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From the Iowa Finance Authority
NEWS RELEASE FOR IMMEDIATE RELEASE April 3, 2019
Contact: Ashley Jared 515.725-4934
Iowa Finance Authority Awards more than $8.6 Million in Federal Housing Tax Credits for the Construction of 552 Affordable Rental Homes
Twelve Projects Receive Federal Housing Tax Credits to Advance Affordable Housing
DES MOINES – The Iowa Finance Authority Board of Directors today awarded a total of more than $8.6 million in federal housing tax credits to support the construction of 552 rental homes for families and seniors. The twelve projects are located in Cedar Rapids, Dubuque, Grimes, Harlan, Marshalltown, Marion, Norwalk, Pella, Red Oak, Spencer, Urbandale and Waterloo.
“The housing tax credit awards announced today will soon have a very real impact on hundreds of Iowa families and seniors who will call them home,” said Iowa Finance Authority Executive Director Debi Durham. “Not only is affordable housing the cornerstone for thriving families but it’s also integral for thriving communities. The twelve communities awarded projects today will benefit from the positive economic ripple effects for generations to come.”
“The Marshalltown Lofts will bring critically-needed affordable housing to our community, which is of especial importance as we continue our tornado recovery efforts,” said Marshalltown Mayor Joel Greer. “This additional housing is an essential piece of our revitalization and it will help us move forward as a community stronger than ever.”
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 (IFA) received 31 applications requesting more than $22.2 million in housing tax credits in the 2019 tax credit round and IFA had approximately $8.8 million available to allocate.
The actual awards exceed $86.6 million because the credits are committed annually for a 10-year period. These projects have leveraged an additional $3.5 million in other funds, as determined by the scoring criteria within the 2019 program plan.
The Iowa Legislature created the Iowa Finance Authority in 1975 to undertake programs to assist in the attainment of housing for low- and moderate-income Iowans. Since then, the Iowa Finance Authority’s role has grown to include affordable housing, water quality and beginning farmer programs.