IOWA CITY, Iowa (KCRG) - Iowa City voters approved a 1% local option sales tax that the city expects to generate about $14 million annually, with a quarter of the funding designated for affordable housing initiatives.

The tax comes as homeless support organizations report a significant increase in demand for services. Rachel Carr, director of data analytics and compliance at Shelter House, said the organization served 100 more people in October 2025 compared to October 2024.

“We have tried over the last decade to see if the market will correct itself, it has not,” Carr said.

Carr said multiple factors are contributing to increased demand for homeless services, including the government shutdown and lack of SNAP benefits, COVID-era funding running dry, multi-year long wait lists for housi

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