The Iowa Finance Authority awarded more than $11 million in federal housing tax credits Tuesday to support 781 affordable rental homes across Iowa, including projects in Cedar Rapids and Iowa City.
The agency’s board of directors approved five projects using 4% housing tax credits, which pair the state’s tax-exempt bonding authority with federal credits to finance affordable housing developments.
In Cedar Rapids, Pedcor Development Associates will develop The Atheneum, a 192-unit new construction project for families at 4010 20th Ave. SW, near the new Cedar Rapids Westside Public Library. The project received a tax credit award of $2,881,783.
Iowa City will see Central at Orchard Court, a 183-unit family development by Union Development Holdings III at 204 W. Benton St. That project received a tax credit award of $2,708,050.
“Recent federal changes to the 4% program have strengthened our ability to bring more projects forward, allowing us to award nearly twice as many units as last year and grow our pipeline at a time when Iowa needs more than 18,000 new homes by 2030,” IFA Director Debi Durham said in a statement.
The 2025 round marked the first competitive application cycle for the 4% program. IFA received eight applications requesting more than $18 million in tax credits and $125 million in tax-exempt bonds. The agency had $90 million in bonds available.
The awarded projects will receive $76.4 million in combined tax-exempt bond financing. The tax credits exceed $111 million distributed annually over 10 years.
The program follows income limits and rent restrictions similar to the 9% housing tax credit program. Federal reforms now allow more developments to qualify while using fewer bonds.
Additional awarded projects include a 160-unit family development in Des Moines and two projects in Sioux City totaling 246 units.
