Fourteen-Unit Rental Project Planned In Orange City Gets Nearly $835,000 In Federal Funds
Date posted - March 12, 2014
Des Moines, Iowa — A planned housing complex in Orange City has just been advised that they will receive nearly $835,000 in federal funds. The Iowa Finance Authority, or “IFA” Board of Directors has announced affordable housing awards to fifteen affordable rental projects in Iowa totaling more than $82.4 million in federal Housing Tax Credits and HOME program awards to build and preserve 650 affordable housing units in thirteen Iowa counties. Among them is the 14-unit complex in Orange City.
Iowa Finance Authority Executive Director Dave Jamison says that the tax credit and HOME program awards will improve affordable housing options for Iowans, including providing more options to fit the needs of seniors and persons with disabilities. He says that these projects have leveraged an additional $8.2 million in local contributions, which shows that communities understand the benefits of these projects.
The Internal Revenue Service makes an annual per capita allocation of federal tax credits to each state for the Housing Tax Credit program. IFA is charged with allocating those credits to developers of affordable housing in Iowa. 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 U.S. Department of Housing and Urban Development allocates approximately $2 billion in HOME program funding among states and hundreds of localities nationwide. IFA allocates Iowa’s allocation of HOME funds to eligible entities to build and preserve affordable housing.
The IFA Board of Directors approved more than $5.5 million in State HOME funds to support six rental housing tax credit projects on Wednesday.
The Orange City complex is being called Prairie Heights, LLC. It will be at 900 Fourteenth Street Southeast. Fourteen affordable units for families are planned. The Tax Credit award is for nearly $285,000, and the HOME award is for $550,000. It is being developed by Excel Health Services, doing business as Excel Development Group.