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Housing Programs

Contact Information

Community Development - Housing Division
101 First Street SE 
Cedar Rapids, IA 52401



Department Contacts


The wait list for this program is currently closed and applications will not be accepted.

Program Overview
Assistance is for owner-occupied, low and moderate income households as defined by HUD within the five core neighborhoods in the city of Cedar Rapids. Current assessed valuation of land and dwelling must be below $135,000 in order for the property to qualify for any kind of housing assistance. Only pre-1960 properties are eligible for assistance and the home must be entirely residential in usage, up to and including four dwelling units. Mobile homes and homes being purchased are not eligible for assistance.

The objective is to make the property safe, decent, sanitary, and to bring the property into compliance with:

  • City Housing Code requirements
  • City Building Code requirements
  • Lead Based Paint requirements
  • Section 8 Housing Quality Standards
  • Secretary of Interior Standards if the property is determined to be historically significant

Improvements more closely perceived as remodeling which will principally add to resale value by providing items of comfort and convenience are not eligible. All proposed activities must be reviewed for compliance with HUD environmental requirements at 24 CFR 58.5.

Ownership and Occupancy
Applicants for rehabilitation assistance must own and occupy the property to be rehabilitated. There must be at least 10% equity in ownership based on the assessed valuation, real estate comparables, (as determined by a Comparative Market Analysis performed by a qualified professional), or a professional Appraisal completed within the past 12 months. The household must also have occupied the property for at least one year from the date of purchase.

Property Taxes and Housing Payments
The applicant shall have no outstanding delinquent property taxes. Mortgage payments and homeowners insurance coverage shall be current.


Financial assistance is provided in two forms:

Hard Cost: Are defined as those items which are deemed to be in need of repair or replacement without regard for the presence or absence of Lead Based Paint. These are the costs that will be included in the 10 year lien, which is discussed in more detail below.

Soft Costs: Are defined as those items which are deemed to be in need of repair due to the presence of Lead Based Paint. This work will be included as "Phase II" in the contract, and the cost of this work is not included in the 10 year lien.

Some items may contain Lead Based paint, but also be structurally deficient (i.e. porch/posts), or energy inefficient (single pane windows). The assigned housing staff shall determine which items are "Hard Costs" and which are "soft Costs."

Eligible Work
Repairs, upgrades, components, and equipment for structural, electrical, plumbing, heating, and roofing are eligible. All chipping and peeling paint must be addressed and is calculated as a "soft cost" (cost that is not applied to the maximum project cost of the 10 year lien). Permanent siding is not eligible except when it is the only feasible and cost effective method of exterior treatment - as determined by the Housing Rehabilitation Staff.

Financial Assistance
Financial assistance is provided for all or part of the rehabilitation cost. The amount of assistance provided is dependent upon need and varies according to a household’s ability to pay. As income increases, the amount of financial assistance decreases.

Median family income is based on the income limits in the Federal Median Family Income Limits table in the appendix. Unless provided otherwise costs are proportional as follows:

Median Family Income


Household Pays

0% to 50%



51% to 70%



70% to 80%




To avoid placing a financial burden on the applicant when their pre-rehab monthly housing expense exceed 35% of household monthly income, assistance will be at 100%. Housing expenses include mortgage payments, insurance, property taxes, special assessments, and 12 month's average of gas, electric, and water utility payments.

  • Maximum comprehensive assistance to be provided shall not exceed the lesser amount of $24,999 in hard costs or 100% of the pre-rehab assessed dwelling valuation. There is no cap on soft costs. Additional costs may be charged to the homeowner.
  • Contingency assistance is allowed for unforeseen or urgent situations which may arise after work has started at 10% of initial project costs. The rehabilitation specialist may use his/her discretion on a case by case situation where change orders may exceed 10%. However, the maximum hard cost shall never exceed $24,999. 

CDBG/HOME Income Limits Issued by HUD - Cedar Rapids, IA

Effective June 1, 2018

    One Two Three Four Five Six Seven Eight
50% Median $28,500 $32,550 $36,600 $40,650 $43,950 $47,200 $50,450 $53,700
70% Median $39,900 $45,570 $51,240 $56,910 $61,530 $66,080 $70,630 $75,180
80% Median $45,550 $52,050 $58,550 $65,050 $70,300 $75,500 $80,700 $85,900

Aditional household size limits available upon request.

Property Lien
A property lien shall be recorded on the property for the hard costs of rehabilitation. Change orders will not require lien amendment. The hard cost assistance will be recaptured if the property is:

  • Sold or ownership is transferred to another party
  • Vacated making it no longer the principal residence of the owner
  • Rented for tenant occupancy, except for that allowed when the financial assistance was provided

After ten years, the lien will be forgiven.  The recapture schedule of the lien shall be as follows:


Repayment Amount





















After 10 years


Subordination of a lien for refinancing will be done on a case by case basis but only if/when there is sufficient equity to cover this lien. If lien release or lien subordination is required, a written request must be submitted ten (10) days prior.


 Chrystal Kohl
Community Development Programs Specialist
(319) 286-5182
 Leland Hoeger
Housing Rehabilitation Specialist
(319) 286-5179


© 2018  Cedar Rapids, Iowa, 101 First Street SE

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