A new program could bring more families into neighborhoods surrounding the UI campus, which are now predominately made up of student renters.

UI officials have made a $200,000 commitment to the UniverCity Neighborhood Partnership program, a collaborative effort between the university and the city.

The effort aims to improve relationships between students and families living in residential areas close to campus, as well as boost homeownership in those areas.

As part of Gov. Chet Culver’s I-JOBS program, a $1 million affordable-housing grant will fund the program, in addition to the $200,000 from the UI.

UI President Sally Mason committed the $200,000 when the city sent the grant proposal to the state in July.

“The overall goal is to look at the balance between rental and owner properties,” Iowa City Mayor Regenia Bailey said.

The proposal states it will initially target 20 residences near campus, offering home-improvement loan opportunities and homebuyer incentives for income-qualified residents. Those loans will be forgiven if the owner-occupant remains in the home for at least five years.

The home-improvement loans would go straight to rehabilitation companies and not to homeowners, which will in turn stimulate economic growth, said Sarah Walz, an associate planner in the city’s Planning and Community Development Department.

Walz said the program is “in its infancy,” but she was clear on the purpose of the I-JOBS funding.

But officials were also clear that the overarching intention of the plan is to improve the neighborhoods themselves.

“It’s a way to upgrade the housing stock and provide affordable homeownership opportunities,” said Steve Long, Iowa City’s community-development coordinator.

The partnership will involve many different groups, he said, possibly including the Iowa City Area Association of Realtors, the Home Builders Association of Iowa City, and representatives from each neighborhood.

Walz, who was involved in the initial proposal developed last spring, said similar programs have been adopted around other university campuses, including around the University of Minnesota-Twin Cities and Ohio State University.

“It’s very common in university towns across the country,” Walz said, noting the presence of the university creates unusually high housing prices, making a program like this critical for low-income families.

But for now, the program is limited. Bailey admitted it will probably only have a small effect but has the potential for growth.

“We viewed this as getting the program started and seeing where it goes,” she said.