Gov. Reynolds and the Iowa Economic Development Authority (IEDA) today announced more than $37 million in workforce housing tax credits to develop housing across the state. The awards will support 62 housing projects that are expected to create more than 2,000 residential units.
 
“As we grow our state, our housing supply needs to keep up with demand,” Reynolds said. “Iowans who live near their jobs often become more invested in their communities, and that both strengthens local economies and attracts new residents.”
 
Debi Durham, director of IEDA and the Iowa Finance Authority, pointed to the recently released 2024 WalletHub report that lists Iowa in first place for most affordable housing — for the second year in a row.
 
“We want to hold onto that ranking as we build for the future,” Durham said. “These incentives are critical to helping more communities attract and retain quality businesses and a diverse workforce.”
 
IEDA received 124 applications requesting $74 million in tax credits. IEDA had $35 million available for fiscal 2025, with an additional $2 million reallocation from fiscal 2024. Project applications were scored competitively based on readiness, documented financing, community impact, and developer experience.
 
Of the $37 million total, $20 million was awarded for projects in small communities.  Two projects were funded in Knoxville.

Among the selected projects:
 
Cedar Rapids (Linn County) — Renovation of the former Guaranty Bank will create 70 market-rate apartments on five upper floors. Plans include keeping the building’s historic features while incorporating modern and high-end efficient finishes.
 
Le Mars (Plymouth County) — The Overlook Apartments will sit on a formerly dilapidated site with a mix of 100 apartments and townhomes that have access to a playground and dog park.
 
Muscatine (Muscatine County) — The Hawkeye Lumberyard site is adjacent to downtown and will provide 65 units with views of the Mississippi River.
 
Waukee (Dallas County) — The Walnut Crossing Affordable Housing Development is a partnership with Greater Des Moines Habitat for Humanity and the city of Waukee to construct 48 affordable townhouses.
 
The Workforce Housing Tax Credit program has a focus on projects that redevelop abandoned, empty, or dilapidated properties. For more program information, visit iowaeda.com/workforce-housing-tax-credit.