Community Development Block Grant (CDBG)
Click here for an application
You may recall back in October the City of Dexter was exploring interest in a housing rehabilitation program (Community Development Block Grant). The public response for this program was strong and as a result, the City Council has voted to proceed with the application process.
Pre-applications were mailed to households back in October and November to gauge interest in the program. This helped the City know how much interest there was and helps justify to the State of Iowa that the grant is needed. The city is now ready to complete the full application process.
There are two parts to the application process for homeowners:
1) Completing the full application
• All interested homeowners will need to complete a full application by clicking here
You can pick up an application form from city hall or contact Jeremy Rounds at the Southern Iowa Council of Governments (641-782-8491 or email@example.com) to request one. Mr. Rounds will be in Dexter to answer questions and assist homeowners who desire help with the application. This will occur on Monday, January 28, 2019 from noon to 6 PM at the city hall. No appointment is required.
• It does not matter if you filled out a pre-application or not, all interested homeowners need to fill out a full application
• Homeowners who submitted a pre-application will receive a full application by mail
2) City Wide Income Survey
• As part of the application process, the city must conduct an income survey for the city
• Most (not all) households in the city will receive a survey
• It is extremely important to the success of this application that you complete the survey if you receive one
• This survey is valid for three years so it will help the City qualify for other CDBG funded projects besides the owner-occupied rehab.
More about the Community Development Block Grant:
The City is partnering with the Southern Iowa Council of Governments in Creston to do this project. SICOG has 25 years of housing rehabilitation experience and knows all the federal and state program requirements. More information can be obtained by contacting Jeremy Rounds or Marcus Amman at 641.782.8491 or firstname.lastname@example.org or email@example.com.
The key features (benefits) of the program are as follows:
Homeowners can secure up to $32,000 in forgivable loan (a conditional grant) funds from the federal government to make major repairs on the home. If work can be done within this total budget, there is no cost to homeowners to participate.
All homes, when finished, will meet safety standards for plumbing, electrical, and lead safe housing and will be more energy efficient. Also, homes will have radon gas mitigation if necessary.
Work may include but not be limited to: roofing, siding, painting, foundation and wall repair, window and door replacement, heating and central air upgrades, electrical and plumbing upgrades, weatherization and insulation, and related work as identified in a program inspection. Please note that, while this program may help with your goals to modernize or remodel the home, it is not designed merely to do remodeling. The program is designed to fix deficiencies.
Homeowners will have some choice in the scope of work, such as paint colors and, if the budget allows, some optional work items.
The key requirements of the program are as follows:
The program requires that the homeowner sign a “forgivable loan” agreement. This document promises you will continue to live in the home for 5 years as your primary residence and maintain your property. Failure to do so means you will pay the City back some of the money (interest free). This document is recorded at the courthouse on your property record for the five years.
The program requires that the home can be feasibly rehabilitated to Iowa’s Housing Quality Standards. A program inspection (after grant award) will verify this. Most homes can be rehabilitated with this standard, but some are simply beyond repair. Contact SICOG if you have questions about this.
Homes must be placed on a permanent foundation or piers and taxed as real estate where the owner owns both the home and the land.
Homes that are assisted must be fully insured, taxes must be current (not delinquent), and you must own the home. Ownership for this program means that you own it free and clear or you have a bank or mortgage company mortgage on the home. If you currently rent or have a contract but are likely to buy the home in the next year, you can apply. You must be current on mortgage payments or get current by the time of final application (summer-fall 2019).
All work will be performed by a licensed and insured contractor that is selected through a public bid process.
You must meet income requirements at the time of assistance. This means that your entire family income cannot exceed a certain amount based on household size (number of people living in the home). Please, for this purpose, estimate your entire household income for 2018, including the following sources: a) employment and tips (all people aged 18 or older), b) net income from business or self-employment, c) net farm income, d) unemployment, e) total child support received, f) pension payments received, g) Social Security and SSI or disability income received (including for minors), h) total structured settlements and winnings received, i) military pay or cash benefits, and j) other recurring and regular cash payments received (such as alimony, family support, etc.). NOT COUNTED are things like EBT cards (food stamps), WIC, T-19 (Medicaid), Medicare, heating assistance, and other benefits that are not paid to you in cash. Also not counted are random gifts and income such as garage sales. If you feel your income is over the amount for your household size but is within $10,000 or your income might go down in the next year, you are encouraged to apply. See the chart below