Peoria ups owner-occupant down-payment incentive to $10,000 to steer investor properties into homeownership

The Peoria City Council on March 26 approved updates to American Rescue Plan Act-funded housing programs that increase incentives for prospective owner-occupants buying formerly investor-owned homes in targeted neighborhoods. The change raises the down-payment assistance award to $10,000 for eligible purchases — up from $5,000 under the previous guideline — when the property is in a qualified census tract and will become owner-occupied.

"We want to make sure that we can use that money as best as possible to attract owner-occupied properties to our neighborhood," said Community Development Director Joe Doolin, who told council the change is intended to boost long-term neighborhood stability by encouraging landlords to sell to owner-occupants. He emphasized the policy aims to move funds quickly and increase homeownership in neighborhoods with concentrated investor ownership.

Council members praised the adjustment. "This is very creative use of ARPA money," Council member Kelly said, adding the change should make it easier to improve high-need neighborhoods. Council member Riggenbach and others also commended staff for the approach.

The program change applies to buyers in the program timeline and to homes that meet the redevelopment and census-tract criteria established by staff. Council approved the guideline update unanimously.

Staff said the housing rehab program will continue alongside the enhanced down-payment assistance, and stressed that the objective is to convert suitable investor-held properties to owner-occupied status where possible. Details on exact eligibility thresholds and enrollment procedures were presented by staff and are to be implemented under the updated ARPA guidance.