The affordable housing project proposed for the 400 block of W. Head St in Jefferson is much closer to being constructed. The Iowa Finance Authority announced July 3 that developer KCG has been approved to receive $1,281,139 in federal housing tax credits for the project, known as The Wheldon. KCG’s application calls for 50 units.
A total of $10.6 million in tax credits were awarded to 10 rental housing projects located in Burlington, Charles City, Davenport, Des Moines, Knoxville, Mount Pleasant, Oskaloosa, Spirit Lake and Jefferson.
Iowa Finance Authority director Debi Durham gave special recognition to four communities that had earned designation as Iowa Thriving Communities – Charles City, Knoxville, Oskaloosa, and Jefferson.
The Internal Revenue Service makes an annual per capita allocation of federal tax credits to each state for the Federal Housing Tax Credit program. The Iowa Finance Authority is charged with allocating those credits to affordable housing developers. The developers who receive tax credits sell them to investors to generate equity for the housing developments.
The Iowa Finance Authority received 27 applications requesting nearly $30 million in housing tax credits in the 2024 tax credit round. IFA had a total of approximately $10.8 million available to allocate. The actual awards total nearly $106 million because the credits are committed annually for a 10-year period.
Development of The Wheldon drew considerable public comment from persons in favor of and opposed to the project. The property had been purchased by KCG but needed to be rezoned from light industrial to RM3. The council voted 4-1 for the rezoning on all three required readings of the ordinance, with councilman Chad Sloan the opposing vote each time.
KCG representative CJ Lintner said during the public comment period that construction of The Wheldon was dependent on receiving the federal tax credits.
