(Radio Iowa) – The Iowa Economic Development Authority is awarding Habitat for Humanity more than 700-thousand dollars in tax credits to build an affordable housing project in the central Iowa town of Waukee.

Walnut Crossing will be the organization’s first townhome development in the Des Moines metro area. Lance Henning, C-E-O of Greater Des Moines Habitat for Humanity, says the new units will help fill a big gap in the suburban housing market. Henning says, “There just aren’t very many opportunities that are in a price point for a large portion of the population that works there and a large portion actually of folks that are trying to stay there and live there but are paying way too much for their housing right now.” The 48 units are still in the design phase, but will contain three to four bedrooms each.

And, like Habitat’s other homeownership plans, buyers must earn 80-percent or less of the area median income in order to qualify. Henning says there’s a high demand for affordable units in the Waukee area.  “We’re excited about the way this partnership is between the community and Habitat for Humanity,” Henning says. “It doesn’t answer all the housing challenges on there but it’s a great step in the right direction.”

Habitat For Humanity Townhome at Baldwin Court in Council Bluffs (Conceptual drawing)

Part of the incentives will come as tax benefits through a state program that supports housing projects on empty or dilapidated land. Construction is expected to start near the end of next year with the first set of units completed in early 2026.