Forty-three homebuilders scramble to get a shot at federal disaster subsidies for new home construction

CEDAR RAPIDS -- Dangle $13.36-million in federal disaster incentives in front of some homebuilders in a down economy and watch out.

Forty-three builders have jumped into the fray in an effort to get a piece of the funding in what the city and state call the Single-Family New Construction Program.

The federal money is expected to help in the construction of at least 235 new single-family homes or duplex units. The 43 builders have submitted proposals for more than 840 homes or duplex units.

The City Council on Tuesday evening is expected to finalize a scoring system for the proposals. The council earlier said it wanted to give priority to units built near the core of the city after a first round of building last year resulted in most of the units being built on the city's periphery where developers had land in the process of being developed.

This go-round, buyers who meet income guidelines can obtain a subsidy of up to 25 percent of the cost of home or duplex unit. The builder meanwhile is allowed up to a 15 percent profit if the builder builds near the core of the city and a 10 percent profit elsewhere. The program also offers builders up to $12,000 to build infrastructure related to the new construction.

Buyers can apply in April for a shot at getting one of the new homes or duplex units. Call 286-5872 for more information.