FY27 Proposed Budget

Iowa City Property Management Fund

In 2003, City Council voted to support the development of affordable housing by committing to the construction of 17 housing units in conjunction with The Housing Fellowship. The City owns and operates ten (10) of the rental units (Peninsula Apartments). The remaining seven (7) units are owned and operated by The Housing Fellowship. In fiscal year 2017, the City entered into a public-private partnership with a developer to construct a 126-unit apartment building and a 117-space parking ramp in the City Hall parking lot. The apartment building is known as the Augusta Place. From that development, the City purchased 60 of the parking spaces and six one-bedroom rental units (Augusta Place Apartments). The sale of the six rental units was complete in fiscal year 2020. The City operates the six rental units as permanent affordable housing. In fiscal year 2022, the City purchased eight townhouses (South District) and duplexes in the South District with the intent of eventually converting each rental until to an owner occupied unit. While the units remain occupied with tenants, rents and expenses to maintain the units will be housed within this fund until such time that the units are vacated. At this time, expenses for renovations of the units and sale of the units will be transferred to the General Fund. One duplex has been vacated, rehabilitated, and sold to two income eligible homeowners. In fiscal year 2023, the City purchased three houses (5 rental units)(Railroad Rentals) near the railroad in central Iowa City with the intent of eventually utilizing the properties as part of a railway project. Two of the homes (4 units) will remain occupied as affordable rental housing operated by the Iowa City Housing Authority. The third home will be demolished in spring 2026 due to uninhabitable conditions and the site will be maintained as open space In fiscal year 2025, the City utilized American Rescue Plan Act (ARPA) funds to purchase three 3-bedroom townhomes at 4673 Herbert Hoover Highway Units A, B, and C (Legacy Condos) and two vacant lots at 1002 and 1006 N. Summit Street (Summit Street) for the future development of up to 36 units of affordable housing. Both the Legacy Condos and the multi-family development to be constructed on N. Summit Street will be operated by the Housing Authority as income and rent restricted permanent affordable housing. In fiscal year 2026, the City received a grant from the Housing Trust Fund of Johnson County and used available public housing disposition funds from the Housing Authority to purchase three 3-bedroom townhomes (Aspen Court) at Aspen Court in North Liberty. The City also used available CDBG funds and Housing Authority public housing disposition funds to purchase another 3-bedroom townhome on Herbert Hoover Highway (Legacy 2)

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