2019 Owner-Occupied Housing Rehabilitation Program

Posted on Monday, December 30, 2019

2019 Owner-Occupied Housing Rehabilitation Program

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The City of Mason City has been awarded a 2019 Community Development Block Grants (CDBG) to assist five (5) single-family, owner-occupied homes in the East Old Garfield School Neighborhood. The Program will assist low and moderate income homeowners with bringing their properties into compliance with Mason City’s building and housing codes as well as HUD’s Housing Quality Standards.


Applications are now being taken from eligible homeowners in the East Old Garfield School Neighborhood. 

Initial consideration will be given to applications received by January 3, 2020.

For more information, contact Grant Administrator Beth Enright at City Hall, 10 First Street NW, Mason City, IA  50401, via email at or by phone at (641) 424-7154.

Program Summary:
The objective of the City of Mason City’s Owner-Occupied Housing Rehabilitation Program is to provide a funding mechanism to assist the city’s low- to moderate-income population with decent, safe and sanitary housing as well as preserve the existing housing stock in relation to retaining affordable housing within the community. Availability of the Program is completely dependent upon funding specifically designated to the Program.

As Federal funds are used in the City’s Program, Federal goals and requirements must be met. These are subject to change by the U.S. Dept. of Housing and Urban Development. The Community Development Block Grant Housing Fund Program is administered by the Iowa Economic Development Authority. Federal, State and local requirements are addressed in the Administrative Plan established for the City’s Program.

The Program assists low-and moderate-income owner-occupants with bringing their properties into compliance with Mason City’s building and housing codes as well as HUD’s Housing Quality Standards. Work completed under the programs includes general, electrical, plumbing, and mechanical. Housing rehabilitation benefits not only the homeowner, but has a positive effect on the neighborhood and community as a whole. The condition of housing enhances aesthetics, property values and neighborhood stability.


  • In order for an applicant to be eligible for Program assistance, the applicant must occupy the property to be assisted as their principal residence and must be the legal owner of record. The property must be located in the target neighborhood. Ownership means (1) holding fee simple title to the property; or (2) maintaining a 99-year leasehold interest in the property. Contract buyers are not eligible.
  • Eligible applicants are owner-occupied households whose incomes are at or below the 80% median income limit for Cerro Gordo County. Annual gross income limits are as follows:

  # of Persons in Household Annual Gross Income
Effective 6/28/2019 and subject to change

                                                1                                                   $38,850

                                                2                                                   $44,400

                                                3                                                   $49,950

                                                4                                                   $55,500

                                                5                                                   $59,950

                                                6                                                   $64,400

                                                7                                                   $68,850

                                                8                                                   $73,300                                                                                 

  • Properties located within a 100-year floodplain are not eligible for assistance.
  • Owners must be current with all mortgage payments, property taxes, property insurance and utilities – and remain current through the forgivable loan period.
  • Applications for rehabilitation will only be accepted from eligible owners who reside within the designated project area of Mason City.

    Type/Level of Assistance

  • The State’s rules provide for a maximum of $24,999 for the hard costs of rehabilitation for each home. This includes Federal, City and/or homeowner funds.
  • Eligible owners will be provided grants in the form of forgivable loans up to $24,999 per project. Loans will be secured by a mortgage. The mortgage will be in the amount of Federal and City funds used on a specific project and will be forgiven five (5) years following completion of the work and acceptance by all parties.
  • The term of affordability is five (5) years from date the project is completed. The assisted property must remain the owner’s principal residence throughout the term of affordability or the loan will be due and payable. The amount of the forgivable loan recedes 20% per year on the anniversary of project completion.
  • After rehabilitation all assisted properties must meet all of the applicable requirements of Mason City’s Housing and Building codes and HUD’s Housing Quality Standards. Work items not necessary to bring the property into compliance with the City’s Housing and Building codes or HUD’s Housing Quality Standards will not be covered by Program funds, i.e., the program does not include construction of an addition to a home or garage, construction of a garage, nor remodeling, siding, or other such items not necessary to meet the City’s Housing and Building codes or HUD’s Housing Quality Standards.
  • Properties found infeasible to rehabilitate will be excluded from participation in the program.

    Other Federal and/or State Requirements

    The City of Mason City, participating property owners and contractors will comply with all Federal requirements of the program, including, but not limited to:

  • Documentation of owner eligibility
  • Environmental clearances (Section 106 historic review will be completed on all assisted properties)
  • Contractor procurement
  • Contractor eligibility and clearance
  • Lead Safe Work Practices
  • Affordability period requirements (residency, property use, maintaining property insurance and ensuring all housing expenses are current, etc.)

A comprehensive list and full description of all policies and requirements are found in the Administrative Plan established for each Program and are subject to change. Programs using Federal and State requirements supersede any policies and requirements established the local level.

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