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%): $111,700
- Family of 3 or more (at 115%): $128,455
- 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 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 $10,000 financing package. Gap financing is then utilized for closing costs and to lower the purchase price of the home.
KLN Family Brands:
(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. Contact the KLN Human Resources Department for more information at 218-347-0525.
Otter Tail County also offers housing incentives through the County CDA/HRA. Information on County programs can be found on their website.
For new construction, additional incentives include free boulevard trees and free water usage for one year to promote lawn establishment.
For more information on any of our programs, contact Elsy at 218-346-4582 or e-mail firstname.lastname@example.org.