Des Moines, IA – The Iowa Finance Authority (IFA) Board of Directors today awarded more than $11 million in 4% federal housing tax credits to support the construction and rehabilitation of 781 affordable rental homes across five projects in Cedar Rapids, Des Moines, Iowa City and Sioux City.
“Recent federal changes to the 4% program have strengthened our ability to bring more projects forward, allowing us to award nearly twice as many units as last year and grow our pipeline at a time when Iowa needs more than 18,000 new homes by 2030,” said IFA Director Debi Durham.
The 4% Housing Tax Credit program pairs the state’s tax-exempt bonding authority with federal tax credits to help finance affordable housing developments. Similar to the 9% Housing Tax Credit program, it follows income limits and rent restrictions. Demand for the 4% program has grown significantly and federal reforms now allow more developments to qualify while using fewer bonds, substantially increasing the number of affordable housing projects that can proceed in Iowa…