Urbandale council approves development agreement for Line 7 Apartments with $775,000 city subsidy

The Urbandale City Council on Feb. 18 approved a development agreement with Hubbell Realty Company for the project now called Line 7 Apartments, which will be sited at the southwest corner of 140th Street and Waterford Road just inside the Dallas County line of Urbandale. Assistant City Manager Curtis Brown told the council the city will provide a $775,000 grant payable after the final certificate of occupancy.

Why it matters: the agreement requires the developer to reserve 15 units as income-qualified housing and to preserve affordability for 15 years, accept Housing Choice (Section 8) vouchers, and enroll the property in Urbandale’s Crime Free Multi-Housing program. City leaders said the subsidy and related requirements are intended to add lower-cost rental options in alignment with the city’s strategic priority on affordable housing.

Brown told the council that Hubbell will construct the first phase of the project as three buildings; he said phase one totals 135 units and that the overall site plan shows five buildings. The development agreement commits six units at the 80% area median income (AMI) level (in a mix of 1-, 2- and 3-bedroom units) and nine units at the 60% AMI level (two- and three-bedroom units). The transcript contains inconsistent references to total unit counts (the staff presentation referred to both 135 and, elsewhere, a 35-unit figure); the precise total number of units recorded in the signed development agreement was not specified aloud during the meeting record provided.

The city’s subsidy and security mechanisms: Brown said the $775,000 grant level was derived after consulting Polk County Housing Trust Fund and Des Moines staff; the city’s per-unit subsidy in this agreement averages about $50,000 per reserved unit. The development agreement also requires a letter of credit to secure the city’s subsidy and performance: if the developer exits the agreement early or fails to meet affordability terms, the agreement includes a repayment mechanism that staff described in the meeting transcript as an annual repayment figure of $5,555,000 (language quoted from staff; the council record did not provide legal interpretation or breakdown of that penalty figure at the time of the vote).

Operations and oversight: the agreement requires the property manager to obtain an affordable housing property-management certification, maintain tenant-income documentation and submit an annual compliance report to the city. The city retains the right to require specialized third-party audits of tenant records if needed. The agreement also includes a meeting scheduled four years before the affordability term expires to consider a possible extension of the affordability period.

Council action: Councilmember Carberry Montgomery moved approval of Resolution 063-2025; Councilmember Kroll seconded the motion and the resolution passed. Kevin Lohrey, identified in the meeting as representing Hubbell, was present for questions but did not provide a general statement in the public record when the council voted.

What’s next: staff cited a target construction completion date of March 1, 2027 for the full project as described in the staff presentation. The development agreement will be monitored annually for compliance, and the city said it will only remit the grant after the final certificate of occupancy is issued.

Sources: remarks by Assistant City Manager Curtis Brown and council proceedings recorded in the Feb. 18, 2025 Urbandale City Council meeting transcript.