The cities of Toledo and Tama are receiving a total of $542,000 in federal grants to help improve homes in the area.
The grants are part of the Community Development Block Grants awarded by the Iowa Economic Development Authority in an announcement Tuesday.
Of the $542,000, half is going to Tama and half to Toledo.
Toledo Mayor Dave Svoboda said this money will go to improvements at eight homes in the town with exterior upgrades such as new roofs, siding and windows.
"I think anytime you can improve on the appearance of the town it helps the economy," Svoboda said.
The grant for Tama will also go for assistance for an expected 10 homes according to Tama Mayor Dan Zimmerman.
"It's a great plan," Zimmerman said,. "We've already done the east side and now we're going to do the west side.
"It helps out the elderly and lower income families that can't afford to fix their houses and it doesn't cost the city that much."
He noted the last funding allowed for rehabilitation of 12 homes as some improvements weren't as costly which allowed for additional work on other properties.
Both cities must kick in an additional $30,000 to the grant total.
The funds were secured locally by the Region 6 Planning Commission based in Marshalltown. Staff at Region 6 declined to comment last Tuesday on details of the grants saying they only had received conditional approval of the funds.
This round of CDBG funds supported 72 communities in Iowa with $23.8 million in funds, according to the IEDA.
"Helping Iowa communities become development-ready is an important part of our work at IEDA," said Debi Durham, director of the IEDA. "The federally funded CDBG program makes a difference for communities all around our state."