In an effort to bring families back to the Cedar Rapids area after the flood in 2008, the city of Cedar Rapids has offered different housing incentives to stimulate the housing market and to replace many of the homes lost during the flood.  The newest inducement is to bring those families who are not currently living in Cedar Rapids to the area.  The city has access to more federal disaster money for new housing and there isn’t enough demand for current Cedar Rapids residents.

There is $11.7 million in funding that is expected to supply 235 new construction residential units, mostly single family homes and duplexes.  This is said to add $44 million in total value to the city.

This incentive offers 25% down payment assistance and a free lot for homes and will be in the price range of $135,000 and $150,000.  This could end up being a $35,000 incentive once the lot and down payment assistance are figured in.  This would be instant equity for the new home owners.

The lots that will be available as part of this incentive are the homes the city acquired in post flood buyouts and were demolished.  All are outside the 100 year flood plane with many in the Time Check Neighborhood in the northwest Cedar Rapids.

This incentive comes as part of third round of the Single Family New Construction Program, which received money from the Iowa Department of Economic Development (IDED).    The first two rounds provided funding for 438 residential units with 110 units still available as part of round two.

The city of Iowa City and Cedar Falls have also received funding from the same program.