Seven Corridor projects awarded $5.03 million in workforce housing tax credits

CEDAR RAPIDS — Seven housing projects in the Corridor received a combined boost of $5.03 million from the state Tuesday, helping add 310 residential units to the local market.

Gov. Kim Reynolds and the Iowa Economic Development Authority on Tuesday announced more than $37 million in workforce housing tax credits to develop housing across Iowa. The awards will support 62 housing projects that are anticipated to create more than 2,000 residential units.

“As we grow our state, our housing supply needs to keep up with demand,” Reynolds said in a statement. “Iowans who live near their jobs often become more invested in their communities, and that both strengthens local economies and attracts new residents.”

IEDA received 124 applications seeking $74 million in tax credits. There was another $35 million available for fiscal 2025 — the budget year ending June 30, 2025 — plus another $2 million reallocation from fiscal 2024. Project applications were scored competitively based on readiness, documented financing, community impact and developer experience.

Of the $37 million awarded, $20 million was devoted to projects in small communities.

Debi Durham, director of IEDA and the Iowa Finance Authority, in a statement pointed to the recently released 2024 WalletHub report listing Iowa in first place for most affordable housing for the second year in a row.

“We want to hold onto that ranking as we build for the future,” Durham said. “These incentives are critical to helping more communities attract and retain quality businesses and a diverse workforce.”

The IEDA last year designated Cedar Rapids as a “Thriving Community,” giving the city more points when developers here seek tax credits and improving odds Cedar Rapids projects will receive funding.

“These are all excellent projects and we have a great appreciation for the state of Iowa for supporting these important projects,” City Manager Jeff Pomeranz said. “... The cost of these projects are high and some of that is due to the rising costs of construction, so this assistance from the state is absolutely critical to the success of these projects from a financial perspective.”

Pomeranz said the city also was pleased to see several historic buildings in Cedar Rapids awarded tax credits to be redeveloped.

Here were the local projects awarded funding:

Guaranty Bank Building: Aspect Investments led by Steve Emerson, 222 Third St. SE in Cedar Rapids, 70 units, $1 million awarded.

The $30 million renovation of the former Guaranty Bank will create 70 market-rate apartments on five upper floors of the historic downtown building. Plans call for keeping the building’s historic features while incorporating modern and high-end efficient finishes.

Matthew 25 Eighth Street project: Nonprofit Matthew 25, Eighth Street NW in Cedar Rapids, six units, $136,329 awarded.

The overall $2.5 million project will build new housing units in the Northwest Neighborhood piloting a new way for lower-income residents to access homeownership. It’s on city-owned property at 1021, 1027 and 1033 Eighth St. NW.

The project will redevelop flood-devastated land into new owner-occupied housing and use a shared equity model for these homes. Under the model, homeowners may purchase these homes with a low down payment. Matthew 25 will sell the houses to buyers who are not otherwise eligible for conventional loans — a 10 percent down payment versus the standard 20 percent.

Each parcel is made up of three units — one single-family detached house and two accessory dwelling units, three garage stalls and six total off-street parking spaces.

Blackstock Lofts: KN Properties 15, an entity of Tyler Oswood, 611 Second Ave. SE in Cedar Rapids, 13 units, $267,000 awarded.

The overall $3.5 million mixed-use redevelopment project would offer main-floor retail and restaurant space, as well as 13 market-rate units on the upper level.

The Loop: Big Ben, an entity of Hiawatha-based Ahmann Companies, southwest Cedar Rapids, 52 units, $1 million awarded.

The mixed-use Big Ben development at the northwest intersection of Wright Brothers and Kirkwood boulevards SW. The estimated project cost is $12.8 million.

Rookwood Fourth Addition: Twenty40 Building Concepts led by Marion-based developer Chad Pelley, north of Highway 151 in Marion, 72 units, $1 million awarded.

The mixed-use Rookwood Estates development overall will add about 1,000 housing units with a variety of types to Marion over several phases in the coming years.

Parkview III: IRL Parkview Investments, Coralville, 42 units, $630,000 awarded.

Parkview Lofts offers a variety of studio, one- and two-bedroom units at the mixed-use Iowa River Landing development.

Bell Tower Place: Conlon Construction Co., Uptown Marion, 55 units, $1 million awarded.

The project will transform the historic Marion Methodist Church, which was saved from demolition through a last-minute deal in 2022, into rental units and common spaces at the southeast corner of Eighth Avenue and 12th Street in Marion.

Comments: (319) 398-8494; marissa.payne@thegazette.com