August 16, 2022


Masters of home interior

Cedar Rapids leveraging influx of federal aid to invest in housing, social services

4 min read

Underneath a metropolis of Cedar Rapids personnel proposal, $2.5 million would go to rehabilitation of the previous Colonial Heart flats, 1500 Next Ave. SE. (Nick Rohlman/The Gazette)

Under a metropolis workers proposal, about $4 million would go toward a new west-facet Ladd Library and Prospect Centre. The job, which also incorporates a private donation, is looking for extra money by way of Linn County. (Nick Rohlman/The Gazette)

CEDAR RAPIDS — An influx of federal funding to assist restoration equally from the COVID-19 pandemic and 2020 derecho mainly will assist housing enhancement or rehabilitation assignments in Linn County.

Cedar Rapids is preparing to make its next-spherical of allocations of federal American Rescue Plan Act revenue, in component in coordination with Linn County by way of a aggressive proposal procedure.

With above $46 million in federal catastrophe restoration cash on the way to aid with submit-derecho wants, town team users are doing the job to strategically leverage the enormous inflow of means — both of these funding sources mixed — to tackle group wants.

The Town Council this week accepted putting $3 million into a joint pool with Linn County to help fund inexpensive housing and social assistance initiatives.

Of the $28 million in ARPA cash Cedar Rapids obtained, $15.8 million will assistance reasonably priced housing and social services. The town previously has allocated $1 million to the PATCH system to fix derecho-destroyed properties and $3.1 million by way of an original Linn County joint course of action. All those proposed initiatives that did not get funding in that spherical will be considered once more now.

For the rest of the $15.8 million, Local community Improvement Director Jennifer Pratt told the council this week that staff members are proposing $2.5 million go towards a rehabilitation of the previous Colonial Centre into housing, $4 million towards the west-facet Ladd Library and Possibility Centre and $2.25 million set aside to leverage and match with Neighborhood Progress Block Grant for catastrophe recovery “as the requirements arises” for funding.

The federal block grants disaster cash are allotted to the Iowa Economic Advancement Authority via the U.S. Division of Housing and City Progress. Linn County will get 80 per cent of the total $57.6 million, when the other 20 % — about $11 million — will be made use of in Marshall, Tama and Benton counties. The IEDA will have six yrs to totally shell out the cash, Sara Buck, town housing solutions manager, not too long ago instructed the council’s Development Committee.

In the draft action prepare from the condition, Buck said the believed proposed funding breakdown for Linn County is as follows:


  • New resilient, cost-effective single-relatives housing: $16 million
  • Infrastructure to support housing: $4,950,160
  • Owner-occupied rehabilitation: $2.5 million
  • New rental housing: $15.725 million

For new housing exercise, Buck claimed there will be a competitive application method in which any Cedar Rapids tasks will go by way of the town, and jobs in the rest of Linn County will go by way of the East Central Iowa Council of Governments. Funds is funneled by way of these entities simply because they previously have made use of Group Progress Block Grant funding.

The most sale price tag for single-family units would be $175,000. There is a $100,000 for each device volume awarded to the developer, $25,000 for catastrophe mitigation and the buyer would get up to 100 % of the closing costs paid for, as effectively as 5 p.c in down-payment support. There is $70,000 in funding for infrastructure this kind of as drinking water and sewer readily available for every single housing unit as perfectly.

For example, on a home that costs $315,000 to build, Buck mentioned, subtract a complete $175,000 for the developer, mitigation and infrastructure expenses — that leaves about $120,000. The dwelling can be bought at that price or up to $175,000, additionally the customer will get the closing and down payment support.

“It truly helps make it inexpensive, particularly with the desire rates that have gone up,” Buck explained.

For the new multifamily units, builders would get up to $75,000 per device, $15,000 for mitigation and $70,000 for infrastructure. Of these new models, 51 p.c have to be reserved for households below 80 per cent of the space median profits.

Owner-occupied rehabilitation funding was amplified to $50,000 for each device rather of $24,999 for every unit for lower- to moderate-revenue households due to the fact of increasing construction costs, so far more pounds are essential to make derecho-broken households livable once more, Buck explained.

At least 70 p.c of that funding ought to go towards households beneath 80 p.c of the spot median money, and the rest can go towards households with urgent demands, which Buck reported could allow for the metropolis to support those people who are a bit higher than the money threshold. Recipients have to keep in the unit for at least two many years.


  • Tree cover and tree replanting software: $4.4 million
  • Generators for vital amenities: $1.3 million

Funding can assist possibly tree stumps or tree planting on general public house or proper of way, Buck stated, at an believed $600 for every tree or stump.

IEDA is in search of to address costs for two several years of watering trees to enable them prosper, Buck reported. This mitigation effort and hard work helps secure all-natural areas and avert future storm flooding, she added.

As for the generators, Buck reported, shelters, educational facilities and library structures are amid the places wherever generators could be set up. Photo voltaic panels with a battery backup also could be funded rather of a generator.

She said the city would function with nonprofits and social provider agencies that would utilize for this funding. The derecho confirmed the requirement of retaining these essential facilities up and operating to keep people today fed and healthcare devices charged, Buck mentioned.

Administrative expenses

Administrative fees are approximated at over $2.3 million.

In July, Cedar Rapids plans to have a developer details session. The metropolis anticipates HUD will approve the action prepare in August or September, then IEDA would just take applications all-around September or Oct.

Remarks: (319) 398-8494 [email protected]

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