March 29, 2024

Newton housing projects denied IFA tax credits

Three Newton housing projects that applied for tax credits from the Iowa Finance Authority did not receive funding, IFA announced Thursday.

The IFA Board of Directors awarded federal housing tax credits to 11 rental projects totaling more than $73.6 million in equity to build and preserve 513 housing units in Boone, Bremer, Clay, Dubuque, Linn, Polk, Wapello and Woodbury counties.

Developers interested in building in Newton included Miller-Valentine and Cohen-Esrey, which proposed building separate 48-unit and 38-unit apartments in downtown Newton. The third project was a $4 million renovation of McCann Village by Wishrock Housing Partners.

“It is disappointing because we really wanted to make an effort to have more high-quality rentals that were affordable for the citizens and the workforce here,” city director of finance and development Bryan Friedman said. “From preliminary conversations with some of the applicants, they are ready to try again and willing to make another effort at this whether through a different program or through next year’s round. There is still strong interest in the Newton market from these developers to meet the need that they know is there for the demand of new, high-quality apartments or renovated ones in the case of the McCann project.”

Projects included in the 2017 credit allocation include 48 units for senior housing in Boone, two affordable family buildings with 78 units in Cedar Rapids, 40 units for housing the homeless in Des Moines, two affordable family apartment complexes with 75 total units and a 25 unit senior housing project in Dubuque, 46 affordable units in Ottumwa, 41 family units in Sioux City, 91 senior units in Spencer and a 30 loft unit in Waverly.

“We know this is competitive, there were 25 applicants,” Friedman said. “We will see how these projects proceed but it is good that there is still interest on the part of the developers in investing in Newton.”

The proposed units would have been subject to income requirements including 60 percent occupancy for a single person making no more than $27,360 or $39,060 for a family of four. Both projects also offered multiple market-rate apartments in the buildings.

Newton previously received funding through IFA for the Newton Place Apartments project. The 52-unit senior housing development was completed in 2015 by Miller-Valentine with vacancy at a minimum since opening to residents.

Contact Jamee A. Pierson at 641-792-3121 ext. 6534 or jpierson@newtondailynews.com