Johnson County veterans’ housing project set to be first in Iowa

IOWA CITY — A planned collaboration between Johnson County, the City of Iowa City and Veterans Affairs would bring about the first project-based HUD Veterans Assisted Supportive Housing development in Iowa.

HUD-VASH vouchers are federally funded rental assistance combined with VA support services meant to help veterans experiencing homelessness. The Iowa City Housing Authority administers the vouchers in partnership with the Iowa City VA Health Care System.

The county purchased the 15 unit property, at 1102 Hollywood Blvd. in Iowa City, in 2024 for $1.7 million, marking the first time the county has directly owned housing stock. The property will be used as a project-based development, where the housing voucher is attached to a specific unit, rather than a tenant.

While a contract between the county and city still needs to be finalized and approved by elected officials, the city proposed leasing the building from the county for $0 annually over the course of 20 years.

Veterans would pay 30 percent of their income toward the rent, as terms of the voucher, and the Iowa City Housing Authority would use the rent to pay for property maintenance. The Housing Authority operates through an enterprise fund, not the city’s general fund.

All utilities would be covered, no landlord references will be required, and there would be no minimum income requirement. Under the proposal, tenants would be selected primarily through VA referrals.

“ … The VA partnership makes a lot of sense, leveraging that. I love how low barrier this is,” Johnson County Supervisor Mandi Remington said of the proposal at a board work session. “Every veteran and every person deserves long term safe, affordable housing, regardless of household composition, and we have a high need for housing.”

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The Iowa City Housing Authority has 95 HUD-VASH vouchers, and has 30 eligible veterans who are on a wait list. Of those utilizing the HUD-VASH vouchers, the city reports 86 percent are in households that make less than the area median income.

“I think that one of the things I really enjoy about working in our community and collaborating with you all is that we're oftentimes leaders in the housing industry, and we see what can work. I think this would be a great opportunity for us to build something that hasn't been done in the state before and show how it could work really well,” Rachel Carter, Iowa City’s housing administrator, told the Board of Supervisors.

Only one response to request for proposal

When Johnson County bought the property in June 2024, its long-term future was uncertain. The county had allocated $1.5 million for affordable housing, but this was the first time the county had owned housing stock — something staff said is uncommon in Iowa.

A steering committee made up of county staff recommended that the county not retain ownership of the apartments due to the amount of resources it would take for the county to manage the property.

The county issued a request for proposals to provide affordable housing over at least a 20-year period, with a priority for households making less than 30 percent of the area median income. According to county reports, 30 percent of the area median income is about $27,550 annually for a household of two.

Iowa City’s proposal was the only one received by the county. Under the proposed terms, the county would retain ownership of the property while the city leases and manages it. At the end of the 20 years, the county “can convey the property to the city for continued affordability,” according to the terms.

While all supervisors were in favor of moving forward with the Iowa City partnership, some board members expressed concerns that they may not be able to prioritize families for the units due to restrictions within the Fair Housing Act that come with using federal housing vouchers.

The supervisors, when they bought the property, did so in part to increase the number of affordable housing units with more than one bedroom.

“I think the veterans in Johnson County not only need it, but deserve it. And it's not exactly what we intended, but I think it's a great outcome all the same,” Supervisor Rod Sullivan said at a board work session. “I think moving forward, we just need to develop a closer relationship with Iowa City when it comes to addressing housing.”

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County invested additional money for repairs

Earlier this year, the Board of Supervisors approved $500,000 for repairs to make the property move-in ready. The repairs included replacing furnaces, air conditioning units, water heaters and electrical service in each unit, and improving basement waterproofing.

The property, which spans three buildings, has been renovated to include quartz countertops and stainless steel appliances. The 57-year-old buildings are designed so that each two-story unit has a living room, kitchen and dining area on the ground level and bedrooms and a bathroom upstairs. The units also come partially furnished.

The buildings aren’t accessible to renters with disabilities, and county officials have said there’s no way to add an elevator.

Comments: megan.woolard@thegazette.com

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