The Iowa Finance Authority (IFA) Board has approve a mix of tax credits and awards to developers of affordable housing in 13 Iowa counties. IFA executive director, David Jamison, says there will end up being just over $82 million in federal Housing Tax Credits and what are called “HOME program awards” for 650 affordable housing units. “There’s two pots of money here. One is a direct federal tax credit — the other is an allocation from the federal government,” Jamison explains.
The tax credits come to the state as certificates that investors buy to get a dollar-for-dollar reduction on their tax bills. The HOME awards are the direct money paid to the developers. The IFA issued just under eight million dollars in the tax credits that can be renewed for 10 years. “When we allocate…seven-point-six million, it actually becomes over the 10-year cycle, 76 million,” Jamison explains. IFA received 44 applications requesting over 23 million dollars in Housing Tax Credits.
The IFA board issued $5.5 million in the HOME program awards. Jamison says some of the housing will be new, while some is refurbishing existing buildings. They also have what are called set asides. Money held for specific need areas for housing.
“Non-profits so that they can compete fairly. And then seniors, senior housing is a big need in Iowa with an aging demographic. And then rural setasides — a lot of times smaller communities are struggling to meet their house needs as well. So we set aside some for the smaller communities,” Jamison says.
Affordable housing is generally defined as housing that costs a family no more than 30-percent of their income.
“Part of the deal to continue to get these credits every year for 10 years, is that you have to remain compliant,” Jamsion says. “And there is a lot of monitoring for compliances — that these units are indeed going to the people that need them. And that indeed the rents are within the limits.”
Jamison says overall Iowa has done better with providing affordable housing than some states, and this program helps fill in some of the gaps.
Here are the 2014 Housing Tax Credit, HOME awards:
Regency Villa Apartments, Atlantic
Tax Credit award: $195,000
Commonwealth Senior Apartments, Cedar Rapids
Tax Credit award: $722,866
Kingston Village, Cedar Rapids
Tax Credit award: $678,154
Hilldale Estates, Denison
Tax Credit award: $686,011
United Manor, De Witt
Tax Credit award: $417,299
HOME award: $1,000,000
Fairfield Park I Apartments, Fairfield
Tax Credit award: $190,393
Fairfield Park Apartments II, Fairfield
Tax Credit award: $182,346
Spaulding Lofts, Grinnell
Tax credit award: $604,500
Villas at Fox Pointe, Knoxville
Tax Credit award: $800,000
Legacy Manor of Mason City II, Mason City
Tax Credit award: $698,683
HOME award: $1,000,000
Prairie Heights, LLC, Orange City
Tax Credit award: $284,667
HOME award: $550,000
The Reserves at Ironwood, Oskaloosa
Tax Credit award: $756,168
Call Terminal II, Sioux City
Tax Credit award: $394,550
HOME award: $1,000,000
The Reserves at Briarwood, Washington
Tax Credit award: $389,355
HOME award: $999,000
Hotel President, Waterloo
Tax Credit award: $693,901