Governor Culver Announces Award of $5 Million in Federal Tax Credits for Affordable Housing Development

Low-Income Housing Tax Credits benefit Iowans in communities large and small

DES MOINES, IA – May 13, 2010 – (RealEstateRama) — Nine projects in eastern, western and central Iowa will receive approximately $5 million in federal housing tax credits to build or rehabilitate 312 units of affordable housing, Governor Chet Culver announced today.

“Today’s award of Low-Income Housing Tax Credits will allow developers to build and rehabilitate vital affordable housing units, not only creating safe, decent and affordable homes for hundreds of Iowans but also creating jobs from many more people,” Governor Culver said. “I’m also pleased that developments in communities as small as Woodbine and as large as Des Moines can benefit from these credits. Affordable housing not only strengthens local and state economies, but it also provides stability and a sense of pride for the residents who live in it.”

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. The Iowa Finance Authority (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.

The IFA Board of Directors will consider additional Low-Income Housing Tax Credit awards at their meeting in June.

These projects were approved today:

Fort Des Moines Senior Housing, Des Moines
500 Block of Army Post Road
60 units of housing for people older than 55
New construction
Award: $1,013,704
Developer: Akers Holding, LLC, (515) 210-9519

Olive Street Brickstone Housing, Des Moines
Block of 18th and Olive Avenue
21 units of housing for families
New construction
Award: $323,083
Developer: Olive Street Brickstones, LLC, (515) 986-5500

South View Senior Apartments II, LLC, Des Moines
1900 SE 6th
40 units of housing for people older than 55
New construction
Award: $660,873
Developer: Curly Top, LLC, (515) 577-0926

Christ the King Senior Housing, Des Moines
5601 SW 9th Street
28 units of housing for people older than 55
New construction
Award: $510,244
Developer: Christ the King Housing Services, (515) 285-2888

MLK Brickstone II, LP, Des Moines
1051 19th Street
30 units of housing for families
New construction
Award: $543,681
Developer: Hatch Development Group, (515) 243-4675

Mitchellville Park Apartments, Mitchellville
401 Center Avenue South
24 units of housing for families
Rehabilitation
Award: $138,391
Developer: National Affordable Housing Foundation, (515) 225-3500

Legacy Manor or Waterloo, Waterloo
1100 Flammang Drive (approximately)
60 units of housing for people older than 55
New construction
Award: $1,048,399
Developer: Anchor Housing Development, LLC, (815) 540.4733

Woodland West, West Des Moines
3405 Woodland Avenue Office
38 units of housing for families
Rehabilitation
Award: $618,957
Developer: Newbury Management Company, (515) 698-9700

428 Walker, Woodbine
428 Walker Street
11 units of housing for families
Rehabilitation
Award: $163,110
Developer: Smith Project Management, LLC, (712) 592-1722