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 $25,000 or more in City funding must be approved by the City of Rockford City Council.

Applying For Funds

Financial resources are limited. Contact Deb Dorsey at 779-348-7442 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.

Submit Application Packages To:

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.  Therefore, it is critical that an application is complete when submitted.  A complete application includes the following:

  • Application
  • Development Team Package
  • Line Item Budget / Sources & Uses Statement
  • Market Study
  • Construction Package
  • Community Housing Development Organization (CHDO) certification package, if applicable.
  • Affirmative Marketing Plan
  • Development Time Line
  • Evidence of Site Control
  • Homebuyer Developments:  Evidence of buyer interest
  • Rental Developments: Operating Budget / Proforma, the projected income and expenses for the full term of affordability
  • Match

City of Rockford Housing Development Application

 Application Guidance

Applicant Information

  1. Depending on the project size, several entities may collaborate to apply for funds. This section should have only the information for the lead entity. Any other entities should be included as part of the Development Team Package.
  2. DUNS Number: This mandatory nine-digit number identifies business entities. Obtain a DUNS number by registering with Dun and Bradstreet at http://fedgov.dnb.com/webform/pages/CCRSearch.jsp or by calling 866-705-5711.

Property Information

  1. Indicate the site address. For multiple sites, include a spreadsheet listing all of the site addresses.

Funding Request Information

  1. Prior to completing this section, contact the City to determine what resources are available.
  2. On the application please indicate the funding source and dollar amount being applied for.  Indicate the gap, the amount of funds necessary to allow the development to proceed.
  3. 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 Development

  1. Some developments may include a mixture of the development types indicated below. Please mark all that apply.
    • Homebuyer rehabilitation developments include the acquisition and/or rehabilitation of existing housing units for sale to income eligible homebuyers.
    • Homebuyer new construction developments consist of acquisition of land and/or building of new housing units for sale to income eligible homebuyers.
    • Rental rehabilitation developments include the acquisition and/or rehabilitation of existing units for rent to income eligible tenants.
    • Rental new construction developments consist of acquisition of land and/or building of new rental units for rent to income eligible tenants.


  1. Indicate if individual, family, partnership, association, corporation, or organization are being required to move because of this development.  The Uniform Relocation Act applies.

Activity Description

  1. Provide a short description of the development. This description may be used by the City when underwriting and seeking City Council approval for the development.

Development Team Package Guidance

  1. Include adequate information for each entity fulfilling a role on the development team to permit a preliminary assessment of the team’s current financial strength, capacity to undertake the development, and to confirm the entity is in good standing with the City, State, and the Department of Housing and Urban Development. Include the following information:
    1. Provide a clear explanation of ownership. If an LLC, include all members with percent ownership. When applicable, provide copies of Articles of Incorporation, By-Laws, tax exempt paperwork, organizational chart, and LLC Operating Agreements. Include the following financial information for each owner:
      1. Provide a DUNs number;
      2. To document that the organizations meets the Standards for Financial Management Systems described in 2 CFR Part 200 and that all findings, if any, are resolved, provide the most recent tax return and audit;
      3. Provide the Operating budget/Income statement;
      4. Provide the Financial budget/Balance Sheet;
      5. To document that Basic Cost Principals are being followed, provide policies regarding internal control, separation of duties, and safeguarding of corporate assets; and
      6. Indicate if the owner meets the definition of small business, minority business enterprise, or women’s business enterprise.
    2. For each entity fulfilling a development team role, provide primary contact information, DUNS number, and indicate which role they fulfill. Roles include, but are not limited to owner, developer, design team, construction oversite,and property manager.
      1. Describe the relevant experience for each of the entities. Include lists of developments and the roles played. Provide resumes, certificates, licenses, references, etc.
      2. Document how the Developer is financially stable and has a record of accomplishment for securing financing of a similar magnitude and complexity. Include a list of current developments and their status; include funders along with contact information and anticipated completion dates. Indicate if there are/were delays and why.

