ELY – The Ely Housing and Redevelopment Authority will consider applying for almost $450,000 in loan money to help renovate Sibley Manor.

“The reality is that this is not a grant, it is a loan,” said Ely Mayor Chuck Novak.

The Minnesota Housing agency recently approved the borrowing program to make urgent safety and energy conservation improvements to the state’s aging public housing stock. This funding is part of the support for affordable housing approved by the Legislature and Governor Dayton in the 2014 bonding bill.

Through the $447,000, 20-year loan, the 39-unit Ely facility, which provides housing mainly for seniors and disabled residents, could get a new roof, energy-efficient heating and other updates, according to a press release from Minnesota Housing.

Novak said this week that the local housing authority still needs to decide whether to participate in the program. A meeting is scheduled for Tuesday, March 10, beginning at 10 a.m. in the Pioneer Apartments.

“We have to meet the energy effectiveness (criteria), and only then can the loan be forgiven,” he said. “The previous Housing and Redevelopment Authority had agreed to apply for the program. Of two bids received, only one indicated they could meet the energy standards,” Novak said. “We will discuss this program next week and decide if we want to move forward or not. We need to look at what our risk is gong to be.”

Public housing is home to many families, individuals with disabilities, and seniors with extremely low incomes. Most of the buildings across the state were built in the 1970’s with financing by the federal government and are owned and operated by cities and counties. This funding will allow 35 public housing developments across the state – nine in the metro area and 26 in Greater Minnesota – to replace original windows, boilers, elevators and other critical infrastructure items that have fallen into disrepair.

“These awards will safeguard our state’s important public housing stock for decades to come,” said Minnesota Housing Commissioner Mary Tingerthal. “Although we know the demand outweighed the available resources, this is an important step in keeping residents secure in their homes.”

Minnesota Housing received requests totaling more $54 million, three times the available funding, for 79 developments. These loans will fund 35 developments with a total of 2,438 units and add to the 2012 investment of $5.5 million to help improve similar developments.

“Public housing ensures low-income seniors, families, and individuals have a safe and affordable place to call home. Public housing options are critical for communities across the state and these funds will make sure public housing, from Austin to Ely, is maintained today and into future,” said Randal Hemmerlin, Executive Director of the Red Wing HRA and President of the Minnesota Chapter of the National Association of Housing and Redevelopment Officials (NAHRO).

For more information, go to www.mn-housing.gov.