Zoe Mahler scrambled to find housing when she was given a two-month notice that her apartment would be demolished and redeveloped.
Mahler is one of 37 tenants who currently reside in a series of small apartment buildings on Orchard Court in Iowa City. All 37 leases will be terminated at the end of July to make way for an affordable housing project,
Mahler said the first thought that came to mind when she received a city-required notice that her apartment would be the site of a redevelopment project was, “What are we going to do?” Mahler said that since they were only given two months notice, it has “been awful” trying to find an apartment that fit her and her roommates budget and was similar to their current living situation.
“Renting in Iowa City is difficult when it is your choice to move, and you are given enough notice,” Mahler said. “But renting in Iowa City when you have no indication of when your lease is going to be terminated is hell.”
The City of Iowa City is making an effort to offer a bit of help.
At the city council’s direction, the city provided each Orchard Court tenant with $962 in relocation expenses, using emergency housing monies designated in the city’s affordable housing fund. City councilors voted to use the remaining fiscal year balance, which ends June 30, totaling more than $35,000.
Iowa City City Councilor Oliver Weilein met with several tenants ahead of the June 2 council meeting, during which the city considered a transition plan to gauge residents’ needs. Weilein noted that residents said between $700 and $1,000 would help them cover displacement costs.
Weilein said it was important for the city to support the residents “as it pursues more aggressive tactics to expand the affordable housing supply; they can trust the city will do the right thing.”
“We know we’re going to have to be more bold about affordable housing to make prices more sustainable and to get housing costs to go down,” Weilein told the Press-Citizen. “So if you’re going to run into situations like this again, we need to have a track record of treating people fairly.”
Mahler, who spoke to the council on June 2, said she left satisfied with the promise of help. She also said that $962 “makes a huge difference for us.”
“At the minimum, we got money, but we still have to leave our homes,” Mahler said.
Iowa City apartments to be demolished for affordable housing construction
The proposed Orchard Court project is spearheaded by The Annex Group, an affordable housing developer based in Indiana that has completed several projects across Iowa, including Cedar Rapids.
The development will receive federal Low Income Housing Tax Credits, which means a portion of the apartments will be rented to tenants who make between 50 and 60 percent of the area median income, as designated by the U.S. Department of Housing and Urban Development. Iowa City’s median income is between $40,150 and $48,180 for a single-person family.
The tax credits also require that rent for those units not exceed 30 percent of annual income for those making between 50 and 60 percent of the area’s median income, or between $1,000 and $1,200 per month.
All 183 units will be for low-income residents who meet HUD income requirements, according to an Iowa Finance Authority report on 2025 Low-Income Housing Tax Credit awards.
The developer will receive $2.7 million in federal tax credits and $19.7 million in tax-exempt bonds.
According to a letter to the city from the developer, construction is expected to begin in August and take two years.
Housing developer required to submit transition plan under new ordinance
The development is the first housing project to trigger a 2017 ordinance created by the Iowa City City Council after a developer gave little notice to tenants at the Rose Oaks apartments. The city stepped in and gave all 209 tenants $250 from the city’s Affordable Housing Fund, according to a city memo.
Since 12 or more residential units are being demolished at the Orchard Park complex, Iowa City city code requires The Annex Group to submit a “occupant transition plan,” highlighting the number of planned occupants, lease agreement requirements, a list of when current Orchard Court leases expire, and a construction timeline.
The city code requires that the transition plan be approved by the council. It was unanimously approved as part of the consent agenda on June 2.
Mahler said that while she has to move, she is glad the project is for affordable housing.
“None of us are upset about it being affordable housing,” Mahler said. “Honestly, that is the best-case scenario because the other alternative is that it’s expensive.”
Liam Halawith covers Johnson County local government and crime for the Press-Citizen. Reach him by email at lhalawith@registermedia.com. Follow him on X at @liam_halawith.
This article originally appeared on Iowa City Press-Citizen: Iowa City pays Orchard Park tenants as leases end for redevelopment
Reporting by Liam Halawith, Iowa City Press-Citizen / Iowa City Press-Citizen
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By Liam Halawith, Iowa City Press-Citizen | USA TODAY Network
