FY27 Proposed Budget

 $400,000 to bolster non-profit housing provider capacity. Further engagement with our non-profit housing providers is needed to determine expenditure plans.  $400,000 to support affordable homeownership opportunities. This includes $300,000 targeted for the Neighborhood Homeownership Program, in which the City buys rental property, renovates it, and resells it for affordable homeownership. The remaining $100,000 would supplement the City’s existing downpayment assistance program.  $250,000 to support preservation of affordable housing and aging-in-place initiatives. $100,000 is targeted to be contracted out as emergency rehabilitation assistance which is currently constrained by federal funding rules. The remainder would move the $150,000 General Rehabilitation Improvement Program out of the General Fund, providing needed relief and setting up future expansion of the program which is unlikely in the General Fund.  $150,000 to support the 2027 Student Build Project. This provides dedicated funding to give more certainty and permanence to the partnership with the Iowa City School District, Home Builders Association, and local non-profits to train high school students in the trades while creating new affordable housing opportunities.

Key Strategic Plan Actions: Affordable Housing

 1.4 Advance prioritized recommendations in the 2022 Affordable Housing Action Plan. Work with partners to undertake significant scale affordable housing efforts.  1.7 Explore innovative housing projects leveraging partnerships with public, private, and nonprofit agencies. Develop a business and financial strategy for bolstering the number of publicly owned housing units across all geographic regions of the community, especially in areas of high opportunity.  1.8 Respond to the growing homelessness challenges in collaboration with nonprofit partners through enhanced street outreach partnerships, data-informed strategies to reduce chronic homelessness, and continued exploration of shelter as service model.  1.9 Expand the South District Homeownership Program to other targeted neighborhoods and consider allowing relocation assistance to expedite completion.  3.3 Partner with Kirkwood Community College, Iowa City Community School District, Iowa Labor Center, local trades, businesses, and other stakeholders to provide meaningful career development opportunities, pre-apprenticeship, and apprentice programs.

The 10% not planned for expenditure protects from overcommitting funds if estimated revenues do not materialize. If revenue estimates are realized, the City can allocate these funds towards additional affordable housing projects in future years. Staff believes that feedback from affordable housing providers will help shape these recommendations both in the short- and long-term horizon.

Community Partnerships

The budget provides 15% of LOST funding to community partnerships that support intergovernmental, economic development, arts and culture, and social service priorities, estimated to be $2.1 million for FY 2027. Because many of these funds will be awarded externally,

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