Iowa City approves sale of 1102 Hollywood Blvd. to nonprofit to house veterans

The Iowa City Council on July 14 approved a $2 million purchase agreement to convey 1102 Hollywood Boulevard to a newly created nonprofit, Iowa City Affordable Housing Inc., to operate 15 affordable units for veterans experiencing homelessness.

Tracy Haishu, who presented the proposal, said the county transferred the property to the city in March 2026 with conditions requiring affordable housing. The city formed the nonprofit ‘‘to resolve an issue regarding the city being both the property owner and the voucher administrator,’’ Haishu said. Under the deal the city will initially provide $2 million from the general fund and the nonprofit will repay that amount when the closing occurs.

The units will be reserved for veterans using VASH vouchers for 20 years, Haishu said. HUD-required environmental reviews and radon mitigation have been completed; all three buildings on the site required mitigation. Additional repairs and security upgrades have been made and furnishing for the 15 units is being provided by Houses Into Homes, with final furnishing expected by July 24.

Haishu said the housing authority will manage the property and the VA will provide supportive services. HUD must approve a third-party inspection arrangement under its upcoming NSPIRE inspection protocol; city staff expect to complete HUD-required inspections and sign housing-assistance-payment contracts. The presenter said first move-ins are anticipated around September and that the city is planning a ribbon-cutting in August.

Council members praised staff coordination with the county, the housing authority and partners. The council approved the purchase agreement by voice roll call, 6–0.

Next steps: HUD must sign off on the third-party inspection and rent-reasonableness protocols before HAP contracts are finalized; staff said they will return with any required implementation details.