Governor Culver Announces Nearly $75 Million to Build, Rehabilitate Homes

Funds will create or retain nearly 1,000 affordable housing units, support construction jobs

DES MOINES, IA – August 31, 2009 – (RealEstateRama) — Governor Chet Culver today announced nearly $75 million in funding to 16 affordable housing projects that aid in the preservation or construction of nearly 1,000 housing units throughout the state. The awards were made through a combination of the Culver/Judge I-JOBS initiative, the federal American Recovery & Reinvestment Act (ARRA) and the Iowa Housing Tax Credit Program.

“In the last six months the state of Iowa has awarded more than $65 million to spur the development of affordable housing in the state,” Governor Culver said. “Today’s awards are further evidence that state government is moving quickly to allocate federal funds and funds from the I-JOBS initiative. Together, these programs are creating jobs and improving the quality of life for thousands of hard working Iowans.”

I-JOBS Affordable Housing Assistance Grant Fund
The Affordable Housing Grant Program is a $20-million provision of the Culver/Judge Administration’s I-JOBS initiative, funded with revenue bonds to help cities, counties and nonprofit organizations create housing for the elderly, low-income, persons with disabilities and public servants in critical skills shortage areas of the state. Applications are accepted on an ongoing basis until funds are exhausted. Today, four projects were awarded a total of more than $1.9 million. The Iowa Finance Authority administers the program. Additional information is available at www.ijobsiowa.gov.

The projects awarded I-JOBS Affordable Housing Assistance Grant Funds include:

Northeast Iowa Community Action Corporation

• Award: $150,000
• Construction of three single-family homes in Tripoli, Volga and West Union as a part of Northeast Iowa Community Action Corporation’s Rent to Own Program.

Iowa Valley Habitat for Humanity

• Award: $105,000
• Construction of three energy-efficient, handicap-accessible single-family homes in Iowa City.

City of Iowa City

• Award: $1 million
• Acquisition and rehabilitation of 20 single-family homes in neighborhoods surrounding the University of Iowa campus to help fulfill the affordable housing component of the UniverCity Neighborhood Partnership Program. The program is a new cooperative effort between the city of Iowa City and the University of Iowa to encourage homeownership and reinvestment in neighborhoods surrounding the university campus.

Greater Des Moines Habitat for Humanity

• Award: $697,000
• Construction of 14 single-family homes and the acquisition and rehabilitation of four additional single-family homes as part of an infill revitalization initiative in the city of Des Moines.

Housing Tax Credits
The Iowa Finance Authority Board of Directors awarded five projects a total of more than $4.5 million in Housing Tax Credits today. The actual awards exceed $45 million because the credits are committed annually for a 10-year period.

Iowa received an additional allocation of Housing Tax Credits when Congress passed the Title VII Heartland Disaster Relief Act in October 2008. These credits total more than $600 million and are available through 2010. Projects in the 78 counties that were declared Presidential Disaster Areas are eligible to receive tax credits from the allocation. IFA accepts Housing Tax Credit applications on an ongoing basis

ARRA Section 1602 Program (Exchange)
The state of Iowa received $72.7 million in Section 1602 funds as part of ARRA. Affordable housing developers who previously received an allocation of federal Housing Tax Credits may exchange those credits for cash awards to fill financing gaps. Today six projects were awarded a total of more than $25 million in Section 1602 funds.

ARRA Tax Credit Assistance Program (TCAP)
This program provides supplemental funding for projects that were allocated federal Housing Tax Credits in 2007 2008, or 2009. The state of Iowa can award approximately $18.9 million in TCAP funds. Today seven projects were awarded more than $9.8 million in TCAP funds.

Projects awarded Housing Tax Credits, ARRA Section 1602 and TCAP funds: