Governor Reynolds recently announced an additional $100 million investment to increase the supply of housing options and protect and expand housing opportunities for Iowans to live in or near the communities where they work. The funds are made available through Federal American Rescue Act State and Local Fiscal Relief Funds.
Pilot Program
The $45 million investment into the Federal Housing Tax Credit Program will assist housing tax credit projects move forward that otherwise would not be able to proceed due to rising construction costs, supply chain issues and other market challenges. Eligible projects include developments that applied for a 2021 9% Federal Housing Tax Credit Program award but did not receive an award of tax credits. Projects will be prioritized based on scoring criteria and must be shovel ready.
The Iowa HOME Grant Program will grant funds for defined residential unit construction projects focused on targeted AMI levels. There is $20 million in available funds for this program.
The $20 million investment into this newly created program will provide financial assistance for projects that support local downtown revitalization through the creation of new housing opportunities in communities with populations of 30,000 or less.
The $10 million investment will assist in providing a larger pipeline of skilled workers for our employers and more opportunities for homebuyers to purchase a home in their price range through the Homes for Iowa initiative. The investment will assist in material costs, the construction of a permanent shop and home moving equipment set-up that will allow the Homes for Iowa program to scale production and training efforts.
The initial $1 million investment will assist in breaking barriers to homeownership by providing 200 eligible Iowa minority households with assistance purchasing a home. The program will provide a $5,000 down payment and closing costs assistance grant when used with Iowa Finance Authority’s FirstHome mortgage program. The funds for this program have been fully reserved.
The Home Rehabilitation Block Grant Pilot Program will offer eligible rural Iowa communities an opportunity to offer property owners in a targeted neighborhood financial assistance for eligible repair expenses to help preserve their homes and develop new affordable housing opportunities for Iowans. $4 million is available through the pilot program.
