Hunter
08/14/24
A $3.75 million federal grant has Iowa City officials focused on building affordable housing
The Press-Citizen reports the city’s grant application, submitted last October to the U.S. Department of Housing and Urban Development, included a very general, itemized list if the city received 100% of its requested $5.6 million, or half that.
The grant is roughly two-thirds of what they requested.
The majority of the grant money will be used to develop an affordable housing pilot program, with the rest earmarked for Project Administration, a parking study, housing counseling, a regional housing needs study, a comprehensive plan for land use and housing, and a rezoning plan to allow higher-density housing.
Local immigrant group Escucha Mi Voz, has submitted a proposal to the City Council recommending a 24-unit housing development with supportive services, to be built at a cost of under $6 million.
City Manager Jeff Fruin believes the city will build several units on one site, but it’s not clear where the development would be built. The city is waiting for the US Department of Housing and Urban Development to clarify their options.
Iowa City has about $5.5 million in a fund contributed by developers, who pay a fee in lieu of offering affordable housing in new construction. That money can also be used for the development.