Iowa City wins HUD Pro Housing Grant, sets funds aside for new affordable projects

Mayor Bruce Teague said Iowa City will use a $3,750,000 Pro Housing Grant from the U.S. Department of Housing and Urban Development to accelerate work on zoning, counseling and city-led affordable housing development.

"This $3,750,000 grant will help us accelerate our plans to remove barriers to housing affordability by updating our comprehensive plan, establishing a housing counseling program, and helping the city directly develop affordable housing," Teague said.

Teague also said the city has built $6,800,000 in affordable housing fees, generated through inclusive zoning and tax increment financing policies, that can be strategically reinvested in coming years. He cited recent purchases by the housing authority of three townhomes for permanent affordable housing and partnerships that secured supportive units for people leaving a domestic-violence shelter.

On other housing supports, the mayor listed more than $1,300,000 in federal entitlement funds plus another $1,000,000 from the city's affordable housing fund used for housing rehabilitation, down payments and new affordable rentals. Specific project timelines and the number of households to be served by each funding stream were not detailed in the address.

Teague described an energy-efficiency incentive for new homes—partnering with the Home Builders Association and Iowa City Area Association of Realtors—that provides a grant for homes achieving a Home Energy Rating System score about 20% better than the state energy code, and highlighted a student-built energy-efficient house completed in spring 2024.

The mayor framed the investments as part of a multi-pronged approach including development, rehabilitation and counseling, while leaving program-level allocations and timelines to staff and future council actions.