Iowa City receives nearly $4 million for housing assistance

(Photo via Getty Images)

Iowa City has received about $3.75 million from the U.S. Department of Housing and Urban Development (HUD) for a grant to help remove barriers to housing.

The city joins 21 communities across the country receiving portions of the about $85 million HUD Removing Pathways to Removing Obstacles to Housing (PRO) grant.

Iowa City plans to use the money to provide housing counseling services, reduce regulatory barriers to housing construction and develop more affordable housing for low- and moderate-income households.

“ Due to the complexity of affordable housing issues, a multi-pronged approach that leverages community partnerships is most welcome. We deeply appreciate HUD for awarding us these funds and look forward to the positive impact this continued partnership will bring to our community,” Iowa City Neighborhood and Development Services Director Tracy Hightshoe said in a news release.

The HUD funding comes as Iowa City has expanded efforts to grow its housing supply by updating its zoning laws and Affordable Housing Action Plan

HUD received more than 175 applications from 47 U.S. states and territories, according to the news release. It wasn’t just cities receiving grant money. Funding also went toward counties, local councils and the states of Hawaii and Rhode Island.

“President (Joe) Biden and I believe that every American deserves affordable housing, so they have a roof over their head and a place to call home,” Vice President Kamala Harris said in a HUD news release. “That is why we have a plan to build millions of new units of affordable housing in communities all across our nation, which will bring down the cost of housing for renters and help more Americans buy a home.”

Later this year, HUD officials will announce the recipients of another $100 million in HUD grants. More grant money will also be coming the following year with Biden including an additional $100 million for the program in 2025.

The full list of recipients can be found here .

“As I travel across the country, I hear from people all the time, including builders, elected officials, and other stakeholders, about how difficult it is to build housing. This is why I am pleased to announce our first round of PRO Housing funding,” Acting HUD Secretary Adrianne Todman. “This expands on our ongoing efforts to lower housing costs by increasing the housing supply.”

Iowa City and HUD officials will hold a press conference in City Hall at 1:30 p.m. Wednesday to discuss the housing opportunities made possible through the grant.

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