Close Search

Iowa Finance Authority Awards more than $8.9 Million in Federal Housing Tax Credits for the Construction of 470 Affordable Rental Homes

Affordable Housing

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 $8.9 million in federal housing tax credits to support the construction of 470 rental homes for families and seniors. The twelve projects are located in Coralville, Davenport, Des Moines, Dubuque, Indianola, Johnston, Muscatine, Pleasant Hill, West Des Moines and Wilton. “Housing is not only a leading driver of the economy, but it is foundational for Iowans’ quality of life,” 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, said Director Durham.

“Today’s announcement of the housing tax credits awarded to the new Chandler Pointe senior apartments in Wilton goes beyond a financing announcement,” said Wilton City Administrator Chris Ball.

There is a shortage of affordable senior housing in Wilton so this means our lifelong residents can now remain here and continue to take advantage of our small town environment that they love, said Ball.

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 25 applications requesting more than $17.9 million in housing tax credits in the 2020 tax credit round and IFA had approximately $9 million available to allocate.

The actual awards exceed $89 million because the credits are committed annually for a 10-year period.

Iowa Finance Authority

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.