Governor Culver Announces Federal Assistance for Housing Initiatives in Creston, Altoona, Dubuque, West Des Moines

Housing Tax Credits and federal stimulus benefit Iowans in communities around the
state

DES MOINES, IA – June 14, 2010 – (RealEstateRama) — Governor Chet Culver today announced that projects in Creston, Altoona and Dubuque will share an award of more than $2.6 million in federal Low-Income Housing Tax Credits to create 135 units of affordable housing. Likewise, a 55-unit housing development in West Des Moines will receive $3,084,299 in Section 1602 funds. A part of the federal American Recovery and Reinvestment Act, the Section 1602 program allows affordable housing developers to exchange some of their original tax credit allocation for cash to finance the construction of their project. The Iowa Finance Authority (IFA) administers both the Low-Income Housing Tax Credit Program and the 1602 Program.

“I’m especially pleased to announce today’s awards because each of these developments will create safe, decent and affordable housing for older Iowans,” Governor Culver said. “The eventual completion of these affordable housing properties will mean new opportunities for Iowa’s seniors to enjoy the housing and related supportive services they deserve.”

Annually, the Internal Revenue Service makes a per capita allocation of federal tax credits to each state as part the Low-Income Housing Tax Credit program. IFA is charged with allocating those credits to developers of affordable housing in Iowa. In 2010, IFA has more than $31 million to allocate, although the actual awards exceed $310 million because the credits are committed annually for a 10-year period. This total includes a combination of “per capita” credits and a special allocation of Disaster Tax Credits, intended to help the state recover from the natural disasters of 2008. Developers who receive tax credits sell them to investors to generate equity for the housing developments. The tax credits provide a dollar-for-dollar reduction to the investor’s federal tax liability on ordinary income.

Visit www.IowaFinanceAuthority.gov to learn more about Housing Tax Credits and the 1602 Program. These projects were approved to receive Housing Tax Credits today:

The Iowana, Creston
203 W Montgomery Street
24 units of housing for people older than 62
Rehabilitation
Award: $393,151
Developer: MetroPlains LLC, 651-523,1240

Meadow Vista Senior Villas, Altoona
Address is TBD
50 units of housing for people older than 55
New construction
Award: $1,041,520
Developer: MV Residential Development, LLC, 513-588-1257

Dubuque Senior Apartments, Dubuque
Address is TBD; site is located west of intersection of Sylvan and Bies Drives
61 units of housing for people older than 55
New construction
Award: $1,187,356
Developer: 3 Diamond Development, 847-677-7206
This project was approved today to receive federal 1602 funds:

Crestview Acres, West Des Moines
916 Ashworth Road
55 units of housing for people older than 62
Acquisition/Rehabilitation
Award: $$3,084,299
Owner: Crestview Terrace, LLLP

Contact:
Shawna Lode, Iowa Finance Authority
(515) 725.4897
shawna.lode (at) iowa (dot) gov
Polly Carver-Kimm, Governor’s Office
(515) 281.0173
polly.carver-kimm (at) iowa (dot) gov

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