Iowa Finance Authority Awards More Than $13.2 Million in Federal Housing Tax Credits for the Construction of Nearly 700 Rental Homes

DES MOINES – The Iowa Finance Authority Board of Directors recently awarded a total of more than $13.2 million in federal housing tax credits to support the construction of 699 rental homes for Iowans. The eighteen rental housing projects are located in Boone, Cedar Rapids, Clinton, Council Bluffs, DeWitt, Grinnell, Johnston, Marion, Marshalltown, Shenandoah and West Des Moines.

“Housing is a leading driver of upward economic mobility for families and economic growth for 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.”

“Today’s announcement will bring two new housing projects and nearly 90 affordable rental homes to our community,” said Grinnell Mayor Dan Agnew. “Like many communities, Grinnell faces a housing shortage for our workforce and this investment means that dozens of families will now be able to access new housing options right here within our community.”

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 34 applications requesting nearly $25 million in housing tax credits in the 2021 tax credit round. IFA had a total of approximately $13.25 million available to allocate, including an allocation of more than $4 million targeted to the 12 counties impacted by the August 2020 derecho, made available through the Consolidated Appropriations Act of 2021.

The actual awards exceed $132 million because the credits are committed annually for a 10-year period.

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.