Hull, Iowa — Goldfinch Grove, an affordable housing project in Hull is set to received over $800,000 in federal funding and tax credits toward their project on Third Street in Hull.
The Iowa Finance Authority (IFA) Board of Directors says federal Housing Tax Credit and HOME program awards have been given to thirteen affordable rental projects totaling more than $83.7 million to build and preserve 523 affordable housing units in nine Iowa counties.
Iowa Finance Authority Executive Director Dave Jamison says that the tax credit and HOME program awards will improve affordable housing options in communities all across Iowa, ultimately enhancing the quality of life for thousands of Iowans. He says that each of these communities will see the far-reaching benefits of these projects for generations to come.
The Hull project will consist of twelve affordable units for families, which are being built at 1612 Third Street in Hull. They are to receive nearly $204,000 in federal tax credits and a “HOME” award of nearly $609,000. Excel Development Group is building the units.
More information from the Iowa Finance Authority
Housing Tax Credits
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. IFA had more than $7.8 million to allocate in the 2015 Tax Credit Round. IFA received 23 applications requesting more than $13.2 million in Housing Tax Credits. The IFA Board of Directors awarded more than $7.8 million in Housing Tax Credits to thirteen projects. The actual awards exceed $78 million because the credits are committed annually for a 10-year period.
The U.S. Department of Housing and Urban Development allocates 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.