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2020 Housing Renovation Loan Program

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The City of La Crosse is launching a third year of the Housing Renovation Program. This program has NO upper income eligibility requirements and is available 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. Click here to apply.

You can receive up to $35,000 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, when the home transfers ownership or is refinanced.


Background

The City of La Crosse is prioritizing encouraging its residents to make significant repairs and do remodeling work on their homes. This is part of The City of La Crosse's strategy to revitalize its' neighborhoods and improve its' aging housing stock.


Open Application Period

Applications for the 2020 Housing Renovation Loan Program are being accepted from May 15, 2020 through June 22, 2020.


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 program. All properties within "buffer" or half-mile of TIF 15 are eligible. Click here to view map. 
  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 have a fair market value at a minimum of $70,000 as listed on the County of La Crosse land records and be zoned R-1 Residential
  4. Property will be owner-occupied continuously for 10 years after loan closing (guaranteed through a land-use restriction agreement recorded against property)
  5. This program is not open to La Crosse Residents who qualify for the income-based Housing Rehabilitation Loan Program. If you earn less than 80% of the County Median Income, you must apply for our Housing Rehabilitation Loan Program (instead of this program). Please note: The Housing Rehabilitation Program is available City-Wide, not just in the Renovation Program targeted area* See household member table below to see if you earn less than 80% of the County Median Income.
Household Size 1 2 3 4 5 6
Annual Income $43,050 $49,200 $55,350 $61,450 $66,400 $71,300

*If you earn less than these amounts listed above, you are not eligible for this program and must apply to the City's Housing Rehabilitation Loan Program*


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. 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).
  4. 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. The project must start within 45 days of the date of approval and be completed within 4 months of the start date.


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 the Housing Rehabilitation program direct line (608) 789-7513.


Project Selection Process

There are limited funds available for the 2020 Renovation Loan Program. All requirements identified for eligibility must first be satisfied and then project selection will be awarded based on the scoring criteria below:

Incentive Points Achieved Points Available Check If Meet Criteria Description
Exterior Needs Improvements
4
Property Inventory Evaluation (PIE) identifies property as Below-High to Below-Low https://gis.cityoflacrosse.org/maps/housing_market_index/

2
PIE identifies property as Standard (High, Average, Low)

0
PIE identifies property as Above-High-Above Low
Curb Appeal Enhancement
4
Project includes work that will maintain or restore the historical character of the home or significantly improve the home's exterior.

4
Extra exterior architectural details will be added as a result of this project.
Use of a single contract for all work.
3
1 contractor utilized.

2
2 or less contractors.

0
3 or more contractors
Detail of Plans and Specifications and Bids Provided
3
Bids and plans and specifications included

0
No bids provided, no plans or specifications included
TOTALS 0 18

If no pie scoring available, staff will use discretion on which category the property meets. Staff may also change PIE score according to its judgement and discretion.

Financing and Loan Example

Example Parameters
FMV $97,500
Current Mortgage Balance: $76,000
Initial LTV 78%
Loan Detail example
Total Project Cost $46,667
Loan Amount $35,000
Homeowner contribution of 25% $11,667
Exterior Improvements required 25% $11,667
Projected New Property Value (Equalized Value):Assumes that 50% of the improvement will be added to determine equalized value
$46,667 @ 50% $23,234
Initial FMV $97,500
Equalized Value $120,934
Indebtedness
Initial Mortgage Balance $76,000
Renovation Loan $35,000
Total Indebtedness $111,000
New LTV 97% (≤ 100% qualifies)

Maps

TID15_ResidentialAnalysis_042220 (1)


Application

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