March 29, 2024

City awarded $450,000 IFA loan for Hotel Maytag

A $450,000 low-interest loan was awarded to the City of Newton for the redevelopment of Hotel Maytag by the Iowa Finance Authority on Wednesday. The loan was received though the Workforce Housing Loan program, which provides financial assistance in the form of low-cost repayable loans to cities and counties.

In total, the city is providing $2.75 million in economic development loans to the project. The award from the IFA board of directors will be used to assist the construction of nine workforce rental units.

“An important characteristic necessary for Iowa communities to thrive is having adequate housing for their workforce within a short commuting distance to their place of employment,” IFA Executive Director Dave Jamison said. “The Iowa Finance Authority is pleased to partner with the City of Newton to expand the opportunities for their workforce to both live and work in their community.”

The apartments included in the workforce housing loan will range from 488 to 943 square feet with rent anticipated to be $600 per month for studios, $745 for one-bedrooms and $835 for two-bedrooms. When completed, the building will have 36 workforce rate units and nine market rate units.

Hotel Maytag Investors, headed by Jack Hatch of Hatch Development Group, is leading the restoration efforts of the historic downtown building. The estimated $12 million project includes funding from the city through economic development loans and property tax incentives, a variety of state tax credits and federal tax credits and funds from Hatch himself. Also, all renovations to the building will adhere to historical standards as set out by the state of Iowa and federal government.

“The Hotel Maytag was initially constructed by the founder of Maytag and it serves as an important part of our history,” said Newton Mayor Mike Hansen. “The Iowa Finance Authority’s Workforce Housing Loan will provide a vital piece of financing to allow us to redevelop it into apartments, which will help us to attract and retain a qualified workforce for our growing commercial and industrial base.”

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