FY2024 Proposed Budget

HOME GRANT FUND The HOME Grant Fund accounts for HOME Investment Partnerships program (HOME) funds that are provided to the City on an annual basis from the U.S. Department of Housing and Urban Development (HUD). HOME grant funds are given directly to states and local governments for the exclusive use of affordable housing activities. Iowa City is an entitlement city (over 50,000 in population), and receives an annual allocation from HUD based on a formula that looks at information such as poverty rates, age of housing stock, etc. Congress approves the program budgets annually so the City’s allocation may change from year to year.

HOME funds are used throughout the community to address the housing needs of lower income citizens. This is accomplished through:

 Acquisition of land and buildings  Rehabilitation of existing housing  Tenant-based rental assistance  New construction of owner-occupied and rental housing

Fund Balance: Budgeted fund balance at the end of fiscal year 2024 is $373,720 which is an 54.5% increase from the fiscal year 2023 revised estimate. This is due to the budgeted repayment and reallocation of prior of HOME loans. Revenues: 92.9% of the HOME Grant Fund’s revenue is from federal grants with remainder coming from loan repayments and loan interest. Budgeted federal HOME grant funding is lower in fiscal year 2024 by $1,989,803 or 59.1% from fiscal year 2023 due to American Rescue Plan Act funds expected to be received in fiscal year 2023. Expenditures: Fiscal year 2024 expenditures represent an 59.7% decrease from the fiscal year 2023 estimate. This decrease is primarily due to the expenditure of the American Rescue Plan Act funds received in fiscal year 2023.

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