The City of Iowa City is now accepting applications from non-profit organizations to undertake public services, public facility improvements, and affordable rental acquisition projects serving low-to-moderate-income residents in Fiscal Year 2027 through the CDBG and Non-Legacy Aid to Agency Grant Programs.
Community Development Block Grant funds
The Community Development Block Grant (CDBG) program helps develop viable urban communities by providing decent affordable housing, suitable living environments, and expanding economic opportunities, principally for households that meet income eligibility guidelines. The program is funded by the U.S. Department of Housing and Urban Development (HUD) and is subject to federal requirements.
The City expects about $440,000 in CDBG funds to be available for the following purposes:
- $150,000 is available for public facility improvements. A public facility must be open to the public during normal working hours and primarily serve households that meet income eligibility guidelines established by HUD.
- $290,000 is available for acquisition of housing to be utilized as affordable rental units for households that meet income eligibility guidelines established by HUD.
Non-Legacy Aid to Agencies funds
Non-Legacy Aid to Agencies (formerly “Emerging Agencies”) funding provides flexible operational funds for non-profits providing public services to Iowa City residents with low-to-moderate income. The City expects approximately $30,000 to be available for non-profit agencies not currently receiving Legacy Aid to Agencies funding. To be considered for funding, proposals must address one of the following community-identified priorities:
- Homeless and Shelter Services
- Food Insecurity
- Healthcare (includes mental and behavioral health)
- Childcare and Youth Services
- Housing Stability Services
- Transportation
There will be additional prioritization for agencies serving populations with high barriers to accessing services. Each agency is eligible to apply for up to $15,000. If awarded, the minimum grant amount is $5,000.
Additional details
Applications are due by noon on Friday, Jan. 30, 2026. Late applications will not be considered. The Housing and Community Development Commission will review eligible submissions and make funding recommendations at their March 23, 2026, meeting. Funds awarded are anticipated to be available after July 1, 2026.
The application, applicant guides, and other relevant information is available at: www.icgov.org/grants. Applicants are strongly encouraged to read the full applicant guide before submitting an application.
Questions about the opportunities or the funding process may be directed to Sam Turnbull at sturnbull@iowa-city.org 319-356-5237 or Brianna Thul at bthul@iowa-city.org 319-356-5240.
