(DES MOINES) – The Iowa Finance Authority Board of Directors today (Wednesday), awarded a total of more than $10.6 million in federal housing tax credits to support the construction and rehabilitation of a total of 404 affordable rental homes for Iowans. The awards were made to 10 rental housing projects located in Burlington, Charles City, Davenport, Des Moines, Jefferson, Knoxville, Mount Pleasant, Oskaloosa and Spirit Lake.

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 27 applications requesting nearly $30 million in housing tax credits in the 2024 tax credit round. IFA had a total of approximately $10.8 million available to allocate. The actual awards total nearly $106 million because the credits are committed annually for a 10-year period.

In addition to the federal housing tax credit awards, the projects received a total of $4.8 million in HOME program funds and a total of $2 million in National Housing Trust Fund and Senior Living Revolving Loan Funds.

“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.”

“The Carrie Lane Place development will bring 40 additional apartments to Charles City, enabling our workforce to live closer to where they work and creating positive ripple effects,” said City of Charles City Administrator Steven Diers. “We’re proud of our Iowa Thriving Communities designation, which we’re leveraging as a catalyst for both housing and economic growth.”

The full awards list is available here.