 100% of the Loan to Value (Based off of Fair Market Value (FMV))

2. Application fee of $295, payable to the City of La Crosse Treasurer's, after Committee approval of project.

3. There is a match requirement. The owner must contribute 25% of total project costs through borrowed or personal funds (see examples below).

4. Home must be brought up to meet code and meet minimum HUD Housing Quality Standards (verified through an initial and final inspection by City Staff).

5. At least 25% of the loan must go towards exterior renovations (defined as siding, roofing, soffit, fascia, windows, exterior doors, chimney repair, porch, front entry, etc)                                                                                      

What Repairs Can Be Made?

Basic components of your home that can be repaired or replaced may include items such as: roofing, siding, foundation, windows, doors, painting, interior walls/ceilings, flooring, heating, air conditioning, electrical and plumbing systems. In addition, modernizing or upgrading rooms. All areas of the home must be brought up to code and meet the Minimum Housing Quality Standards, as verified by inspections by City Staff. 

Contracting for Work

Homeowner is responsible for the solicitation and selection of all contractors. Work must be completed by a licensed, insured contractor.

Deferred Payment Loans

The Deferred Payment Loan allows you to delay loan repayment until refinance, transfer of property ownership or 10 years; whichever occurs first. 

More Information

If you think you may qualify or would like additional information, please contact Kevin Conroy at conroyk@cityoflacrosse.org or (608) 789-7336 or Tara Fitzgerald at fitzgeraldt@cityoflacrosse.org or (608) 789-7363. Download a Housing Renovation Application.


Boundaries (see map for all areas)

Powell-Poage-Hamilton neighborhood: Jackson Street (northern border), West Avenue (eastern border), South Avenue (southern and western borders)

Washburn neighborhood: South side of Main Street (northern border), West Avenue (eastern boarder), 3rd Street (western border), Jackson Street (southern border)

Parts of Holy Trinity Longfellow and Weigent-Hogan neighborhoods: Ferry Street (northern border), 16th Street (eastern border), West Avenue (western border), Green Bay Street (southern border)

Financing and Loan Example

Example Parameters

Fair Market Value

$97,500

Current Mortgage Balance

$76,000

Initial Loan to Value

78%

Loan and Homeowner Contribution Details

Total project cost to max out loan

$53,333

Maximum Loan Amount

$40,000

Homeowner contribution of 25%

$13,333

Exterior Improvements required 25%

$13,333

Projected New Property Value (Equalized Value): Assumes that 50% of the improvement will be added to determine equalized value

$53,333 @ 50%

$26,667

Initial FMV

$97,500

Equalized Value

$124,167

Indebtedness

Initial Mortgage Balance

$76,000

Renovation Loan

$40,000

Total Indebtedness

$116,000

New LTV

93% (≤ 100% qualifies)