Iowa Finance Authority Awards $9M in Tax Credits for 595 Affordable Homes

The Iowa Finance Authority (IFA) has awarded nearly $9 million in federal low-income housing tax credits to fund 595 affordable rental homes across four Iowa cities.

This funding, distributed through the 4% LIHTC program, will support new construction and the adaptive reuse of existing buildings in Council Bluffs, Dubuque, Waterloo, and West Des Moines.

These awards arrive as the federal Low-Income Housing Credit program celebrates its 40th anniversary, having already supported more than 36,000 rental homes throughout the state, according to Opportunity Iowa. By offering tax credits that developers can claim over a 10-year period, the program incentivizes private investment and lowers the amount of debt developers must carry, which in turn helps keep rents affordable for income-qualified residents.

“Housing needs look different across Iowa, and the federal housing tax credit program helps communities expand affordable rental options to meet those needs,” said Debi Durham, IFA director.

Apartment Building Rendering — Photo: opportunityiowa.gov

“These 595 homes add to our development pipeline and bring us closer to ensuring Iowans can afford to live where they work in every corner of the state,” Durham added.

The scale of interest in this funding round suggests a significant gap between the need for affordable housing and the available financial resources. The IFA received six applications requesting more than $14 million in annual tax credits and nearly $104 million in tax-exempt bonds. This demand exceeded the $90 million in bond capacity available for this specific round, necessitating a competitive scoring process to select the final projects, as reported by RC Reader.

The selected developments will collectively receive nearly $66 million in bond financing. While the 4% program used here pairs tax credits with tax-exempt bonds, the federal government also offers a 9% credit tier to address different financing structures.

Kay Anderson Friend of Iowa — Iowa Finance Authority

The projects range from massive new residential builds to the creative conversion of older structures into modern apartments. The following table outlines the specific allocations for the four selected developments:

Project Name	Location	Type	Units	LIHTC Award	Bond Financing
Crescent Heights Apartment Homes	Council Bluffs	New Construction	240	~$3.5 million	$25 million
Central at 8th	West Des Moines	New Construction	156	$2.3 million	$16.7 million
The Wilmac	Dubuque	Adaptive-reuse	112	~$1.9 million	$15.6 million
Rath Fifteen 15	Waterloo	Adaptive-reuse	87	~$1.3 million	$8.7 million

In Council Bluffs, Pedcor Development Associates is leading the Crescent Heights Apartment Homes project, which stands as the largest single development in this round with 240 units. In West Des Moines, Union Development Holdings III (The Annex Group) will manage the Central at 8th new construction project.

The adaptive-reuse projects focus on breathing new life into existing buildings. In Dubuque, Hoppe & Son and Farley & Loetscher are working on The Wilmac, a 112-unit project designed for families. Similarly, in Waterloo, 1515 Sycamore MM and Newbury Management Co. are developing Rath Fifteen 15, which will provide 87 units for families.

The success of these projects depends on strict adherence to federal guidelines. All participating properties must comply with specific income limits and rent restrictions to ensure the units remain accessible to the populations they are intended to serve.

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