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The City of Osceola, Iowa, in conjunction with the Clarke County Development Corporation (CCDC), has launched the Osceola Housing Incentive (O-HI) Program, an innovative solution designed to address housing needs and fuel economic growth in south-central Iowa. Replacing the city’s previous initiative which, over the span of a decade, resulted in 10 new homes, the O-HI Program is projected to meet that benchmark and surpass it within three-to-four years.
“By targeting new-built, single-family homes in a competitive price range, this incentive could convert up to three new homes each year,” said Andrew B. Clark, CCDC Executive Director. “If current demand is any indication of future trends, the O-HI Program can easily surpass the numbers of previous incentive programs.”
This aggressive and responsive strategy signals a new phase in Osceola’s development approach, focusing on incentivizing single-family home construction through data-driven planning and meaningful collaboration. Qualified applicants to the O-HI Program can receive up to 10% of a new home’s assessed value back, making the dream of homeownership more accessible while offsetting the rising cost of construction.
“Economic development is most impactful when it’s paired with thoughtful community development,” said Osceola’s City Administrator, Ty Wheeler. “The O-HI Program gives the city the unique ability to incentivize growth where and when it matters most, getting families into quality homes faster and more affordably and freeing up inventory for citywide housing growth.”
Key features of the O-HI Program include:
- Up to 10% reimbursement on new home construction costs (based on assessed value)
- Designed exclusively for single-family housing
- Minimum 1,200 sq. ft. homes with assessed values between $250,000–$450,000
- Cannot be combined with other incentive programs (e.g., tax abatements, prior TIF agreements)
- Funded in a two-phase distribution (75% during construction, 25% after final assessment)
The O-HI Program was developed in response to increased construction costs and housing shortages affecting Osceola and south-central Iowa communities. According to recent national data, construction expenses now account for more than 64% of a new home’s cost. These costs bite into builder and homeowner profit margins with increasing material prices, uncertain tariff policies, and overall market instability. The CCDC and city leadership recognized the urgency to act, building a collaborative program that encourages tangible investments in their rural Iowa community’s future.
“The O-HI Program is more than a housing incentive program,” said Osceola Mayor, Thomas Kedley. “It’s a reflection of our commitment to acting on our comprehensive plan and driving strategic, community-focused growth. By listening to our residents, our businesses, our builders, and our banks; and by analyzing local housing and infrastructure demands, we’ve worked to develop a program that meets real housing needs and positions Osceola for real growth.”
Once finalized, the O-Hi Program is expected to have a very competitive launch. Interested builders, developers and homeowners are encouraged to act soon.
For more information, or to apply for the O-HI Program, visit https://osceolaia.net/o-hior contact the Osceola City Administrator’s Office at (641) 342-2377.
About the Clarke County Development Corporation:The CCDC is a nonprofit economic development organization located in Clarke County, Iowa, The CCDC works to support industrial growth, workforce development, housing, and entrepreneurship across the region. Learn more at osceolaclarkedev.com or clarkecountylife.com.