Fifteen housing projects stand to benefit from the allocation of $10.3 million in low-income housing tax credits (LIHTCs) by the Iowa Finance Authority.

Developers who receive LIHTCs typically sell them to investors to generate equity in housing projects. The tax credits provide a dollar-for-dollar reduction to the investor’s federal tax liability on ordinary income.

The Iowa Finance Authority, which is charged with allocating the funds as part of the federal Housing Tax Credit program, received 59 applications requesting more than $37 million in LIHTCs.

The awards were announced June 1, and included eight local projects: Cornerstone Commons in Johnston; Dovetail Family Housing in Grimes; Fletcher Estates Apartment Homes in Ankeny; and Des Moines Greystone Homes, Forest & Fields, Silver Oaks, Capitol City Duplexes and Crane Artist Lofts, all in Des Moines.

The LIHTC awards actually exceed $103 million, because the credits are committed annually for a 10-year period.

Three housing tax credit projects – Capitol City Duplexes, Des Moines Greystone Homes and Silver Oaks – also received preliminary approval to receive a total of $543,000 in HOME program funding through the U.S. Department of Housing and Urban Development.