Affordable housing complex planned for Iowa City’s west side

IOWA CITY — A new 183-unit affordable housing complex is coming to the west side of Iowa City, tentatively set to open in 2028.

The new building will be located at 204 W. Benton Street, near the Maverik gas station and across from University Scooters. Due to requirements in the Riverfront Crossing zoning district, where the property is located, the building will be the maximum permitted height of three stories.

“We think that this location, especially, is a really good one, with the adjacency to downtown, the transit options, the nearby amenities, and the existing zoning. We're excited to be able to bring this project and provide affordable housing for families in Iowa City,” said David Wesner, vice president of development for the Annex Group.

An existing building on the property will be demolished as a part of construction. Additionally, on-site structured parking will be added.

Affordability requirements, mix of bedrooms planned

The 183-unit complex will be a mix of one-, two- and three-bedroom units. Currently, the plan is to have 74 one-bedroom units, 79 two-bedroom units and 30 three-bedroom units, though Wesner said that is subject to change.

Indianapolis-based Union Development, the lead on the project, was selected in the latest round of the Iowa Finance Authority’s 4 percent Low-Income Housing Tax Credit program, which couples federal tax credits with the state’s bonding capacity.

The project received $2.7 million in federal tax credits and nearly $19.8 million in tax exempt bonds from the state. Projects that receive low-income housing tax credits typically have a 30-year guaranteed affordability period.

All the units within the property will be income-restricted based on area median income, with an average at or below 60 percent. Federal housing income limit guidelines for fiscal year 25 list the 60 percent area median income as $49,600 for an individual.

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Experience working throughout Iowa

Union Development has developed five other Iowa projects through the 4 percent LIHTC program in Cedar Rapids, Council Bluffs, Des Moines, Dubuque and Waterloo.

“We just really enjoy working in Iowa. We think that there's a strong demand for housing, especially in sort of an urban environment. And obviously Iowa City is an area we've been looking at for a long time just because of the housing need, especially outside of the student population, looking at options for families and for working individuals,” said Wesner.

Construction is expected to begin in 2026 and will take an estimated two years to complete.

Another 187-unit affordable housing complex is set to be built at the site of the former Roosevelt Elementary, just west of the Union Development project, on Benton Street.

Comments: megan.woolard@thegazette.com

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