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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.


 
Buyer Information  

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)
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
 

Selection of a House

  • The house must be located within the corporate limits of Cedar Rapids.

  • The house cannot be located in the 100 year floodplain.

  • Properties must be single family dwellings, single family unit condominiums or modular homes on permanent foundations

  • Properties cannot exceed $180,000

  • Units must be built by an approved builder

  

Steps:

  • Complete a Confidential Financial Application and turn into: Housing Services, 1211 6th Street SW (Public Works Building)

  • Provide supporting documentation for income verification

  • Provide a Loan Approval Letter

  • Locate an Approved Builder within unit price

  • Secure purchase contract

  • Applications will be reviewed in 10-12 business days

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

  
Confidential Financial Application (Word)
Confidential Financial Application (PDF)
Approved Builder List
Participating Lenders

 

For information about the homebuyer application process contact:

  
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

 

Builder Information

  

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:
New Construction
Housing Chart
Price Range Number of Units
up to $115,000 30
$115,000-$130,000 50
$130,000-$155,000 40
$155,000-$180,000 50
 

Unit Guidelines

  • Projects must be new construction, single family/single unit dwellings.

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

  • Units shall meet all locally adopted building codes and standards

  • In the absence of locally adopted building codes or standards the State of Iowa Building Code shall apply.

  • All units are required to meet the minimum green building standards 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 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.

Project Review Timeline
Proposals Deadline

Review Date

Confirmation Letter
5/12/09 12:00 PM 5/13/09 5/18/09
5/19/09 12:00 PM 5/20/09 5/25/09
5/26/09 12:00 PM 5/27/09 6/01/09
 6/2/09 12:00 PM 6/3/09 6/08/09
 

 

For information about the builder application process contact:

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