Commonwealth opens in Cedar Rapids as affordable senior housing

After an $8 million renovation project, an historic apartment complex near downtown Cedar Rapids has opened its doors as affordable senior housing.

TWG Development of Indianapolis, Ind., and Landover Corp. in Barrington, Ill., completed renovation this month of the seven-story Commonwealth Senior Apartments, 1400 Second Ave. SE.

The project, which began in May 2015, included a complete gutting of the interior as well as a full exterior renovation, said Joe Whitsett, CEO of TWG Development.

Commonwealth management is signing 12-month leases with those age 55 and older for 84 units - 77 of which are designated as affordable housing. Nine of the units are compliant with the American with Disabilities Act (ADA).

TWG Development manages and owns the building, which was purchased in 2015.

The company received tax credits for the project's costs through the Low-Income Housing federal tax credit and Iowa's State Historic Preservation and Cultural and Entertainment District Tax Credit Program.

Dave Jamison, executive director of the Iowa Finance Authority, said the apartment building received $722,866 in tax credits in 2014, or more than $7.2 million over the next 10 years.

The City of Cedar Rapids also contributes $43,700 annually to Commonwealth Senior Apartments for a period of 10 years. This is funded with residential tax increment revenues generated in the Consolidated Central Urban Renewal Area, said John Sullivan, vice president of tax credit development at TWG Development.

As affordable housing for seniors, Whitsett said residents who qualify will not pay more than 30 percent of their monthly income for rent.

Rent varies from $375 up to $550 a month, depending on the size of the apartment and the income of the resident.

Douglas Sage, a 67-year-old resident who moved into the apartments from Iowa City about two weeks ago, pays $635 a month for his one-bedroom apartment - which is not an affordable housing unit.

Sage said he didn't qualify for affordable housing, thanks to the income he receives from Social Security and the Office of Personnel Management. Although he had not considered affordable housing, Sage said he chose the apartments to be with his peers.

'There are people here, they really need it and I'm glad this is available to them,” Sage said. 'I'm glad this place has been created, so that a community within a community can survive here.”

Whitsett said 15 of the 84 units are occupied and another 14 applicants are waiting to move in.

Although the renovation reduced the number of units from just more than 100 apartments, Whitsett said the reconstruction better utilizes the space. Previously, the building featured apartments of various sizes, from 14 single room, 'bachelor” apartments to six-room apartments.

'Because we were doing renovation of the entire building, we took the opportunity to create bigger one-bedroom and two-bedroom apartments,” Whitsett said.

Commonwealth Senior Apartments contains about 90 percent of the original aspects from it's construction in 1925, Whitsett estimates. Crews kept some original features of the building, including windows, plaster work and crown moldings.

Workers installed new systems, such as plumbing, electric and air conditioning.

Commonwealth was built in the mid-1920s for about $600,000 as a luxury apartment and hotel, which included a beauty shop, delicatessen and a tea room.

Over time, the building lost its beauty shop and other services, and all of the units became apartments.

By the time TWG Development purchased the building, leases were on a month-to-month basis, Whitsett said.

'It needed a lot of TLC to get turned around,” Whitsett said.

The renovated building features an exercise room, and management hopes to add a library in the near future.

CONTACT INFO

For more information on Commonwealth Senior Apartments, visit the website at commonwealthseniorapts.com or call 319-826-6772.