Demolition Loan Program
Our traditional Redevelopment Grant Program works well on sites where there are costly impediments to a planned or proposed redevelopment project. But sometimes communities need assistance with demolition and other redevelopment activities on sites where there is no current development plan or where future development visions are hindered by current blight. In some cases, communities may need to address more immediate public safety concerns or hazardous conditions on a site before considering future redevelopment options.
The Demolition Loan Program meets those needs by helping development authorities with the costs of demolishing blighted buildings on sites that have future development potential but where there are no current development plans.
Development authorities, including cities, counties, port authorities, housing and redevelopment authorities, and economic development authorities.
Demolition activities, including interior remediation such as asbestos abatement. Loans would pay up to 100 percent of demolition costs for a qualifying site. The loans may also assist with site acquisition costs.
Loan Terms and Conditions
Property and buildings must be publicly owned. The following terms apply:
- Loans will be low-interest (2 percent)
- Loans will be interest-free for first two years
- Principal and interest payments will start in year three
- Loan terms cannot exceed 15 years
If the site is developed, the remaining principal and interest (up to 50 percent of the loan) could be forgiven based on development benefits.
Demolition Loan Application - due February 1 and August 1
For More Information
Kristin Lukes at 651-259-7451 or 1-800-657-3858.