Financing For Homeowners Associations
Housing Improvement Area Financing for Homeowners Associations
What are housing improvement areas?
A housing improvement area (HIA) is a defined area in a city in which housing improvements in condominium or townhome complexes may be financed with the assistance of the city, or the city’s economic development authority (EDA) or housing and redevelopment authority (HRA).
Who is eligible for HIA financing?
Homeowner’s Associations with an average market value of units that do not exceed the maximum home purchase price for existing homes under the State’s first-time homebuyer’s program ($352,300).
Homeowner’s Associations that do not have the financial ability to proceed with the improvements without the benefit of HIA financing.
What type of improvements are eligible?
- Removal of blight and/or the upgrading of the existing housing stock in a neighborhood that promote neighborhood stabilization and revitalization.
- Improvements to shared Homeowner’s Association areas to benefit the of majority or all of owners, such as shared heating and parking.
- Corrections that address housing or building code violations as identified by the City Building Official.
- Improvements that maintain or obtain FHA mortgage eligibility for a particular Homeowner’s Association within the designated HIA.
- Improvements within Homeowner’s Association that will increase or prevent the loss of the City’s tax base.
- Improvements that stabilize or increase the owner-occupancy level within a neighborhood or association.
- Improvements must be permanent in nature.
What are the financing parameters?
There are no specific financial parameters, such as a maximum amount of funding Financing is based on the estimates provided, and the amount agreed upon by the City. Terms and conditions of HIA Policy must be met.
Ready to get started?
- Read the full HIA Financing policy
- If you feel your Homeowner’s Association qualifies for establishing an HIA and the associated financing or you have questions about the policy, contact Regina Dean at (952) 895-4453.
- Fill out the application.
- The City will then meet to discuss the HIA process, project scope, member participation, time schedule and other information that may be necessary. View the Housing Improvement Area Flowchart for process details.