Housing trust fund spurs property investment

WASHINGTON — The East Central Iowa Housing Trust Fund (ECIHTF) began in Washington County in 2011. Since then, it has poured a total of $1,435,140 into 171 households in the county for development and renovations, just one part of its four-county service region.

The funds have two strings attached: they must go to housing initiatives, and they must benefit low to moderate income (LMI) recipients. Previous uses have included emergency repairs, down payment assistance and building renovations.

ECIHTF Washington County Board Member Mary Audia said it spurred investment in the community.

"The ECIHTF monies act as a bridge between the dream of affordable homeownership and reality,“ she said. ”We attract outside investment by allowing the impossible to become possible, thus bridging this gap. It's a value proposition for Washington County residential developers.“

In doing so, the program serves as an investment not only in the homes, but in the community itself.

“Having people in houses helps to generate tax revenue, increase local spending, brings families into our schools and increases the available workforce,” she said. “It makes housing affordable to those who might not otherwise be able to afford a home.”

ECIHTF Executive Director Tracey Tracey Achenbach said the money came from grants, as well as state, county and city contributions.

In some cases, the aid can create a snowball effect, sparking other home improvement investments around the area.

“Owners, if they’re able to do, especially exterior improvements to their homes, sometimes it inspires others around them to do the same things,” she said. “So it improves the neighborhoods by doing that.”

In others, it’s a necessity to homeowners fixing critical issues, improving and preserving their property’s long-term value.

“Some of the things we do, it keeps it from deteriorating … past the point of where it can be helped,” Achenbach said. “If we’re able to come in and help with that, then it prevents other stuff from happening. So in that way, it is an investment. Because, my feeling is, if you don’t preserve the housing you have, then it’s going to be a negative on your housing availability.”

The projects aided by ECIHTF have a wide range of price points. The fund contributed $155,000 to the over $1 million Reserves at Briarwood development in Washington. On the other end of the spectrum, it’s reached 50-50 cost share agreements with landlords’ requests. Some small requests can be fully covered by HTF grants.

“It really varies, it depends on the project,” Achenbach said. “They give reasoning for why they’re asking for what they’re asking for. And show to us, why we should put our money into it.”

Achenbach said she could see the fund’s impact on the community.

“I’ve seen over, and over again projects that probably would not have moved forward, had there not been … Housing Trust Fund dollars put into them,” she said. “These are homes that would continue to deteriorate from things that had happened to them.”

Comments: Kalen.McCain@southeastiowaunion.com