Spring Grove Single-Family Residential
Subdivision The
primary objective of the Spring Grove development project
is to provide moderate income, working families with the
opportunity to purchase high quality, new single-family
homes. Secondary objectives include developing healthy
neighborhoods, rebuilding the city's core and providing
employment opportunities for minority contractors and
skilled trades persons. In addition to the objectives
identified in the previous paragraph, the completion of
this project will demonstrate the city's commitment to
rebuild a community which has been woefully neglected
after Urban Renewal activities ceased. The Spring Grove
Subdivision is located just off R.B. Garrett Blvd., across
from Valeska Hinton Early childhood Education Center.
Program Highlights
We believe that the success of this project
will depend on investment in the Spring Grove subdivision,
support of the current homeowners in the neighborhood,
and a focused, comprehensive approach to redevelopment.
To utilize one of former Mayor Grieves' campaign ideas,
we are hoping to attract "urban pioneers" or "homesteaders,"
children and relatives of families displaced by Urban
Renewal as well as persons that specifically want to reside
in a new home in this area. We believe that we can attract
prospective buyers with a variety of proposed incentives.
The incentives include the following:
- A down payment subsidy of up to $30,000
for purchasers of single-family homes with annual income
of $39,900 for a family of two (2) to $53,900 for a
family of five (5).
- A lot purchase waiver (lots provided
to home buyers free of charge)
Project Approach
PCCEO plans to construct 32 single-family
homes over the next several years. All homes will be occupied
by the purchaser as their principle residence. Each home
will be 1,500 to 1,800 square feet with 1 ½ to 2 bathrooms,
3 to 4 bedrooms and a two-car garage. Twenty-five (25)
of the homes will have full basements. PCCEO has chosen
to build four different styles of homes: ranch, split
foyer, a conventional two-story, and upscale two-story.
Other amenities available include fireplaces, skylights,
decks, etc.
Our plan is to build two model homes to
start and utilize these units to market the project. The
agency will pre-sell homes before construction begins
on additional homes.
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Financing
National City will also offer permanent
financing at an interest rate that is 1.5% below market
rates to all potential buyers. The loan will feature a
30-year fixed-mortgage with zero-points and a minimum
down payment requirement.
The key component to the financing package
will be the use of HOME Funds to provide a down payment
subsidy to eligible buyers. PCCEO has been certified by
the City of Peoria as a Community Housing Development
Organization (CHDO). As a result of this certification,
PCCEO is eligible to receive HOME funds which can be used
for the development of affordable housing. PCCEO plans
to offer a subsidy to all families with incomes at or
below 80% of area median income. The household's income
will determine the amount of subsidy. In no case will
the subsidy exceed $30,000. To protect the City's investment
and to avoid speculative profit on the houses constructed,
each buyer will enter into a second mortgage agreement
with the City of Peoria. This mortgage will recapture
the City's investment under certain conditions if the
home is resold within the specified compliance period.
The compliance period for these homes will range from
5 to 15 years depending on the amount of the subsidy.
Financing includes
- Fixed, below market conventional financing
rate
- 30 year term
- Closing cost assistance
- No cost pre-qualification available
- 3-5 percent down payment
Contact Information
Our office is located in a model home
located at 515 N. Spring Grove Drive. The office is managed
by Robin Berry, Real Estate Development Specialist, (309)
497-1098. Drawings, blueprints and site plans, along with
a map of the subdivision, will be available at the office
to assist those interested in Spring Grove homes.
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To
request further information, please click here.
