Housing Developers

Developers interested in creating residential housing units for low income families may be eligible to receive funding through the City of Rockford Community & Economic Development Department. The City provides gap financing; which is the difference between committed resources and the total development cost of a project. Assisted projects range from single family homebuyer rehabilitation/new construction projects to large multi-family rental developments and subdivisions. All projects receiving $20,000 or more in City funding must be approved by the City of Rockford City Council.

Applying For Funds

Financial resources are limited. Contact Vicki Manson at 779-348-7162 to discuss funding availability. Although from time to time, other financial resources such as Tax Increment Financing dollars and Community Development Block Grant dollars may be available, the main source of funds used for residential housing projects is the HOME Investment Partnership Program (HOME) dollars, federal grant funds from the Department of Housing and Urban Development (HUD). The annual HOME budget is generally prepared mid-year and approved by November for the following year.

Application Package Submission

City of Rockford
Community & Economic Development Department
425 E. State St. – 2nd Floor
Rockford, IL  61104

Application Submission Package

The City is required to fully analyze a project prior to funding.  To complete this underwriting process it is critical that an application is complete when submitted.  A complete application will include the following:

  • Application
  • Development Team Package
  • Sources & Uses Statement
  • Market Study
  • Construction Package
  • Community Housing Development Organization (CHDO) certification package, if applicable.
  • Certification of Assistance
  • Affirmative Marketing Plan
  • Development Time Line
  • Evidence of Site Control

For homebuyer projects, also include the following:

  • Evidence of buyer interest

For rental projects, also include the following:

  • Proforma/Development Budget (projected income and expense statement)


City of Rockford Housing Development Application

Application Guide

Applicant Information

Depending on the project size, several organizations may collaborate or partner to apply for funds. This section should have only the information for the lead person or organization. Any other people and/or organizations should be included as part of the Development Team Package.

Property Information

Fill in the project site address. For multiple sites, click here to complete spread sheet which may be printed and submitted with the application package.

Funding Request Information

Prior to completing this section, contact the City to determine what resources are available.  On the application please indicate the funding source and dollar amount being applied for.

Links to information about each funding source is below.

HOME – Home Investment Partnership Program
CDBG – Community Development Block Grant
Section 108 Loan Guarantee Program
TIF – Tax Increment Financing District

Indicate the name of the TIF in which the project is located or other funding source.

Type of Project

  • Homebuyer rehabilitation projects consist of rehabilitating existing units to be sold to income eligible homebuyers.
  • Homebuyer new construction projects consist of building new units to be sold to income eligible homebuyers.
  • Rental rehabilitation projects consist of rehabilitating existing units which will be rented to income eligible tenants.
  • Rental new construction projects consist of building new units which will be rented to income eligible tenants.

Some projects may include a mixture of types indicated above.  Please mark all that apply.

If rental rehabilitation, indicate if the units are occupied.  Uniform Relocation Act applies.

Activity Description

Using less than 500 characters, describe the project. This description may be used by the City when underwriting and seeking City Council approval for the project.

Development Team Package

The Development Team Package includes the following:

  • Clear explanation of ownership; including all members of an LLC with % ownerships, etc.;
  • List of all the individuals/organizations and their role throughout the development.  Roles include, but are not limited to, developer, general contractor, property manager and owner;
  • Documented experience of the individuals/organizations; i.e. list of developments and the role played, resume, certificates, licenses, etc.;
  • Most recent tax return/audit for each individual/organization.  Organizations must meet the 24 CFR 84.21 Standards for Financial Management Systems.  All findings must be resolved;
  • List of underway developments; include funders along with contact information and anticipated completion date.  Indicate if there are/were delays and why;
  • Articles of Incorporation;
  • By-Laws;
  • Operating budget;
  • Policies regarding internal control, separation of duties and safeguarding of corporate assets.  These must be in place to ensure Basic Cost Principals are being followed.

