City annual housing report: lots, 'Homes for Iowa' units and a possible $25M rental project

Ed Maloy delivered a year-in-review on housing development and economic initiatives. He said the city bought five lots last year (four from the city, one private) and installed two Homes for Iowa units that were finished in late summer; one home was approaching closing and was priced at $235,000 for a single mother employed locally.

Maloy outlined progress on a new subdivision where underground utilities are complete and street work is planned when weather allows, with a target to begin street pours by May and builder starts around June 1. He said the city expects to have four or five homes started this year as part of a neighborhood revitalization strategy to put vacant lots back into affordable homeownership.

On multifamily housing, Maloy reported that Kading Properties (a division of Hubbell Realty) selected a 17-acre site behind Sky Factory for a potential rental community of roughly 125–150 units and described the project as likely in the $25 million range. He said the developer typically seeks workforce housing tax credits (about $30,000 per unit) and that the city has a 10-year multifamily tax-abatement schedule that could be part of an incentive package; Maloy said the city is also pursuing local employer contributions as part of negotiations.

Maloy also described a Bridal Housing Innovation Grant (Iowa State University Extension and the governor's office) supporting an 18-month study of housing conditions and redevelopment opportunities. He said the city purchased an additional 18 acres adjacent to the Sunrise Trail to expand the subdivision over time.

Next steps: city staff and the developer will continue incentive negotiations and finalize site and construction schedules; Maloy planned follow-ups on tax-credit allocations and local contractor participation.