Iowa Finance Authority

Jerry FloydHOME Program Analyst

Iowa Finance Authority

Mission: To finance, administer, advance and preserve affordable housing and to promote community and economic development for Iowans.

Overview5 Divisions• HousingIowa• Iowa Agricultural Development

Division (7/1/13)• Section 8• Title Guaranty• Water Quality

At a Glance:• Self-funded• 89 employees

Affordable Rental

Project-based Section 8:• Oversight of 223 Section 8 properties • Serve 12,000 low-income Iowans in 73

counties

HOME Program:• Administrator since July, 2010• Appropriated under $6 million

• Rental• Homebuyer Assistance• Tenant-based Rental

Assistance

Low-income Housing Tax Credits:• Allocating agency for tax credits

since 1986• Nearly $7 million in tax credits

annually.• Nearly 21,000 units in more than

580 projects located in 83 counties

Investing in All of Iowa

Rural Development Preservation Demonstration

• In 2007, IFA received an award of funds from the USDA-RD office to assist current RD projects in rehabilitation.

• The program initially began with IFA working with select developers on their portfolio of properties.

• But then IFA had an influx of disaster tax credits and ARRA funds making the demonstration project not as attractive.

Rural Development Preservation Demonstration

• Late 2011, IFA issued a Request for Proposal seeking project proposals for Rural Development Section 515 projects to participate.

• Received 12 applications with 7 projects selected to proceed.

• Projects evaluated based upon readiness to proceed, long-term feasibility, experience of the qualified development team, and an established relationship with a Syndicator/Investor.

Funding• In years 2009, 2010, and 2011, IFA set-

aside 10 percent or approximately $1.67 million in tax credits which has equated to about $12.8 million in equity.

• Also set-aside $1.6 million in HOME loans; and the $2 million in Preservation Revolving Loan Funds received from the USDA.

• Roughly $16.4 million dedicated to these projects.

Approved Projects

• Three projects have closed to date.• Three more projects are slated to close by

year end.• Two selected projects did not move

forward.

Approved Projects

• Valley View in Columbus Junction by CHI.• Only project from 1st RFP to be approved.• Finances:

– Tax Credits of $299,649– HOME of $527,325– IFA MF loan of $133,098– RD assumed loan of $436,588– 24 units– $3.34 million of total project costs

Approved Projects

• Boyer View in Logan by Landmark Group.• Finances:

– Tax Credits of $172,833– HOME of $205,000– IFA MF Loan of $129,337– RD assumed loan of $203,837– 24 units– $2 million of total project costs

Approved Projects• Prairie Village of La Porte City by Newbury

Management.• Finances:

– Tax Credits of $342,590– HOME of $442,000– IFA MF loan of $115,000– RD assumed loan of $160,674– LP Seller Note of $180,000– 32 units– $3.83 million of total project costs

Problems Encountered• Rules, rules, rules.• Forging the confluence of three highly

technical and regulated programs was difficult – no big shock.

• Took much longer than anticipated to get approval of the property transfers by USDA RD.

• One property Boyer View also has a HUD contract so that added another layer of difficulty.

Problems Encountered

• IFA ended up returning the loan funds to USDA. Instead IFA used its own funds through multifamily loans.

• Lack of flexibility across the board makes it difficulty to utilize the programs together.

Keys to Successful Projects

• Owner entity that pushed the bureaucracy to get it done.

• Syndicator who understood the complexities of the programs.

• Stubbornness on the part of staff and legal counsel at all levels to bring these projects to fruition.

THANK YOU!

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