The Iowa Economic Development Authority has committed all the funds in a $20 million tax credit program to 37 housing projects across the state, including 11 in Des Moines.

 

The Workforce Housing tax credit program provides a refund of state sales, service or use taxes paid during construction, and a state investment tax credit up to a maximum of 10 percent of the investment directly related to construction of the project. The tax credit awards also require a local incentive of at least $1,000 per housing unit.

 

The credits are awarded on a first-come, first-served basis and are issued at the completion of a project. IEDA anticipates that not all of the funds that have been committed for the current fiscal year will be used and could be rolled into the fiscal 2016 account.

 

In all, the Des Moines City Council had recommended 19 projects for tax credits. Several keynote renovations and new constructions were approved, including one of the first development projects in the River Point West area south of Martin Luther King Jr. Parkway and the renovation of the former Register and Tribune Building.

 

Hubbell Realty Co. and Des Moines developer Tim Rypma each had two projects approved for funding.

 

On the other hand, a request for $1 million in tax credits for an apartment building that would top a Hy-Vee Inc. food store at 420 Court Ave. was not approved.

 

IEDA began taking applications Feb. 1 for the program, which replaced another tax credit program that had come under criticism from some economic development officials who believed it directed too much money to urban areas, such as Des Moines.

 

Projects that did not receive credits for the current fiscal year will be placed on a waiting list that will be revisited once additional tax credits become available, IEDA said in a release.

 

The program makes state tax incentives available to developers building or rehabilitating housing in Iowa. To be eligible for the program, projects must meet one of four criteria:

• Housing development located on a grayfield or brownfield site.
• Repair or rehabilitation of dilapidated housing stock.
• Upper-story housing development.
• New construction in a greenfield in a community with demonstrated workforce housing needs.

A concern among many developers and Des Moines city officials is that the Workforce Housing tax credit program will stifle some development because of the limited funds available and the fact that those funds will be distributed to more communities. The program also set a limit of $1 million per project, down from $1.5 million in the program it replaced.

 

Here are the Des Moines projects, which have qualified for slightly more than $8 million in credits:

 

12th Street Lofts LLC (Hubbell Realty Co.), West Des Moines

$510,520 for a $7.4 million project constructing 30 housing units at 121 12th St.

 

Hubbell Tower II LLC (Hubbell Realty Co.), West Des Moines

$906,691 for an $8.3 million project constructing 62 housing units at 206 Ninth St.

 

R & T Lofts LP (TWG Development LLC), Indianapolis

$1 million for the $35 million renovation to 164 apartment units at the former Register and Tribune Building at 717 Locust St. and 421 Eighth St.

 

Eagle View Lofts, Hansen Real Estate Services, Johnston

$1 million for a $16 million project constructing 120 housing units at Southeast Sixth and Shaw streets.

 

Market District One LLC, Des Moines

$850,613 for Capital 401, a $7.8 million project constructing 55 housing units at 401 S.E. Sixth St.

 

Harbach Building LLC, Des Moines

$1 million for a for a $14 million project constructing 62 housing units at 300 S.W. Fifth St.

 

The Edge at Gray’s Landing, Sherman Associates Inc., Minneapolis

$1 million for a $14.5 million project constructing 90 housing units at 406 S.W. Ninth St.

 

Christ the King Senior Housing II LLP, Des Moines

$409,280 for a $4.2 million project constructing 26 housing units at 5602 S.W. Ninth Street.

 

Southridge Senior Lofts LLC, Cincinnati, Ohio

$225,000 for Southridge Senior Lofts, an $8.9 million project constructing 52 housing units at Southeast Fifth Street and East Army Post Road.

 

219 East Grand Avenue LLC, Des Moines (Tim Rypma)

$1 million for a $20.2 million project constructing 90 housing units at 219 E. Grand Ave.

 

Bronson Partners LLC, Des Moines (Tim Rypma)

$138,324 for a $3.8 million project constructing eight housing units at 1417 Walnut St.