To learn about the many housing incentives available, including tax increment financing, down payment assistance programs, utility discounts, and more, click here to view and download our current “Choose Perham” Housing Incentive brochure.
Tax Increment Financing
Tax Increment Financing (TIF) uses the increase from taxes from the construction of homes to help with financing. Through the use of TIF, the costs of special assessments for sewer, water, and street improvements are reduced for qualified buyers (approximately $15,000 value). Perham offers residential TIF to qualified homebuyers who own and live in Westwind, Clearwater, Victory Estates, or Prairie’s Edge subdivisions. You qualify for the program if you live or will live in a single family owner occupied home in one of the subdivisions identified above and your household gross annual income does not exceed:
- Family of 2 or fewer (at 100%): $77,100
- Family of 3 or more (at 115%): $88,665
Because income guidelines change periodically, please call (218) 346-4582 for the most up-to-date figures.
Down Payment Assistance Programs
These programs are designed to provide gap financing to those who want to build a new home, purchase a newly constructed home, or purchase a previously owned home within the City of Perham. Based on the requirements, a homebuyer may be eligible for up to a $20,000 financing package. Gap financing is then utilized for closing costs and to lower the purchase price of the home.
Financing packages are in the form of loans.. The loans are in the form of a 30 year, 0% interest deferred second mortgage that is due when the home is sold, the buyers fails to occupy it as a primary residence, or the first mortgage is satisfied. Employers in the Perham community have donated funds to the HRA of Perham. The HRA utilizes those funds and various other housing funds to create financing packages based on eligibility (all programs are subject to funding availability):
HRA of Perham Down Payment Assistance Program:
Perham Housing & Redevelopment Authority (HRA) provides a loan of up to $3,000 per homebuyer. You must be employed in, or within a 1/2 mile of the City of Perham and obtain a letter of support from your employer.
(This program is not administered by the HRA of Perham) KLN has established an in-house program for a forgivable loan up to $10,000 for qualified employees. This grant, in addition to the HRA and other assistance funds that may be available, totals $20,000. Contact the KLN Human Resources Department for more information at 800-346-4910.
For new construction, additional incentives include free boulevard trees and free water usage for one year (approximate value of $350) to promote lawn establishment.
The HRA has 49 active loan packages and have had seven repaid, totaling in 56 beneficiaries.
For more information on any of our programs, contact Mary at 218-346-4582 or e-mail MHolzer@CityOfPerham.com.