Iowa Finance Authority awards millions in tax credits for rental home construction in Davenport, Burlington

Affordable housing in Iowa is getting a major boost from the Iowa Finance Authority, which is financially supporting the construction of over 400 rental homes in the state.

The Iowa Finance Authority Board of Directors awarded over $10.6 million in federal housing tax credits for the construction and rehabilitation of 404 affordable rental homes for residents. The awards went to 10 rental housing projects in Burlington, Charles City, Davenport, Des Moines, Jefferson, Knoxville, Mount Pleasant, Oskaloosa and Spirit Lake.

• Timber Ridge, on W. 54 ^th Street in Davenport, received a $1,287,000 credit award and $400,000 in HOME funding for the construction of 52 units for people 62 and over.

• Annie Wittenmeyer Family Apartments, on Wittenmeyer Lane in Davenport, received a $1,264,999 credit award and $500,000 in HOME funding for the adaptive reuse of 46 units.

• The Apollo, on Valley Street in Burlington, received a $1,163,052 credit award and $500,000 in HOME funding for the adaptive reuse of 45 units for people 55 and over.

“Housing is fundamental to the economic mobility of Iowans and the vitality of our communities,” said Iowa Finance Authority Director Debi Durham. “Congratulations to all nine communities receiving tax credits today, with a special recognition to the four designated as Iowa Thriving Communities, Charles City, Jefferson, Knoxville and Oskaloosa for their exceptional efforts in leveraging innovative practices to attract housing opportunities for their workforce.”

Every year, the Internal Revenue Service allocates federal tax credits, per capita, for each state for the Federal Housing Tax Credit program. The Iowa Finance Authority distributes those credits to affordable housing developers. Developers who receive tax credits sell them to investors to generate funding for the housing developments. The projects received $4.8 million in HOME program funds and $2 million in National Housing Trust Fund and Senior Living Revolving Loan Funds.

The Iowa Finance Authority received 27 applications totaling almost $30 million in housing tax credits in the 2024 tax credit round. About $10.8 million was available to allocate. The awards actually total almost $106 million because the credits are committed annually for 10 years.

Click he r e to see the entire list of award winners.

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