In 1967, a group of Des Moines citizens were fed up with the lack of action on affordable housing in the city. Deciding to take matters into their own hands, they founded a grassroots organization to invest in the quantity and quality of neighborhood housing.
HOME, Inc. is now the oldest private nonprofit housing organization in Des Moines, with a mission to meet individuals and families where they are in their housing journey. As one of the few Community Housing Development Organizations in Iowa that receives funding from the U.S. Department of Housing and Urban Development, HOME, Inc. builds and revitalizes homes in the Des Moines metro in order to provide quality, affordable housing and offer homeownership options for low- to moderate-income households.
The organization also helps renters, tenants, and landlords understand their housing rights and responsibilities and provides education and counseling to people looking to buy a home and those who need help staying in their home.
Covering the gap
HOME, Inc. ensures that their homebuyers don’t spend more than 30% of their income on mortgage payments. But they’re also committed to building high-quality single-family homes. That means there’s a fairly large gap between what it costs to build the home and what they sell it for. As part of our Single Family Developer Program, Invest DSM helps cover that difference, making projects possible that otherwise wouldn’t be financially viable for HOME, Inc.
“Invest DSM has been so easy to work with and extremely responsive,” says Clint Webster, Director of Property Development at HOME, Inc. “We cover the entire expense of these projects upfront. So the speed at which the Invest DSM team does their inspection and releases funds for reimbursement, that’s huge for us. It helps with cash flow and gets us moving on to other projects more quickly.”
By covering the financing gap, Invest DSM also allows HOME, Inc. to recycle the extra money they would have spent on the project back into the community to build more housing.
“It’s a compounding effect. Those dollars are making a massive difference, not just for one house but for multiple properties. it allows us to do more in the community, in the Special Investment Districts and in other areas of Des Moines.”
– Clint Webster, Director of Property Development, HOME, Inc.
Quality, long-term housing
Since 1990, HOME, Inc. has invested more than $20 million in housing in low-income neighborhoods for both new construction and repairs to existing homes.
“We make sure that the homes we build are affordable and sell for similar prices as others in the neighborhood,” says Clint Webster.
Invest DSM’s Single Family Developer Program also allows HOME, Inc. to use higher-quality materials that lower maintenance costs for homeowners and to add extra features—like blinds, cabinet pulls, appliances, like-new furniture, and a garage. All this sets the homeowners up for success in the long run, keeping them in the home longer and building greater stability in the neighborhood.
In 2023, HOME, Inc. completed two properties in Oak Park/Highland Park through the Single Family Developer Program. Four more are currently in progress throughout the SIDs. The two nonprofits are also working together to strategically identify and acquire lots that would be good candidates for the program going forward. Plans for a potential condo project are also in the works.
“Invest DSM staff make sure our partnership is efficient and streamlined,” says Webster. “It’s very well-run operation.”
Affordable and diverse neighborhoods
By partnering with an affordable housing organization, Invest DSM ensures that home values in the area don’t change too fast, creating a mixed-income neighborhood that accommodates both current residents and new buyers.
“Mixed-income neighborhoods are so important for a vital community and for diversity.”
– Jayson Shaffer, Marketing and Community Engagement Coordinator, HOME, Inc.
The Oak Park/Highland Park Special Investment District offers housing options for families in a variety of circumstances. One of the properties HOME, Inc. built in 2023 through our Single Family Developer program was purchased by a family of six from the Republic of the Congo. Because Invest DSM provided gap funding, HOME, Inc. was able to finish the basement and add an extra bedroom. After 10 years living in a two-bedroom apartment in Des Moines, now everyone has their own room.
“We build well-designed, beautiful homes that are affordable, helping families bridge the gap so they don’t spend too much of their income on the mortgage,” says Shaffer. “That changes the entire future of the family. Their house won’t need maintenance for 10 years or more, so they can invest their money in other priorities. That creates long-term generational wealth.”
