Minnesota

Mitigation Incentives and Tax Credits

Strengthen Minnesota Homes - A grant program that has not yet been launched but is in its planning stages. Eligible homes will be awarded a grant to cover part of the cost of modifying their existing homes to the IBHS FORTIFIED Roof™ construction standard.

Funding Options to Help Rebuild or Re-Roof

Small Business Administration Loans - Those affected by a disaster can rebuild stronger by increasing their SBA disaster assistance loan up to 20% of the verified physical damage to make mitigation improvements. There is no cost to apply, and you are under no obligation to accept a loan if approved.

Generally, borrowers have two years after loan approval to request an increase for higher rebuilding costs, code-required upgrades, or mitigation.
Call (800) 659-2955 and ask about increasing your loan for mitigation purposes, or visit sba.gov/disaster for more information.

Fannie Mae HomeStyle Renovation Loans - A mortgage that provides a simple and flexible way for borrowers to renovate or make home repairs with a conventional first mortgage, rather than a second mortgage, home equity line of credit, or other more costly methods of financing.

Fannie Mae HomeStyle Energy Loans - A mortgage that helps lenders offer financing for homeowners to increase home energy efficiency and reduce utility costs.

Both HomeStyle Renovation and HomeStyle Energy mortgages may be combined with a HomeReady® mortgage so that low-income borrowers can take advantage of flexible features and additional savings.

USDA- Single Family Housing Repair Loans & Grants - A loan program providing loans to very-low-income homeowners to repair, improve, or modernize their homes. Grants are also available for elderly very-low-income homeowners to remove health and safety hazards.

HUD 203(k) Loans - A loan program for rehabilitating and repairing single-family properties allowing homebuyers and homeowners to finance both the purchase or refinancing of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.

The 203(k) program permits homebuyers and homeowners to finance up to
$35,000 into their mortgage to repair, improve, or upgrade their homes.

HUD Mortgage Insurance for Disaster Victims - 203 (h) - Loan program for renters or homeowners if their homes are located in an area designated by the President as a disaster area and were destroyed or damaged to such an extent that reconstruction or replacement is necessary. These loans may be used to finance the purchase or reconstruction of a one-family home that will be the homeowner's principal residence.

The borrower must submit their application to an FHA-approved lending institution within one year of the President's disaster declaration.

Resilience Policy and Legislation

Laws 2023 Chapter 60 - Appropriates $1 million in planning funds to the agency to work over the next two years to stand up the details of the new program.

Laws 2023 Chapter 57 - Creates the framework for the program and establishes criteria for contractors and other professionals to perform work on homes once the grant program becomes operational. It also requires insurance companies to offer a premium discount to Minnesotans who upgrade their existing roof, or builds a new roof, to the FORTIFIED standard.

SF 2744 - Funds and sets the parameters for the Strengthen Minnesota Home Grant Program. It also establishes that insurers must provide an insurance premium discount or insurance rate reduction to an existing or new construction home that obtains a FORTIFIED designation certificate.