116 3rd St SE
Cedar Rapids, Iowa 52401
Federal funding supporting housing construction in Linn, Benton counties. How to apply for units
Owner-occupied homes available in Atkins, Walker, Marion, Linn counties
Like cities throughout Iowa, Atkins Mayor Bruce Visser said the rural city of about 2,000 needs more housing of all types. The 2020 derecho’s hurricane-force winds extensively damaged a portion of the houses, further putting a spotlight on the Benton County community’s housing needs.
“Houses that go on the market here with the single-family or even rental units, they get snatched up pretty quickly,” said Visser, who has served as mayor since 2018 and also was mayor in the 1990s.
No homes were completely destroyed in the unprecedented storm, Visser said, but many underwent remodeling and renovation, especially to repair exterior features such as roofs, windows and siding. At least a dozen people moved out for a while until they could work with their insurance companies to make repairs.
Federal funding awarded to Iowa is helping Cedar Rapids and surrounding communities in Linn and Benton counties replenish the housing stock that was damaged or entirely lost in the derecho.
Using Community Development Block Grant-Disaster Recovery funds, Iowa communities were awarded money in 2023 to put toward housing rehabilitation and new construction of owner-occupied and multifamily rental housing. The Iowa Economic Development Authority allocated the funds.
In Linn and Benton counties, the East Central Iowa Council of Governments is now taking applications for income-eligible homeowners to apply for a new owner-occupied home.
“Regionally, housing authorities tell us workforce-level, entry-level homes are not being built as fast as they were decades ago,” Visser said. “That’s where programs like the CDBG housing program can help fill a need to allow homeowners to have a place to move to … A need is met here in Atkins. That frees up a home or creates a vacuum somewhere else so workforce there can fill that need at that location.”
ECICOG has structured its program similar to Cedar Rapids’ Redeveloping Ownership Opportunities Together (ROOTs) program, which also uses CDBG-DR funds for low- to moderate-income households to buy one of 76 single-family homes around Cedar Rapids. Applications are open and available at CityofCR.com/Roots.
Where are the homes?
Paula Mitchell, a senior planner and housing grant specialist with ECICOG, said Linn and Benton County projects were awarded $5.6 million for 34 units, mostly duplexes.
- Atkins: Stone Ridge Duplexes, Ralston Eco Homes LLC, six units
- Linn County: Dows pocket neighborhood, Twenty40 Building Concepts, six units
- Marion: The Ridge at Indian Creek, Abode Construction Inc., 20 units
- Walker: Infill homes, Cedar Valley Habitat for Humanity, two units
Another $10.2 million was awarded toward about 101 multifamily units. That includes:
- Marion: Belltower Lofts, 1277 8th Avenue LLC, 30 units (the CDBG-funded portion of overall units)
- Belle Plaine: Moore Building, Iowa Main Street Investments LLC, five units
- Center Point: Harvest Loft Apartments, CP Assisted LC, 42 units
- Marion: Hoth Flats, Hoth Properties LLC, 24 units
All communities were awarded funds in a competitive process through the IEDA. Some communities had their own competitive process to identify a builder at the local level, whereas others had a project that was ready to go and a developer approached the city for the funding opportunity.
Mitchell said when ECICOG staff reviewed applications, all communities had vacancy rates below 5 percent, suggesting extremely high demand, which can drive up housing costs.
“After the 2020 derecho, there was a very significant impact on housing that was also exacerbated by the housing impacts of the pandemic,” Mitchell said. “Even areas that didn’t have as many physical derecho impacts in the surrounding area … their housing was also impacted in the sense that there was just not enough units for people. People went wherever housing was available.”
The Atkins homes on Driftwood Lane are substantially complete. Most of the other units are under construction. An open house is being held from noon-2 p.m. Sunday at 514 Driftwood Lane, Atkins to learn more about those units.
Atkins open house
What: Open house to learn more and tour the completed Atkins CDBG-DR homes on Driftwood Lane
When: Noon-2 p.m. Sunday
Where: 514 Driftwood Lane in Atkins
Atkins supports the region’s workforce from Benton County to Linn and Johnson counties, Visser said, driving housing demand in the city. Sometimes candidates for jobs in rural Iowa struggle to find a place to live or wonder how long of a commute they’d have, he said, hindering them from locating in communities like Atkins.
The affordable, high-quality CDBG units help meet some of the community’s need and attract new residents, Visser said, while adding about $1 million worth of valuation to the community and broadening the tax base. It’ll grow housing for the entry-level workforce to fill open jobs, hopefully encouraging residents to stay long term.
“It’s important that people have a quality place to live and fill part of that American dream,” Visser said.
Who’s eligible for the new homes?
Disaster-affected people who earn at or below 80 percent of the area median income are eligible to apply for one of the new single- or multifamily homes.
In Linn County, an individual may earn up to $56,300 and a four-person household may earn $80,400. In Benton County, an individual may earn up to $56,850 and a four-person household may earn $81,200.
For the first four months, the homes will be marketed to those affected by the derecho who are income-eligible. Those people will have the first opportunity to sign purchase or rental agreements. Purchase agreements may be signed before construction starts with a maximum $500 deposit. Construction is expected to wrap up within nine months from that point.
After those four months, all income-eligible individuals may apply on a first-come, first-served basis.
How to apply
Visit www.ecicog.org/community-development-block-grant-disast to apply.
Applicants will be asked to verify household income; provide documentation including self-certification of the disaster impacts, preapproval from a lender, Social Security cards for the entire household, copy of photo identification for those age 18 and over; and share information about demographics and household assets.
Contact paula.mitchell@ecicog.org or call ECICOG at (319) 289-0071 with questions.
Other details
The CDBG home must be the applicant's primary residence. Households cannot use a co-signer from outside of the purchasing household.
For-sale housing prices will be capped at $175,000 and up to $35,000 in down payment assistance will be available. This will be paid by the developer and reimbursed by the grant funding.
Mortgages must be at least 15 years, fixed rate with no balloon payments due.
There will be a 15-year affordability period for single family housing units. The affordability period will be enforced by a developer lien on the property.
Mitchell said the for-sale units should be completed by the first half of 2025, unless an extension is warranted. Construction timelines vary by builder.
The funding also requires “mitigation” components that make the homes more environmentally friendly and resilient to future weather events. It makes the homes more energy-efficient, reducing homeowners’ utility costs. These elements could be stormwater management, reduced energy usage, a backup generator, solar-ready or Federal Emergency Management Agency safe rooms.
Comments: (319) 398-8494; marissa.payne@thegazette.com
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