On August 20, the Iowa Economic Development Authority (IEDA) announced it has awarded $37 million in workforce housing tax credits to 62 housing projects across Iowa. Iowa's Workforce Housing Tax Credit encourages development and rehabilitation of housing in Iowa.
In Polk County, 3 projects were awarded a combined $1.57 million for 221 total housing units. They include Uptown Commons, The Commons at Highland Park, and Linc IV Apartments, all in Des Moines.
In Warren County, 3 projects were awarded a combined $1.79 million for 114 total housing units. They include Callaway Townhomes in Norwalk, Great Western Cottages in Cumming, and Schoolyard Development in Indianola.
In Dallas County, Greater Des Moines Habitat for Humanity's effort to construct affordable townhomes in Waukee was awarded $720,000 in credits for this 48 unit project.
IEDA again reported that the applications for credits far exceeded the amount available. The authority received $74 million in credit allocations and had $35 million in annual credits to allocate plus $2 million to reallocate from prior years. IEDA scores projects competitively "based on readiness, documented financing, community impact, and developer experience."
Receipt of the tax credit does not require that future residents of the property will need to meet income guidelines; however, to qualify for credits, project costs per unit are capped depending on the type of project. For multi-family housing in an urban area in FY2024, the cap was $241,643/unit.
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