Rendering shows the Cedar Rapids Brickstone affordable housing development underway at 627 Sixth St. SE, Cedar Rapids. The project from Hatch Development will add 44 rental units with supportive services provided by Foundation 2, especially geared toward youth aging out of the foster care system. (Aspect Architecture)
Emily Blomme, executive director of Foundation 2 Crisis Services, speaks during a groundbreaking ceremony for the Cedar Rapids Brickstone housing development in southeast Cedar Rapids on Monday. (Jim Slosiarek/The Gazette)
Hatch Development Group principal Jack Hatch speaks during a groundbreaking ceremony for the Cedar Rapids Brickstone housing development in southeast Cedar Rapids on Monday. (Jim Slosiarek/The Gazette)
Cedar Rapids Mayor Tiffany O’Donnell smiles as she greets an attendee at a groundbreaking ceremony for the Cedar Rapids Brickstone housing development in southeast Cedar Rapids on Monday. (Jim Slosiarek/The Gazette)
Hatch Development Group’s Vice President of Development and Cedar Rapids City Council member Dale Todd speaks during a groundbreaking ceremony for the Cedar Rapids Brickstone housing development in southeast Cedar Rapids on Monday. (Jim Slosiarek/The Gazette)
Hatch Development Group’s Vice President of Development and Cedar Rapids City Council member Dale Todd speaks during a groundbreaking ceremony for the Cedar Rapids Brickstone housing development in southeast Cedar Rapids on Monday. (Jim Slosiarek/The Gazette)
CEDAR RAPIDS — A new affordable housing development in the southeast quadrant will add 44 rental units to Cedar Rapids, with some earmarked for those aging out of the foster care system in an effort to set this vulnerable youth population up for long-term success.
Des Moines-based Hatch Development broke ground Monday on Cedar Rapids Brickstone, a $12.2 million, four-story multifamily building at 627 Sixth St. SE. The project is a partnership with nonprofit Foundation 2 Crisis Services.
Cedar Rapids Mayor Tiffany O’Donnell said the project is an illustration of developments the city needs to maintain momentum of investment and support for core neighborhoods such as Oakhill Jackson.
“This development provides more innovation and more opportunities for that walkable, livable community that we know we need in Cedar Rapids,” O’Donnell said.
Of the 44 units, 34 will be reserved for tenants at or below 60 percent of area median income, and 10 units will be marked for tenants at or below 30 percent of area median income, according to the city. The developer will set aside five units for tenants who have aged out of foster care.
Foundation 2’s Fostering Futures team will provide on-site supportive services for the young adults and other tenants who need to be connected with community resources.
“That’s where affordable housing really needs to go in the future — bringing in peripheral services that the tenants need to make it through life, to add to their to their capabilities of succeeding,” Jack Hatch, principal of Hatch Development, told The Gazette. “These are usually young people that have too many barriers in front of them, and they need help.”
Construction is underway and slated to wrap up by fall 2023.
The project has received city financial incentives — a 10-year, 100 percent abatement on the increased value the project generates, as well as a five-year, 100 percent reimbursement on the increased taxes generated directly after the 10-year abatement period.
To help with rising construction costs stemming from the COVID-19 pandemic, the city council in August awarded $200,000 of federal American Rescue Plan Act funds. Council member Dale Todd, who works for Hatch Development, has recused himself from voting on items related to this project and from discussions on this development.
The Iowa Finance Authority last year awarded low-income housing tax credits to support the project as well.
Foundation 2 Executive Director Emily Blomme said this site was a prime location for such a project to take shape, not far from the organization’s future headquarters at the historic Witwer Building, 305 Second Ave. SE.
It’s also in proximity to resources including other nonprofits and service providers, the Ground Transportation Center for bus access around the city and the downtown Cedar Rapids Public Library for access to computers for job searches and educational supports.
“Access to safe, stable and affordable housing is critical in setting our young people up for success,” Blomme said. “We know that affordable housing paired with case management and affordable services can holistically serve our young adults better, adequately preparing them to thrive independently and successfully into their future.”
Blomme said youth face housing challenges such as an inability to get a co-signer, access to transportation or simply finding available housing, as some may have a criminal record or substance abuse issues with which they need support.
Case managers help these youth with educational and employment opportunities, physical and mental health care as well as skills such as budgeting, housing and cooking, Blomme said.
According to Blomme, Foundation 2’s Fostering Futures program houses the Iowa Aftercare Services Network as the service provider in Linn, Johnson, Benton, Jones and Iowa counties. The state program provides voluntary supports to young adults aged 18 to 21 who experienced foster care.
She said Foundation 2’s case workers typically juggle a combined load of 120 cases at a time.
“We’ll have units that will allow (those aging out of foster care) to be safely and stably housed so then we can focus on the other skills — that education piece, that employment piece,” Blomme said.
As a former state senator, Hatch advocated for youth within the foster care system and worked with his Statehouse colleagues to develop a scholarship program for foster care children who were not adopted after age 16.
He said the goal is to foster relationships with Kirkwood Community College to help these young tenants pursue educational opportunities.
“This is more than just a housing project,” said Mike Kiernan, contributing co-developer of Hatch Development. “Anybody can build bricks and mortar. This is a ladder and opportunity for these kids.”
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