Low-income housing plans get $10 million in tax credits

Fifteen developers have received about $10 million in tax credits to create affordable housing for low-income residents in Iowa, including eight projects in the Des Moines area, the Iowa Finance Authority's board said.

Altogether, the tax credits will help create or rehabilitate nearly 800 units of affordable housing, the group said. The federal tax credits, provided annually over 10 years, will grow to about $103 million.

Developers sell the federal tax credits to investors to reduce the cost of creating low-income housing.

The state, which awards and administers the tax credit program, also received $9 million from the federal HOME Investment Partnerships Program this year to help improve homeownership and provide rental assistance.

Additionally, the city of Des Moines recommended allocation of $543,000 of its HOME funding to local projects.

Among the projects receiving tax credits, and possibly HOME awards:

Capitol City Duplexes: Community Housing Initiative plans to purchase and rehab 16 affordable units for families at 3600-3602 S.E. 11th St. in Des Moines; tax credit award of $239,856; state HOME award of $593,995; Des Moines HOME award, pending council approval, $198,040.

Cornerstone Commons: Silverstone Partners plans to build 55 affordable units for tenants 62-plus at 6365 Merle Hay Road, Johnston; tax credit award, $935,187.

Crane Artist Lofts: LWO Development plans to buy and rehab 29 affordable units for families at 1440 Walnut St., Des Moines; tax credit award, $502,398.

Greystone Homes Development: Hatch Development Group plans to build 26 affordable homes with a rent-to-own feature north of downtown Des Moines; tax credits, $701,142; state HOME award, $720,000; Des Moines HOME award, pending council approval, $150,000.

Dovetail Family Housing: Developer Tom Monico plans to build 50 affordable units for families in Grimes; tax credit award, $978,548.

Fletcher Estates Apartment Homes: Pedcor Development Services plans to build 48 affordable units for people with disabilities at 205 N.E. Hayes Drive, Ankeny; tax credit award, $838,480.

Forest & Fields: Anawim Housing plans to build 28 affordable units for families at 2104 Forest Ave. and 4465 N.E. 46th St., Des Moines; tax credit award, $580,804.

2011 Iowa LIHTC Awards

IOWA FINANCE AUTHORITY ANNOUNCES MORE THAN $111 MILLION IN HOUSING AWARDS TO SPUR NEARLY 800 AFFORDABLE HOUSING UNITS

Federal Housing Tax Credits, HOME funding boost affordable housing throughout the state

DES MOINES – The Iowa Finance Authority (IFA) today announced awards of more than $111 million to build or rehabilitate nearly 800 units of affordable housing. The awards were granted from the federal Housing Tax Credit and HOME programs.

“The affordable housing awards announced today will not only provide thousands of Iowans with quality affordable housing opportunities for generations to come, but will also help to stimulate neighborhoods and communities throughout the state,” said Executive Director Dave Jamison. “I congratulate the developers and organizations awarded the vital funding to move their projects forward today and thank them for sharing in IFA’s commitment to safe, decent and affordable housing for all Iowans.”

Housing Tax Credits

The Internal Revenue Service makes an annual per capita allocation of federal tax credits to each state as part the Housing Tax Credit program. IFA is charged with allocating those credits to developers of affordable housing in Iowa. In 2011, IFA has more than $10.5 million to allocate. Developers who receive tax credits sell them to investors to generate equity for the housing developments. The tax credits provide a dollar-for-dollar reduction to the investor’s federal tax liability on ordinary income.

IFA received 59 applications requesting more than $37 million in housing tax credits. The IFA Board of Directors today awarded more than $10.3 in housing tax credits to fifteen projects. The actual awards exceed $103 million because the credits are committed annually for a 10-year period. The remaining 2011 credits will be used to assist current housing tax credit projects that are under construction and have incurred cost increases.

HOME Program

The U.S. Department of Housing and Urban Development allocates approximately $2 billion in HOME program funding among states and hundreds of localities nationwide. IFA was allocated more than $9 million in HOME funding in 2011 to assist both housing tax credit projects, and non-housing tax credit projects such as homeownership, rental and tenant-based rental assistance initiatives.

In addition, the City of Des Moines is recommending allocation of $543,000 of their HOME funding to the Des Moines City Council to assist housing tax credit projects. Three housing tax credit projects will benefit from this funding. All housing tax credit funding awards are listed by-project below.

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