A $3.7 million grant for affordable housing was given to Iowa City

Cedar Rapids, Iowa – The US Department of Housing and Urban Development awarded $3,752,000 to Iowa City as part of the PRO Housing (pathways to removing barriers) housing initiative.

The Department of Housing and Urban Development provides financing to Iowa City, one of a select few localities nationwide.

“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 award was given out by the assistant secretary for administration at HUD. The grant’s funds, she noted, might have an influence across the country.

”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.

Just 21 cities—out of more than 175 that applied—were awarded the funding, and Iowa City is one of them. The PRO Housing profile for Iowa City states that in order to meet demand, 46 hundred more housing units are required, with an additional 10,000 individuals predicted to live there. According to the profile, housing costs are a strain for 61% of renters and 22% of homeowners in Iowa City.

Mayor Bruce Teague stated that although Iowa City doesn’t anticipate the grant money to address its housing issues completely, it would provide a new starting point from which to work.

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

The director of development of Iowa City’s Shelter House is Christine Hayes. According to her, the folks who are closest to the edge of affordable housing will benefit the most from having the grant money.

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

Later this summer, the Biden-Harris administration plans to unveil a second tranche of funding for PRO Housing, totaling $100 million. Iowa City is still able to submit an application for funding in the second round.