Neighborhood Housing Reinvestment Revolving Loan Fund Program

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The Quincy Next Strategic Plan recognizes that the growing demand for housing in urban neighborhoods and downtowns represent a unique opportunity for the City to reinvest in its older neighborhoods.

The Plan calls for the City to establish a revolving loan fund for infill housing development, with the focus on existing historic districts and neighborhoods around the downtown.

The Neighborhood Housing Reinvestment Revolving Loan Fund Program was established to stimulate the preservation and renovation of residential dwellings, incentivize building new homes on vacant lots, encourage pride of ownership and increase home ownership by providing City financial assistance for the purchase of single family residential properties.

The program’s objective is to assist, but not replace conventional financing. NHR-RLF will provide low-interest loans for 50% of the purchase price of qualifying single family properties up to a maximum of $50,000 which must be used in conjunction with bank financing. Renovation projects must result in significant and identifiable improvements that require homeowners to make additional investments equal to or exceeding the city loan.

Property acquisition must be for single family ownership and must remain owner-occupied for five years.  Rental properties are not eligible. Ownership must be fee simple. Applications for properties under contract for deed are not eligible.

Eligible Area
Riverside Neighborhood - Jefferson to Chestnut Streets and Second to Twelfth Streets.
Includes both sides of boundary Streets.   

Loan Terms
The loan terms will be determined by agreement between the participating bank and the city on a case–by-case basis.  Although interest rates may vary from bank to bank, the City’s share of the loan will carry a 1.5% interest rate resulting in a reduced blended rate.  City loans may be amortized over fifteen years. Banks will provide a participation agreement to city legal council for approval. Loan payments will be made to the bank and applied on a ratio of outstanding principal interest of the lenders set forth in the agreement. The bank will service the loan throughout the term. The City will accept a subordinate position to the bank on the property acquisition loans and construction loans. The property must remain owner-occupied for five years. 

Home-buyer Incentive
In addition to loan assistance, a person purchasing their primary residence in the target area will receive a $3,000 grant to be used at the time of closing for a down payment, closing costs or principal reduction towards the first mortgage loan.

Application Process
Applicants must complete a preliminary application form available from the Department of Planning & Development.  Completed applications, along with other conventional financial information are to be submitted to the applicant’s preferred lending institution (“Lead Bank”) for screening and approval. Approved applications and proposed terms will be submitted to the city by the Lead Bank along with the lending officer’s “credit memorandum” or “Loan Officer’s Write-up,” credit reports and other pertinent documents verifying loan investigation and approval by the bank’s loan committee.

Applicant must submit detailed specifications for the proposed renovations along with cost estimates and time frame for completion. Project owner must invest either privately financed or owner equity in renovation of an amount equal to or exceeding the amount of the city loan and submit documentation as evidence of such expenditures to the Department.

Loan Review
Loan applications will be reviewed by a committee appointed by the Mayor.  Bank-approved loan applications are to be submitted to the Planning Department to be presented to the Loan Committee.  Loan documents should include an offer to purchase with specifications and costs estimates for improvements and proposed time frame for completion. Banks will provide evidence of credit investigation and provide copies of the Lenders Credit Memorandum or Loan Officers Write Up.

Preliminary Loan Application : Click here

Boundary Map

For More Information:  
Planning and Development Department
City of Quincy –City Hall Annex
706 Maine St. 3rd floor
Quincy, IL 62301
(217) 228-4515