Sioux City City Council voted 5-0 to allow city development staff to submit a $312,000 grant to the Federal Home Loan Bank of Des Moines.
The loan would go toward improving the city's aging house stock.
The funds are aimed at aiding the city's expanding affordable housing movement.
"We need housing stock, we need to increase our inventory of houses, but we also need to make them affordable for the people so that they can buy them and live in them," said Sioux City City Councilmember Dan Moore. "Those programs help immensely."
The funding would allow staff to remove barriers to 24 single-family homes.