Governor Reynolds recently announced an additional $100 million investment to increase the supply of housing options and protect and expand housing opportunities for Iowans to live in or near the communities where they work. The funds are made available through Federal American Rescue Act State and Local Fiscal Relief Funds.
The $45 million investment into the Federal Housing Tax Credit Program is estimated to move approximately 15 housing tax credit projects forward that otherwise would not be able to proceed and is expected to create an estimated total of 700 rental homes for Iowans.
Eligible projects include developments that applied for a 2021 9% Federal Housing Tax Credit Program award but did not receive an award of tax credits. Projects will be prioritized based on scoring criteria and must be shovel ready. The financing will be paired with the federal 4% Tax Credit Program.
The $20 million investment will provide gap financing to current Workforce Housing Tax Credit Program projects to assist with the increased cost of construction building materials. These funds will help ensure that existing Workforce Housing Tax Credit projects are able to be completed, expanding housing opportunities for Iowans.
The $20 million investment into this newly created program will provide financial assistance for projects that support local downtown revitalization through the creation of new housing opportunities in communities with populations of 30,000 or less.
The $10 million investment will assist in providing a larger pipeline of skilled workers for our employers and more opportunities for homebuyers to purchase a home in their price range through the Homes for Iowa initiative. The investment will assist in material costs, the construction of a permanent shop and home moving equipment set-up that will allow the Homes for Iowa program to scale production and training efforts.
Working with community partners, the initial $4 million investment will provide income qualified homeowners with financial assistance for eligible repair expenses to help preserve their homes. The Iowa Finance Authority will accept applications from eligible communities, individual property owners are not eligible to apply directly. The application process will be competitive based on program guidelines and scoring criteria.
The initial $1 million investment will assist in breaking barriers to homeownership by providing 200 eligible Iowa minority households with assistance purchasing a home. The program will provide a $5,000 down payment and closing costs assistance grant when used with an Iowa Finance Authority mortgage program.