Loan will allow Normandin to rehab house on Washington Ave.
If you want to see the latest example of the Crookston Housing & Economic Development Authority’s (CHEDA) Housing Rehabilitation Program in action, take a cruise by the house at 231 Washington Avenue. That’s where Luke Normandin, buoyed by a loan from the CHEDA program, will be rehabbing another dilapidated house and then either selling it or renting it out.
The CHEDA Board has approved a $42,000 loan to Normandin, who has utilized the program previously to rehab a house in major need of work.
“This new one is basically a total redo,” Normandin said.
Jerry Persson, Normandin’s father-in-law, owns the house, and is contributing $41,000, according to loan documents. Normandin estimates the investments will amount to $15,000 in site improvements, $21,000 in structure renovation, $20,000 in energy improvements, $7,000 in utility improvements, and $20,000 in exterior improvements.
The program was launched thanks to an influx of money to CHEDA from the City of Crookston, which was earmarked for various creative initiatives to improve the community. Loans must be paid back within one year, or earlier if the rehabilitated property is sold. They carry a 2 percent interest rate so CHEDA can cover its administrative costs.
With the repayments, the idea is that the loan fund regenerates each year. Before the loan to Normandin was approved, the balance was $80,000. CHEDA Executive Director Craig Hoiseth noted that several other housing rehab loans should be paid back in full this year.