1. Carolann Jensen Chief Programs Officer Iowa Finance Authority
Housing Programs
Carolann Jensen
Chief Programs Officer
Iowa Finance Authority

2. Iowa Finance Authority
State of Iowa’s Housing Finance Agency
Enhance the quality of life for Iowans by making affordable financing possible for home and community.

3. Iowa Finance Authority
Affordable Rental
Homelessness
Affordable Homeownership
Title Guaranty
Community Development
Water Quality
Iowa Agricultural Development Division

4. Summary State Profile Workforce Housing Loan Program LIHTC HOME
Multifamily Loan Program

5. What Is A State Profile?
Easily accessible centralized collection of the most relevant demographic, economic, and housing data for a variety of jurisdictional levels across the state.
Data will be presented for the State, 9 Regions, 99 Counties and the 28 largest cities.
Reports for all jurisdictions will be published and made freely available online.
An online interactive Dashboard will present the data in a user friendly format for users to explore trends, download data and reports.
Interactive and downloadable charts, tables and novel displays of data.
Aimed at city, county and state planners, developers, Realtors, housing advocates and others interested in the health and change in Iowa’s housing markets, economy and population.

6. City Analysis For Iowa
Populations by Cities
State of Iowa
2010 Census
City
Population
Des Moines
203,433
Cedar Rapids
126,326
Davenport
99,685
Sioux
82,684
Waterloo
68,406
Iowa City
67,862
Council Bluffs
62,230
Ames
58,965
Dubuque
57,637
West Des Moines
56,609
Ankeny
45,582
Urbandale
39,463
Cedar Falls
39,260
Marion
34,768
Bettendorf
33,217
Mason
28,079
Marshalltown
27,552
Clinton
26,885
Burlington
25,663
Fort Dodge
25,206
Ottumwa
25,023
Muscatine
22,886
Coralville
18,907
Johnston
17,278
Clive
15,447
Newton
15,254
Indianola
14,782
Altoona
14,541
WES will include analysis and data for all 28 Iowa cities with populations above 14,000, as reported in the 2010 census, as shown in the table at right.

7. Areas of Analysis:
Demographics - Exploring population changes by gender, race and age.
Economics - Evaluation of current and historical workforce and wage data.
Housing - Examining housing production, household composition and housing problems (as defined by HUD).
Rental Vacancy Survey - Collect timely information on the current state of the rental housing market.
Housing Demand Forecast - Estimating current and future household demand.

8. Iowa Dashboard Main Dashboard Feature include:
Area by Area comparisons, i.e County vs. Region
Interactive and downloadable charts
Download all reports, Statewide, County, City, etc.
Statewide overview function, how do regions, counties or cities compare?
Interactive Mapping and Bubble Cloud
Data Download section: download raw data for your own use
Interactive Long Read creates a profile/dashboard mashup

9. Workforce Housing Loan Program
New program created in 2015 – total of $5 million.
IFA provides a loan to cities and counties that demonstrate a need for additional workforce rental housing for families as a result of employment growth within the local unit of government’s jurisdictional boundaries.
Maximum loan will be the lesser of $1 million or $50,000 per assisted unit.
Units limited to households earning 140 percent or less of the statewide median income - $95,000
Rents must be commiserate with market conditions.
Tenant income limitations will remain in place throughout the term of the loan or 5 years, whichever is greater.
One percent interest with a maximum term of 20 years.

