At a special meeting in May the Polk County Housing Trust Fund’s (PCHTF’s) board of directors approved just under $1.6 million in funding to support 3 proposed Low Income Housing Tax Credit developments planned for Polk County. Each project is awaiting a key funding decision in the Iowa Finance Authority’s competitive housing tax credit round with decisions expected in late summer. If all three projects receive full funding, they would collectively bring an additional 127 units of affordable housing to the Des Moines metro.
“Adding to the region’s supply of quality, affordable rental housing is one of the most important roles we play,” said Toby O’Berry, executive director of the Polk County Housing Trust Fund. “These projects provide housing that people truly need, close to transit and jobs, and they will play a big role in revitalizing the areas in which they are planned to be built.”
PCHTF will utilize two sources of funds to make its allocations. PCHTF New Rental Development Program funds will be awarded to all three projects which are drawn from the State Housing Trust Fund. In addition, PCHTF has awarded American Rescue Plan Act funds to Healey Pointe and The Townhall that were originally part of a special fund for new housing development entrusted to PCHTF by the Polk County Board of Supervisors in 2022.
Projects awarded in this round
Valley Ridge, 1245 8th Street, West Des Moines, IA
Valley Ridge is focused on expanding the affordable units, specifically for families, by expanding the availability with 8 one-bedroom and 24 two-bedroom units as well as introducing 20 three-bedroom units to the 8th Street Corridor in West Des Moines. The 52-unit property will include amenities like in-unit laundry and shared patio space and playscape for children. (Developer: Hubbell Realty Company)
PCHTF awards: $300,000 from PCHTF New Rental Development Program.
Affordability: All apartments are income restricted 39 at or below 60% of area median income and 13 at or below 40% of AMI
Transit: Property is served by DART 96 EP True Express route with service to downtown; Local 72 West Des Moines Circulator route is nearby.
A previous phase of this development was built by JCG Holdings and Benchmark Real Estate Group and is open and occupied next door. If awarded housing tax credits, construction on this $11.8m phase is expected to begin in spring 2025 with completion in spring 2026.
The Townhall, 1609 6th Avenue, Des Moines
The Townhall project is a multifaceted $12.3 million development planned for the Sixth Avenue Corridor in Des Moines with an anticipated completion date in late 2026. This project includes two adjacent buildings with 29 units. One building will involve the new construction of a three-story building containing affordable apartment units plus a first-floor food hall. The second building will involve the rehabilitation of the historic North Des Moines City Hall building, listed on the National Historic Register, to include additional affordable apartment units plus a first-floor coffee shop. Altogether, the project's primary objectives include the creation of much-needed affordable housing, economic empowerment through the innovative Food Hall concept, and the enhancement of community engagement in the River Bend neighborhood. (Developers: Ntontan RE and Newbury Living.)
PCHTF awards: Total of $700,000. Includes $300,000 from PCHTF New Rental Development Program and $400,000 from American Rescue Plan Act funds.
Affordability: All units are income restricted. 26 units are restricted at or below 60% of area median income and 3 units at or below 30% of AMI.
Transit access: Property is served by DART Local 15 (6th Avenue) route and On Demand service in River Bend neighborhood.
This project was the winner of the Iowa Finance Authority’s first-ever innovation competition at the Iowa Finance Authority’s HousingIowa in Cedar Rapids in 2023. Project innovations include sustainable design, a vibrant community space, equitable partnerships, and a resident rewards program.
Healey Pointe, 1350 East Douglas Avenue, Des Moines
Healey Pointe is a planned 46-unit development offering independent living apartments for seniors 62+. The project will consist of 30 1- bedroom and 16 2-bedroom units. The project will consist of one 4-story elevator building with adequate off-street parking for all households. Each unit will feature energy efficient appliances, HVAC systems, and in-unit washer and dryers. Project amenities will feature community gathering spaces, a controlled access building, and a fenced dog park. (Developer: Woda Cooper Development, Inc.)
PCHTF awards: Total of $596,874. Includes $200,000 from PCHTF New Rental Development Program and $396,874 from American Rescue Plan Act funds.
Affordability: All units income restricted; 34 are restricted at or below 60% of area median income and 12 are restricted at or below 40% of AMI.
Special population: Age restricted 62+
Transit: Property is served by DART Local 4 14th Street route on select trips. Route 50 Euclid Crosstown route operates nearby.
If awarded housing tax credits, construction for this $13.6 million project is anticipated to begin in spring 2025 with completion in early summer 2026.
