WC Iowa News

Seeking to help those needing assistance to purchase a home, Karla Janning of Region 12 made a presentation to the Carroll City Council about the Iowa Finance Authority Down Payment Assistance Program Grant.

“What this program does, especially in today's climate, is it provides needed down payment assistance so that the client is not paying a whole lot of PMI on their loan," Janning told the council. “With today's higher interest rates and housing costs, the workforce housing is stretched to its limit.”

Janning told the council the program is a down payment assistance program for buyers earning 80% or less of the community’s median income. She said those eligible are helped to overcome some of the financial challenges of expensive housing markets and higher loan rates, and “allows for more younger families and professionals to move into the area and become property owners and taxpayers.”

Janning said the program applies to either a 5-year or 10-year forgivable loan that reduces 20% each year for five years or 10% each year for 10 years.

The program will also rehabilitate and preserve existing housing stock.

“Your community, as well as every other community in the counties that we serve, suffers from the preservation of housing stock,” Janning said. “We can't build enough new houses for everyone, so we have to do something with the houses we have. This is a great way to not only help young families get into a home, but it also puts economic value into your community.”

The city of Carroll benefited from the program in 2014 when 11 home purchases over a period of three years were assisted for a total investment value of $333,000. Similar programs in the county of Carroll generated $192,500 going to buy 10 homes in 2020, and $237,000 in 2021 when 13 homes were supported. More than $820,000 has been invested into local properties in the last nine years, Janning said. Any rehabilitation was completed by local contractors.

The application date is May 7th, and the city has never had any issues with similar programs in their area in the past. The Region 12 organization has a three-year waitlist of residents for similar services. Any funding from a grant would help aid the large number of people in the state looking for help purchasing a home. The council approved the first reading of this agreement but requested a more official and detailed resolution to consider for adaptation at a future meeting.