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Staff reports CDBG/HOME schedule, landlord pilot and local option sales tax revenue for affordable housing
Summary
City staff told the commission it will resume a normal funding schedule for CDBG/HOME with application windows opening in December, warned awards may be subject to federal continuing resolutions, announced a landlord incentive pilot ($1,000/$2,000 payments) and estimated local option sales tax could yield about $3.5 million/year for affordable housing.
At the end of the Housing Trust Fund presentation, city staff gave a series of updates to the commission. Staff said the commission will return to a typical funding schedule with two application opportunities opening in December and application deadlines in January for non-legacy aid and CDBG competitive funding for FY27; staff cautioned that any awards could be subject to change due to federal budget uncertainty and a continuing resolution in Congress.
Staff also noted a forthcoming local revenue change: the city expects local option sales tax collections to produce about $14 million annually for Iowa City and that 25% of that total has been earmarked for affordable housing, which would amount to roughly $3.5 million a year. Staff said distribution details have not been decided and will be subject to future public discussion and budget processes once revenue begins accruing.
Commissioners discussed a limited-time landlord incentive pilot the housing authority is trying that pays $1,000 for leasing to an adult household and $2,000 for leasing to a household with children; staff described that as a pilot tied to available funds and said initial outreach focused on 19 households but expansion was under consideration. Staff also reminded commissioners that housing inspection staff will present at the December meeting and that the winter funding round announcement will be released the coming Friday.
No formal votes accompanied these updates; staff said it would provide a tentative calendar at the next meeting and circulate relevant materials.
