Iowa City will purchase a trio of three-bedroom townhomes, adding larger, more family-oriented housing units to the city-owned and managed affordable housing stock.
The Iowa City Housing Authority will purchase the townhomes for approximately $927,000 in Aspen Court, a new development off of Forevergreen Road and east of Interstate 380 in North Liberty.
The Iowa City City Council approved the purchase by a 6-0 vote, with Councilor Shawn Harmsen absent.
The city-based organization received a $368,000 forgiveable loan from the Housing Trust Fund of Johnson County to help facilitate the purchase of two of the townhomes. Despite its name, the Iowa City Housing Authority provides county-wide assistance.
The Iowa City Housing Authority also administers the Housing Choice Voucher Program, commonly known as Section 8, in Johnson County and in portions of Iowa and Washington counties.
About 220 residents in North Liberty have Housing Choice vouchers, but all of the Housing Authority’s 123 properties are in Iowa City, according to Tracy Hightshoe, Iowa City’s neighborhood and development services director.
“This opportunity allows us to better serve residents throughout our whole jurisdiction, to strengthen access to housing where people live and work,” Hightshoe said.
The Housing Authority will limit residents to those who are below 50% of the area median income, Hightshoe said, and the properties will be rented out to voucher recipients for at least the first five years.
According to council documents, the Housing Authority will manage the properties as permanent affordable housing. The properties are set to officially be acquired on Dec. 1, 2025, and will begin being leased out to voucher holders in subsequent months.
The project stemmed from a 2023 contribution by the City of North Liberty to the Housing Authority, which was tasked with creating affordable housing in that community.
Ryan Hansen covers local government and crime for the Press-Citizen. He can be reached at rhansen@press-citizen.com or on X, formerly known as Twitter, @ryanhansen01.
This article originally appeared on Iowa City Press-Citizen: Iowa City to purchase townhomes in North Liberty for affordable housing
Reporting by Ryan Hansen, Iowa City Press-Citizen / Iowa City Press-Citizen
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