Iowa Finance Authority Awards Housing Tax Credits to Advance 595 Affordable Rental Homes in Council Bluffs, Dubuque, Waterloo and West Des Moines

DES MOINES - The Iowa Finance Authority (IFA) Board of Directors today awarded nearly $9 million in federal housing tax credits to help create 595 affordable rental homes in Council Bluffs, Dubuque, Waterloo and West Des Moines. The four developments will provide affordable rental homes for income-qualified individuals and families through both new construction and the conversion of existing buildings into apartments.

"Housing needs look different across Iowa and the federal Housing Tax Credit program helps communities expand affordable rental options to meet those needs," said IFA Director Debi Durham. "These 595 homes add to our development pipeline and bring us closer to ensuring Iowans can afford to live where they work in every corner of the state."

The federal Low-Income Housing Credit program marked its 40th anniversary last month. It is one of the nation's most effective tools for financing affordable rental housing and has supported the development of more than 36,000 rental homes in Iowa.

The program attracts private investment by offering federal tax credits claimed over 10 years. That upfront investment reduces the amount developers must borrow, helping them offer lower rents. Participating properties must meet income limits and rent restrictions.

The program offers 9% and 4% credits. Today's awards are through the 4% program, which pairs tax credits with tax-exempt bonds. The selected developments will receive nearly $66 million in bond financing.

IFA received six applications requesting more than $14 million in annual tax credits and nearly $104 million in tax-exempt bonds, exceeding the $90 million in bond capacity available for the round. The four developments were selected through a competitive scoring process.

View Awarded Developments

Iowa Finance Authority Communications Team