Neighborhood Loans | Providence Revolving Fund

Providence Revolving Fund
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Neighborhood Loan Fund and Technical Assistance
The Providence Revolving Fund offers loans and technical assistance for exterior restoration in designated historic neighborhoods in Providence.  Loans include construction specifications, financial project management and construction monitoring by Revolving Fund staff.  Loan services are provided on a sliding fee basis, determined by the income of the applicant and/or tenant.  Cost estimates will be provided at no charge to property owners in target areas who request them. 

Neighborhood Loan Application
For more information about terms and conditions of loans and/or to be considered for a loan, an applicant must schedule a site visit by contacting:
Kim Smith
Associate Director
Providence Revolving Fund
372 West Fountain Street, Providence, RI 02903

To access the application please click on your preferred file type:
Excel File: Neighborhood Loan Application
PDF File: Neighborhood Loan Application

Eligibility Guidelines
The property must be located in an historic area targeted by the Revolving Fund, and require exterior restoration or maintenance. These areas include:

  • Broadway-Armory National Register District
  • North Elmwood, bounded by Elmwood, Moore, Broad and Friendship Streets;
  • Upper South Providence, bounded by Broad, Wesleyan, Taylor, and Comstock Avenues;
  • South Elmwood Historic District, as funds are available.

Terms and Conditions
Loan services, including specifications and construction monitoring are provided on a sliding fee basis, determined by the applicant and/or tenant's income. This fee may be financed through the Providence Revolving Fund loan.

Loan Service Fee
Applicant Income Fee 50% of units below 80%
Below 80% of Median Income  Fee Waived  Fee Waived  
Between 80% and 100% of Median Income    $1,000  Fee Waived
Over 100% of Median Income   $1,500  Fee Waived

All property owners must submit their most recent tax return. The Adjusted Gross Income (AGI) will be used as the basis for the amount of the fee.

Owner-Occupied Structures
Loans up to $50,000 are available for exterior renovations of owner-occupied structures. Terms are structured to meet the financial capability of the applicant. Generally, a loan will have a term of four to eight years at 6% interest.

If the owner-occupied property has one or more rental units, the tenants will be required to fill out an informational questionnaire for reporting to the City of Providence Department of Planning & Development. If more than 50% of the owner's & rental units have residents with income below 80% of median income, the loan fee will be waived.

Investment Properties
Loans for exterior renovations to non-owner-occupied structures will be considered. Typically, loans range from $20,000 to $50,000. These loans are 8% interest construction loans with an eighteen month term.

Tenants will be required to fill out an informational questionnaire for reporting to the City of Providence Department of Planning & Development. If more than 50% of the rental units have residents with income below 80% of median income, the loan fee will be waived.

All loans will be secured by a mortgage on the property or other approved collateral. Commercial loans shall be personally guaranteed by the principal owners. Generally, total debt shall not exceed 100% of assessed value.

Loan Evaluation Criteria
Loans will be evaluated by a Neighborhood Loan Committee and the Revolving Fund Board, based on the following criteria:

  • architectural significance of property
  • relative condition of the property
  • impact that the loan will have on the surrounding area
  • financial or technical need for the loan
  • sufficient collateral to secure the loan
  • ability to complete the project and repay the loan
  • leverage of additional investment
  • type of financing requested and impact on the Fund
  • desire for Revolving Fund involvement
  • recommendation of the Neighborhood Steering Committee

Application Process
Upon request from the Owner, a site visit will be arranged to assess the property and determine the scope of work. Providence Revolving Fund staff will prepare a rough cost estimate for the owner at no charge. A loan application will be provided to the property owner.

Upon receipt of the completed application and tax return, the Providence Revolving Fund staff will undertake a credit check and financial analysis of the applicant and the merits of the application will be evaluated by a loan review committee composed of neighborhood residents. Their recommendations are presented to the Providence Revolving Fund Board for final approval.

Loan Procedures
Upon approval of the application and acceptance of the loan terms by the applicant, Revolving Fund staff will prepare detailed plans and specifications for the project.

The Revolving Fund staff will assist the homeowner in identifying qualified contractors and obtaining bids from them, based on the Revolving Fund specifications.

Contracts will be signed by the owner and contractors after approval of the Providence Revolving Fund.

A loan closing will be held at which the applicant will sign a promissory note, a mortgage, construction loan agreement and historical easement. Documents are available for review prior to the closing. The applicant will bear the costs of a title search, title insurance, legal and recording fees; typically closing costs range from $300 to $500.

An inspection of work performed by the contractor will be performed by Revolving Fund staff to ensure compliance with specifications provided.

Typical Construction Process
The Providence Revolving Fund shall be notified when work will begin.

The contractor or owner will be reimbursed for work completed in accordance with the specifications prepared by the Revolving Fund staff, by submitting an invoice signed by the owner indicating their approval.

The Revolving Fund staff will review the request, prepare a field report, and issue the check. To approve payment the owner must approve the invoice with an original, faxed, or emailed signature.

Change orders must be approved by the owner and the Revolving Fund staff prior to work. If the change order requires additional loan funds beyond what has been approved, it will be the owner's responsibility to request additional loan funds to be approved by the Providence Revolving Fund Board. There is no obligation of the Providence Revolving Fund to provide additional funds.

If the Providence Revolving Fund loan is to cover only part of the construction costs, and other funding sources are involved, the Revolving Fund staff will, at its option, assume oversight review of the entire project to promote coordination, quality control and sufficient funding. The property owner will be required to pay his/her portion of the project first and the Revolving Fund will contribute its loan funds to the project last.

At completion of construction, a final payment will be issued upon receipt of lien releases from all contractors and suppliers.

Loan Payments
During construction, the borrower will only pay interest on the amount of funds dispersed. Upon substantial completion, the loan will be amortized with principal and interest payments. Because of how interest billing occurs during construction (which is based on interest incurred during the month prior to the payment due date) the first payment due after completion will include the interest payment for the previous month, plus the principal and interest payment for the current month. This is referred to as the “construction interest catch up”.

Bills will be mailed around the 20th of each month, with payments due on the first of the following month. A late charge of 5% will be billed on all overdue accounts.


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