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American Rescue Plan Act Funding Allocation

American Rescue Plan Act Funding Allocation

August 5, 2021

The City of Cedar Rapids, in partnership with the Housing Fund for Linn County, announced today initial plans for allocating some of the first federal funding available through the American Rescue Plan Act (ARPA).

The American Rescue Plan Act provides $72 million that will be allocated to Cedar Rapids and Linn County as part of ongoing pandemic relief. This funding will go toward critical needs in our community, such as affordable housing, workforce development, flood control, and much more.

Of Cedar Rapids’ $28 million portion, the City will allocate $1 million directly toward the PATCH housing program to help address remaining derecho housing needs of low-to-moderate income residents. The allocation will be formally approved during the August 10, 2021 City Council meeting.

The PATCH program assists homeowners with repairs or forgivable loans, and supports ongoing efforts to establish affordable housing in the Cedar Rapids community, which remains a high priority following the devastating effects of the pandemic and derecho.

Moving forward, the City will continue to explore funding uses for the American Rescue Plan Act, and will make additional announcements as these allocations are identified.

Patch Program Highlights
A unique community resource, the PATCH program is a collaboration of non-profits, the City, and County, working together to distribute funding to those who need it most. Funding partners also include the United Way, the Greater Cedar Rapids Community Foundation, and private donors.

Within a few weeks of the August 10, 2020 derecho, this group recognized that storm-impacted homeowners would be in need of financial assistance, making emergency repairs, finding contractors, and navigating through the insurance process. Through the collaboration of multiple nonprofits to address these needs, the PATCH (Providing Assistance to Community Homeowners) program evolved.

To date, the PATCH program has assisted over 200 low-to-moderate income homeowners throughout Linn County, either through emergency repairs or the forgivable loan process. Over $750,000 of the UWECI and GCRCF contributions has already been spent or obligated to projects.

Types of Assistance Includes:

  • Construction management support
  • Identifying immediate needs
  • Identifying contractors
  • Scheduling work
  • Working with contractors throughout the construction/repair process
  • Financial assistance
  • Forgivable loans, averaging $15,000 per home
  • 5-year forgivable mortgage placed on the property for the loan amount
  • Repayment occurs when homeowner receives FEMA, SBA, insurance, or other proceeds
  • A portion may be forgiven if the amount received from the above sources does not cover costs
  • No credit check required to qualify

Program Requirements:

  • Applicant must be the homeowner according to the Cedar Rapids or Linn County Assessor’s office
    • Home must be:
    • Owner-occupied
    • Primary residence as of 8/10/2020
    • Taxed as real estate
    • Located in Linn County
    • Insured or capable of being insured after work is completed
    • Must meet household income requirements – www.ecicog.org/patch.html to view criteria


Program Partners

  • The Housing Fund for Linn County
  • The Eastern Iowa Council of Governments
  • Linn County
  • The City of Marion
  • The City of Cedar Rapids
  • United Way of East Central Iowa
  • Waypoint Services
  • Matthew 25
  • Habitat for Humanity
  • Neighborhood Finance Corporation
Watch - press conference August 5, 2021 announcing funding allocation

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