More than $1.3 million in annual federal funding has been approved for two affordable housing projects in Johnson County.
The Iowa Finance Authority on Wednesday awarded $68.6 million in Housing Tax Credits — to be distributed over 10 years — to 11 Iowa rental projects that aim to build and preserve 549 affordable housing units in seven Iowa counties.
“I congratulate the developers and organizations awarded tax credits to move their projects forward today and thank them for sharing in the Iowa Finance Authority’s commitment to advancing affordable housing for Iowans,” IFA Executive Director Dave Jamison said in a Wednesday news release. “These projects have leveraged an additional $5.3 million in local contributions, and each of these communities will see the far-reaching benefits of these projects for many years to come.”
Of those awards, $800,000 in credits have been approved for Coralville’s Coral Ridge Apartments and roughly $560,000 has been approved for Diamond Senior Apartments in Iowa City. Those awards will be committed annually for a 10-year period.
Both projects had already received provisional funding approval from their respective city councils. That funding was contingent on the federal assistance.
Coralville’s project, an $11 million 56-unit housing project proposed for 915 20th Ave., would provide housing for seniors 55 years or older. Units would be available for residents who have incomes at 30 percent, 40 percent and 60 percent of the area’s median income. Some market-rate units also will be included.
The proposal has units renting for $500 to $1,200 a month.
Last winter, the Coralville City Council approved a $750,000 conditional commitment for the project, pending approval of the federal funds.
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Iowa City’s project, a roughly $7.4 million, 40-unit project, would include 36 low-income apartments.
Four units will be affordable to households below 30 percent of the area median income, 12 units would be affordable to those below 40 percent, and 20 units will be affordable to households below 60 percent of the area median income. The final five units will be unrestricted, with one occupied by a resident manager.
Affordable units would range from an estimated $400 to $675 a month for one bedroom and $465 to $810 for two bedrooms.
Last fall, the Iowa City Council approved a $600,000 conditional commitment for the project. which will be located on Williams Street near many amenities like public transit, shopping and service providers.
“It’s a great project ... it’s a good location for senior housing,” said Tracy Hightshoe, Iowa City neighborhood services coordinator.