The city of Des Moines has affirmed its support of Hubbell Realty Co.’s plan to remodel the former Sealy Mattress Building.

At a cost of nearly $15 million, the West Des Moines-based developer plans to convert the historic downtown warehouse into 91 affordable-housing units.

On May 10, the City Council unanimously approved two resolutions regarding the proposed River Point Lofts project at 309 S.W. Eighth St., including one to support Hubbell’s application to the Iowa Finance Authority (IFA) for low-income housing tax credits (LIHTCs).

The council also approved a $413,512 investment tax credit and a sales tax refund of $81,800.

According to IFA spokeswoman Shawna Lode, Hubbell has applied for a 2010 allocation of $1,458,617 in LIHTCs for the River Point project.

The IFA, which is charged with allocating LIHTCs to developers of affordable housing in the state, is expected to announce a second round of awards on June 9.

The first round of 2010 LIHTC awards were announced this month by Gov. Chet Culver and included a total of $5 million for five projects in Des Moines, one in West Des Moines, one in Waterloo and one in Woodbine.

Developers of affordable housing, in an attempt to generate equity for their projects, attempt to sell the credits to investors, such as large financial institutions and insurance companies that want to offset their taxable income.