Hatch Development Group
Turning Difficult Sites Into Community Assets

Jack Hatch, Principal

Hatch Development Group (HDG) finds its purpose where affordable housing has a bigger job to do.

The Iowa-based developer builds affordable and mixed-income housing in areas where economic opportunity and broader community needs intersect. Whether redeveloping a flood-damaged neighborhood, building in an area facing unemployment or preserving a historic property, HDG takes on projects where conventional development can be difficult.

“We build for the community and tenants,” says Jack Hatch, principal. “Then the investors will follow.”

A former Iowa state senator who served in the legislature for 22 years, Hatch brings a deep understanding of how public policy and government decision-making shape housing development. His experience in public service has shaped a development philosophy centered on collaboration and civic engagement, with a focus on building projects that serve both residents and investors. HDG puts that philosophy into practice by working closely with residents, civic leaders, nonprofits, banks, private equity firms and government agencies to make complex projects possible and advance broader community priorities.

Public Purpose Meets Private Enterprise

For Hatch, civic purpose and business discipline are not opposing forces. They are complementary parts of a development model that looks beyond architecture to consider what a development can contribute to the neighborhood or town while remaining a sound investment.

“We don't see ourselves as a social service agency,” says Hatch. “We see ourselves as a conduit between what we can provide and what the tenant needs to succeed.”

That philosophy was embedded from the company's earliest days, when Hatch and his wife, Sonja Roberts, built the business together. Roberts' background as an interior designer helped establish HDG's emphasis on design quality, from thoughtful apartment layouts, lighting and finishes to wider hallways to nine-foot ceilings. She also helped establish Perennial Properties Management Services, the property management firm overseeing HDG's communities, and led its operations during the first 15 years.

Similar individual stairwell designs have since appeared in about five HDG projects. The result is housing that stands out without feeling out of place, with high occupancy reinforcing its value for residents and investors alike.

Those priorities also shape where HDG invests. Developments generally range from $5 million to $20 million, with most of the capital coming from private equity. HDG is willing to pursue projects that take longer or produce lower profits than conventional developments, provided they remain financially viable and contribute to the surrounding community.

Where Housing Sparks Neighborhood Renewal

Housing can do more than fill a need. In the right setting, it can help change the conditions around it. That played out in Des Moines, where HDG built Sixth Avenue Flats on a site marked by vacant lots and significant drug activity. Neighborhood leaders initially questioned whether the location was suitable for tenants, particularly the foster-care youth who would live there. As the project took shape, however, drug activity decreased and investment in the surrounding area increased. A nearby business corridor and new grocery store reinforced HDG’s belief that housing can spur a neighborhood’s economic activity.

“We believe that housing is a magnet for almost everything, from jobs and retail shops to schools and grocery stores,” says Hatch.

The development also pairs housing with support for young people transitioning out of foster care. Five apartments are reserved for foster-care youth. Youth and Shelter Services (YSS) provides a counselor who works with residents and the property manager to help them adjust to independent living.

YSS President and CEO Andrew Allen says, “There’s simply no way YSS could have accomplished a project like this on our own. It took a true partnership with people willing to challenge convention, stay persistent, and put community impact ahead of everything else.”

Making Difficult Projects Possible

For HDG, investing in a community often means stepping in when development conditions go beyond the typical challenges. The 2008 flood, the largest natural disaster in Iowa’s history, devastated large parts of Cedar Rapids, including downtown and surrounding neighborhoods. It coincided with a recession that made new development even harder. HDG became the first multifamily developer to build in the area. It negotiated with the city and secured investment from a national equity fund. Over the 15 years that followed, roughly $120 million flowed into the neighborhood, helping spark further investment.

Financing is always complex. A single development involves around 10 funding sources, each with its own requirements and timing. Coordination is a critical part of executing a project.

The Mississippi River town of Clinton, Iowa, where homelessness was growing, put that capacity to work. HDG was brought in to develop supportive housing for the YWCA, bringing together religious organizations, housing advocates, business leaders, realtors, residents and local officials.

HDG spent about a year and a half building that network and developing the trust needed to move the project forward. When neighbors opposed the original site and the zoning board rejected the proposal, HDG moved the project to another site within the same census tract so it could retain eligibility for Federal Home Loan Bank funding.

The project faced another threat when delays put more than $4 million in housing funds at risk. Iowa Finance Authority Director Debi Durham continued supporting the development despite recommendations to pull the funding, believing in the project and the community that needed it. The project is now operational and has received its first resident.

From Stable Housing to Homeownership

HDG’s work also considers what affordable housing can enable beyond stable tenancy. Its rent-to-own developments provide residents a path to homeownership.

The model places families in two-, three- or four-bedroom townhomes and sets aside $50 each month in an escrow account. After the 15-year compliance period associated with the low-income housing tax credit, residents have the option to purchase their home, with the accumulated funds available toward a down payment.

While HDG's two rent-to-own projects have yet to reach the end of the 15-year compliance period, more than 55 families who previously lived in low-income housing have already moved into homeownership, providing an early measure of the model's potential to create long-term stability.

Preserving Places, Reviving Communities

HDG's community-first model takes a different form when there is an opportunity to preserve an important piece of a town's identity. In Newton, Iowa, the historic Hotel Maytag had become largely vacant after the closure of Maytag's manufacturing operations. Leaving the building vacant put both the historic landmark and the vitality of the city’s downtown core at risk.

The economics made the project particularly difficult. Construction costs in a small town are comparable to those in larger markets, but rental income is lower. Historic rehabilitation adds another layer of expense. HDG assembled multiple sources of financing, including state and federal historic tax credits and public investment, to make the renovation viable.

The finished building retained a mix of commercial uses, including a theater, nail salon, restaurant, bar and doctor's office, taking the property from simply residential development to a downtown destination.

Building the Next Chapter of Community Support

At Starts Right Here, a Des Moines nonprofit serving vulnerable youth, HDG is extending the model by placing housing, education and support within the same environment.

The STAY project is converting a former church into 18 studio apartments and a school. Residents will have access to high-school education, counseling, life-skills support, community college pathways and employment training under the same roof where they live.

“They cared more about the people we were trying to serve than the project itself,” says Will Keeps, founder of Starts Right Here. “They treated us as true partners, listened to our vision, and designed a project around the needs of the young people who will call STAY home.”

Translating Development Into Civic Value

The projects HDG takes on are not becoming easier. Reduced state resources, rising construction costs and continued demand for affordable, workforce and middle-income housing are making financing more difficult, particularly in smaller communities. HDG sees greater participation from cities and counties as increasingly important. Polk County, for example, committed $1 million from its housing allocation to Starts Right Here, followed by another $1 million from its general fund.

The ability to bridge financial realities with community needs has earned Hatch Development Group recognition as the Top Affordable Housing Development Company 2026, recognizing a model that makes complex housing opportunities viable while creating lasting civic value.