Summit Street housing project in Iowa City advances with new funding

Iowa City has hired Baker Tilly as development manager and received a $3.7 million PRO Housing Grant to advance a planned 36-unit affordable housing project on North Summit Street.

Iowa City Housing Authority is moving ahead with a long-planned affordable housing development on North Summit Street after securing a development manager and additional federal funding. The city acquired the 1.8-acre site in October 2024 using American Rescue Plan Act funds as part of its City Steps 2030 housing initiative. A March 10 presentation to the City Council reported a $3.7 million PRO Housing Grant and the hiring of Baker Tilly to manage development and construction tasks. The project is planned as the first building the city will act as developer for rather than merely acquiring existing units. Key details: - The city purchased the North Summit Street site on Oct. 18, 2024, for $750,000 using ARPA funding. - The project has a $3.7 million PRO Housing Grant and anticipates a total cost of about $10.7 million with multiple funding sources. - Proposed building size is 36 units: 18 one-bedroom, six two-bedroom, and 12 three-bedroom units, with an emphasis on accessible units for elderly and disabled residents. - At least 18 units will be subject to federal requirements tied to the funding, including Davis-Bacon, Section 3, and Build America, Buy America provisions; tenants must be below 60 percent of area median income and voucher holders cannot be denied tenancy. - Design is not finalized until October 2026, construction is planned to begin in May 2027, and leasing is expected to begin in fall 2028. - The site is in a census tract identified as having relatively high economic mobility and low social vulnerability and is near downtown amenities. Summary: The project is intended to expand subsidized housing supply in an area with limited subsidized options and to add accessible one-bedroom units aligned with local voucher-holder needs. Key next steps include finalizing the design by October 2026, securing remaining funding and any required HUD approvals, beginning construction in May 2027, and starting leasing in fall 2028.