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Community Housing Initiatives Is Helping Iowans Thrive
By: Paul Daniels, Business Banking Manager, VP, Spencer
January 13, 2025 | Growing Business, Customer Stories
The simple aspiration of securing a safe and affordable place to live is increasingly slipping out of reach for many families. Rising rent prices, stagnant wages and a shortage of available affordable housing have left countless individuals and families grappling with housing instability. In Iowa, over 40% of renters spend more than 30% of their income on housing, which is considered "rent burdened" by the U.S. Department of Housingopens in a new window and Urban Development (HUD). This indicates that a significant portion of renters in Iowa struggle to afford basic living costs alongside their rent.
This is where affordable housing from Community Housing Initiatives (CHI), comes into play. Iowa’s largest nonprofit developer of affordable housing, this organization offers more than just a roof over Iowan’s heads. It provides a lifeline to those in need, fostering stronger communities and working to create a foundation for long-term success and stability to help break the cycle of poverty.
Creating a Place to Thrive
In the 1990s, a team of dedicated non-profit staff focused on the idea of building affordable housing in rural northwest Iowa communities that had been impacted by the farm crisis. The local Board of Directors quickly agreed with the need for housing and the small community action agency expanded the mission from provision of services for at-risk households, to also providing low-income housing.
“We realized that housing was keeping people in a cycle of poverty because the houses were rundown, and people were either paying too much in rent or on utilities. So, we decided to launch an affordable housing initiative,” said Sam, now CEO of CHI. “We acquired our first property in Spencer, Iowa, in 1994 and rehabilitated it. Today, we have grown to 1,640 units across the state of Iowa.”
Over the years, CHI has overseen more than $270 million in real estate development in more than 30 Iowa communities. All of the properties are also managed by the organization.
Meeting Individual Community Needs
When housing is needed, CHI works closely with communities on housing solutions tailored to its unique housing needs, including special services for those who are elderly or disabled. Facilities may include new construction, preservation of existing affordable apartments and historical adaptive reuse.
“One of our favorite initiatives is to preserve historic structures that communities no longer use and give them new life as apartment buildings,” said Sam. “Across Iowa, we have helped protect historic libraries, schools, hotels and other structures by converting them to housing.”
Most of CHI’s apartments were developed under the rules of two federal housing programs, the Low Income Housing Tax Credit (LIHTC)opens in a new window program and the HOME programopens in a new window.
“Generally, our rental procedures and policies follow the rules of those funding sources,” said Sam. “To qualify and rent one of the apartments developed this way, a household's income must fall within a certain range.”
Another interesting aspect of the business is their Resident Services Department. This four-person team works with families to connect them to rental assistance, community resources and nonprofit partners to retain housing.
“The Resident Services team will reach out to a renter if they’re getting behind in rent,” said Sam. “Within 30 days we are there helping them with resources. Our team can also provide lease/renter education to help residents understand why they have received a violation notice, expectations of successful renters and corrective behaviors to allow them to continue leasing their apartment.”
Working Through Challenging Times
When a major flood hit Spencer in June 2024, the CHI team quickly got to work to make sure residents who lived in 220 threatened units were safe and had a place to go.
“Brittany Spieker, our director of Resident Services, found out the area was going to get flooded at 5:30 that morning and called all our residents to make sure that if they were in units located in the flood area, they were evacuating,” said Sam. “Within a matter of two hours, one of our properties was flooded. Luckily, all our residents were safe. We did end up losing 17 of our apartment units, but we prioritized helping displaced families find temporary housing.”
Once the waters receded, the nonprofit turned its focus to long-term recovery. They are currently working with the local community to find resources to rebuild the units that were affected by the flood.
Building a Longstanding Partnership With Northwest Bank
For over two decades, CHI’s partnership with Northwest Bank has provided vital financial expertise to help the nonprofit live out its mission.
“Not everyone is willing to invest in a nonprofit for affordable housing,” said Sam. “But Paul Daniels at Northwest Bank did because he can see how our company is helping the community and the economy. The bank’s team is at every party, our grand openings and other local events. It is amazing to see the support.”
Through hard work, partnerships and a strong commitment to the community, CHI is helping create stable living environments where people can thrive.
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