Iowa City homeowners welcome low-income housing -- but not nearby

A group of Iowa City homeowners and businesses are protesting a plan to put affordable housing units in their northeast neighborhood.

A petition with 49 signatures was recently submitted to the city regarding a project by the Housing Fellowship - a non-profit agency that provides housing to low-income people - to build two duplexes in the Olde Towne Village development off Scott Boulevard.

They say allowing low-income housing could lead to more crime and lower property values in the neighborhood, which includes several businesses and homes assessed upward of $300,000.

“We are opposed to low-income rental housing projects being integrated into our established, higher-priced, single-family neighborhood,” a letter accompanying the petition reads.

The petition is an example of how the broader issue of affordable housing has become a source of debate in Iowa City.

In particular, the federal housing assistance known as Section 8 has been a hot topic following some high-profile problems in southeast Iowa City, where there is a concentration of low-income housing. The Housing Fellowship accepts Section 8 vouchers.

The City Council is scheduled to talk Monday about whether affordable housing should be better dispersed throughout the community and if new developments should be required to have a certain number of low-priced homes, a concept known as inclusionary zoning.

The Olde Towne Village petition shows that any moves in those directions would not be embraced by everyone.

“It's an incredibly difficult issue, and there's considerable resistance to it in all communities,” said Mayor Matt Hayek, who opposes inclusionary zoning but is in favor of scattering affordable housing citywide.

Regarding the petition, the matter is out of the city's hands.

The Housing Fellowship plans to construct two buildings with a total of four units on Westbury Court by the end of the year. The land is zoned for that purpose, was bought on the open market and the buildings' design meets the covenants and restrictions required in the development.

That latter point should knock down the claim that the buildings will hurt surrounding property values, said Maryann Dennis, executive director of the Housing Fellowship.

Jerry Anthony, a University of Iowa urban and regional planning professor who has studied affordable housing, agreed. He also said crime can be a problem when low-income housing is concentrated, but four units is not a concentration. “Most of the opposition to affordable housing ... anywhere in the U.S., it's generally rooted in the NIMBY (not in my backyard) mentality, not in facts,” Anthony said.

Dennis said the Housing Fellowship conducts national background checks on applicants and requires three years of favorable landlord references for its more than 100 units.

“We know because we receive public dollars that our homes are scrutinized probably more than many other landlords' in this area,” she said.

Some Olde Towne Village residents have their doubts. Russell Haught lives at 333 Westbury Ct., next to the land the Housing Fellowship owns. He said he doesn't believe everyone in affordable housing causes trouble, but “it only takes a couple of bad apples to make the bunch go bad.”

He added that although some people will link the neighbors' opposition to race, “it has nothing to do about color. If the crime comes with these projects, it comes with these projects.”

John Naeve of 426 Thornbury Ave. said that for him, it's mostly about what he perceives as a threat to the value of his family's home.

“It's going to change the dynamic of the neighborhood and the property values,” he said.

Businesses represented on the petition include American Bank & Trust, State Farm Insurance and developers. City officials forwarded the petition to the U.S. Department of Housing and Urban Development and asked if there may be a violation of the federal Fair Housing Act by those businesses dealing in loans, insurance and real estate.

Dale Gray, a HUD spokeswoman, said the businesses have a First Amendment right to sign the petition and an actual act of discrimination would have to occur for there to be a violation.

Stefanie Bowers, Iowa City's human rights coordinator, said her office would not investigate unless it received a complaint. Pam Passmore, whose signature is on the petition for American Bank & Trust, has been out of the office and did not return phone and e-mail messages for comment.

Laura Lopez, marketing coordinator out of the bank's corporate headquarters in Davenport, said she had not heard of the petition but said the bank does not treat potential customers differently based on their income.

“We're an equal housing lender,” she said. “We wouldn't discriminate against anyone regardless.”