Housing Programs Carolann Jensen Chief Programs Officer Iowa

Housing Programs Carolann Jensen Chief Programs Officer Iowa Finance Authority

Iowa Finance Authority • State of Iowa’s Housing Finance Agency • Enhance the quality of life for Iowans by making affordable financing possible for home and community.

Iowa Finance Authority • • Affordable Rental Homelessness Affordable Homeownership Title Guaranty Community Development Water Quality Iowa Agricultural Development Division

Summary • • • State Profile Workforce Housing Loan Program LIHTC HOME Multifamily Loan Program

What Is A State Profile? • Easily accessible centralized collection of the most relevant demographic, economic, and housing data for a variety of jurisdictional levels across the state. • Data will be presented for the State, 9 Regions, 99 Counties and the 28 largest cities. • Reports for all jurisdictions will be published and made freely available online. • An online interactive Dashboard will present the data in a user friendly format for users to explore trends, download data and reports. • Interactive and downloadable charts, tables and novel displays of data. • Aimed at city, county and state planners, developers, Realtors, housing advocates and others interested in the health and change in Iowa’s housing markets, economy and population.

City Analysis For Iowa WES will include analysis and data for all 28 Iowa cities with populations above 14, 000, as reported in the 2010 census, as shown in the table at right. Populations by Cities State of Iowa 2010 Census City Des Moines Cedar Rapids Davenport Sioux Waterloo Iowa City Council Bluffs Ames Dubuque West Des Moines Ankeny Urbandale Cedar Falls Marion Bettendorf Mason Marshalltown Clinton Burlington Fort Dodge Ottumwa Muscatine Coralville Johnston Clive Newton Indianola Altoona Population 203, 433 126, 326 99, 685 82, 684 68, 406 67, 862 62, 230 58, 965 57, 637 56, 609 45, 582 39, 463 39, 260 34, 768 33, 217 28, 079 27, 552 26, 885 25, 663 25, 206 25, 023 22, 886 18, 907 17, 278 15, 447 15, 254 14, 782 14, 541

Areas of Analysis: • Demographics - Exploring population changes by gender, race and age. • Economics - Evaluation of current and historical workforce and wage data. • Housing - Examining housing production, household composition and housing problems (as defined by HUD). • Rental Vacancy Survey - Collect timely information on the current state of the rental housing market. • Housing Demand Forecast - Estimating current and future household demand.

Iowa Dashboard Main Dashboard Feature include: § § Area by Area comparisons, i. e County vs. Region Interactive and downloadable charts Download all reports, Statewide, County, City, etc. Statewide overview function, how do regions, counties or cities compare? § Interactive Mapping and Bubble Cloud § Data Download section: download raw data for your own use § Interactive Long Read creates a profile/dashboard mashup

Workforce Housing Loan Program • New program created in 2015 – total of $5 million. • IFA provides a loan to cities and counties that demonstrate a need for additional workforce rental housing for families as a result of employment growth within the local unit of government’s jurisdictional boundaries. • Maximum loan will be the lesser of $1 million or $50, 000 per assisted unit. • Units limited to households earning 140 percent or less of the statewide median income - $95, 000 • Rents must be commiserate with market conditions. • Tenant income limitations will remain in place throughout the term of the loan or 5 years, whichever is greater. • One percent interest with a maximum term of 20 years.

WHLP Approved Projects Forest City (pop. 4, 002): • New construction, 36 units, • $751, 000 WHLP • $190, 411 FCED land/cash • $300, 000 city grant • $350, 000 Workforce Housing Tax Credits • $1, 100, 000 investors (sold shares to local investors) • $1, 500, 000 conventional loan

WHLP Approved Projects West Des Moines (pop. 61, 255): • Adaptive reuse of Phenix School • 17 units of which 13 will be workforce housing, • $625, 000 WHLP plus • $3, 000 CDBG DR, • $300, 000 developer loan • $855, 000 city funding

WHLP Approved Projects • Mount Pleasant (pop. 8, 662): • New construction, 24 units, • $1, 000 WHLP • $1, 000 conventional loan

What Does Affordable Mean? Polk County 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person 60% Average Median Income $32, 340 $36, 960 $41, 580 $46, 140 $49, 860 $53, 580 $57, 240 $60, 960 80% Average Median Income $43, 050 $49, 200 $55, 350 $61, 500 $66, 4500 $71, 350 $76, 300 $81, 200 0 Bedroom 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom Rent $810 $867 $1, 041 $1, 203 $1, 342 Winnebago County 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person 60% Average Median Income $26, 640 $30, 420 $34, 200 $37, 980 $41, 040 $44, 100 $47, 100 $50, 160 80% Average Median Income $35, 500 $40, 550 $45, 600 $50, 650 $54, 750 $58, 800 $62, 850 $66, 900 0 Bedroom 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom Rent $666 $713 $855 $987 $1, 102

LIHTC • IFA receives an annual amount of tax credits based upon a statutory dollar amount per state population. • 2017 - $7, 366, 528 ($2. 35 X 3, 134, 693) • IFA’s Qualified Allocation Plan (QAP) details the allocation threshold requirements, selection criteria, and housing priorities. • Developers submit on-line applications in November each year for the competitive 9% allocation round. Awards go before the IFA Board in March.

LIHTC • Provides tax incentives to corporate investors who invest in the development, acquisition, and rehabilitation of affordable rental housing. • The investor incentive is the ability to claim tax credits on their federal income tax returns annually over a 10 -year period. • Equity generated from the sale of the tax credits reduces the owner’s debt which allows the project to charge lower rent and still be a financially viable affordable housing project. • The tax credit is calculated as a percentage of costs incurred in developing the project.

LIHTC Basic Structure of a Tax Credit Project with Direct Investor Application for tax credits IFA Allocation of tax credits Develope r LIHTC Investor Equity Investment Tax credits & Other tax benefits Tax Credit Project General Partner/managing member. 01% & Limited Partner 99. 99%

HOME • HOME is the largest federal block grant designed exclusively for state and local governments to create affordable housing. • IFA is the State’s Participating Jurisdiction (PJ) - receive approximately $5 million annually.

HOME Project Types: • Rental – Acq/rehab, new construction • Tenant Based Rental Assistance (TBRA) – Awardees are nonprofits or governmental entities • Homebuyer Assistance - Awardees are nonprofits or governmental entities

HOME Homebuyer: • Applicants are nonprofits and governmental entities. • Entities must verify the individual’s income and ability to pay. • Downpayment assistance • Acq. and Rehab. limited to $37, 500 with hard construction costs limited to $24, 999. • Long-term affordability: – Less than $15, 000/unit = 5 years – $15, 000 - $39, 999/unit = 10 years

Multi-Family Construction Loan: • Eligible for new construction, acq. rehab. or adaptive reuse. • Requires a first lien position – 100% construction performance bond and personal/corporate guaranties may be required. • Projects to be financed must be able to maintain financial feasibility and affordability. • Minimum of 75% of the units are rent and income restricted – number based on percentage of project financed by IFA.

Multi-Family Permanent Loan: • Project may be new construction, acq. rehab. or adaptive reuse. • Loan to Value not to exceed 90%. • Requires a first lien position. • Projects to be financed must be able to maintain financial feasibility and affordability through the loan term. • Maximum loan term is 30 years; Maximum loan amortization is 40 years. • Fixed or variable rate available. • Minimum of 75% of the units are rent and income restricted – number based on percentage of project financed by IFA.

Questions

Email: carolann. jensen@iowa. gov Follow IFA: Iowa. Finance. Authority. gov 23