Iowa City nonprofit using $2.5M grant to build 6 affordable homes for domestic abuse survivors

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5 days ago

Iowa City is selling a vacant lot to a local nonprofit planning to build homes for individuals fleeing domestic abuse.
The city-owned lot valued at $270,000 will be given to the Domestic Violence Intervention Program (DVIP) to create six new townhomes on the east side of town.
DVIP was awarded nearly $2.5 million in HOME American Rescue Plan funding from the Iowa Finance Authority in 2024 to help construct the six townhomes. The grant will also cover some of the cost associated with operating the supportive housing program over the first few years.
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Iowa City says nonprofit must offer affordable housing
The city will create a "conditional occupancy loan" for DVIP at 0% interest. The organization must maintain affordability for tenants earning at or below 60% of the median area income. The loan will be forgiven completely if DVIP achieves affordability for 20 years.
The city purchased the land in 2018 with the intention of developing affordable housing east of Scott Boulevard. Though several concepts have been considered by city staff in the years since, none came to fruition.
"This action is consistent with the council's direction to use city resources strategically to expand supportive housing options," Iowa City Neighborhood and Development Services Coordinator Tracy Hightshoe told the council.
What is HOME-ARP and what will the grant money cover?
The HOME-American Rescue Plan was part of the 2021 American Rescue Plan Act. The Iowa Finance Authority was awarded approximately $29 million in HOME-ARP funds to help "reduce homelessness and increase housing stability."
HOME-ARP funds are intended to assist people at risk of or experiencing homelessness and those fleeing "dating violence, domestic violence, sexual assault, stalking or human trafficking," according to the state's website.
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Of the $2.5 million awarded to DVIP by the Iowa Finance Authority, roughly $1.74 million will be used to cover construction.
DVIP Executive Director Kristie Fortmann-Doser said the remaining $750,000 will be used for "supportive services" and other operating costs for six years. DVIP hopes to gain a local foothold with the program and build its savings to foster a success.
Townhomes while expand DVIP's services
Fortmann-Doser said the affordable townhomes are the second phase of DVIP's recent expansion of offerings.
The organization opened its new, larger shelter for survivors of domestic violence in late 2024. Fortmann-Doser said DVIP also expects to provide affordable apartments to individuals fleeing domestic violence. She said the townhomes are geared toward families fleeing domestic violence.
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The final rent costs have not been finalized, but DVIP will only charge a portion of the median area market rate rent. The townhomes are not transitional housing, meaning residents may stay as long as they need.
DVIP estimates construction will be completed by the spring with hopes the townhomes are occupied by 2027.
Ryan Hansen covers local government and crime for the Press-Citizen. He can be reached at [e-mail] or on X, formerly known as Twitter, @ryanhansen01.
This article originally appeared on Iowa City Press-Citizen: Iowa City's DVIP to build 6 homes for domestic abuse survivors