Three area nonprofits will purchase Davenport’s remaining city-owned public housing stock, after both city council and the U.S. Department of Housing and Urban Development approved the sale this week.
Davenport sold its low-income high-rise apartment building, the Heritage, to an out-of-state nonprofit in 2020. Selling the 42 units across 21 properties scattered throughout Davenport marks the last step in the city’s process of removing the management of rental housing stock from its duties.
“We’re (the city) an assistance type of organization or a regulatory type of organization, we’re really not in the business of owning and managing rental properties,” Bruce Berger, city community planning and economic development director, said.
Berger said each household renting from the city would receive a housing voucher to find other housing if they choose. Money from the sale will also be used to provide relocation assistance for tenants who cannot afford a security deposit at a new apartment.
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Of the 42 households, 38 will be able to stay in their units should they choose, Berger said, as both Vera French and the Ecumenical Housing Development Group accept the Section 8 housing choice vouchers.
The city plans to donate four single-family homes to Habitat for Humanity to sell to qualifying homeowners.
Existing tenants in those houses would have the opportunity to acquire and become homeowners through Habitat’s program. If unsuccessful or not desired, tenants would be given a voucher to find replacement housing, Berer said.
“It’ll still be affordable housing. It’ll be affordable homeownership in this neighborhood,” Berger said.
Ecumenical Housing Development Group based in Bettendorf intends to buy 24 units across 14 properties for $240,000.
Vera French Housing in Davenport plans to purchase 14 units across three properties for $200,000.
Sam Moyer, director of Ecumenical Housing Development Group, said the purchase would add to the organization’s 162 housing units in the Quad-Cities.
“They’re currently low-income, affordable housing. We would like to maintain that,” Moyer said. “That’s what we do. We’ve been doing it for about 30 years.”
Berger expected the city would transfer ownership before the end of the year, likely by the fall, allowing time for tenants to move should they choose.
At-Large Alderman Kyle Gripp said members of the Davenport City Council asked city staff throughout the process of selling its public housing units to make sure the units remain affordable and well-maintained.
“Really, I think the way that you get decent affordable housing is you have good strong nonprofit organizations like are listed right here to be partners and continue to make sure that they are decent housing,” Gripp said.