“Through these projects, you can see that multiple levels of government together with private businesses are working together to meet the area’s housing need. Ultimately thousands of residents in our community are paying more than they can afford for homes they rent, so there is a significant continued need to invest in affordable housing,” said O’Berry.
Previously awarded, but announced today
In addition to the three projects awarded funds this month, today PCHTF is also announcing a $762,416 American Rescue Plan Act allocation that was made previously to Evergreen Trail, a group of affordable rental properties in Des Moines locally owned and managed by Community Housing Initiatives.
Evergreen Trail is composed of two smaller independent senior living properties on Forest Avenue (King Irving Neighborhood) and Indianola Ave.in Des Moines as well as 2 and 3-bedroom apartments with no age restrictions located on SE 6th Street in Des Moines (South Central DSM Neighborhood). In total, these buildings offer 26 apartment homes which are income-restricted at 60% of AMI. Funds will support needed upgrades to mechanical systems, appliances, and finishes to preserve the affordability of these units. Evergreen Terrace buildings were originally constructed between 1980 and 1985 and have significant improvement needs. (Developer: Community Housing Initiatives)
Together with the three new announcements, this means the $12 million American Rescue Plan Act fund for affordable housing set aside by the Polk County Board of Supervisors in April 2022 is currently fully awarded. Details about all PCHTF’s funding programs for housing can be found at www.pchtf.org/apply.
Updated: Apr 6, 2023
Neighborhood Finance Corporation has been lending in Des Moines since 1991. NFC provides unique lending programs and related services to help revitalize designated neighborhoods in Polk County and Cedar Rapids, Iowa. NFC has served 8,000 households in Des Moines making over $400 million in investments.
NFC’s lending helps people purchase homes, refinance existing mortgages, and secure home improvement renovation loans. They do this in partnership with Polk County and the cities of Des Moines, West Des Moines, Windsor Heights and Urbandale along with capital for lending raised from local financial institutions.
The lending areas where NFC operates were created in response to the impact of redlining and historic and discriminatory restrictions on access to capital. Those disparities are still quite apparent today as large racial and ethnic homeownership gaps exist in our community. While still providing lending to the community at large, NFC has been developing specific strategies to close these longstanding gaps.
In 2017, NFC was awarded funds that allowed the organization to offer down payment assistance and found that offering this benefit increased its lending to communities of color by 35%.
NFC has built on that progress by offering its Journey to Homeownership program which in its first year has nearly doubled the percentage of its loans to Black and African American homebuyers.
This year, NFC has just announced a new down payment assistance program that can provide up to a $30,000 deferred loan to eligible homebuyers purchasing in Polk County with an approved lender. This program will further expand the organization’s ability to help more people and families realize their dream of owning a home. Learn more about Neighborhood Finance Corporation at www.neighborhoodfinance.org.
This week, the Polk County Housing Trust Fund is sharing stories about some of our provider partners working to ensure housing opportunity for all. Make sure you sign up for e-mail updates to stay in touch when we share more stories like these.
On Sept. 21, the Iowa Economic Development Authority (IEDA) awarded $29.8 million in workforce housing tax incentives to 49 projects across Iowa. Iowa’s Workforce Housing Tax Credit encourages development and rehabilitation of housing in Iowa, especially focusing on rehabilitation of vacant or underused property.
In Polk County, 6 projects were awarded a combined $3.1 million in tax credits. Those projects will support new construction of 173 new rental housing units and rehabilitation of an additional 150 rental units.
Five are located in Des Moines, while the sixth (Junction Development Catalyst, LLC) is a project in West Des Moines. Two received the maximum credit award of $1 million.
IEDA reported it received applications for nearly triple the incentives available in this funding round. The agency says projects were “scored competitively based on readiness, financing, need and local support and participation.”
Receipt of the tax credit does not require that future residents of the property will need to meet income guidelines; however, to qualify, project costs cannot exceed $200,000 (or $250,000 for historic rehabilitation) per unit.
Polk County projects funded
Project Title | Type | Number of Units | Credit Amount |
|---|---|---|---|
Tree House | Rehabilitation | 93 | $1,000,000 |
Urban Campus Apartments LLLP | New Construction | 42 | $235,392 |
Dogtown Project | New Construction | 120 | $1,000,000 |
Concord Building | Rehabilitation | 43 | $426,500 |
Junction Development Catalyst, LLC | New Construction | 11 | $215,010 |
3524 6th Ave. Historic Rehabilitation | Rehabilitation | 14 | $209,486 |
Total | | 323 | $3,086,388 |
Source: Iowa Economic Development Authority