Federal tax credits, program loans mean new affordable renting for Iowans

The Iowa Finance Authority Board of Directors has awarded over $15 million in federal housing tax credits and HOME program loans for the construction and rehabilitation of 410 affordable rental homes for Iowa residents. These awards were made to 11 rental housing projects in Ames, Burlington, Davenport, Des Moines, Dubuque, Keokuk, Mount Vernon, Sioux City and West Burlington.

“Housing is foundational to the economic mobility of Iowans and the strength of our communities,” said Iowa Finance Authority Executive Director Debi Durham. “The financing announced today will provide hundreds of Iowa families and seniors with homes in which they can thrive in communities all throughout the state.”

Columbia Station in Burlington will receive $865,583 in tax credits for the construction of a 30 unit family housing project. Alice Place in West Burlington will receive $1,163,148 plus a state HOME Award of $500,000 for the construction of a 47 unit housing project for residents 55 and older. JB Lofts in Dubuque will receive $501,296 plus a HOME Award of $500,000 for the adaptive reuse of a 41 unit family housing project. Emri Apartments in Dubuque will receive $1,185,430 plus a HOME Award of $500,000 for the construction of a new 48 unit family housing project. Carol’s Village Gardens in Davenport will receive $843,750 plus a HOME Award of $1,000,000 for the construction of a new 30 unit family housing project. Vera French Community Mental Health Center is listed as the project’s developer.

The Internal Revenue Service makes an annual per capita allocation of federal tax credits to each state for the Federal Housing Tax Credit program. The Iowa Finance Authority allocates these credits to affordable housing developers. The developers in turn sell them to investors to generate equity for the housing developments.

The Iowa Finance Authority received 24 applications requesting over $22 million in housing tax credits for the 2023 tax credit round and had about $10 million available to disburse. The actual awards total nearly $100 million because the credits are committed annually over a 10-year period. For more information on the Iowa Finance Authority, click here.

The U.S. Department of Housing and Urban Development allocates HOME program funding among states and hundreds of localities across the country. IFA distributes Iowa’s allocation of HOME funds to eligible projects to build and preserve affordable housing. For more information on the program, click here.