Program offers incentives for new homes in Iowa City - KWWL - Eastern Iowa Breaking News, Weather, Closings

Program offers incentives for new homes in Iowa City

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IOWA CITY (KWWL)-- A new program gives builders a shot in the arm in Iowa City.

Residents are now eligible for a state program that will replace housing lost during the floods.

The Single Family New Construction Unit Production Program will provide down payment funds for 15 to 17 home buyers to purchase new homes if they cost under $180,000 and are built in the city limits.

The Iowa Department of Economic Development administered the program.

Requirements from the Iowa City Community Development Office:

Home buyers, including people affected by the flood, who earn the area's median income or less and who qualify for the program, are eligible to receive up to 30% of the purchase price of the home to apply as a down payment. The income guidelines are: for a one-person household, the median income (the maximum amount that applicants can earn per year) is $50,800; for two, $58,000; for three, $65,300; for four, $72,600; for five, $78,400; and for a household of six, $84,200.

The acquisition assistance will be set up as a 10-year forgivable loan. Homeowners who live in the home for 10 years or more will not need to repay the loan, but if they move before the 10-year term has expired, they'll be required to pay back a prorated amount. Application guidelines for residents who are interested in applying for the program have not yet been established. More information will be released at a later date and posted on the City's web site after the process has been determined.

Area builders and developers who are interested in the project must submit construction proposals to the City of Iowa City by April 3, 2009. The City will then select proposals and submit an application to IDED by mid-April. More information, including program requirements, may be found on the City's web site at www.icgov.org/newhomes.

For more information, contact Tracy Hightshoe at the City of Iowa City Planning & Community Development Department at 356-5230, or e-mail tracy-hightshoe@iowa-city.org

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