Income-eligible households can apply to buy new homes through Cedar Rapids program

CEDAR RAPIDS — Low- to moderate-income households affected by the 2020 derecho may apply to buy one of 76 soon-to-be built single-family homes around Cedar Rapids through a city program using $15 million in federal disaster recovery funds to expand affordable housing.

Starting Thursday, the city of Cedar Rapids will accept applications from the public for its Redeveloping Ownership Opportunities Together (ROOTs) program.

The effort will use federal Community Block Grant-Disaster Recovery funds from the U.S. Housing and Urban Development Department — allocated to the Iowa Economic Development Authority — to provide disaster-resilient, single-family homes in locations throughout the city.

The funds were awarded primarily to Linn County, which was hardest hit in the hurricane-force winds of the August 2020 derecho. The unprecedented storm damaged most properties within the county, damaging housing stock at a time when Linn County were grappling with a lack of affordable housing.

“It’s all levels of government working together to support community development and disaster recovery,” City Manager Jeff Pomeranz said. “ … All of us come together and work together to create this opportunity for our residents, for our neighborhoods, for our future growth and equity within our community.”

The city will take applications until there are purchase agreements for every home, which will sell for a maximum price of $175,000.

To access the application and more information, visit CityofCR.com/Roots. Derecho-affected households will receive the first opportunity to buy the homes for the first four months. Construction of most homes is slated to start this spring.

The program is the second iteration of a program that used federal funds to build 869 homes after the 2008 flood and sell them to income-qualified households.

Who’s eligible

To participate, buyers must be at or below 80 percent of the area median income and be able to secure an approved mortgage through a qualified lender. Based on household size, income limits range from $53,000 for a one-person household to $106,000 for a nine-person household.

Eligible buyers may qualify for up to $35,000 in down payment and closing cost assistance as a forgivable loan, which is forgiven in monthly installments over 15 years. The 15-year affordability period will be enforced by a forgivable lien on the property.

Mayor Tiffany O’Donnell said the city requires partnerships to provide affordable housing, a city council priority.

“Homeownership is a game changer for those who earn that as an asset,” O’Donnell said. “ … Providing quality affordable housing has been key to meeting the needs of our current and future residents.”

Home locations

To select the locations where homes would be built, Housing Services Manager Sara Buck said developers went through a competitive process and responded to requests for proposals. Homes will be available throughout the city.

A review committee scored applications for affordability, architectural design, green building principles and developer experience. Those projects then went to the state for final approval.

All homes will be built using green practices and disaster-resistant amenities, including bioswales and other stormwater management practices, advanced framing, insulation and safe rooms to mitigate disaster risk.

Hannah Kustes of Abode Construction, which is building 30 of the homes, said that amid inflation and construction cost spikes, it’s been a challenge to continue to build affordable homes.

Kustes said people moving out of entry-level workforce housing into these new homes will free up more affordable housing throughout the city.

“It seems to be one of those once-in-a-lifetime opportunities if you can take advantage of it,” Kustes said.

Comments: (319) 398-8494; marissa.payne@thegazette.com

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