Two rent-to-own housing proposals in Cedar Rapids lose out in funding from the Iowa Finance Authority

CEDAR RAPIDS - Two creative, low-income-housing proposals in Cedar Rapids, both of which included a rent-to-own feature aimed at people unable to secure a home mortgage, have failed to obtain funding from the Iowa Finance Authority.

Ashley Jared, spokeswoman for the Authority, on Tuesday said the two Cedar Rapids rent-to-own proposals - one for 20 new homes in flood-hit parts of the west-side of Cedar Rapids and one for 18 town homes at two spots in core southeast Cedar Rapids neighborhoods - lost out to stiff competition for limited federal funds.

One proposal, called Belmont Park, was submitted by two non-profit organizations, the Community Housing Initiatives and the Affordable Housing Network. The non-profits were slated to manage the project and Skogman Homes Inc. of Cedar Rapids was to have built the homes.

Kyle Skogman, Skogman president, said on Tuesday that the partners in the project will meet to discuss the proposal's future and whether or not it will be submitted for funding again next year.

The east-side proposal that failed to gain financing, called Cedar Rapids Greystone Homes, was being developed by Hatch Development Group of Des Moines. Hatch is the developer of the Oakhill Jackson Brickstones, two new apartment buildings on Sixth Street SE that feature affordable rents and that secured previous funding from the Iowa Finance Authority.

In this round of Authority funding, Hatch did obtain backing for a Des Moines project called the Des Moines Greystone Homes.

One of the 15 housing projects funded by the Authority in this round of funding is in Cedar Rapids. A project called Legacy Manor of Cedar Rapids, which is being developed by Anchor Housing Development, Rockford, Ill., received $10-million in federal tax credits to help construct 60 apartments for people 55 and older at 1350 A'Hearn Dr. NE.

Dan Tonnesen, managing member of Anchor Housing Development, on Tuesday said construction on Legacy Manor should start in the fall and be ready for residents in the fall of 2012.

One project in Iowa City also received Authority funding. Corridor Woods LP received $5.05 million in federal tax credits to construct 22 residential units for those with physical, mental and developmental disabilities at 720 Foster Rd., Iowa City. The project also received a $319,712 federal grant from the Home Investment Partnerships program.

In the past, the Iowa Finance Authority and the Iowa Department of Economic Development have steered significant federal housing funds to Cedar Rapids since the city's 2008 flood. By and large, that funding has gone to support the construction and renovation of affordable apartments and to support the building of new homes for lower-income workers able to qualify for a mortgage. The state of Iowa also has used federal dollars to support 20 rent-to-own homes that are part of the 81-home Sugar Creek development off Zika Avenue NW.