Cedar Rapids Brickstone unveils 44 affordable rental units

CEDAR RAPIDS — Starting in December, tenants will move into a new affordable housing development in southeast Cedar Rapids that will add 44 rental units to the city’s core, with five units reserved for young people aging out of the foster care system.

The Des Moines-based Hatch Kiernan Galloway Development Group on Thursday marked the near-completion of Cedar Rapids Brickstone, a $12.2 million, four-story multifamily building at 627 Sixth St. SE.

The project will provide supportive services to tenants in partnership with local nonprofit Foundation 2 Crisis Services.

“We have an absolute role to play and need to be at the table, but the real magic happens when you get public and private aligned in a common goal and a common vision,” Mayor Tiffany O’Donnell said. “This is exactly that.”

Of the 44 units, 34 will be reserved for tenants at or below 60 percent of area median income. Ten units will be marked for tenants at or below 30 percent of area median income, according to the city.

The developer will set aside five units for tenants who have aged out of foster care, aiming to get those young people in stable housing and on a path for long-term success.

Foundation 2’s Fostering Futures team will provide on-site supportive services for renters who need to be connected with community resources. CEO Emily Blomme said the team will have office hours and or the tenants can set up appointments.

“Especially with our downtown building being really close where the majority of our Fostering Futures team will be, they can just run over here and meet,” Blomme said. There also will be a space to provide tenants with guidance on banking, housing, education or other matters.

Blomme said the organization’s future headquarters at the historic Witwer Building, 305 Second Ave. SE, is slated to open in January. Staff will do a staggered move into the new facility, combining five locations into the centralized hub.

The Brickstone housing complex also is in proximity to other nonprofits and service providers, the Ground Transportation Center for bus access and the downtown Cedar Rapids Public Library.

  Buy Photo

Public incentives

The project received city financial incentives — a 10-year, 100 percent abatement on the increased value the project generates, as well as a five-year, 100 percent reimbursement on the increased taxes directly generated after the 10-year abatement period.

“We believe … in this project and the way it's going to be run and the impact most importantly it's going to make in the community,” City Manager Jeff Pomeranz said.

To support the project as construction costs spiked after the pandemic, the city council in August 2022 awarded $200,000 of federal American Rescue Plan Act funds. Council member Dale Todd, who works for the developer, recused himself from voting on items related to this project.

The Iowa Finance Authority in 2021 awarded low-income housing tax credits to support the project as well.

‘Ignition of hope’

Debi Durham, director of the Iowa Finance Authority and the Iowa Economic Development Authority, said she thought of the community and the future residents of this development as the mythical phoenix — a testament to the wonders that can arise from challenges and a symbol of rebirth.

“The community of Cedar Rapids has … risen above the trials of navigating one natural disaster after another,” Durham said. “ … It symbolizes more than just the opening of doors, but the ignition of hope.”

Comments: (319) 398-8494; marissa.payne@thegazette.com