CDBG 2024 Disaster Recovery - Housing

New Housing Construction – Rental Program.

Purpose

Communities affected by the 2024 disasters continue to face significant needs to restore housing and strengthen the resilience of the housing stock. The New Housing Construction Rental Program supports the development of new rental housing, including single-family developments with four or fewer units and multifamily developments with five or more units. These homes will be available for rent to low- and moderate-income households at or below 80% of area median income. Priority will be given to disaster-impacted families.

Administration

This program is administered by the Iowa Economic Development Authority (IEDA). IEDA is responsible for the management of the State of Iowa’s Community Development Block Grant-Disaster Recovery (CDBG-DR) award issued by the U.S. Department of Housing & Urban Development (HUD).

Available Funds

Program	Budget
Rental Housing New Construction	$10,000,000

Eligible Activities

Eligible activities include acquisition, construction, reconstruction or installation of public works, facilities, and site or other improvements as described in HCDA Section 105(a) 1, 4, 11, 14, and 15; applicable waivers identified in the Allocation Announcement Notice (90 FR 4754) and Universal Notice (90 FR 1754).

Eligible Applicants

Units of General Local Government (UGLGs) and tribes are the eligible applicants for these funds. UGLGs and tribes must identify a developer in their applications. If awarded funds, the UGLG will enter into a development agreement with the developer.
 

Eligible Areas

CDBG-DR funding will be provided to HUD-identified MID areas: Cherokee County, Clay County, Sioux County and Woodbury County. The State-identified MID Areas are Buena Vista, Lyon, Pottawattamie, Dickinson and Osceola Counties.

Maximum Awards

The following maximum award amounts apply to the New Housing Construction program:

• Housing construction incentive: Up to $150,000 per unit
• Mitigation incentive: Up to $20,000 per unit
• Infrastructure in support of housing: The lesser of $35,000 per unit or 35% of housing construction cost. The incentive is optional and will be used to support the construction of infrastructure for the new housing development

Low-to-Moderate Income Benefit

This program will serve low to moderate income (LMI) households. LMI households are those at or below 80% of the area median income of the county in which the housing unit is constructed.

Summary of Application Criteria

• Applicant Eligibility: Applicant must be registered in SAM.gov and have a Unique Entity Identifier (EEI). The development team must have experience with projects of similar scope, and demonstrate financial stability and capacity to deliver the project on schedule.
• Project Eligibility: Project must be located in a designated MID and be an eligible rental housing development where at least 51% of units must serve LMI households (or 100% for a single-unit project). The project should support fair housing and disaster recovery goals.
• Site Requirements: The developer must have site control. The site must be outside of the 100- and 500-year floodplain. The site will have access to public utilities and streets.
• Development Readiness: The project is ready to proceed, with a detailed and feasible schedule.
• Financial Feasibility: The project remains feasible for the full funding term. The development costs are reasonable and project sources have been identified and sufficient to cover project costs. The rents meet HUD requirements and operating costs are reasonable.

• Resiliency: The designs and plans demonstrate that future hazards will be mitigated and that recommendations provided during the IEDA design consultation period were incorporated. The National Green Building Standard (NGBS) are integrated into the design a minimum of the Silver NGBS rating.

More information on program requirements, including rent limits, eligible costs, and other federal requirements can be found at: 2024 CDBG-DR Flood Recovery | Economic Development & Finance Authority

New Housing Construction – Single Family

Purpose

Communities still face significant needs for restoring and improving the resilience of the housing stock in areas impacted by the disasters of 2024. The New Housing Construction Single-Family program is designed to support development of new single-family housing, coordinated with homebuyer assistance. These homes will be available to low- and moderate-income households who were homeowners previously, as well as households seeking to transition from renting to homeownership. The homes will first be offered to disaster-impacted families.

Administration

This program is administered by the Iowa Economic Development Authority (IEDA). IEDA is responsible for the management of the State of Iowa’s Community Development Block Grant-Disaster Recovery (CDBG-DR) award issued by the U.S. Department of Housing & Urban Development (HUD).

Available Funds

Program	Budget
Single Family New Construction	$30,000,000

Eligible Activities

Eligible activities include acquisition, construction, reconstruction or installation of public works, facilities, and site or other improvements as described in HCDA Section 105(a) 1, 4, 5, 11, 14, 15 and 24; applicable waivers identified in the Allocation Announcement Notice (90 FR 4754) and Universal Notice (90 FR 1754). All eligible and funded activities should result in new, single family housing for ownership.

Eligible Applicants

Units of General Local Government (UGLGs) and tribes are the eligible applicants for these funds. UGLGs and tribes will identify a developer in their applications. If awarded funds, the UGLG will enter into a development agreement with the developer. Homebuyer assistance is also available to eligible households purchasing the units.
 

Eligible Areas

CDBG-DR funding will be provided to HUD-identified MID areas: Cherokee County, Clay County, Sioux County and Woodbury County. The State-identified MID Areas are Buena Vista, Lyon, Pottawattamie, Dickinson and Osceola Counties.

Maximum Awards

The following maximum award amounts apply to the New Housing Construction program:

• Housing construction incentive: Up to $200,000 per unit
• Mitigation incentive: Up to $25,000 per unit
• Homebuyer assistance: Up to $35,000 per unit
• Infrastructure in support of housing: Up to $90,000 per unit or 35% of construction costs, whichever is less.

Low to moderate Income Benefit

This program will serve low to moderate income (LMI) households. LMI households are those at or below 80% of the area median income of the county in which the housing unit is constructed.

Summary of Application Priorities

LMI communities will be prioritized for funding based on scoring criteria. Scoring criteria includes:

• Project Readiness: Degree to which project is ready to proceed and can be completed in a timely manner.
• Project Need: Degree to which the project will address identified need(s) of the intended homebuyer beneficiaries
• Budget Completion: Degree of budget reasonableness and documentation of other funding sources
• Mitigation: Required mitigation features and description of additional mitigation features
• Development Team: Experience with similar projects and development of plans/ specifications provided
• National Green Building Standard (NGBS): Developer experience with standards and degree to which plans meet NGBS Silver Certification
• Project Impact: Including degree to which the project furthers infill and orderly development

More information can be found at: 2024 CDBG-DR Flood Recovery | Economic Development & Finance Authority