Nearly 5-year waitlist prompts Iowa City to pause new Section 8 rental vouchers

Editor's Note: A previous version of this story mistakenly named Erika Kubly, an employee in the city's Neighborhood Development Services department . The article has been corrected to identify Rachel Carter, the housing authority representative, as the correct source.

An Iowa City-area housing assistance program temporarily stopped allowing new applicants this summer after the waitlist surpassed more than four years.

The Housing Choice Voucher Program, commonly known as Section 8, is distributed by the Iowa City Housing Authority. The city-named operation extends beyond city limits, helping residents across Johnson County and portions of Iowa and Washington counties.

Currently, the housing authority has 1,595 vouchers, all of which have been distributed. More than 10,000 residents have applied for help.

What do the vouchers do?

The vouchers are essentially a guarantee to landlords that the city will pay a resident's rent each month with federal funding from the U.S. Department of Housing and Urban Development. HUD covers 100% of the rent and staff costs, while the Iowa City Housing Authority helps distribute the vouchers throughout the area.

HUD distributes the vouchers based on the area's "Fair Market Rent" figures, allowing the Housing Authority to set a "payment standard" between 90% and 110% of the market rent figures.

In Johnson County, HUD determined the Fiscal 2025 Fair Market Rent is $1,548 for a three-bedroom unit, a 1.5% or $23 rise over last year.

More: Johnson County purchases 15-unit apartment complex to meet affordable housing demand

Who receives vouchers?

Iowa City Housing Administrator Rachel Carter told the Press-Citizen that the city has earmarked 285 of the 1,595 total vouchers for people with outstanding needs.

This includes 95 VASH vouchers distributed through the VA Medical Center for veterans who are experiencing homelessness and 78 mainstream vouchers for "homeless households with a disabling condition" distributed through Shelter House, the Iowa City-area non-profit.

The Housing Authority also distributes emergency housing vouchers and project-based vouchers to qualifying residents.

She said in total, this has amounted to more than $10 million in rent assistance in Johnson, Iowa and Washington counties.

Most often, the city works with private landlords to house residents. Landlords were previously required to accept Housing Choice vouchers in Iowa City because of a city ordinance . Iowa law was changed in 2021 to prohibit cities from requiring landlords to do so.

More: Immigrant community pushes Iowa City for minority-specific affordable housing

Why has the application process been paused?

The application halt comes after more than 10,000 people applied for the vouchers and were placed on the city's waitlist.

Roughly 1,900 of those applicants live in the city's designated "top preference category," which elevates individuals who are already "living or working" in the area. Carter said this means someone who lives in Cedar Rapids but works in Coralville would be placed in the preferred category.

The estimated four-and-a-half-year wait applies only to those in the preferred category. Anyone who was on the list when the applications closed will retain their spot in line.

The high demand was driven by a continuous need for housing in the area and was only exacerbated by the financial struggles brought on during the COVID-19 pandemic.

The city's HUD representative suggested pausing new applications to follow the federal housing department's best practices.

"We've received a lot of feedback from other agencies that it's not fair, right?" Carter said. "People expect that they can come here and apply (for housing). Four-and-a-half years is a long time to wait for assistance. It's giving a false sense of hope."

This preferred bracket exists because many families and people from across the nation have applied to receive local HUD vouchers.

"About 8,000 people on our list are people from across the country who have applied because they are interested in coming to Iowa City or because it's an option," Carter said, rather than falling into the group of people who already live or work in the metro area.

"Affordable housing is hard everywhere and I think people are doing the best they can to try to find it."

More: Iowa City eyes new affordable housing project with multi-million dollar grant. What to know:

What comes next?

Nearly 60% of those on the waitlist have a "head of household" who is elderly or disabled. Similarly, 57% of households have children.

The city has received several grants in recent months which the Housing Authority plans to use for "tenant-based rental assistance" grants in the fall.

From 2023: Iowa City is working to help low-income families become homeowners. Here's how.

The Housing Authority will prioritize prospective renters who are on the Section 8 waitlist and provide them with help until a spot opens in the more permanent Housing Choice Voucher Program.

As for the Section 8 program itself, Carter said the city will push to acquire more federal funding from HUD. She said the city has expanded its funding since 2013, which created hundreds of new Housing Choice vouchers.

Carter said she hopes the city continues to grow its affordable housing stock by establishing partnerships with Johnson County residents and organizations.

"I think we have to approach it on many different levels, and we will continue to do that," Carter said. "We'll continue to look for solutions and do the work to make those solutions come to fruition."

Ryan Hansen covers local government and crime for the Press-Citizen. He can be reached at rhansen@press-citizen.com or on X, formerly known as Twitter, @ryanhansen01.

This article originally appeared on Iowa City Press-Citizen: Nearly 5-year waitlist prompts Iowa City to pause new Section 8 rental vouchers