A new program called Redeveloping Ownership Opportunities Together (ROOTs) uses $15 million from federal disaster recovery funds to create affordable housing opportunities for low-income households in Cedar Rapids. The program aims to assist families affected by the severe thunderstorms that swept the Midwest in August 2020.
At least 76 disaster-resilient homes will be built throughout Cedar Rapids, featuring safe rooms, insulation, advanced framing, and other disaster-resistant features. The homes will be constructed with environmentally conscious practices, and a review committee will conduct an extensive review of affordability, architectural design, green building principles, and developer experience before submitting locations to state officials.
To be eligible, households must have an annual income falling within the range of $53,000 for one person and $106,000 for nine people. Qualifying candidates can obtain direct payment of up to $35,000 from a little-known $15 million pot, coming directly from the Community Block Grant-Disaster Recovery fund set up by the US Housing and Urban Development Department and allocated to the Iowa Economic Development Authority.
Applications are open for every one of the 76 homes up to a maximum price of $175,000 until each has a purchase agreement locked in. It’s important to note that households directly affected by the derecho will have the first opportunities to buy homes.
City officials have praised the program and financial opportunity for low-to-medium-income residents as a way for everyone to come together and help. Cedar Rapids City Manager Jeff Pomeranz said, “All levels of government are working together to support community development and disaster recovery. All of us come together to create this opportunity for our residents, neighborhoods, future growth, and equity within our community.”
While the process is still moving on time, some builders are concerned about rising inflation and construction costs getting in the way of completing the structures. Abode Construction is building 30 of the 76 homes, and their representative, Hannah Kustes, stressed that the housing program is still formidable for those affected by the derecho or looking for affordable residences on low income.
Construction on the properties is set to begin in Spring 2024. Once approved to buy one of the 76 homes, applicants could qualify for a $35,000 forgivable loan as a down payment. This payment is forgiven over 15 years through monthly installments, and a forgivable lien will be placed on the home to enforce the loan.
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