By Kaitlyn Kuehl-Berns
On Oct. 8, U.S. Rep. from Iowa’s second district, Ashley Hinson, joined members from local organizations to celebrate the completion of a four-year effort to establish the Clayton County Affordable Housing Revolving Loan Fund.
The initiative aims to expand local housing options to help ensure future generations can live and work in Clayton County. Darla Kelchen, Clayton County Development Group Executive Director, is excited to announce applications are now open for the Clayton County Development Group’s Revolving Loan Fund Housing Program, which provides financial assistance to encourage new home construction throughout the county.
Through the program, applicants may apply for up to $40,000 at 1 percent interest for a two-year term to help secure a construction loan for building a new home, duplex, condominium or townhouse. Individuals, developers or builders must use community lenders for the housing project. Only one application is allowed per builder at a time and the loan must be used for the homeowner’s primary occupancy.
This project began in 2021, when Hinson shared with the Clayton County Development Group (CCDG) the opportunity to submit a Community Project Funding (CPF) grant application. CCDG board members—President Mike Erickson, Vice President Bill Robinson, Secretary Cathy Denning, Treasurer Sara Hertrampf, Supervisor Steve Doeppke, Mary Kuehl, Brandon Bries, Tasha Henkes and Jackie Opperman—supported pursuing the project. In 2022, the group formally submitted an application through Hinson’s office.
Iowa House representatives Anne Osmundson and Michael Bergan, as well as Iowa Senator Mike Klimesh, provided support letters encouraging the need for housing development in Clayton County.
In March 2023, CCDG received word that the CPF Grant for the Affordable RLF program was funded in the full amount of $500,000. Because this was a new program, there were many requirements to be completed with the U.S. Department of Housing and Urban Development (HUD) before the funding was released.
During the summer of 2023, CCDG began searching for partnerships to secure the $135,000 match funds needed to start the affordable housing RLF program.
A partnership with the Northeast Iowa Regional Housing Trust Fund started the fund raising, with the fund board members and chairman Spiff Slifka approving a support of $50,000.
CCDG met with the Clayton County Supervisors, Doeppke, Sharon Keehner and Ray Peterson, to introduce the proposed program and they provided a support letter for funding to the project.
The Upper Mississippi Gaming Commission board also recognized the value and benefit the program would provide to develop housing in Clayton County. Their grant to match the dollars for the program secured the funding.
In fall 2024, CCDG began the process to initiate the grant funding with HUD through many meetings and eight different HUD representatives throughout the project. Kelchen shared a special thank you to Brenda Carrico for providing assistance through the paperwork.
As part of the requirements, CCDG was tasked with conducting a county wide environmental assessment for housing development. Diana Johnson and Chris Troendle of Upper Explorerland Regional Planning Commission helped conduct a county wide environmental assessment and submitted it to HUD for approval in spring 2025.
In August, Clayton County Supervisors Doug Reimer, Doeppke and Peterson approved the public notice articles required by HUD and they were posted by county auditor Jennifer Garms.
As of September, Kelchen and the CCDG received confirmation HUD had approved the Clayton County Housing Revolving Loan Program, Community Project Funding, and CCDG has authorization access to the $500,000 funding for new housing development.
At the event, Kelchen expressed gratitude for “the team effort, dedication and support to find a solution to affordable housing in Clayton County.” She noted that “sharing the needs with our elected officials who then provided programs that addressed the needs was the start of where we are today.”
Kelchen said she’s excited to begin reviewing applications and encourages those who are interested. “If you’re looking at building a new home, whether it’s rural or in a city in Clayton County, we welcome you to stop at the Clayton County Development Group office and pick up an application.”
At the conclusion of the event, Hinson shared, “When I first sat down with the group, it was apparent they needed financial resources to help spur economic development and growth in the housing field. I’m very pleased that it came to fruition all these years later.”
Refreshments were served following the ceremony, courtesy of the Roger & Connie Halvorson Family Endowment.
