This is the third funding round for the construction of new units of single-family for sale housing in response to the devastating impacts of the 2019 floods on Southwest Iowa. Homes constructed through this program will be built in a green, resilient manner and designed to better withstand the impacts of future natural disasters to affect the community.
There is approximately $8,140,000 available to fund the new construction of approximately 25-40 housing units, dependent on infrastructure in support of housing needs. Funding amounts subject to change up until 30 days prior to the application deadline. Applications will be open from May 1, 2024-September 30, 2024 unless extended.
Awards will be based on a per unit basis as follows:
$125,000 per unit for general construction costs;
$25,000 per unit for optional Mitigation Incentive elements described in the program guidelines;
$10,000 per unit for project delivery to deliver the new housing project’s regulatory and local staffing requirements;
$35,000 per unit for downpayment assistance, closing costs, and other homebuyer assistance
$70,000 per unit maximum for public infrastructure constructed to support the new housing
All housing units must be constructed in accordance with the National Green Building Standard Silver level with Energy Star energy efficiency or to the Iowa Green Streets Criteria baseline standards. All housing units must be listed sale at no more than $175,000 and sold to a household that makes at or below 80% of the HUD HOME area median incomes for the county or metropolitan area. Homebuyers who purchase a home will carry a monthly receding mortgage for any homebuyer assistance received and for the difference between the home’s appraised and sold value presuming the amount of CDBG-DR assistance meets or exceeds that difference.
Eligible applicants are units of general local government (cities and counties) in Harrison, Pottawattamie, Mills, and Fremont counties that received none or no more than 5 new housing units awarded in Rounds 1 and 2 of this program. Non-entitlement local governments must work with their council of government (COG) or procure a private consultant to administer the grant on their behalf. MAPA is the council of government for Pottawattamie County; SWIPCO is the council of government for Harrison and Fremont counties; and both COGs serve Mills County. Applicants must have completed a competitive request for proposals for development at locally-selected site/s to ensure the local government has selected developers in a free and open manner.
Program Guidelines may be found on the 2019 CDBG-DR webpage: https://www.iowaeda.com/disaster-recovery/2019/ .
For further information, reach out to Steven Stransky, Disaster Recovery Team Lead, at Steven.Stransky@IowaEDA.com .
