NEW ULM – New Ulm will once again take part in the Minnesota City Participation Program (MCPP).

The city council authorized participating in MCPP Tuesday. MCPP is managed by Minnesota Housing, the state’s housing finance agency. The agency is tasked with providing access to safe and affordable housing.

The MCPP is designed to provide first-time home buyers loans using bonds issue by the state on behalf of local unites of government.

City Manager Chris Dalton said the city has participated in MCPP for the last three years and the city’s only obligation is assisting with local publicity. Funding to participating cities is on a per capita basis, with each applicant allocated a minimum of $100,000.

There are income limits connected to the program. A one to two person household is limited to $111,700. There is a $128,400 limit for a three or more person household. The house price limit in Greater Minnesota is $472,030. There is also a minimum usage requirement. To take part in the MCPP program the city must use 50% of funds allocated.

“It opens up another avenue for first-time home buyers to potential get a loan,” Dalton said. “Last year we were allocated $255,000 and were able to secure loans of up to $65,000.”

This allowed the city to administer four home loans.

Councilor Larry Mack made the motion to participate with a second from Councilor David Christian. Mack said it was nice to have another tool to help individuals get a new home.