Neighborhood Impact Program


Gate City Bank and the City of Moorhead are partnering to offer the Neighborhood Impact Program, a $2 million loan pool available through October 31, 2022, to encourage preservation of the City’s existing housing stock.  The Neighborhood Impact Program offers low-interest loans and technical assistance to homeowners for major home improvement projects. 

Applications are reviewed on a first-come, first-served basis limited by fund availability.  For additional information, please contact Gate City Bank at 701.293.2400, email Neighborhood Services or call 218.299.5434 to speak to someone in Neighborhood Services.

Program Goals

  • Address housing safety
  • Prevent deferred maintenance and property deterioration
  • Preserve the character of older neighborhoods
  • Invest in the City’s affordable housing stock
  • Reverse or slow the trend toward conversions of single family homes to rental property

Program Priorities

The proposed housing rehabilitation should preserve the integrity of the house and add to the long-term value and life of the property and the neighborhood.

  • Health and safety code deficiency correction
  • Accessibility modifications for persons with disabilities or elderly households
  • Structural improvements
  • Weatherization and energy efficiency
  • General home improvements

Eligible Improvement Costs

Funds may be used to correct existing code deficiencies, structural deficiencies, weatherization, accessibility, and general property improvements.  All code issues must be addressed as part of the improvement project.   Loans are available to finance new improvements not yet under construction.

Rehabilitation work must include at least one of the following: 

  • Foundation work (drain tile, bracing, new foundation)
  • Major exterior improvements (siding, roofing, windows)
  • Addition of bedroom or new living space
  • Major interior remodeling or replacement of major mechanical systems (furnace, electrical system)
  • Conversion of rental unit to owner-occupied home

Eligible Households

Loan applicant must be the owner-occupant of the home and meet Gate City Bank's credit standards for repayment of the improvement loan. 

Eligible Properties

  • Located within the City of Moorhead municipal boundaries
  • Built before 2006
  • Assessed value under $250,000
  • Zone for residential use
  • Outside of the 100-year flood plain
  • Owner-occupied one or two unit residences (if there is a second unit, it must be a registered rental unit)
  • Current on property tax and special assessments

Terms of Loan Assistance

  • 2.26% APR, repayable over 10 years
  • 3.00% APR, repayable over 15 years
  • Minimum loan value $10,000; maximum loan $75,000
  • Maximum loan-to-value 90%
  • Property owner responsible for closing costs & customary fees

Program Responsibilities

  • City of Moorhead:
    • Receive application
    • Inspect property for property eligibility
    • Conduct construction inspections (initial and final)
    • Answer property-related questions
  • Gate City:
    • Upon City of Moorhead property evaluation, accept loan application and determine borrower eligibility
    • Conduct the loan closing
    • Approve and process requests for loan disbursements based on invoices and receipts
    • Answer loan processing questions

Loan/Project Procedures

  • Homeowner: 
    • Complete the loan application with Gate City Bank
    • Submit scope of work to the City for approval
    • Obtain bid(s) from MN licensed contractors for work required under building code regulations
    • Complete the improvement project as agreed within 6 months of project start date unless an extension is granted by Gate City Bank
    • Provide invoices and receipts to Gate City Bank for loan disbursements
  • Contractor:
    • Provide homeowner a copy of their liability insurance policy
    • Obtain permits where required (must be MN licensed contractor)
    • Complete the improvement project within 6 months of the project start date
    • Provide homeowner with invoices needed for loan disbursements
    • Provide lien waivers to homeowner upon completion of work