Iowa Finance Authority Awards Nearly $9M in Tax Credits for 595 Homes
“Housing needs look different across Iowa and the federal Housing Tax Credit program helps communities expand affordable rental options to meet those needs,” Iowa Finance Authority Director Debi Durham said.
The Iowa Finance Authority Board of Directors awarded nearly $9 million in federal housing tax credits and nearly $66 million in tax-exempt bond financing to support 595 affordable rental homes across four Iowa communities.
The funding supports four distinct developments utilizing both new construction and building conversions, businessrecord.com reported.
Council Bluffs receives 240 new apartments at Crescent Heights Apartment Homes through new construction by developer Pedcor Development Associates LLC, according to River Cities Reader.
Dubuque secures 112 apartments at The Wilmac via the conversion of an existing building, led by developers Hoppe and Son LLC and Farley and Loetscher LLC.
Waterloo obtains 87 apartments at Rath Fifteen 15 through a similar conversion project managed by 1515 Sycamore MM, LLC, and Newbury Management Company.
West Des Moines adds 156 new apartments at Central at 8th developed by Union Development Holdings, III, LLC (Annex Group).
The awards were issued through the federal 4% Low-Income Housing Tax Credit program, which marked its 40th anniversary.
The program attracts private investment by offering tax credits claimed over a 10-year period, which reduces the upfront borrowing needs for developers and helps lower rent costs for income-qualified households.
Before making the selections, the authority received six applications requesting more than $14 million in annual tax credits and nearly $104 million in tax-exempt bonds, outpacing the $90 million in available bond capacity for the funding round.
“These 595 homes add to our development pipeline and bring us closer to ensuring Iowans can afford to live where they work in every corner of the state,” Durham said in a statement reported by Opportunity Iowa.
The federal program has historically supported the development of more than 36,000 rental homes across Iowa.
Participating properties must maintain strict income limits and rent restrictions to qualify for the financing.