Iowa Finance Authority awards more than $2.73 million for 125 rental homes in Corridor

Statewide awards total more than $13.2 million for construction of nearly 700 units

The Iowa Finance Authority board of directors recently awarded more than $2.73 million in federal housing tax credits to support the construction of 125 rental homes in Cedar Rapids and Marion.

The awards were part of more than $13.2 million in tax credits for construction of 699 rental homes for Iowans. Overall, the 18 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.”

The Corridor projects receiving grant funding:

  • Cedar Rapids Brickstone LLLP, 627 Sixth St. SE, 43 units for families, $840,000 total tax credit, Hatch Development Group.
  • Tulip Tree Apartments, 1330 East Post Road in Marion, 36 units for seniors 55-plus, $708,412 total tax credit, Community Housing Initiatives Inc.
  • Vive, 925 Kirkwood Parkway SW, 46 units for seniors 55-plus, $824,287 total tax credit, St. Michael Development Group LLC and Belisle Development LLC.
  • Total Cedar Rapids and Marion projects: 125 units, $2,372,699 in tax credits.

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.