Charles City Area Development Corp. resuming free furnace replacement program

By Bob Steenson, bsteenson@charlescitypress.com

The Charles City Area Development Corp. will resume a popular furnace replacement program for awhile, using money it has on hand, now that the program is no longer eligible for funding through an area Housing Trust Fund.

The program, which began in 2016, offered free furnace replacements to low-income homeowners, and reduced-price furnace replacements to moderate-income homeowners.

The program was offered through the Floyd County Housing Trust Fund and administered by the CCADC. Funding came through a USDA Rural Development Grant and from the Iowa Finance Authority.

When Floyd County had its own Housing Trust Fund Board it decided to place its emphasis on the furnace replacement program, and over the years 489 homes throughout the county have received new furnaces, representing an investment of more than $1.5 million, said Tim Fox, CCADC executive director.

Several years ago, however the Floyd County Housing Trust Fund was merged with the North Iowa Council of Governments Housing Trust Fund. The purpose of the merger was to enable the group to receive more state funding, but the NIACOG group also wanted to emphasize housing rehabilitation and do away with the furnace replacement program.

The Floyd County Housing Trust Fund furnace replacement program ran its final year in 2020.

Although the organization is no longer receiving funding for furnace replacements, the Area Development Corp. still has a little more than $26,000 left in the account.

The group also has $50,810 in funding that had been turned over from Floyd County Habitat for Humanity.

CCADC President Kurt Herbrechtsmeyer explained that Charles City had a Habitat for Humanity program that was active for awhile in the 1990s and built two homes, but the group wasn’t large enough to continue as a viable Habitat affiliate, as that organization pushed for larger affiliates covering wider territories.

When the local program folded it had about $50,000 left that Herbrechtsmeyer, who was involved with the group, brought over to the CCADC with the intent that it be used for housing.

“It serves the mission of Habitat to do this,” Herbrechtsmeyer said about the furnace replacement program, adding that he thinks many of the people who had put a lot of time and effort into the local Habitat for Humanity program would approve.

CCADC member Emily Garden said, “I think the furnace replacement program is a really great option. It serves an immediate need, keeps people warm through the winter. And the finance guidelines are clear and have worked in the past.”

Fox said the total of the two funds — $76,833 — would be enough to replace 18 or 19 furnaces plus administration expenses.

One challenge in this pandemic economy might be getting new furnaces quickly for homeowners who qualify, Fox said, but area contractors have worked well with the program in the past and can probably come up with some options if there are immediate needs.

The CCADC approved resuming the furnace replacement program for homeowners who meet low income guidelines, currently defined as about $23,950 for a single-person household.

Details on applying for the program and funding guidelines will be released soon, Fox said.

Also at the CCADC meeting Wednesday morning, the group:

• Spent a while discussing the upcoming visit of two representatives of the International Economic Development Council who will be checking to see if the Charles City Area Development Corp. qualifies to be declared an accredited economic development organization.

The two — Jim Fram, executive director of the Missouri Economic Development Council, and Fred Welch, senior director for regional economic development with the Greater Houston Partnership in Texas — will be in town next Tuesday through Thursday.

The accreditation would be important for the CCADC and is a big deal, Fox said, and he urged CCADC board members to attend the events to which they have been invited.

• Discussed the Summit Carbon Solutions pipeline project proposed to go through Floyd County (see related story).

Fox said the pipeline is proposed to go through the Avenue of the Saints Development Park on South Grand Avenue that the CCADC owns and is trying to market, and the presence of a 50-foot-wide permanent pipeline easement would reduce the value and attractiveness of the property because it would limit what could be built over the pipeline.

Fox received approval from the board to file a letter of objection with the Iowa Utilities Board, but some board members who had attended the pipeline information meeting Monday evening in Floyd said the company emphasized that it was willing to work with property owners and there was a chance they could get the pipeline easement moved off the development park property, or at least moved close to the edge of the property where it would have less impact.

• Discussed a recent meeting among members of the CCADC board and Charles City Community School District officials regarding how the groups can work together to help students become aware of the employment opportunities and skills needed for good quality, high-paying area jobs, and help the school district become a positive marketing attraction for families considering moving to the area.