Iowa Gov. Kim Reynolds and the Iowa Economic Development Authority (IEDA) announced yesterday that more than $37 million in workforce housing tax credits will be used to develop housing across the state, including in Cedar Rapids.
The awards will support 62 total housing projects across the state that are expected to create more than 2,000 residential units, according to a press release from IEDA. The Workforce Housing Tax Credit program focuses on projects that redevelop abandoned, empty, or dilapidated properties.
Cedar Rapids and Linn County will see the renovation of the former Guaranty Bank at 222 Third Street S.E. under the program. The project will create 70 market-rate apartments on five upper floors, keeping the building’s historic features while incorporating “modern and high-end efficient finishes,” according to the release. The Guaranty Bank project is one of five original Cedar Rapids redevelopments to qualify for possible funding.
The project was awarded $793,339 under the workforce housing program, with a sales tax refund of $206,661 for a total tax credit of $1 million.
A full list of the selected redevelopments in the Corridor and statewide can be found here.
“As we grow our state, our housing supply needs to keep up with demand,” Gov. Reynolds said in the release. “Iowans who live near their jobs often become more invested in their communities, and that both strengthens local economies and attracts new residents.”
IEDA received 124 applications requesting $74 million in tax credits. IEDA had $35 million available for fiscal 2025, with an additional $2 million reallocation from fiscal 2024, the release states. Project applications were scored competitively based on readiness, documented financing, community impact, and developer experience.
Of the $37 million total, $20 million was awarded for projects in small communities.
Debi Durham, director of IEDA and the Iowa Finance Authority, noted the 2024 WalletHub report that lists Iowa in first place for most affordable housing — for the second year in a row, as stated in the release.
“We want to hold onto that ranking as we build for the future,” Ms. Durham said in the release. “These incentives are critical to helping more communities attract and retain quality businesses and a diverse workforce.
Besides Linn County, other selected projects include:
- Le Mars (Plymouth County): The Overlook Apartments will sit on a formerly dilapidated site with a mix of 100 apartments and townhomes that have access to a playground and dog park.
- Muscatine (Muscatine County): The Hawkeye Lumberyard site is adjacent to downtown and will provide 65 units with views of the Mississippi River.
- Waukee (Dallas County): The Walnut Crossing Affordable Housing Development is a partnership with Greater Des Moines Habitat for Humanity and the city of Waukee to construct 48 affordable townhouses.
