Program looks to increase homeownership in Iowa City

The sunny porches, tall windows and hardwood floors of houses that line the oak shaded streets near downtown Iowa City, are being made available to a wider base of buyers.

UniverCity Neighborhood Partnership, a collaborative program between the University of Iowa and the city of Iowa City, is renovating houses near downtown Iowa City in hopes of maintaining vibrant neighborhoods.

The program held four open houses Saturday.

Steve Long, the Community Development Coordinator for Iowa City, spearheaded the program. He said that there's been a lot of interest and he saw a steady flow of people at the open houses Saturday.

“People are pretty excited. I would be, too. It's a phenomenal deal.”

The program buys former rental houses, puts about $50,000 of renovations into each, and then sells them at the purchase price to lower income buyers.

In other words, with $100,000, you can buy a house that's worth $150,000.

And if you're a University of Iowa employee, the university pays $5,000 toward the down payment.

Through the program, the city of Iowa City receives special financing from local lenders to buy houses in designated areas near downtown. They then pay for renovations with a $1.25 million state I-JOBS grant. This money is pumped back into the Iowa City economy through the employment of local contractors and building companies to do the renovations.

As long as the buyer stays in the house for five years, the costs of those renovations are not passed on.

“It's important to not have that American dream of homeownership to go away, even with the current economy. If there are opportunities to make that happen, that's a good thing.” said Linda Thrasher, a Realtor and UniverCity committee member.

By helping families who otherwise wouldn't be able afford to buy a house, the program aims to generate a healthy balance of rental and owner occupied housing in the city, Thrasher said.

“Iowa City, especially downtown, has a high rental populace, and there are a lot of families that would like to have that neighborhood community,” she said.

One of the main mottos of the program is “live where you work,” and preference is given to those who work near the house for sale.

Regenia Bailey, a Northside Iowa City resident and City Council member, said she's excited about the program because she sees it bringing diversity to the area.

“(The program) adds vibrancy to my neighborhood. If everyone in my neighborhood was the same age and had the same lifestyle, it would be pretty dull,” Bailey said.

The program owns nine houses so far. Members are in the process of buying two more, and in the process of selling three. They plan to buy, remodel and sell 25 houses in total.

Houses for sale range from $60,000 to $180,000.

To qualify, a buyer must be prequalified for a mortgage. The buyer's gross income also must fall within certain limits that depend on the size of the house.