City of Cedar Rapids

Program Overview
The City of Cedar Rapids, in conjunction with the Iowa Economic Development Authority (IEDA) is offering ROOTs to replace housing units lost as a result of the 2008 flood. The program offers down payment assistance up to 25% of the purchase price of an approved unit to income-qualified applicants. ROOTs serves as Round 4 of the City's Single Family New Construction Program.

Eligible Buyers
To be eligible to participate in the program, buyers must be at or below the Area Median Income (AMI) limits below established annually by HUD and be able to secure an approved mortgage through a qualified lender. 

City Participation
The City's funding award to a buyer of up to 25% of the purchase price will be secured as a 5-year forgivable mortgage against the property which decreases at a rate of 1/5 per year. The property must be maintained by the homeowner as their primary residence during the five year affordability period. Payback of funds will be required if the assisted buyer sells, vacates, rents or abandons their purchased property any time within the five year period. 

Approved Units
Units participating in ROOTs are identified through a competitive review process where proposals are scored based on factors such as affordability, architectural design, green building principles and developer experience. Properties approved for ROOTs are located on infill lots within the core neighborhoods of Cedar Rapids as well as privately owned lots provided by builders. Properties will not be located within the 100 year flood plain nor in the City's designated Greenway or Construction Study Area.

Duplication of Benefits
Assistance through ROOTs 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. Assisted households who have received any type of disaster funds are subject to a Duplication of Benefits (DOB).  Households and individuals who received down payment assistance in the Single Family New Construction program or any other Jumpstart down payment assistance will not eligible to participate a second time. IEDA Policy Update

Program Background
In June 2008, the City of Cedar Rapids experienced catastrophic flooding that devastated core neighborhoods of the community. In June of 2009, the City of Cedar Rapids in partnership with the Iowa Department of Economic Development administered the Single Family New Construction Program-Round 1. The program, designed to begin replacing housing units lost in the 2008 flood, resulted in funding for 182 new housing units for income qualified buyers in Cedar Rapids. In May of 2010, the Single Family New Construction Program - Round 2 was announced. Round 2 provided an additional 241 homeownership opportunities in Cedar Rapids. Round 3 began in 2012 and to-date 226 units have been completed. Round 4 of the program was approved by City council in October of 2013 and is currently underway.