The Perham Housing and Redevelopment Authority (HRA) leveraged several funding sources to create an employer-assisted downpayment pool.
The city contributed $100,000, local employers will provide up to $55,000, and GMHF has promised to match all employer contributions. GMHF sets a funding maximum of $2,500 per homebuyer purchasing a home in Perham.
KLN Industries, a local snack/ pet food manufacturer with 565 employees, contributed $50,000 to the fund. KLN will offer $5,000 loans if the buyer is a KLN employee, $10,000 for KLN employees who are first-time homebuyers, and $1,000 for non-KLN employees. Arvig Enterprises, a local cable provider with 335 employees, committed $5,000 to the fund to provide $1,000 deferred loans to homebuyers purchasing within the city limits. Perham HRA and Arvig Enterprises structured their contributions as 30-year deferred loans, while KLN Industries structured their funds to be forgiven at a rate of $1,000 per year after the sixth year, and are forgivable after 30 years.
The Perham HRA, the program administrator with past experience with EAH programs, has committed up to $100,000 to provide $2,000 in 0%, 30-year deferred loans to qualified homebuyers accessing EAH funds. The HRA limits funds to homebuyers who earn 80 percent or less of statewide median income and have taken Homestretch homebuyer education. Homebuyers will have also have access to other homebuyer assistance programs through local lenders who underwrite CASA, Rural Development, FHA, and VA loan products.