Council names Ralston Homes as developer for CDBG‑DR infill housing; debate centers on $175,000 cap

Marshalltown City Council on March 9 voted to name Ralston Homes as the proposed developer for the city's Community Development Block Grant — Disaster Recovery (CDBG‑DR) housing application, a step city staff said is required by the Iowa Economic Development Authority (IEDA) for the grant submission.

Housing and Community Development Director Deb Melyzer told the council the resolution identifies a developer for the application and does not commit the city to a development agreement; the goal is to add affordable for-sale infill housing for income-qualified Marshall County households. "IEDA requires the city to identify a developer in the Iowa Grants application process," Melyzer said.

Jeff Ralston, who attended the meeting, answered council and public questions about floor plans, pricing and timelines. He said the state sets a $175,000 cap per unit for the program and that the cap applies per unit whether in a duplex or single-family home. Ralston said units are generally two-bedroom plans with unfinished basements the buyer could finish later. "The cap is $175,000," he said. "It's per unit."

Ralston said his firm aims to make the sale price lower where possible, and noted that donating city-owned lots to the project would materially lower final sale prices. "If the city can contribute the land it strengthens our grant application," he said, adding that donated lots could reduce the needed subsidy by the lot value.

Public commenters and some councilmembers raised concerns that $175,000 may still be too high for many Marshalltown residents. Doris Kinnick told the council the cap was "too much" and urged a lower cap so single families could afford a chance to start homeownership. Tim Bradbury said the proposed price point would help only a small number of households.

Ralston outlined the development timeline and constraints: the resolution commits to a 30‑month schedule overall, but the earliest units could begin once the state approves the grant, environmental reviews and contractor vetting are complete. He said an initial set of four units could be completed in seven to eight months after construction begins, but cautioned that the state approval process is often the longest delay.

Melyzer said the city intends to consider city-owned lots as part of its application and will bring further discussion of city lots back to the council. The resolution approving Ralston Homes passed on a roll-call vote.

What happens next: staff will include the developer choice in the city's CDBG‑DR application to IEDA and continue conversations about using city lots to reduce sale prices and strengthen the grant application. If the city moves forward with a grant award, additional agreements and state-level approvals will be required before construction begins.