Grants for building special needs or homeless vets housing Iowa

[Andrew D.]

In a recent deal in Cedar Rapids I acquired a large vacant lot along with the parcel the house sets on.  The lot has frontage and 2 separate streets and was able to confirm with the zoning department that I could split this into 2 separate lots and still be able to meet mandatory setbacks.  This was unplanned as it was an estate and I had no idea until several months after closing that I had also purchased the large adjoining lot.  This was a great bonus but now I am trying to figure out the most productive use of this lot.  

I have thought about just splitting the lot and trying to sell the lots off or possibly building spec homes to try and sell.  I'm somewhat against both of these ideas because its and established neighborhood of $115-$135k houses and I'm not sure I'd be able to make much of a profit on these.

My last idea would be to try and find some sort of grant to build long term housing to build 2 houses that meet the specific needs of either individuals with special needs or perhaps disabled or homeless vets?  I know that in the past I have seen grants available for low income housing but I'm not sure if there is anything available for what I am interested in doing?