Housing improvement grants approved for low-mod income properties

Yahoo

01-05-2025

May 1—Two properties in Newton have been approved for Low-Moderate Incoming (LMI) Existing Housing Improvement Grants. The city council unanimously approved both grants at their April 7 meeting, in which one property was granted nearly $3,700 and another was granted $10,000 in LMI set aside funds.
For the property at 607 N. Second Ave. E., the owner submitted an application for plumbing assistance and was subsequently given $3,696.27. According to city documents, the owner and the property meet the requirements of the city's LMI Existing Housing Improvement Grant program.
The plumbing work includes the replacement of an existing lead water service line. Des Moines Excavating provided the property owner a quote for the work in the amount of $11,928.36, of which $7,000 will be defrayed by the property owner's property insurance policy.
Per program policies, the owner will pay the contractor 25 percent of the adjusted project cost — $4,928.36 — and the city will pay the contractor 75 percent of the adjusted project cost through the LMI grant. It is important to note the LMI funds used in the grant come from tax increment financing (TIF) funds.
For the property at 423 E. Second St. S., the owner submitted an application for foundation work and was given $10,000 from the LMI grant program. The work entails replacing the main beam, installing a SettleStop floor support system, bracing, joist reinforcement and concrete removal and replacement.
Foundation Recovery Systems, of Ankeny, provided a quote for $20,488.79, which means the property owner will pay $10,488.79.
Housing development is a serious need for the Newton community. The city is aware there are barriers to providing housing options, one of which being the cost of infrastructure construction, the cost of labor and materials and the challenge of enticing regional developers to the community.
In 2023, the Newton City Council established an LMI Housing Set-Aside Funds policy to define program areas for which set-aside dollars can be used.
Program areas include: LMI Existing Housing Improvement Grant, state/federal affordable housing application financial support, neighborhood sidewalk construction, reconstruction and ADA improvements, neighborhood revitalization and blight removal, including acquisition and demolition of dead or dying trees.
Persons who meet the low income requirements have earnings at or below 80 percent of median household income for the county, based on household size.
Eligible grant program areas for Newton include foundation work; permanent or semi-permanent interior work such as flooring, cabinetry or paint; windows and doors; HVAC work; plumbing; electrical exterior treatments; and roofing.
The goals of the LMI Housing Set-Aside Funds policy is to assist with the development and construction of high-quality, safe and affordable housing, to support neighborhood revitalizations and to improve neighborhood livability.