Small Cities Development Program


The Small Cities Development Program (SCDP) helps cities and counties with funding for housing, commercial rehabilitation and public infrastructure. The projects must meet one of three federal objectives.

  • Benefit people of low and moderate incomes
  • Eliminate slum and blight conditions
  • Eliminate an urgent threat to the public health or safety

SCDP provides housing grants to local grantees for the purpose of rehabilitating local housing stock. Grantees may use these funds for owner-occupied, rental (single family or multi-family). Grantees may also apply for commercial rehabilitation. These funds may help commercial building owners to rehabilitate façade improvements, code violations and health and safety issues. Target areas may apply.

Southwest Minnesota Housing Partnership has been contracted to administer the SCDP program in the following areas:

Please click the link above for more information on what type of SCDP program is available in your area.

Rental Rehabilitation Deferred Loan Program

Southwest Minnesota Housing Partnership (SWMHP) has been approved to administer the Rental Rehab Deferred Loan Program (RRDL) through Minnesota Housing Finance Agency. SWMHP offers the RRDL in the following counties: Big Stone, Blue Earth, Brown, Chippewa, Cottonwood, Freeborn, Jackson, Kandiyohi, Lac qui Parle, Le Sueur, Lincoln, Lyon, Martin, Meeker, McLeod, Murray, Nicollet, Nobles, Pipestone, Redwood, Renville, Rice, Rock, Sibley, Swift, Waseca, Watonwan and Yellow Medicine.

Program requirements include, but are not limited to:

  • Up to $25,000 per unit (maximum of $300,000)
  • 0% deferred loan, non-recourse
  • 10 year minimum term for loans under $100,000; 15 year minimum term for loans over $100,000.
  • Funds are structured as a construction loan
  • Owner must contribute at least 3% of the loan amount
  • Income and rent restrictions apply
  • At least 51% of the property must be residential space
  • Rehabilitation must address all rehabilitation needs of the property
  • Application fees are $100 per unit with a minimum fee of $500 and maximum of $3,000. This must be submitted at the time of application.

For more information on the RRDL program visit MHFA or please contact Michele Clarke at 507-836-1617 or via email at