Sources & Uses Statement

A Sources & Uses Statement is a document which identifies ALL development costs and ALL resources, including debt, grants, and developer equity and City funds being applied for.  When submitted to the City as part of the submission package, the total development costs (uses) should equal the total resources (sources).

Use the Scope of Work (part of the Construction Package) to determine the development costs.

The City will determine if the costs associated with the project are reasonable.

Market Study

The City reviews a market study to ensure there is demand for the type of project being applied for.  Click here to see the City’s market study requirements.

Construction Package

The Construction Package includes the following:

  • Capital Needs Assessment – Click here for a link to an example Capital Needs Assessment
  • Scope of Work
  • Photos of the property
  • After rehabilitation/construction appraisal
  • Any other pertinent information

Scope of Work

The Scope of Work is a written document which indicates what construction work will be completed, as well as the type of supplies which will be used.  Often times the scope of work includes the work plans and specifications and detailed cost estimates with supporting bids.  However, if the City is providing $20,000 or more, the costs associated with the scope of work may be estimated at this time.  These estimates should match the costs listed on the Sources & Uses Statement.

Photos of the Property

The City completes an Environmental Review, the process of reviewing a project and its potential environmental impacts to determine whether it meets federal, state, and local environmental standards.  As part of the review, photos of the property are necessary.  Therefore, please submit the following:

  • Vacant lot – photo of the whole lot
  • Building(s) – exterior photos; one or more photos per each side of the building(s)
  • Additional photos may be requested after initial review.

After Rehabilitation/Construction Appraisal

Using the scope of work, an appraiser prepares an after rehabilitation/construction appraisal, which indicates what the value of the property will be after the work is completed.

If the City is providing $20,000 or more, a review and final approval will be required by City Council.  If only estimates were provided with the application package, the items below will be requested after City Council approval.

  • Work Plans & Specifications
  • Architectural certification of plans for building of 2 or more units or projects totaling more than $50,000.00 in cost.
  • Detailed cost estimate with supporting bids from no less that 2 contractors on all work subcontracted.

Community Housing Development Organization (CHDO) Application Package

A CHDO (pronounced cho’do) is a private nonprofit, community-based service organization whose primary purpose is to provide and develop decent, affordable housing for the community it serves.  Non-profits serving the Rockford community may receive a CHDO certification when they apply for HOME funds to complete a project.  This certification indicates that they meet certain HOME requirements and are eligible to use specific set aside HOME funds which support residential housing development projects.  For more information about CHDO’s, click here.

Click here for the CHDO Certification Package Information.

Certification of Assistance

Complete Certification of Assistance and submit.

Affirmative Marketing Plan

Affirmative marketing provides information and otherwise attracts eligible persons to the available housing without regard to race, color, national origin, sex, religion, familial status, or disability (e.g. populations protected by the Fair Housing Act).  All City of Rockford staff, sub-recipients, developers, owners, and sponsors must follow these guidelines.  It is acceptable for applicants to adopt the City’s plan.

Development Time Line

Provide a time line of events associated with the project.

Evidence of Buyer Interest

If a HOME funded homebuyer unit does not have an executed Contract for Purchase within 9 months of construction being 100% complete, the unit must be converted to a rental unit.  Applications demonstrating collaboration with a HUD certified housing counseling agency and having a waiting list is strongly encouraged.   For a list of approved housing counseling agencies, click here.

Term of Affordability

A proforma is a document which projects the income and expenses for the term of the loan.

For HOME funded projects, the loan term must be equal to or exceed the term of affordability requirement as set by HUD.  The Term of affordability is the length of time the City is required to monitor a HOME funded project.  See chart below.


Per-Unit Home $

Minimum Affordability Period

Rehabilitation or Acquisition of Existing Housing


5 years

Rehabilitation or Acquisition of Existing Housing


10 years

Rehabilitation or Acquisition of Existing Housing


15 years

RENTAL ONLY: New Construction or Acquisition of New Housing

Any $ Amount

20 Years