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Single Family New Construction Program (Round 2)

The City of Cedar Rapids in conjunction with the Iowa Department of Economic Development (IDED) is now offering a second round of the Single Family New  Construction Program (SFNC) to replace housing units lost as a result of the 2008 flood. The funds originate from the Department of Housing and Urban Development (HUD) and are in the form of Community Development Block Grant Disaster Relief (CDBG-DR) funds.  Eligible buyers are offered assistance up to 25% of the purchase price of an approved unit.  Units are identified through a competitive review process where proposals are scored based on factors such as location, architectural design, and innovative green building techniques.

Click here to see the Program Overview (PDF)
Developer Information

A portion of the funding for the SFNC program will be set aside for eligible infrastructure costs for newly developed land or infill lots within the Tier 1 area.  Developers can apply for up to $12,000 per lot that is in addition to the buyer subsidy.  Funding amounts are based on actual incurred and documented expenses which are paid to the developer at the time of closing.  The developments are required to meet all local zoning requirements and additionally meet the Green Development Guidelines for the program.  


Mandatory and Optional Development Guidelines (PDF)
Infrastructure Application (WORD)

Builder Information

The City has allocated funding for 235 units of new production housing. The units are separated into two (2) price categories and the corresponding number of units in each category (see chart below).  Homes built within each price category cannot exceed the maximum for that category at closing.  For instance a builder who proposes a building at $149,000 cannot exceed $150,000 on the purchase price state on the HUD closing document.  Half of all units allocated to a builder must be sold to persons whose household income is at or below 80% AMI.
Price Range Number of Units
up to $150,000 125
$151,000 - $180,000 110

  • Projects must be new construction, single family or duplex condominium dwellings.

  • Modular homes are permissible provided they are on permanent foundations.

  • Units shall meet all locally adopted building codes and standards 

  • All units are required to meet the Green Building Guidelines outlined in the application packet.

  • There is a maximum per unit development cost cap of $180,000.

  • The maximum amount of CDBG funds that may be applied for (per proposal) is $1,000,000.

  • Lots on which construction is being proposed should be identified and, where possible, site control obtained prior to application submission

  • Projects shall not be located in the 100-year floodplain or within known or proposed buyout areas.

  • Builders will be allowed a developers fee not to exceed 15% in Tier 1 or 10% in all other areas.

 Mandatory and Optional Building Guidelines (PDF)
Builder Application (WORD)
Attachment A: Project Costs (WORD)
Large Map of Tiered Scoring Boundary (PDF)
Small Map of Tiered Scoring Boundary (PDF)

Project Review

Projects submitted for the program will be scored competitively based on numerous factors such as location, quality design, previous experience with similar housing, and the incorporation of green building practices. The deadline for submitted a project for review is 5 PM March 12 .  Projects can be submitted to:

City of Cedar Rapids
Community Development Department
ATTN: Marty Hoeger
3851 River Ridge Drive NE
Cedar Rapids, Iowa 52402

For information about the developer or builder application process contact:

Marty Hoeger
Phone: (319) 286-5864
Email: m.hoeger@cedar-rapids.org

Caleb Mason
Phone: (319) 286-5188
Email: c.mason@cedar-rapids.org

Buyer Information

Qualified applicants to the SFNC Program must be at or below 100% of Area Median Income (AMI) by household size established by HUD . In addition, fifty percent (50%) of all assisted homebuyers must be at or below 80% AMI (see chart). All assisted homebuyers must be able to support a mortgage as evidence by a a firm loan commitment letter. 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 affordability period.


Cedar Rapids Family Income Limits
Family size 100% AMI 80% AMI
1 $ 47,300 $ 37,850
2 $ 54,100 $ 43,300
3 $ 60,800 $ 48,700
4 $ 67,600 $ 54,100
5 $ 73,000 $ 58,450
6 $ 78,400 $ 62,750
7 $ 83,800 $ 67,100
8 $ 89,200 $ 71,400
APPLICATIONS WILL NOT BE AVAILABLE UNTIL APRIL 2010

Steps:

  • Complete a Confidential Application

  • Provide supporting documentation for income verification

  • Letter of pre-qualification will be sent to the applicant from the city

  • Locate an Approved Builder

  • Secure purchase contract

  • Provide a Loan Approval Letter to the city

  • A funding award letter will be issued from the city with subsidy amount and forgivable loan schedule

Fillable Confidential Application (Word)
Printable Confidential Application (Word)
Printable Confidential Application (PDF)

For information about the buyer application process contact:

Michelle Hocraffer
Phone: (319) 286-5810
Email: m.hocraffer@cedar-rapids.org

Jennifer Moen
Phone: (319) 286-5874
Email: j.moen@cedar-rapids.org
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