Iowa City receives $3.75 million PRO Housing Grant from the U.S. Department of Housing and Urban Development

The city of Iowa City has been selected as one of 21 communities to receive the competitive Pathways to Removing Obstacles to Housing (PRO Housing) grant from the U.S. Department of Housing and Urban Development (HUD).

The $3.75 million grant awarded to the city will be used to reduce regulatory barriers to housing construction, provide housing counseling services, and develop new, affordable housing for low and moderate-income households, according to a news release from the city. City staff and HUD officials discussed housing possibilities made available through the grant at a press conference Thursday held at the city hall. Lauding Iowa City’s “strong economic base” and high quality of life as key components that attract residents, Iowa City mayor Bruce Teague said that “our housing supply has not kept up with the rising demand,” adding that the council has a special focus on the issue “so people can get the housing they need at the prices they can afford.” The PRO Housing funds will allow Iowa City to build on the successes of previous efforts undertaken in support of housing affordability, such as the update of the city’s Affordable Housing Action Plan and recent zoning code amendments to expand housing supply. “The funding will empower us to extend our efforts and accelerate our planning in identifying and removing barriers to affordable housing production and preservation,” Mr. Teague told the packed chamber. “By carrying out activities highlighted by HUD, we are not only enhancing this quality of life for our residents, but we’re also being a showcase for (any) small or large community that is within the middle class.” The PRO Housing grant winners were unveiled by the White House yesterday. Called a “first of its kind” program by the Biden administration, its goal is to provide funding to build more housing and lower housing and rental costs to families nationwide. The grant winners spanned jurisdictions from under 5,000 residents in rural settings to millions of residents in urban districts. According to the White House, the communities awarded the grant have previously invested in strategies to boost housing supply, reform local regulations, incentivize development, prevent displacement, and encourage community driven solutions. “In addition to the grant funding, winners will be invited to participate in a technical assistance cohort to facilitate peer learning and implementation support,” a release from the White House stated. There to present the check to the city was HUD assistant secretary for administration Elizabeth de León Bhargava, who stressed the importance of the grant to ensure working families have a place of their own.

“For over a decade, housing supply has not kept pace with housing demand,” she said. “And communities across our country have experienced the effects of this firsthand. In Iowa City alone, 22% of home owners and 61% of renters are cost burdened by their housing….researchers estimate that there is a shortage of at least 2 million units of housing nation wide. “We anticipate that the first round of PRO funding will results in tens of thousands of homes for the American people, including right here in Iowa City.” Tracy Hightshoe, Iowa City's neighborhood and development services director, said Iowa City had more than 5,500 persons living in poverty in 2021. “We deeply appreciate HUD for awarding us these funds and look forward to the positive impact this continued partnership will bring to our community,” she said in a news release. The grant falls under the umbrella of Mr. Biden's FY25 budget, which proposes a "historic" investment of more than $258 billion in housing. This includes a $20 billion Innovation Fund for Housing Expansion, which aims to eliminate barriers to housing, spur development, and encourage innovative housing solutions. The budget also requests an additional $100 million for PRO Housing grants, and Ms. de León Bhargava encouraged the city to apply once more when the application becomes available again.