Des Moines housing program struggles with funding as rent prices rise

The City of Des Moines Council has made significant strides in addressing housing needs during its recent budget discussion on February 19, 2025. A key highlight was the ongoing support for the Housing Assistance Payments (HAP) program, which currently assists nearly 2,900 families with an average monthly payment of over $550. This program is crucial for low and moderate-income residents, as it helps them secure affordable housing in a challenging market.

The council discussed the public housing program, which maintains over 400 rental units, including scattered site homes and apartment complexes. Notably, eight homes are being sold to Habitat for Humanity for rehabilitation into affordable homeownership options, with plans to close on several of these properties by the end of summer. The council is also working with current public housing residents to transition them into homeownership, aiming to empower families and reduce reliance on public assistance.

However, the council acknowledged the challenges posed by rising housing costs, which have outpaced federal funding for housing vouchers. Currently, the city has the capacity for 3,800 vouchers but can only support 2,800 due to budget constraints. This discrepancy is expected to worsen, with projections indicating a potential decrease in supported families over the next year.

In response to these challenges, the council is adapting its payment standards to reflect the varying costs across different zip codes in Polk County. This change aims to ensure that vouchers remain effective in securing housing for families in both urban and suburban areas. The council also noted a successful partnership with the Veterans Affairs for a supportive housing program, which has recently expanded to include 20 additional vouchers for homeless veterans.

Looking ahead, the council is focused on balancing the budget while addressing the growing demand for affordable housing. The discussion underscored the importance of strategic planning and collaboration with local developers to enhance housing options, particularly through initiatives like the Rental Assistance Demonstration program for the Royal View Manor project.

As the city navigates these complexities, the commitment to providing stable housing for its residents remains a top priority, with ongoing efforts to secure necessary funding and support for vulnerable populations.