The Iowa Finance Authority Board of Directors today awarded a total of nearly $10 million in federal housing tax credits to support the construction of a total of 385 affordable rental homes for Iowans. The awards were made to 11 rental housing projects located in Adel, Audubon, Bondurant, Boone, Carroll, Cedar Rapids, Davenport, Grinnell, Hiawatha, Ottumwa and Winterset.
“Housing is foundational to the economic mobility of Iowans and the strength of 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 in urban and rural communities all throughout the state.”
“The addition of the 35 rental homes to be constructed at the Villas at Fox Pointe Audubon will provide dozens of families with an affordable place to call home right here within our community,”
said City of Audubon Mayor Barb Jacobsen. “This investment in Audubon will spur many economic ripple effects as more of our workforce will be able to live near where they work.”
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 24 applications requesting more than $20 million in housing tax credits in the 2022 tax credit round. IFA had a total of approximately $10 million available to allocate.
The actual awards total nearly $100 million because the credits are committed annually for a 10-year period.