Small Cities Grants

The Small Cities Grants, funded through DEED (Department of Employment and Economic Development) are income based deferred grants to do basic necessary housing repairs in owner occupied homes. Funds are distributed on a first come first serve basis and require a homeowner contribution of match funds.


For owner occupied grants,80% of the area median family income of the county in which the community is located. Must have at least 1/3 ownership in the property. Taxes and insurance must be current on the home. For rental grants the tenants must qualify under the income guidelines and the owner must have at least 1/3 ownership in the property and have taxes and insurance current. Commercial grants, the owner must have at least 1/3 ownership in the property, have taxes and insurance current.

Funds are only available in communities that have received a Small Cities Grant award. Some Small Cities Grants have funds that assist commercial and rental property owners as well as owner occupied grants.

Minnesota Housing Finance Agency Rehabilitation Loans (MHFA)

Income based deferred loans for improvements for basic necessary housing repair to owner occupied properties. No interest or monthly payments until such a time that you sell, transfer or move from the property or until the 15th year when the deferred loan is due and payable.


Must be income eligible based on the guidelines set by MHFA yearly.

Funds are available through Prairie Five in Chippewa, Lac qui Parle, Yellow Medicine County and Big Stone County.For Swift County contact the Swift County HRA.


A home buyer education program which provides information on home purchasing loan options, purchase agreements, loan closings, budgeting and home maintenance after the purchase. After class completion, a certificate is obtained which may enable the participant to apply for certain loan programs. There is a fee for the class.

For more information contact:
Southwest Minnesota Housing Partnership at 1-888-468-8010 ext. 418 to register for classes held in the Prairie Five service area. Or for classes statewide contact the Home Ownership Center at www.HOCMN.org for a list of classes.