Johnson County seeks proposals for affordable housing project

IOWA CITY — Johnson County is looking for a nonprofit or another governmental entity to operate and own a 15-unit residential property it bought to be used for affordable housing over the next 20 years.

The county purchased the property, at 1102 Hollywood Blvd. in Iowa City, in 2024 for $1.7 million, marking the first time the county has directly owned housing stock.

The county now is looking for proposals to provide affordable housing, which the county identifies as no more than 30 percent of a household’s income, with a priority for households making below 30 percent of the area median income. According to county reports, a 30 percent rate translates into $27,550 for a household of two.

Any entity selected to manage the property would be required to submit annual reports to the county over the course of the 20-year affordability period.

“We would then offer an opportunity for applicants to tell us how they would use this property to meet our goals of affordability. … So this would allow the county the opportunity to review various creative applications on use of that property,” said Johnson County Social Services Director Lynette Jacoby, of the request for proposal process at a Board of Supervisors work session last year.

The deadline for submissions is April 4. The supervisors will review the proposals recommended by county staff in early May.

Project could be similar to Cedar Rapids’ property

When Johnson County bought the property in June 2024, its long-term future was uncertain. The county had allocated $1.5 million for affordable housing, but this was the first time the county had owned housing stock — something county staff said is uncommon in Iowa.

A steering committee made up of county staff recommended that the county not retain ownership of the apartments, due to the amount of resources it would take for the county to manage the property. Part of the recommendation also was because of the lack of interest from community partners in managing or master leasing the property.

In addition to surveying area nonprofits, the county also had informal conversations with the city of Iowa City about potentially owning and operating the property. The city has not confirmed it will submit a proposal.

To the north, the city of Cedar Rapids offers an example on how a transfer in ownership and managing affordable housing could work.

The city bought a property in the Wellington Heights neighborhood — the blighted Colonial Centre building now known as The Heights — and leveraged grants to complete a multimillion-dollar renovation of the 25 apartments. After a request for proposals, the city selected the Hawkeye Area Community Action Program to own and operate it.

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Fifteen of the 25 units are to be for households earning less than 50 percent of the area median income, while the other 10 are for those making less than 80 percent.

Johnson County staff have referenced the Wellington Heights project multiple times throughout the development of its request for proposal.

The exact terms of affordability of the Iowa City apartments have yet to be finalized, but Johnson County has indicated that it would like the units to be available to households earning below 60 percent of the area median income.

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County invests in property repairs

Once the county decided not to retain ownership of the property, the Board of Supervisors approved $500,000 for repairs to make the property move-in ready.

The repairs include replacing furnaces, air conditioning units, water heaters and electrical service in each unit and improving basement waterproofing.

The property, which spans three buildings, has been renovated to include quartz countertops and stainless steel appliances. The 57-year-old buildings are designed so that each two-story unit has a living room, kitchen and dining area on the ground level and bedrooms and a bathroom upstairs. The units also come partially furnished.

However, the buildings aren’t accessible to renters with disabilities, and county officials have said there’s no way to add an elevator.

“So that sucks, but it's also a reminder that we have a responsibility to continue acquiring property, including accessible properties, so that we could serve all of our residents,” Board of Supervisors Chair Jon Green previously told The Gazette.

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Johnson County housing affordability struggles

Johnson County is one of the fastest-growing counties in Iowa, with a population that has increased more than 38 percent since 2000. But the housing supply has not kept up with the population growth.

The National Low Income Housing Coalition in a 2023 report identified a shortfall of 8,205 housing units for Johnson County residents making 30 percent or less of the area median income. That means only 18 affordable units are available for every 100 renters. The report identified affordable housing costs as being 30 percent or less of a household’s income.

Comments: megan.woolard@thegazette.com

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