DES MOINES – The Iowa Finance Authority on Oct. 9 announced that a new Workforce Housing Loan Program is now available to communities with a need for additional rental housing as a result of local employment growth. The program has $5 million available to provide financial assistance in the form of low-cost repayable loans to cities and counties.
“Jobs are moving into communities all throughout our state. These jobs are both attracting current Iowans to move within the state as well as giving us the opportunity to welcome new Iowans,” said Governor Terry Branstad. “This employment growth is in turn creating the need for additional workforce housing and this program will allow communities to increase available housing stock to meet that demand.’
The Workforce Housing Loan Program is available to all cities in Iowa on a competitive basis. Cities with populations of less than 50,000 that have shown an annual job growth during the last three years will be awarded additional points. Local contributing financial effort, employer investment in the proposed workforce housing project and designated Home Base Iowa or Iowa Great Places communities are also considerations in the competitive scoring process, among others.
“This program is a win-win for Iowa communities and their workforce,” said Iowa Finance Authority executive director Dave Jamison. “The Iowa Finance Authority is proud to offer this program and work in partnership with Iowa communities to fulfill the need for additional workforce housing.”
The maximum loan amount per project is the lesser of $1 million or $50,000 per assisted workforce housing rental unit. The loans will have a 1 percent interest rate with a maximum term of 20 years. Workforce housing units shall not be age restricted and will be limited to households earning 140 percent or less of the statewide median income as published by the US Department of Housing and Urban Development.
Applications in the initial Workforce Housing Loan Program funding round are due to the Iowa Finance Authority by Nov. 2.
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The Iowa legislature created the Iowa Finance Authority, the state’s housing finance agency, in 1975 to undertake programs to assist in the attainment of housing for low- and moderate-income Iowans.
