Waukee approves Habitat for Humanity's first affordable townhome project in Iowa

Waukee has given Greater Des Moines Habitat for Humanity approval to build the nonprofit's first townhomes in Iowa.

The affordable townhomes are part of Greater Des Moines Habitat for Humanity's continuing priority to build multi-family homes, said CEO Lance Henning. The nonprofit plans to bring more dense housing near job centers in the Des Moines metro.

"We’re trying to create choice," he said.

For Waukee, it's an opportunity to bring affordable housing to a 13.6-acre parcel at North Warrior Lane and Northeast Douglas Parkway that its been trying to develop for years. The Waukee City Council on Monday unanimously approved a development agreement with Habitat to build 48 townhome units on the northern section of the property.

Henning said the townhomes would be 1,100- to 1,300 square-feet. Some would be single-story while others would be two-story. He said the standard units will have three bedrooms and two bathrooms, but there will be some four-bedroom options as well.

Multiple iterations of the affordable housing plan approved

Northeast Douglas Parkway splits the property into northern and southern sections. The city's original development proposal called for two 64-unit townhome complexes, one on each side of the road, to be built by Wisconsin-based Northpointe Development. But the development agreement was rescinded last year because Waukee did not receive a competitive, 9% low-income housing tax credit from the Iowa Finance Authority, which left a funding gap.

In March, the Waukee City Council approved new plans with Northpointe for the developer to buy about 6 ½ acres in the southern parcel for $1 and build 46 rental townhomes. Habitat also is expected to build 14 owner occupied units on the south side, though those plans depend on the housing tax credit, which typically is awarded in the summer.

This week, the council approved a plan to give Habitat the northern half of the property for $1. The nonprofit also will get $500,000 in tax increment financing for the development.

That would still leave a $720,000 funding gap for the project but Habitat plans to apply for that money through the state's workforce housing tax credit program, according to city documents. Nick Osborne, Waukee assistant city administrator, said the application for that tax credit is due in June and an award would be expected in August.

Habitat would have until the end of 2024 to substantially begin work on the property, and the construction of at least 12 townhomes would be due by the end of July 2026. All 48 townhomes would be due by the end of July 2028, according to the development agreement.

Who would be able to buy a Habitat townhome in Waukee?

Osborne said sale of Habitat's townhomes would be restricted to buyers who make 80% or less of the area median income, which in 2024 is $63,300 a year for a single person or $90,400 a year for a family of four, according to the U.S. Department of Housing and Urban Development. Buyers still will contribute what the nonprofit calls "sweat equity" to help build their home.

Habitat also would have a period of exclusivity for buyers with ties to Waukee, such as families with students in the Waukee Community School District or employees of businesses in the suburb. Osborne said Habitat would be required to keep the income limitations for at least 21 years.

More: What does Iowa developers' bankruptcy case dismissal mean for the future of Estates of Waukee?

Multi-family housing is a priority for Habitat for Humanity

In June, Greater Des Moines Habitat for Humanity broke ground on its first duplexes in the metro — making those 1,200-square-foot, three- and four-bedroom units the first-ever Habitat for Humanity homes to be built in Ankeny.

Henning said Habitat has built other duplex developments across Iowa and is planning for more multi-family options in the metro.

"We’re trying to put housing near where the jobs are," Henning said.

Habitat announced in December it had raised more than $7.6 million toward a $10.5 million fundraising goal for its "Framing Our Future" capital campaign. The campaign aims to build a financial foundation for several of the organization's housing priorities, including multi-family developments, according to an announcement published in the "BUILD Des Moines" online magazine.

Henning said Tuesday fundraising for the campaign had reached about $9.4 million.

Major corporate donors have included $1.5 million from American Equity Investment Life Insurance Company, $1 million each from Kemin Industries and the Federal Home Loan Bank of Des Moines, and $500,000 from Athene. More information about donating and volunteering with Greater Des Moines Habitat for Humanity is available at gdmhabitat.org/.

Phillip Sitter covers the western suburbs for the Des Moines Register. Phillip can be reached via email at psitter@gannett.com or on X, formerly known as Twitter, at @pslifeisabeauty.

This article originally appeared on Des Moines Register: Affordable townhomes by Habitat for Humanity approved in Waukee