Iowa City to purchase townhomes in North Liberty for affordable housing

Iowa City will buy three three-bedroom townhomes in North Liberty for approximately $927,000 to bolster its affordable housing inventory. The City Council unanimously approved the purchase, supported by a $368,000 forgivable loan from the Housing Trust Fund of Johnson County. The Iowa City Housing Authority will manage these homes, which will be leased to residents earning less than 50% of the area median income for a minimum of five years. Tracy Hightshoe, director of neighborhood and development services, emphasized that this initiative will improve housing access across the jurisdiction. The acquisition is scheduled for December 1, 2025, with leasing to begin shortly after.

This move aligns with a 2023 commitment from North Liberty to support affordable housing initiatives. Currently, about 220 residents in North Liberty hold Housing Choice vouchers, but all of the Housing Authority's properties are located in Iowa City. This project represents a significant step in addressing the need for family-oriented affordable housing options in the region.