North Liberty pursuing affordable housing project on city’s west side

NORTH LIBERTY — The city of North Liberty, working with the Housing Trust Fund of Johnson County, is pursuing an affordable housing project on the city’s west side.

The North Liberty City Council this week unanimously approved the agreement between the city and the Housing Trust Fund. Last November, the council voted to allocate $400,000 in federal American Rescue Plan Act dollars for an affordable housing project with the organization. The agreement approved Tuesday formalizes the financial contribution to the trust fund.

The council’s goal in November was to pursue a mixed income rental housing project that would include units with rent restrictions — which is what the current project is proposing. The Housing Trust Fund is working with a developer on a proposed 48-unit apartment building estimated to cost $14.5 million.

Ellen McCabe, executive director of the Housing Trust Fund, said during the council meeting she is “over the moon” about the project. The Housing Trust Fund will be working with St. Michael Development Group LLC on the project.

The project will be on the city’s west side off Interstate 380. City Administrator Ryan Heiar said it will be by Landon Road and Kansas Avenue, adjacent to existing apartment buildings. There is no address for the property at this time, McCabe said.

The project will include one, two and three bedroom units for people with incomes below 60 percent of the area median income. At least 12 apartments would be reserved for households with incomes below 40 percent of the area median income.

Income limits are determined by the household size. For a household of two in Johnson County, 40 percent of the median income is $34,880 and 60 percent is $52,320, according to the Iowa Finance Authority.

An application from St. Michael Development Group will be submitted to the state’s Low Income Housing Tax Credits program. The Housing Trust Fund is also contributing $62,000 toward the project.

The contributions from the city and Housing Trust Fund meet the land cost, which makes a commitment to the developer that the land will be paid for, McCabe said.

If awarded assistance from the state, the developer would begin construction in 2025 with housing available in 2026. ARPA dollars must be allocated by the end of 2024 and spent by the end of 2026.

McCabe said there is a “50-50 chance” the project will not get housing tax credits from the state in August 2024. If that’s the case, “we’ll go back to the drawing board,” McCabe said, adding that no money will be spent until the project gets approved.

“Your money and the Trust Fund’s money sends a statement in the application that this is what we need and this is what we want, and we’re putting our money where our mouth is,” McCabe said.

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