Initially the Washington County Board of Supervisors expected that $172,800 from the East Central Iowa Council of Governments Home Buyer’s Assistance Program would provide aid for buying five homes.  However, a “challenging market” and equally challenging inventory dropped that to three.  An ECICOG representative Tuesday outlined, in a required Public Hearing, what had occurred this year.  Despite 21 eligible applicants, only a third will receive aid by the end of this month.  In fact, approval was given earlier this month to extend the deadline for the buyer.

Currently, the county grant has invoiced $38,758 in payments with $15,626 to home buyers and $26,949 to cover grant administrative costs.  

Since the grant was awarded, buyers faced “the most challenging home market” ever.  At one time, likely property prices ranged from $135,000 to $150,000 for a suitable home.  Today, noted ECICOG representative, it is up to $200,000 (and on down, if possible).

“It is hard to compete in this market.” 

The assistance program calls for helping with a home purchase that does not exceed 30 percent of the prospective buyer’s income, something that is difficult to find.

However, the board was told, the grant program for Washington County will reflect the change to help with three buyers rather than what had been five buyers.  Anticipated changes in the housing market could, it was noted, alter the situation for the next cycle.