If all goes as planned, income-eligible households in Ranier could benefit from funds awarded through a program of the Minnesota Department of Employment and Economic Development as early as this spring.

In order to be considered for DEED’s Small Cities Development Program, the city is undergoing an application process in which the public must be involved. A public hearing is scheduled for 6:30 p.m. Feb. 19 at the Ranier Community Building, prior to the beginning of the regular council meeting.

“The purpose of the hearing is to introduce people to the program and explain eligibility,” said Dick Grabko, owner of Community Resource Development.

Grabko, who has previously worked with Ranier as an employee of the city’s engineering firm, Short Elliot Hendrickson Inc., is spearheading the application effort.

Grabko explained that the SCDP helps cities and counties with funding for housing, infrastructure and commercial rehabilitation projects that benefit people of low and moderate incomes. Cities with fewer than 50,000 residents and counties with fewer than 200,000 residents are eligible.

According to DEED’s website, funds are granted to local units of government, which, in turn, lend funds for the purpose of rehabilitating local housing stock. Loans may be used for owner-occupied, rental, single-family or multiple-family housing rehabilitation projects. Loan agreements may allow for deferred payments or immediate monthly payments. Interest rates may vary, and loan repayments are retained by grantees for the purpose of making additional rehabilitation loans.

“Funding can help homeowners afford to hookup up to city services as well as other rehabilitate areas of the home that could be seen as a threat to public health and safety,” Grabko said of the grant.

Officials from KOOTASA Community Action, who are also involved in the application process, are expected to attend the hearing to answer questions the audience may have.

“People from KOOTASCA will go over guidelines and explain that any money awarded is on a first-come, first-serve basis,” Grabko said.

He explained that should Ranier receive a grant, the funding will serve two purposes.

“The first,” he said, “is for the Three Points North water project. A survey identified three households that meet the income requirements to help pay for any assessment charges.”

During the water project which was completed last year, some assessments to property owners exceeded a price tag of more than $13,000, he said. The grant would alleviate costs to those the survey identified as eligible.

In addition to the Three Points North component, the grant would focus on rehabilitating housing.

“Again, it would only benefit households that meet income guidelines and requirements,” Grabko said.

Should the city receive the grant, each eligible household could receive up to $25,000 for improvements.

“Its a substantial rehabilitation,” he said. “It would be great for the city.”

Grabko stressed that the funds were “highly competitive,” but he was confident Ranier would be a recipient of the grant.

“The city was fortunate enough to be asked to submit a final application,” he said. “There were 83 applications submitted statewide, and only 21 communities are involved in this next step.”