Increasing Affordable Housing Options For Rural Citizens I. TOPIC Community Housing Initiatives, Inc. II. LOCATION Northwest Iowa III. SUBJECT Increasing Affordable Housing Options For Rural Citizens IV. SUMMARY In 1993, Upper Des Moines Opportunity, a Community Action Agency serving northwest Iowa, identified affordable housing as one of the critical goals for its eight-county service area. By 1994, it had become apparent that one organization needed to focus specifically on affordable housing and related strategies to ensure community development. Consequently, in 1994, a group of citizens, staff from Upper Des Moines Opportunity, and community leaders formed a new non-profit organization, Community Housing Initiatives, Inc. (CHI), to meet the area's housing needs. In late 1994, CHI was certified by the state of Iowa as a Community Housing Development Organization (CHDO) through the Iowa Department of Economic Development. As a CHDO, CHI may access set-aside funds designated for affordable housing. Today, CHI has become a key player in developing housing options not only for northwest Iowa communities, but for many rural areas in Iowa. By the beginning of 1996, CHI had planned or developed a variety of housing projects in communities ranging in size from 900 to 80,000 people. Supported by skilled staff, local leadership, and strong citizen input, CHI continues to strengthen communities through housing development. V. SUCCESSFUL PRACTICE Developed a model of affordable housing development including federal resources, conventional financing, Low Income Housing Tax Credits, city land donation, tax abatement, tax increment financing, and local planning and community leadership that ensures community ownership of each project planned and developed. VI. CONTACT Larry Rohret, Executive Director Doug LaBounty, Project Director Upper Des Moines Opportunity (A Community Action Project) 101 Robbins Ave. Graettinger, Iowa 51342 712-859-3885 FAX: 712-859-3892 VII. CASE STUDY The Problem: Current housing conditions, decreased investment in housing, non-supportive infrastructures, and complex program requirements combined to present a compelling case for increased affordable housing in northwest Iowa. Many small communities did not have the technical expertise to blend the different rules and regulations for affordable housing within one housing project. The Approach Adopted: To increase affordable housing, Upper Des Moines Opportunity, a Community Action Agency in northwest Iowa, established Community Housing Initiatives, Inc. (CHI), a non-profit housing agency, to address local needs. CHI adopted a three-phase plan: the Pre-Development Phase, to collect data from the communities; the Development Phase, to maximize resources for building affordable housing; and the Management and Delivery of Services Phase, to maintain and deliver the services and to link residents to other local services. How They Implemented the Approach: The Pre-Development Phase was designed for planning with local government and community leaders to gather anecdotal information, assess local needs, and develop reliable housing market data. This phase also included preliminary architectural designs and a cost assessment for the project. The Development Phase included maximizing both public and private resources. CHI staff identified needed programs while grant writers assembled and wrote proposals to obtain the necessary funding. CHI also worked with the communities to identify potential local actions to complement the work of CHI, such as low interest loans, tax abatement, and land donation. During the last part of this phase, bid letting and construction began. During the final phase, Management and Delivery of Services, CHI employed professional property management and maintenance staff to deliver these services to the community. Because of CHI's unique relationship with a CAA, it is able to link residents to other programs available through the Community Action Agency and other local service providers. Results: CHI has increased affordable housing by 91 units, expanded housing options by constructing 37 elderly and multi-family units, assessed the feasibility of refurbishing older units, maximized resources by combining public and private resources, and assured local ownership in each project through community planning. VIII. PROGRAM SPIN-OFFS The new construction of the elderly project in one small community in northwest Iowa helped to provide the model for maximizing resources for the new construction of the multi-family units in another very small rural community. IX. KEY WORDS: Affordable Housing Community Action Agency Community Housing Development Organization Economic Development HOME Housing Housing Tax Credits ref: chi.doc