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In cities across the U.S., affordable housing is a huge concern. Here in Marshalltown, we just got a huge win. Deb Millizer, Housing Director for our city, gained a 2.1 million dollar grant for 10-12 homes to be built on empty existing city lots. Deb also found a home builder that is willing to put up with all the extra details that are present in contracts with State or Federal Government. It's the way grants work. What may seem "unnecessary or over the top" for building a home in the Midwest, are required in grant funds. These builders are so hard to find. No exceptions. Our City had been awarded a similar grant about 4 years ago, but could not find a contractor anywhere who would build the houses because of all the red tape. So we dropped that grant.
It shows the complexity of working with State and Federal funds, they come with strings and lots of red tape, paperwork and extra inspections.
Expect these houses to be built starting this coming spring through 2028. The cost to build is about $180,000-$200,000 with the homes being discounted down about $50,000 to about $125,000 to $140,000 for sale. The grant pays for the discount. Grants are awarded for what the grant wants, not what you would like to do.
This shows the problem with building affordable housing. Even with building very basic homes, construction cost runs about $150-$250 dollars per square foot in Iowa. So a 1,000 square foot house easily can cost $175,000 to $200,000 without lot costs.
To make them truly affordable for lower income people, someone must make up the money gap to lower the newly built home down to affordable prices for more people.
Other modern styles (concrete homes, domes, etc) along with tiny homes have been tried with limited success by other cities.
The 10-12 homes that we intend to build may open up some lower price homes as people sell theirs and move up into these new homes being built.
Deb Millizer is doing a super job pulling this all together for Marshalltown's residents. Perhaps with this success, the State of Iowa might have more confidence in Marshalltown and fund another project with us. Keep your fingers crossed!
Sidewalks are being poured on East Main Street when it is not pouring down rain. Kudos to everyone involved keeping their cool, realizing that we will have to work through this very unusual rain period. It sure will be nice to get it done. Let's all hope for some clear skies and sunshine. I think Mother Nature owes us.
Word has reached me that David Adland has passed away. David was very involved in Marshalltown. He was a huge Bobcat and Hawkeye supporter, business owner, husband, father and just a great guy to be around.
He will be sorely missed.
"Owning a home means crafting your own personal masterpiece" -- Ezra Pound
Mike Ladehoff is the mayor of Marshalltown.