The Neighborhood Centers of Johnson County will receive $2 million to help acquire and renovate two buildings to serve as a family resource center and early childhood center.

Iowa City City Council allocated the $2 million from the city’s State and Local Fiscal Recovery funds which is part of the funds received through the American Rescue Plan Act on Tuesday. 

The first property the neighborhood center is set to acquire for a family resource center is located at 2709 Muscatine Ave. The neighborhood centers anticipate spending $600,000 on the property and $125,000 in renovation costs, according to the council agenda. Programming is set to begin by October.

The second property, at 1041 Arthur St., will be renovated into an early childhood center that includes five classrooms, a library, a computer lab, a multi-purpose space including a kitchen, and an after-school classroom.

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At least 50 early childhood slots would be brought to the Towncrest neighborhood through this building. The neighborhood center anticipates using $500,000 in city funds to purchase the building and $2 million in construction costs, which includes installing a playground. 

The recovery funds for these buildings are a part of the city’s over $18.3 million in federal funding after the pandemic. According to the National Conference of State Legislatures, recipients of ARPA funding must allocate said funding by the end of the year, and spend it by Dec. 31, 2026.

The city is allocating $900,000 for the project and $1.1 million is from a construction loan. 

Renovations will be complete by July of 2025 with operations at full capacity by July 2027.