Overview 

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 of Iowa City is now accepting applications from nonprofit organizations to undertake public facility improvements and affordable rental acquisition projects serving residents with low-to-moderate income. The City anticipates about $440,000 of CDBG funding to be available for the following purposes:

• $150,000 for public facility improvements
• $290,000 for rental housing acquisition

Please note that these are estimates and that HUD has not yet released grant allocations for the upcoming fiscal year. All awards are subject to change based on actual allocations from HUD and funding availability.

Applications are due by noon (12 p.m.) on Friday, January 30, 2026. Late, incomplete, or ineligible applications will not be considered. 

CDBG Applicant Resources

The FY27 Applicant Guide includes information on program rules, eligibility, the funding process, and key dates. 

• FY27 CDBG Applicant Guide
• FY27 Pro Forma Template (required for rental projects)

FY27 CDBG Applicant Workshop

• An Applicant Workshop was held January 13, 2025 at 2p.m. on Zoom. Staff provided an overview of the opportunity and answered questions from potential applicants. Those that were unable to attend should reach out to staff to schedule a meeting. 
• View the slides from the January 13, 2025 Applicant Workshop

Apply 

Applications are accepted through Neighborly Software. Applicants must log into the Participant Portal and complete the application that corresponds to the proposed project. 

• Link to Participant Portal: https://portal.neighborlysoftware.com/CITYOFIOWACITYIA/Participant 
• Neighborly Software Participant Portal Guide 

Assistance with the Neighborly Software platform can be located through the question mark icon in the lower right corner of the screen. Applicants may also contact staff for assistance. 

Questions

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.

Overview

Aid to Agencies provides flexible operational funding for nonprofits serving Iowa City residents with low to moderate income. The City of Iowa City expects to have approximately $30,000 available for FY27 for the Non-Legacy funding round. This will be the final Non-Legacy round as the City transitions to a new biennial competitive funding process for public services in FY28 (eliminating Legacy and Non-Legacy designations).  

Applications are due by noon (12 p.m.) on Friday, January 30, 2026. Late, incomplete, or ineligible applications will not be considered. 

Applicant Resources

The Applicant Guide includes information on program rules, eligibility, the funding process, and key dates. Applicants may contact staff with questions. 

• FY27 Non-Legacy Applicant Guide

Apply 

Applications are accepted through the link below:

• https://www.iowa-city.org/Forms/A2A_ApplicationFY27

Questions 

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.

Aid to Agencies provides flexible operational funding for nonprofits serving Iowa City residents with low-to-moderate income. Changes to the Aid to Agencies Program were approved by City Council in 2025 and are anticipated to be fully implemented for the FY28-29 process. 

FY26 Non-Legacy Aid to Agencies Funding
FY26 Non-Legacy Aid to Agencies allocations were approved by City Council September 2, 2025. 
FY26 City Council Approved Non-Legacy Allocations

FY26-27 Legacy Aid to Agencies Funding
FY26 Legacy Aid to Agencies allocations were approved by City Council June 3, 2025. FY27 allocations will be prorated based on year FY26 allocations and available budget. 
FY26 City Council Approved Legacy Allocations 

 FY16-26 Aid to Agencies Funding History
A funding history from FY16-26 is available below. 
FY16-26 Aid to Agencies Funding History

The City allocates a combination of Community Development Block Grant (CDBG) and local funds for public services through the Aid to Agencies Program. The City holds a competitive funding round for Aid to Agencies every two years and applications are accepted through United Way's Joint Application. 

Changes to the Aid to Agencies Program were approved by City Council in January 2025 and are anticipated to be fully implemented for the FY28-29 process. 

General information for the FY28-29 Aid to Agencies Competitive Funding Round:

• Agencies must be a nonprofit in good standing.
• Agencies must meet one of the public service funding priorities.
• Agencies must serve people that are income eligible (generally below 80% of area median income).
• Agencies that primarily serve populations with higher barriers to accessing
  services will receive additional points in the evaluation process.
• Agencies must request at least $20,000. 
• Those awarded will receive two fiscal years of funding with the award amount prorated
  based on budget in year two.
• Agencies that receive direct funding are not eligible to participate in the competitive round.

Priorities for public services funding:

• Homeless and shelter services 
• Food insecurity
• Healthcare (including mental and behavioral health)
• Childcare and youth services
• Housing stability services
• Transportation  

About: The City may consider requests for emergency funding from local non-profits outside of existing funding processes. 

Qualifications: The organization must be located in Iowa City and serve Iowa City low income residents.  The proposed activity must be designed to alleviate existing conditions which:

• Pose a serious and immediate threat to the health, safety, or welfare of the community;
• Are the result of unforeseeable or unavoidable circumstances or events;
• Are of recent origin or recently became urgent (within six months);
• Have no know alternatives or actions that are more feasible than the proposed project;
• Other private or public funds (including local, state or federal funds and existing City programs) are insufficient due to either availability or accessibility within the time frame necessary to address the problem. 

To Apply:  Use our online form to apply. 

Contact: Neighborhood and Development Services, 319-356-5230

The City also offers other grant opportunities in addition to those provided by the Neighborhood and Development Services Department. Visit the links below to learn more about each grant:

• Public Art Matching Funds - https://www.icgov.org/business/public-art-program
• Program for Improving Neighborhoods Grant - https://www.icgov.org/government/departments-and-divisions/communications/neighborhood-outreach/neighborhood-associations/
• Human Rights Grants - https://www.icgov.org/government/departments-and-divisions/equity-and-human-rights/
• Climate Action Grants - https://www.icgov.org/government/departments-and-divisions/climate-action-outreach/climate-action-grants

The City receives HOME Investment Partnership Program (HOME) funds from the U.S. Department of Housing and Urban Development. The City is required to set aside a portion of HOME funds annually for Community Housing Development Organizations (CHDOs) to undertake affordable housing activities. 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 as specified by HUD. 

Application for CHDO designation: https://www.iowa-city.org/Forms/chdo_application

Questions about community development grant opportunities from the City of Iowa City can be directed to staff. 

• Brianna Thul, Senior Community Development Planner at 319-356-5240 or bthul@iowa-city.org.
• Sam Turnbull, Grants Specialist at 319-356-5237 or sturnbull@iowa-city.org.