Iowa City could see new workforce, affordable housing projects

IOWA CITY - Residents could see a boost in workforce and affordable housing units in Iowa City in the near future.

The City Council recently OK'd financial support for projects that would provide more than 300 workforce housing units if approved by the Iowa Economic Development Authority for tax incentives.

Organizations also can apply for almost $250,000 in federal funds, allocated by the city, for affordable housing projects by June 5.

The largest workforce housing project - in which the state requires each unit to cost less than $200,000, with the hopes of keeping rents low - is a two-phase project planned for Deer Creek Road and Camp Cardinal Boulevard. The council pledged $1,000 - the minimum local support required by the state program - for each of the 90 units in phase one and 163 units in phase two.

The project, called The Grove, is planned to be a 'garden-style” apartment and townhome community built by Southgate Companies, according to council documents.

Additionally, a memo to the city explained that SouthGate hopes to make at least 5 percent of its units affordable housing as well, aimed at young professionals, couples and families and empty nesters.

Generally, affordable housing refers to housing that costs no more than 30 percent of a household's income, according to the U.S. Department of Housing and Urban Development.

Also this month, the council pledged financial support for two other workforce housing projects.

If approved by the state, TSB Investments plans to build 30 energy-efficient workforce units at Camp Cardinal Road and Gathering Place Lane.

The council also approved support for 36 units at 620 S. Dubuque St. The project, by Dubuque & Prentiss, is to include a large 'pedestrian street” or outdoor living space.

In all, the council has approved 10 workforce housing applications for 767 units, said Tracy Hightshoe, neighborhood services coordinator.

She said the funds come out of the city's general fund.

HOME FUNDS AVAILABLE

Typically, applications from organizations for the city's federal HOME Investment Partnership Program to support affordable housing are due in January, but thanks to unused funds by a project the previous year, new applications are due next week.

Hightshoe said organizations like Shelter House and Habitat for Humanity, among others, often apply for the funding. The projects must 'include affordable housing rehabilitation or new construction of rental housing, tenant-based rent assistance and homeownership.”