Gorman applies for $650K loan from city to redevelop Rockford's Lafayette Hotel

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The developer behind the redevelopment of the historic Lafayette Hotel in downtown Rockford has applied for a loan from the city to help fund the project.

If approved, the $650,000 forgivable loan would be at 0% for 30 years. Funds were made available to the city as part of the Department of Housing and Urban Development Federal HOME Investment Partnerships Program.

"...To execute and implement the HOME Investment Partnerships Program with a goal of expanding the supply of decent, safe, affordable housing for those of very low [households with incomes at or below fifty percent (50%) median income] and low income [households with incomes at or below eighty percent (80%) median income]," a draft of the agreement between Gorman and the city says.

On Monday, Rockford's Planning and Development Committee voted 4-1 in favor of the loan and terms of the HOME program, including a promise by Gorman, which owns the hotel under Lafayette Apartments LLC, to offer affordable housing for the entire term of the financing.