DES MOINES, Iowa—The Iowa Finance Authority Board of Directors recently awarded a total of more than $13.2 million in federal housing tax credits to support the construction of 699 rental homes for Iowans. The eighteen rental housing projects are located in Boone, Cedar Rapids, Clinton, Council Bluffs, DeWitt, Grinnell, Johnston, Marion, Marshalltown, Shenandoah and West Des Moines.
“Housing is a leading driver of upward economic mobility for families and economic growth for our communities,” said Iowa Finance Authority Executive Director Debi Durham. “The tax credit awards announced today will provide hundreds of Iowa families and seniors with homes in which they can thrive.”
“Today’s announcement will bring two new housing projects and nearly 90 affordable rental homes to our community,” said Grinnell Mayor Dan Agnew. “Like many communities, Grinnell faces a housing shortage for our workforce and this investment means that dozens of families will now be able to access new housing options right here within our community.”
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 is charged with allocating those credits to affordable housing developers. The developers who receive tax credits sell them to investors to generate equity for the housing developments.
The Iowa Finance Authority received 34 applications requesting nearly $25 million in housing tax credits in the 2021 tax credit round. IFA had a total of approximately $13.25 million available to allocate, including an allocation of more than $4 million targeted to the 12 counties impacted by the August 2020 derecho, made available through the Consolidated Appropriations Act of 2021.
The actual awards exceed $132 million because the credits are committed annually for a 10-year period.
Two project received tax credits in Boone. Villas at Fox Pointe will be located at the northwest corner of 22nd Street and P Avenue. This project will be new construction of 36 family houses. Tax credits amounted to $820,960. The developer has been working with the city and is MCC Development of Iowa, LLC. This is half of the original proposed project which had also included apartments at that location also. The developer is also involved with the Alice Place Apartments on the southside of Boone. The City Council has already indicated a willingness to support a development agreement for this project.
The second project approved for Boone is called The Reserves at Hawkeye and would be located at South Linn Street and Hawkeye Drive. This project would involve the construction of 43 family residential units. The tax credits amounted to $840,000 and the project is proposed by the Overland Property Group, LLC. This project may required rezoning property and the Council has not indicated support for making that change.
