CDBG/HOME Funding

About

The Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) programs help develop viable urban communities through projects that principally benefit low- and moderate-income persons, including public facility, affordable housing, and other eligible activities listed in the Applicant Guide.

Funds Available

Federal funding has not yet been awarded, so numbers are subject to change. However, the City of Iowa City expects to have available approximately $1,500,000 in FY22 federal funds (including entitlements and program income) from HUD (excluding CDBG-CV). The City has approximately $573,000 available for allocation to recipients after Council set-asides have been removed for economic development, housing rehabilitation, CHDO reserve, CHDO operating, administration, neighborhood improvements, and Aid to Agencies. Of this amount, approximately $348,000 must be used for HOME eligible activities, which focus on affordable housing activities: rehabilitation or new construction of rental housing, tenant-based rent assistance, and homeownership opportunities. The remaining $225,000 may be used for housing or public facilities projects.

The application for CHDO set aside and operating funds will open at a later date to align with the annual CHDO certification period which typically occurs in February. 

Applications

This application closed at 12pm on January 29, 2021. Submissions are available for review at the link below:

FY22 Application Materials:

Timeline

The application window closed January 29, 2021 at 12pm.  A tentative timeline of the next steps in the funding process is available below:

Need Assistance?

Applicants may request additional assistance by contacting Brianna Thul at 319-356-5240 or brianna-thul@iowa-city.org.

If you need disability-related accommodations to participate in this program or event, please contact brianna-thul@iowa-city.org or 319-356-5240. Early requests are strongly encouraged to allow sufficient time to meet your access needs. 

Community Housing Development Organization (CHDO) Funds

About

The HOME Investment Partnership Program (HOME) requires the City of Iowa City to set aside funds for specific activities to be undertaken by a special type of nonprofit called a Community Housing Development Organization (CHDO). A CHDO is a private nonprofit, community-based organization that has staff with the capacity to develop affordable housing for the community it serves. In order to qualify for designation as a CHDO, the organization must meet certain requirements pertaining to their legal status, organizational structure, and capacity and experience.

With Participating Jurisdiction (PJ) approval, CHDOs may use HOME funds for all eligible HOME activities. However, in order to count towards the 15 percent set-aside, a CHDO must act as the owner, developer, or sponsor of a project that is an eligible set-aside activity. These eligible set-aside activities include: the acquisition and/or rehabilitation of rental housing; new construction of rental housing; acquisition and/or rehabilitation of homebuyer properties; new construction of homebuyer properties; and direct financial assistance to purchasers of HOME-assisted housing that has been developed with HOME funds by the CHDO.

Funds Available

Federal funding has not yet been awarded, so numbers are subject to change. However, the City of Iowa City expects to have approximately $77,000 available for CHDO set aside funds, as well as $25,500 in CHDO operating funds.

    Applications

    This application closed at 12pm on February 26, 2021. Submissions are available for review at the link below:

    FY22 Application Materials: 

    Timeline

    This application closed at 12pm on February 26, 2021.

    Certification

    Applicants must be a certified CHDO to receive funds. CHDO certification applications are due annually February 14.


    Aid to Agencies

    Emerging Aid to Agencies Funding

    Aid to Agencies (A2A) provides flexible operational funding for nonprofits providing public services. Up to five percent of Aid to Agencies funding may be made available for “emerging” agencies, i.e. agencies that are not designated as Legacy Agencies in City Steps 2025, the City's Consolidated Plan (available below). 

    The application window closed January 29, 2021 at 12pm. Submissions are available for review at the link below:

    Legacy Aid to Agencies Funding

    Aid to Agencies provides flexible funding for agencies providing public services to low-income residents of Iowa City.  Eligible organizations are those that are identified as a Legacy Agency in City Steps 2025 Consolidated Plan (p150). Due to COVID-19's impact on service providers, there will be no application process for FY22 Legacy funds. Legacy Agency funding requests will carry over from FY21 and allocation amounts will be prorated based on the program budget.

      Aid to Agencies Final Reports

      Final reports for the previous fiscal year include programs/projects supported by city funding, agency successes and challenges, and demographics of residents served.


      CDBG-CV Funds - 2nd Allocation

      In response to the Coronavirus Pandemic (COVID-19), the City of Iowa City anticipates receiving $686,610 in Community Development Block Grant (CDBG-CV) funds from the Iowa Economic Development Authority (IEDA) to be used specifically for a community response to the Coronavirus.  Nearly $300,000 was made available for eligible public service projects within the City of Iowa City that aid in the prevention of, preparation for, and response to the Coronavirus. All applications must also meet a National Objective, Eligible Activity, all federal CDBG requirements, and fulfill one of the following activities:

      • Homeless prevention & services
      • Child care services
      • Mental health services
      • Food assistance

      Applications were due on Monday, December 14th.  Submitted applications are under review.

      More information can be found in the CDBG-CV Application Guide.

      Summary of CDBG-CV Applications - 1st Allocation


      COVID-19 Housing Assistance Programs

      There are currently local resources available to assist households who have lost wages due to COVID-19.

      Emergency Housing Assistance flyer

      If you need assistance and your household is below 80% of the area median income (eligibility chart), the City encourages you to Contact Shelter House at 319-351-0326.  Shelter House administers several different housing relief programs, including housing eviction and foreclosure prevention with funds through the City's CDBG-CV program.  The program can assist with up to 6 months of rent, mortgage, or utility assistance.  If you have received State assistance, you can apply for this program after their assistance ends and there is no duplication of benefits. 


            References for CDBG/HOME:


            Affordable Housing Location Model


                Consolidated Plan (City Steps)

                This five-year plan guides the allocation of funding for housing, jobs and services for low-to-moderate income persons.

                Annual Action Plans

                The Annual Action Plan describes the federally funded activities of the Community Development Block Grant (CDBG) and HOME Investment Partnership Programs (HOME), among others, to be undertaken by the City during the fiscal year (July 1 to June 30). The plan is a sub-part of Iowa City's Consolidated Plan titled, City Steps.

                Consolidated Annual Performance & Evaluation Report (CAPER)

                A U.S. Department of Housing and Urban Development required report that describes the federally funded activities and accomplishments.


                Housing Studies


                Other Planning Documents


                Environmental Reviews

                None at this time.