Over $11M in aid heads to Corridor to help create workforce housing

The site of the former YMCA in Marion is slated to become a multifamily residential development called Green Park Apartment Living. It is one of the projects in the Corridor that will be helped by more than $11 million in workforce housing tax credits announced for Linn and Johnson counties. (Rendering from city of Marion)

CEDAR RAPIDS — The Iowa Economic Development Authority announced Tuesday it was awarding several Corridor communities over $11 million in workforce housing tax credits — out of $29.9 million granted across the state — to help bring new housing units online.

The 49 projects in Iowa that received the tax credits will help with the construction and rehabilitation of 1,944 new housing units, according to the authority. Of the $29,886,036 awarded throughout Iowa, Linn and Johnson county communities were awarded a combined $11,025,095.

The authority received 137 applications seeking $85.9 million in tax credits. Of the approximately $30 million available, $12 million in credits were available under the program’s set aside for small cities within Iowa’s least-populous 88 counties. Projects were scored based on readiness, financing, need and local support and participation.

Cedar Rapids was awarded $4,499,659 for five projects, which will help build 436 new units:

Union at Wiley, multifamily rental, new construction of 180 units: $1 million, funded in 2021

Rose Cottage Villas, single-family attached rental, new construction of 76 units: $1 million, funded in 2022

The Hub, multifamily rental, new construction of 114 units: $1 million, funded in 2022

Iowa Building, multifamily rental, new construction of 41 units: $975,559, funded in 2022

Czech Village Pocket Neighborhood Revitalization, single-family attached owner-occupied, new construction of 25 units: $524,100, funded in 2022

The former Terex site near Mount Mercy University in Cedar Rapids will become a mixed-use development called The Hub. It is slated to receive $1 million in workforce housing tax credits in 2022. (Rendering from city of Cedar Rapids)

“We appreciate the developers investing their time and their resources in these important projects for Cedar Rapids and we believe that these projects will create significant lower-cost housing opportunities for the community,” Cedar Rapids City Manager Jeff Pomeranz said.

The community has a number of “creative projects that are truly a partnership between the developers, private sector and city government,” he said. “These projects will begin to meet the significant needs that we have for workforce housing.”

Other Linn County communities were awarded tax credits as well:

Marion’s Boulevard Apartments, multifamily rental, new construction of 94 units: $1 million, funded in 2022

Green Park Apartment Living, multifamily rental, new construction of 69 units in Marion: $1 million, funded in 2022

HVCD in Hiawatha, multifamily rental, new construction of 48 units: $1 million, funded in 2021 and 2022

Marion Community Development Director and Acting City Manager Tom Treharne said the city is excited about the award.

“Marion and the entire metro area are experiencing a housing crisis,” Treharne said. “Together, these two projects will add 163 units to the city with an investment of nearly $6 million.”

Johnson County communities also received tax credits to help with several developments to build a combined 257 new housing units:

Coralville’s Iowa River Landing Parkview II, multifamily rental, new construction of 68 units: $1 million, funded in 2022

Town Center One, "The Lundell," multifamily rental, new construction of 80 units in Coralville: $1 million, funded in 2022

Coralville Housing Group II, multifamily rental, new construction of 49 units: $525,436, funded in 2022

Tiffin’s Hunt Club Housing Phase 3, multifamily rental, new construction of 60 units: $1 million, funded in 2022

Coralville City Administrator Kelly Hayworth said housing has been a challenge in the area and “having additional units will really help with that.” The tax credits will help create nearly 200 new housing units in the city.

Hayworth said the city is looking forward to getting these projects finished, and the workforce housing tax credits were a “big part” of that.

“Costs have gone up over the last year, and each of the projects was really struggling and looking at the additional cost that they had because of the cost of materials and supplies,” Hayworth said.

“This assistance came in at just the right time.”

Gage Miskimen and Izabela Zaluska of The Gazette contributed to this report

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