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Single Family Unit Production - New
Construction Program
The City of Cedar Rapids in conjunction with the Iowa Department of Economic Development (IDED)
is now offering the Single Family New Unit Production - New
Construction Program. The funds originate from the
Department of Housing and Urban Development (HUD) and are in
the form of Community Development Block Grant (CDBG) funds.
Eligible property owners are offered assistance up to 30% of
the purchase price for down payment and closing costs.
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Buyer Information |
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Qualified applicants to the Single Family Unit Production -
New Construction Program must be at or below 100% of Area
Median Income (AMI) by household size established by HUD
(see chart). All assisted homebuyers must be able to support
a mortgage as evidence by a a firm loan commitment.
Assistance under this activity will not be allowed to be
combined with the Federal Jumpstart Homebuyer Assistance or
State Jumpstart Down Payment Assistance on the same dwelling
unit or person/household served. Funds received will be
secured as a 5-year forgivable lien against the property
which decreases at a rate of 1/5 per year. The property must
be maintained as the primary residence during the five year
lien period.
Application Process and Timeline (PDF)
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Single Family Unit
Production-New Construction Program |
| Family size |
100% MEDIAN INCOME |
| 1 |
$ 47,300.00 |
| 2 |
$
54,100.00 |
| 3 |
$ 60,800.00 |
| 4 |
$
67,600.00 |
| 5 |
$ 73,000.00 |
| 6 |
$
78,400.00 |
| 7 |
$
83,800.00 |
| 8 |
$
89,200.00 |
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Selection of a House
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The house must be
located within the corporate limits of Cedar Rapids.
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The house
cannot be located in the 100 year floodplain.
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Properties must be single family
dwellings, single family unit
condominiums or modular homes on
permanent foundations
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Properties cannot exceed $180,000
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Units must be built by an approved
builder
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Steps:
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Complete a Confidential
Financial Application and turn into: Housing
Services, 1211 6th Street SW (Public Works Building)
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Provide
supporting documentation for income
verification
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Provide
a Loan Approval Letter
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Locate
an
Approved Builder within unit
price
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Secure
purchase contract
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Applications will be reviewed in
10-12 business days
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Letter
of pre-qualification will be sent to
the applicant
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For information about the
homebuyer application process contact:
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Jennifer Moen
Phone: (319) 286-5874
Fax: (319) 286-5870
Email:
j.moen@cedar-rapids.org
OR
Caleb Mason
Phone: (319) 286-5188
Fax: (319) 286-5870
Email:
c.mason@cedar-rapids.org
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Builder Information
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Project Overview
The City has been
approved funding for 170 units of new production
housing. The 170 units are broken out into four (4)
price categories and the corresponding number of units
in each category (see New Construction Housing Chart). The guidelines for development of these
units is as follows:
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New Construction
Housing Chart |
| Price
Range |
Number of
Units |
| up to
$115,000 |
30 |
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$115,000-$130,000 |
50 |
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$130,000-$155,000 |
40 |
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$155,000-$180,000 |
50 |
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Unit
Guidelines
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Projects must be new construction,
single family/single unit dwellings.
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Modular homes are permissible
provided they are on permanent foundations.
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Units shall meet all locally adopted
building codes and standards
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In the absence of locally adopted
building codes or standards the State of Iowa Building
Code shall apply.
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All units are
required to meet the minimum green building
standards outlined in the application packet.
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There is a
maximum per unit development cost cap of $180,000.
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The maximum
amount of CDBG funds that may be applied for (per
proposal) is $1,000,000.
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Lots on which
construction is being proposed should be identified
and, where possible, site control obtained prior to
application submission
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Projects shall
not be located in the 100-year floodplain or within
known or proposed buyout areas.
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Builders shall obtain their own
construction financing for all dwelling units they
construct. Builders will be allowed a builders fee
(overhead and profit) not to exceed fifteen percent
(15%) of the cost of construction of each dwelling unit.
Builder's fees shall be included within the total cost
to construct and contained within the per unit
development cost limitation. |
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Project Review Timeline |
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Proposals Deadline |
Review Date |
Confirmation Letter |
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5/12/09 12:00 PM |
5/13/09 |
5/18/09 |
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5/19/09 12:00 PM |
5/20/09 |
5/25/09 |
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5/26/09 12:00 PM |
5/27/09 |
6/01/09 |
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6/2/09 12:00 PM |
6/3/09 |
6/08/09 |
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For information about the
builder application process contact:
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Marty Hoeger
Phone: (319) 286-5864
Email:
m.hoeger@cedar-rapids.org |
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