Cedar Rapids continues work to turn former Colonial Center into affordable housing

CEDAR RAPIDS — Crews removed mold and asbestos and continue work to transform a once-vacant office building in Wellington Heights into affordable rental housing units, adding to much-needed housing stock in Cedar Rapids.

The city of Cedar Rapids in December 2021 purchased a previously blighted building at 1500 Second Ave. SE, formerly the Colonial Center building, and is developing the property into 25 affordable housing units. It is now known as The Heights, a name chosen in partnership with the Wellington Heights Neighborhood Association.

“It’s going to be something we really need,” City Council member Scott Olson said at Tuesday’s council meeting.

The $6.9 million project will leverage four state and federal grants: Community Development Block Grant-COVID-19 funds provided by the Iowa Economic Development Authority; city CDBG funds; the HOME Investment Partnership Program, a U.S. Housing and Urban Development effort funded by the American Rescue Plan; and American Rescue Plan Act funds that came to the city through the U.S. Treasury.

To date, Housing Services Manager Sara Buck said $2.8 million has been spent.

Crews have demolished the interior, ridding it of mold and asbestos. Work is happening on interior framing and finishes, including plumbing, electrical and mechanical systems, Buck said. After that, the exterior landscaping, parking resurfacing and fencing will be completed. A generator will be installed.

The budget has increased by about $500,000 due to building renovation unknowns, such as the exterior brick needing to be replaced because there was more water damage than anticipated, Buck said.

“With the city owning this building and renovating it, we wanted to ensure that the building will last a very long time,” she said.

Buck said March 2024 is when this building is anticipated to be turned over to a nonprofit for ownership and management of the facility. City officials previously have said a lien will be placed on the property to ensure rent affordability for at least 15 years, and there will be ongoing performance measures to ensure accountability.

The city will issue a request for proposals in the next two to three weeks seeking to find a nonprofit to own and operate the building. Through that process, Buck said the nonprofit will tell the city who they intend to serve.

Buck said The Heights is intended to serve those who make 60 to 80 percent of the area median income, but the hope is that income threshold may be even lower. The nonprofit could also offer some supportive services, but she said that is not required. Five of the units will be fully accessible to those with disabilities.

“We know that’s a balance with the funding sources and continuing to have funding through their budget to be able to allow for maybe some of the lower income units and then some of the higher income units,” Buck said.

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