Line Item Budget / Sources & Uses Statement Guidance

  1. A Line Item Budget/Sources and Uses Statement documents ALL development costs and ALL resources.
    1. Costs should be allowable (reasonable, allocable, necessary) in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 2 CFR Part 200.
      1. Reasonable Costs: A cost is reasonable if, in its nature or amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost.
      2. Allocable Costs: A cost is allocable to a particular cost objective, such as a grant, contract, project, service, or other activity, in accordance with the relative benefits received.
      3. Necessary Costs: Costs necessary for the performance of the funding award.
    2. Resources should include equity investment, senior term debt, subordinated debt, tax credits, and grant funds from Federal, State, local, or private sources, and the funds requested.
    3. The total development costs (uses) should equal the total resources (sources).
    4. The Scope of Work costs should match the construction costs listed on the Line Item Budget/Sources and Uses Statement.
    5. Provide supporting documentation. The City must easily be able to determine if the development costs are reasonable.
    6. The City will require a Performance Bond for 100% of the total development cost.

Market Study Guidance

  1. Rental and Subdivisions: The market study should demonstrate the demand for the development. Click here for the City’s market study requirements.
  2. Single Family Home development: An informal market study is acceptable. Homes must be presold before rehabilitation or new construction may begin. Therefore, a Contract for Purchase is required prior to the execution of the funding award.

Construction Package Guidance

  1. The Construction Package includes the following:
    1. Capital Needs Assessment (CNA)– Rental Developments – Developments with 20 or more units should have a CNA completed by a third party.
    2. Scope of Work – Use the Rehabilitation Standards, to identify the necessary construction work and materials. Generally, the scope of work includes the work plans and specifications and detailed cost estimates with supporting bids. The costs should match the costs listed on the Line Item Budget/Sources and Uses Statement.
    3. Photos of the property – For Environmental Review that the City completes, attach a photo of the whole vacant lot, and exterior photos of building(s); one or more photos per each side of the building(s). When necessary, the City may request additional photos.
    4. After rehabilitation/construction appraisal – Using the scope of work, an appraiser prepares an after rehabilitation/post construction value of the property.
    5. Include any other pertinent information necessary to describe the development.

Community Housing Development Organization (CHDO) Application Package Guidance (HOME Only)

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.

Affirmative Marketing Plan Guidance

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.

Development Time Line Guidance

  1. Provide a time line of events associated with the development. Include anticipated funding dates from other resources, bid openings, zoning approvals, environmental review, the funding award, building permits, demolition, construction start date, construction completion date, qualified beneficiaries occupying units, etc. The funding award may only occur after the following:
    1. Owner has site control of a identified development site;
    2. All financing is secured;
    3. The finalized Line Item Budget/Sources and Uses Statement includes costs deemed reasonable;
    4. For rental developments, the Proforma demonstrates viability throughout the full term of affordability;
    5. For homebuyer developments, a Contract for Purchase with an eligible homebuyer is executed;
    6. Construction is scheduled to begin within 12 months of the award;
    7. The finalized Development Time Line meets all the applicable deadlines, including CHDO Reserves, if applicable; and
    8. City Council approves the development, possibly with conditions.
    9. If City Council approved the development with conditions, the conditions are met.

Evidence of Site Control Guidance

  1. Provide evidence of Site Control; e.g. property deed, contract for purchase.

Reminder: Choice limiting actions completed prior to any award will limit eligible expenses and may disqualify the development for funding.

Homebuyer Developments:  Evidence of Buyer Interest Guidance

Applications demonstrating collaboration with a HUD certified housing counseling agency and having a waiting list is strongly encouraged.

Rental Developments:  Operating Budget / Proforma Guidance

  1. A proforma is a document which projects the income and expenses for the term of affordability; i.e. the term of the loan. 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

2. Rents need to be reasonable for the type of unit and location and within funding program rent limits. Contact the City for the current rent limits.

Match Guidance (HOME Only)

The HOME program requires a 25% non-federal match, permanent contribution to the HOME program or to affordable housing not assisted with HOME funds. Find definitions of eligible and ineligible match at 24 CFR Part 92.219 and 92.220.