2004 Public/Private Partnership Awards

Fannie Mae and the City of Cedar Rapids

William B. Quarton Place, which opens in August 2003, apartments provides low cost, privately owned housing to workers in the lowest income tier, including entry level professionals, the disabled and the elderly. Creating quality housing of this quality has positioned the City of Cedar Rapids to recruit and retain new businesses and industry.

Fannie Mae's American Communities Fund provided $100,000 for pre-development costs. Designed for small families, these units provide optional social services for residents. These services are a "safety net", as the lowest income workers become vulnerable to homelessness when financial emergencies strike. Illness, loss of employment or childcare, rising energy costs and unexpected repair or bills can destabilize budgets and lead to homelessness.

To make this model work, local government invested heavily "up front" to leverage the maximum in sate and federal funds. Within 6 months, 100% upfront equity investment was secured, allowing the operating budget to cover operation expenses for the property and staffing of the human services component. The William B. Quarton Place Apartments are expected to reduce the need for HUD Section 8 subsidies and help prevent the "houselessness" that challenge social service providers. The model could also meet the Olmstead Act, which mandates a wider choice in housing for the disabled.

For more information, please contact : Joseph J. O'Hern, 515-697-3720 (phone), 515-697-3730 (FAX); e-mail: joseph_j_o'hern@fanniemae.com or Doug Wagner 319-286-5051(phone); 319-286-5144 (fax); e-mail: dwagner@cedar-rapids.org