Iowa City received $3.7 million grant for affordable housing

CEDAR RAPIDS, Iowa (KCRG) – Iowa City received $3,752,000 from the US Department of Housing and Urban Development as a part of the department’s pathways to removing obstacles housing program, or PRO Housing.

Iowa City is part of a small group of cities around the country to receive funding from the department of housing and urban development.

“Our housing supply has not kept up with the rising demand. As a result, we have a laser focus on this council to ensure that people can get the housing they need at the prices they can afford,” said Bruce Teague, Iowa City Mayor.

The HUD’s assistant secretary for administration presented the award. She said the grant’s money could have nationwide impact.

”We anticipate that this first round of pro funding will result in tens of thousands of new homes for the American people. Including right here in Iowa City,” said de León Bhargava.

More than 175 cities applied for the grant, and Iowa City is one of just 21 cities receiving it. According to Iowa City’s PRO Housing profile, the city is expected to grow by an additional 10-thousand residents and needs 46-hundred new housing units to meet demand. The profile also said 22% of homeowners and 61% of renters in Iowa city are housing cost burdened.

While Iowa City doesn’t expect the grant money to fully solve it’s housing problems, Mayor Bruce Teague said the funds will provide a new baseline to move forward.

”So we’re gonna be setting a template through this process for us to produce more affordable housing.”

Christine Hayes is the director of development at Shelter House in Iowa City. She says having the grant money will make the biggest impact for people who are right on the margin of affordable housing.

”Ultimately every time you bring a person out of homelessness or into stable housing, that is life changing,” Hayes said.

The Biden-Harris administration will also release a second round of 100 million dollars in PRO Housing funding later this summer. Iowa City is still eligible to apply for the second round of funding.

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