Numbers show impact of Housing Rehab Program

Jess Bengtson
Crookston Times

    After an approved housing rehab loan from Crookston Housing & Economic Development Authority and one year of renovations, a rehabilitated home on Central Avenue has been listed for sale by the Adams family. Dean Adams, who owns Adams Heating & Cooling, and has completed many construction projects in the community including other house “flips”, was approved for a $50,000 loan on March 17, 2020 and has transformed the house inside and out.

    The 2020 loan was Adams’ fourth rehab housing loan and CHEDA noted that he had “a good history with repayment criteria of the loan with a flawless record of paying on time with required interest accrued” and that Adams owns other properties within Crookston that “service the community” with housing rental units.

    CHEDA also said that Adams’ before and after pictures of other loan-approved projects have been viewed widely as “exactly meeting the goals of the program in that the property tax base in Crookston has been strengthened and the community vitality and appearance is improved.”

    The work done on the Central Avenue house included new siding, insulation, windows, doors, trim, baseboards, deck, garage walls with metal and gas heat, updated electrical, updated plumbing, new lighting, paint, appliances, kitchen cabinets, flooring, stairs, banister, fenced in yard and complete bathroom and HVAC (heating/ventilation/air conditioning) replacement which included a new furnace, heat pump, central air, duct work, and water heater. Total anticipated rehab cost for the house was estimated at $133,000 and Adams’ $50,000 loan (with 2% interest) had a term of one year (like all other CHEDA rehab housing loans) with the lump sum due on the one-year anniversary date or upon work being completed, or if the property was sold or leased.

    “The Adams family has truly been thankful for all the sponsorship through CHEDA and Craig Hoiseth’s helping our entire family, especially our children who are starting out on their own projects and have limited funds,” Sheryl Adams told the Times. “With the help of CHEDA, the next generation can get a jump-start on achieving their dreams and helping with the growth of Crookston.”

    The renovated Central Avenue house is currently listed with Peter Sullivan Greenberg Realty for $197,750 as a “4 bed, 2 bath home perfect location! Nicely remodeled from top to bottom. New HVAC  with heat pump, plumbing, appliances, water heater, etc. Large double detached garage insulated and new gas heater. Very private and shaded backyard with new deck off the eat-in kitchen. Call and schedule your showing today. This one won’t last long on Market!”


    The CHEDA Housing Rehab Loan Fund was established by the CHEDA Board in 2014 (an updated date after the Times' print deadline) to “add, improve, or create housing opportunities in Crookston.” Loans are made to individuals or businesses when credit is not otherwise available or as a supplement to private financing to “ensure the successful completion of the housing related project.”

    To date, the housing rehab program has given out 22 loans totaling $720,000 (an updated amount after the Times' print deadline) where accumulative property value prior to rehabilitation was at $649,666. Current accumulative value of those 22 properties is at $1,952,600. CHEDA Executive Director Craig Hoiseth told the Times that they still have the $150,000 balance available in the program as they started meaning all loans thus far have been recovered.

    The housing rehab loan size can be anywhere from $5,000 to $50,000 dependent on availability of funds and can be used for existing or new and owner occupied properties or rentals. Projects with an emphasis on neighborhood improvement with property valuation increase and property tax increase typically receive preference.

    In the Housing Rehab Loan application, interested parties provide detailed explanations of their project with blueprints and property legal descriptions, construction or renovation budgets with contractor bids, three years worth of filed tax returns, personal financial statements, schedule of existing debt, and a letter of commitment or turn-down from other lenders. Applicants will also be asked to provide evidence or assurances that they will comply with laws concerning zoning, building permits, the environment and other issues.

    The proposed project must also be located within the City of Crookston, Polk County, Minnesota, or have significant impact on the Crookston community; must provide benefit under categories including increased property value or addition of safe, healthy, or affordable housing to Crookston. Loan recipients are also required to provide feedback of progress as requested by CHEDA on a quarterly (3-month) basis and must include any obstacles, difficulties or problems that could hinder the ability to meet agreed obligations. The detailed application also asks that photos of the project, before and after, are required upon payment.

A look at the upper bathroom before the remodel
A look at the house before the remodel
CHEDA staff members Tiffany Jones, left, and Theresa Tahran check out the new backsplash in the kitchen of the rehabbed house on Central Avenue.
Kitchen after the remodel
A look at the living room before the remodel
Living room after the remodel
Lower level bathroom after remodel
View of the back of the house after the remodel
CHEDA staff members Tiffany Jones and Theresa Tahran outside at the Central Avenue house after the remodel
A look at the upper level bathroom after the remodel