10. WHLP Approved Projects
Forest City (pop. 4,002):
New construction, 36 units,
$751,000 WHLP
$190,411 FCED land/cash
$300,000 city grant
$350,000 Workforce Housing Tax Credits
$1,100,000 investors (sold shares to local investors)
$1,500,000 conventional loan

11. WHLP Approved Projects
West Des Moines (pop. 61,255):
Adaptive reuse of Phenix School
17 units of which 13 will be workforce housing,
$625,000 WHLP plus
$3,000,000 CDBG DR,
$300,000 developer loan
$855,000 city funding

12. WHLP Approved Projects
Mount Pleasant (pop. 8,662):
New construction, 24 units,
$1,000,000 WHLP
$1,000,000 conventional loan

13. What Does Affordable Mean?
Polk County
1 Person
2 Person
3 Person
4 Person
5 Person
6 Person
7 Person
8 Person
60% Average Median Income
$32,340
$36,960
$41,580
$46,140
$49,860
$53,580
$57,240
$60,960
80% Average Median Income
$43,050
$49,200
$55,350
$61,500
$66,4500
$71,350
$76,300
$81,200
0 Bedroom
1 Bedroom
2 Bedroom
3 Bedroom
4 Bedroom
Rent
$810
$867
$1,041
$1,203
$1,342
Winnebago County
$26,640
$30,420
$34,200
$37,980
$41,040
$44,100
$47,100
$50,160
$35,500
$40,550
$45,600
$50,650
$54,750
$58,800
$62,850
$66,900
$666
$713
$855
$987
$1,102

14. LIHTC
IFA receives an annual amount of tax credits based upon a statutory dollar amount per state population.
$7,366,528 ($2.35 X 3,134,693)
IFA’s Qualified Allocation Plan (QAP) details the allocation threshold requirements, selection criteria, and housing priorities.
Developers submit on-line applications in November each year for the competitive 9% allocation round. Awards go before the IFA Board in March.

15. LIHTC
Provides tax incentives to corporate investors who invest in the development, acquisition, and rehabilitation of affordable rental housing.
The investor incentive is the ability to claim tax credits on their federal income tax returns annually over a 10-year period.
Equity generated from the sale of the tax credits reduces the owner’s debt which allows the project to charge lower rent and still be a financially viable affordable housing project.
The tax credit is calculated as a percentage of costs incurred in developing the project.

16. Basic Structure of a Tax Credit Project
LIHTC
Basic Structure of a Tax Credit Project
with Direct Investor
Application for tax credits
LIHTC
Investor
Developer
Equity Investment
Tax credits & Other tax benefits
IFA
Allocation of tax credits
Tax Credit Project
General Partner/managing member .01% & Limited Partner 99.99%

17. HOME
HOME is the largest federal block grant designed exclusively for state and local governments to create affordable housing.
IFA is the State’s Participating Jurisdiction (PJ) - receive approximately $5 million annually.

18. HOME Project Types: Rental – Acq/rehab, new construction
Tenant Based Rental Assistance (TBRA) – Awardees are nonprofits or governmental entities
Homebuyer Assistance - Awardees are nonprofits or governmental entities

19. HOME Homebuyer: Applicants are nonprofits and governmental entities.
Entities must verify the individual’s income and ability to pay.
Downpayment assistance
Acq. and Rehab. limited to $37,500 with hard construction costs limited to $24,999.
Long-term affordability:
Less than $15,000/unit = 5 years
$15,000 - $39,999/unit = 10 years

20. Multi-Family Construction Loan:
Eligible for new construction, acq. rehab. or adaptive reuse.
Requires a first lien position – 100% construction performance bond and personal/corporate guaranties may be required.
Projects to be financed must be able to maintain financial feasibility and affordability.
Minimum of 75% of the units are rent and income restricted – number based on percentage of project financed by IFA.

21. Multi-Family Permanent Loan:
Project may be new construction, acq. rehab. or adaptive reuse.
Loan to Value not to exceed 90%.
Requires a first lien position.
Projects to be financed must be able to maintain financial feasibility and affordability through the loan term.
Maximum loan term is 30 years; Maximum loan amortization is 40 years.
Fixed or variable rate available.
Minimum of 75% of the units are rent and income restricted – number based on percentage of project financed by IFA.

22. Questions

23. Email: carolann.jensen@iowa.gov
Follow IFA:
IowaFinanceAuthority.gov