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Iowa City HCDC recommends amendment to CitySteps annual action plan, sends to council
Summary
The Housing & Community Development Commission voted to recommend a substantial amendment to the CitySteps plan that incorporates the fiscal year 26 annual action plan and programs HUD funds into homeowner rehab, a rental-rehab pilot, down-payment assistance and tenant-based rental assistance; the recommendation goes to City Council for a July 8,
The Housing & Community Development Commission (HCDC) recommended approval of a substantial amendment to “CitySteps 20 30,” a consolidated planning document that includes the fiscal year 26 annual action plan, and will forward the recommendation to Iowa City Council for a July 8 public hearing and vote.
The amendment programs U.S. Department of Housing and Urban Development (HUD) funds into specific activities for FY26. Brianna, city staff, explained the plan will fund homeowner rehabilitation, a new pilot rental-rehab program, the city’s down-payment assistance program, tenant-based rental assistance and support for local nonprofit agencies including a set‑aside for community housing development organizations (CHDOs). “HUD has essentially retracted the affirmatively furthering fair housing requirement to do an analysis of impediments,” Brianna said, noting staff removed related language to align the plan with current HUD guidance.
Staff described the competitive funding targets included as examples in an appendix: about $214,000 for competitive rental-acquisition projects and $150,000 for public-facility projects. Brianna said the document lists a target of one rental unit and one public facility project but that the city could split funding across multiple projects if applications warrant it. She also summarized income limits used in program underwriting: down-payment assistance may serve households up to about 80% of area median income (AMI) for owner-occupied activities, while HOME-assisted rental units typically target households at or below 60% AMI, with specific unit-mix and underwriting requirements set by HUD.
The commission voted to recommend the amendment as presented. If City Council approves the amendment at its July 8 meeting, staff will submit the consolidated plan, including the annual action plan, to HUD for final processing.
Details: the plan includes a competitive round for CDBG/HOME-type funds, a CHDO set-aside, and the usual program underwriting rules tied to HUD AMI limits. Public comments on the amendment will remain open to the July 8 council meeting.
