Cedar Rapids affordable housing project will soon begin leasing 25 units

CEDAR RAPIDS — Rehabilitation work now is complete on a once-blighted building in Wellington Heights that the city of Cedar Rapids transformed into 25 affordable rental units, adding sorely-needed housing stock for low-income residents and revitalizing a key corner of the core neighborhood.

Tenants soon will have the chance to apply to move into the building at 1500 Second Ave. SE, now dubbed “The Heights,” that the city will turn over to Hawkeye Area Community Action Program to own and operate. This property once housed the Colonial Centre before the city in December 2021 purchased it and leveraged four grants to complete the approximately $7 million rehabilitation project.

With affordable housing in scarce supply, the project is a step toward meeting housing needs. In Iowa, the need for rental housing geared toward those earning up to 30 percent of the area median income is one of the greatest areas of demand. The state projects a shortage of 55,219 rental units serving that income bracket by 2030.

An agreement to officially give the property to HACAP will come to the City Council in May, Housing Services Manager Sara Buck said. HACAP anticipates it will start taking applications from potential tenants May 7.

City Manager Jeff Pomeranz said completion of the project is a “is a “proud moment for the city.”

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He acknowledged the city’s partnership with the Wellington Heights Neighborhood Association in supporting the development. The association helped choose the name and revise the concept for the building’s redevelopment from what initially was proposed to be a combined shelter and community space into rental units geared toward low-income households.

“It’s gratifying to see this former office space, which stood vacant for so many years, turned into a vital development that addresses the need for affordable housing in the city of Cedar Rapids,” he said.

Pomeranz said this revitalizes a “key corner of the historic Wellington Heights neighborhood.” Cedar Rapids-based Emergent Architecture collaborated with the city Historic Preservation Commission to ensure the renovation was consistent with the history of the district, he said.

Mayor Tiffany O’Donnell said the facility is a gateway into improving Wellington Heights — “a neighborhood on the move.” She pointed to other projects including the Eastern Iowa Health Center’s newly opened dental clinic and the location for the permanent Boys & Girls Club of the Corridor facility at 1602 Washington Ave. SE.

“Every citizen in our community — regardless of background, where they come from, where they want to go — deserve(s) a safe, affordable place where they can not only find refuge, they can find strength and they can find resources to live their best lives,” O’Donnell said.

HACAP will provide supportive services and an employee will be on-site at least 30 hours a week, Buck said. This facility would share an employee with another nearby HACAP property and use other funding sources to provide supportive services for tenants.

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Under terms approved by the city, HACAP will have low overall rent rates, with 15 of the 25 units renting to those at or below 50 percent of the area median income — those either experiencing or at risk of homelessness, as required by some of the federal grants used. The other 10 units are for those earning 80 percent or less of the area medium income.

Buck said HACAP “already prioritizes individuals that are at risk of homelessness or homeless,” which is what made the organization a good partner for this project.

HACAP board President John Brandt said this was “one more way that HACAP is working to fulfill its mission of helping people to achieve success and to build strong communities.”

All utilities costs are included in the rent because the building operates off one meter. The facility also offers a laundry room where tenants won’t be charged to wash their clothes, a community gathering room, a computer room and storage space.

Each unit is fully convertible for those with disabilities, and some already are fully compliant with the Americans with Disabilities Act with space underneath kitchen appliances for wheelchairs, lower-height counters and other features.

Among the units earmarked for the lowest incomes, rent for a two-bedroom is $800 a month, Buck has said. For anyone above 30 percent of the area median income, monthly rent for a one-bedroom is $650. People earning less would pay lower rents for a one-bedroom unit.

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Cedar Rapids put in place a 15-year affordability requirement for the property, enforced through a lien.

“We are just elated to be a part of this investment in this community — the investment not just in the stick build, but also in the lives of individuals … who are going to be the residents of The Heights because their lives are going to be enhanced and their contribution to this community can continue” when they feel seen, said Ulysses Clayborn, the U.S. Housing and Urban Development Department regional administrator.

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