Emergency & Accessibility Loan Program Changes
The Board of Directors has approved revisions to the Emergency & Accessibility Loan Program Procedural Manual. Revisions include program and process changes. The changes are effective for loans committed on or after October 1, 2020. Some of the substantive changes include the following:
- Removes the hazard insurance requirement to enable low-income homeowners who lack hazard insurance to access the program;
- Revises procedure for change orders to remove prior approval from Minnesota Housing staff to streamline rehabilitation work; and
- Revises lead-based paint requirements to be consistent with the Lead-Based Paint Guide for Applicable Single Family Programs that was approved by the Board in May 2020.
Lenders no longer need to obtain prior approval for emergency and accessibility improvements but are required to document in the loan file that an improvement is eligible under the Emergency & Accessibility Loan Program. PLEASE NOTE: While prior approval and submission of documentation is no longer required before closing the loan, the need for emergency and accessibility improvements must be documented and will be reviewed in post-close loan audits.