6 proposed DM workforce housing projects get state tax credits
BPC Staff Sep 23, 2022 | 3:59 pm
3 min read time638 wordsAll Latest News, Economic Development, Law & Government
Six proposed Des Moines projects that would provide workforce housing for area workers have been awarded more than $3.8 million in workforce housing tax credits through an Iowa Economic Development Authority program, the agency announced.
The awards were among nearly $35 million in tax credits the state agency awarded to 57 housing projects proposed to be developed in 30 Iowa counties. The projects would create more than 2,300 housing units, a majority of which would be rentals.
“Housing is a critical part of Iowa’s efforts to attract and keep a skilled workforce, strengthen quality of life in our communities and grow the economy,” Debi Durham, executive director of IEDA and the Iowa Finance Authority, said in a prepared statement. “The awards announced today will help more communities thrive and more families move where opportunities await them.”
The state agency received 133 applications requesting nearly $79 million in tax credits. IEDA had $35 million available to distribute, $17.5 million of which was designated for projects in the state’s 88 least populated counties.
The program provides up to $1 million to developers and requires cities to match at least $1,000 per unit. The tax credits are distributed in the form of a refund of state sales, service or use taxes paid during construction, according to the agency’s website.
West Des Moines-based Hubbell Realty Co. was among the developers to receive funding through the tax credits.
The developer is considering buying land owned by the city of Des Moines at 215 S.W. Ninth St. and building a structure that would include up to 66 studio, one-bedroom and two-bedroom apartments, according to a company spokesperson and a synopsis of the project submitted to the state. The parcel is located south of Martin Luther King Jr. Parkway near Hubbell’s Gray’s Station development. “We’re working with the city and our team on next steps for development,” the spokesperson wrote in an email.
The following are details of the projects in Des Moines awarded the tax credits:
- Star Lofts, a mixed-use project at 2701 Ingersoll Ave. The three-story building will be constructed with mass timber. The second and third floors will include 20 apartments for people whose earnings are between 50% and 80% of the Polk County area median income. Developer: Cutler Development. Award amount: $400,310.
- UA Station, a mixed-use project on the site of a now shuttered convenience store with fuel pumps at 2211 University Ave. The project will include a grocery store on the street level and 24 workforce housing units on the upper levels. The apartments will be priced at attainable rents. Developer: Neighborhood Development Corp. Award amount: $452,160.
- High Street Lofts East, a 47-unit apartment building at 610 16th St., now surface parking. The building will include underground parking, and living units will be one- and two-bedroom. Hoyt LLC, based in Coralville, bought the property in June. Developer: Hoyt LLC. Award amount: $987,344.
- 215 S.W. Ninth St., an apartment building that would be constructed on property currently owned by the city of Des Moines. The nearly 1-acre site is currently used for surface parking. The proposed new structure would include up to 66 studio, one-bedroom and two-bedroom apartments. Developer: Hubbell Realty Co. Award amount: $1 million.
- Park Indy Rowhouses, a 40-unit development that would transform a former mobile home site at 3140 Indianola Ave. into workforce housing. Each unit would include a washer and dryer, individual entrance and outside yard space. Developer: Park Indy LLC. Award amount: $729,124.
- Euclid Ave Rowhomes, a 17-unit multifamily development at 216 Euclid Ave. Two dilapidated structures on the property, including one that had been home to a laundromat, will be razed. The project will include studio, one-bedroom and two-bedroom units. Developer: Euclid Ave Rowhomes LLC. Award amount: $292,966.
To see the full list of projects awarded workforce housing tax credits, click here.