Disaster Recovery New Housing Grant Program

The Iowa Economic Development Authority (IEDA) is offering the Disaster Recovery New Housing Grant Program, an initiative aligned with the state's mission to facilitate community recovery and development following natural disasters. This program, announced by Governor Reynolds, is specifically designed to provide financial assistance for the creation of new for-sale and rental housing units in cities severely impacted by disasters across 21 selected counties in Iowa. The grant aims to address the critical need for housing in these affected areas, promoting stability and revitalization within the communities. The primary target beneficiaries of this grant are residents in disaster-stricken areas of the specified Iowa counties who are in need of stable and permanent housing. The program supports the development of both owner-occupied and renter-occupied primary residences, explicitly excluding short-term rentals. The impact goals are to increase the availability of safe, permanent housing options, contributing to the long-term recovery and resilience of communities affected by disasters. The program prioritizes the new construction of stick-built housing or manufactured homes affixed to permanent foundations. These developments are encouraged on grayfield sites, such as infill or vacant lots, and greenfield sites, as well as upper-story housing developments. Preference is given to single-family detached units, duplexes, and townhouse-style developments. This focus ensures that the new housing stock is integrated thoughtfully into existing communities and meets diverse housing needs. Expected outcomes include a significant increase in the number of available housing units in disaster-impacted areas, thereby reducing housing shortages and displacement. Measurable results will include the number of housing units developed, the number of families housed, and the overall economic and social revitalization of the targeted communities. The grant's strategic priority is to support sustainable recovery efforts by investing in essential infrastructure—housing—and fostering community growth. Funding information indicates a maximum of $1 million per project and $50,000 per housing unit, with a total program allocation of $10 million. Eligible uses of funds include construction costs for materials and labor, site development, engineering and architectural services, and related soft costs. Importantly, disaster preventative measures like sump pumps, backflow prevention valves, or FEMA P-361 compliant Safe Rooms can also be included, reflecting a forward-thinking approach to resilience. Eligibility criteria stipulate that private and nonprofit developers can apply, provided they are eligible for federal contracts and are in good standing with the Iowa Department of Revenue. Ineligible costs include land acquisition, building permits, inspection fees, furnishings, appliances, legal services, loan origination financing, developer fees, and costs associated with selling or renting dwelling units, ensuring that the funds are directly utilized for the core development and resilience aspects of the housing projects.