The Iowa Finance Authority recently approved a senior housing tax credit project for the community of Boone. The $7.6 million new construction project will include 30 total units, all two-bedroom, for community members 55+ years of age. Twenty-seven of those units will be identified as affordable housing units while three units will be unrestricted and can be listed based on the market rate.
Brian Fritz, owner of Pioneer Property Management, Inc. said, “There is definitely a need for this type of affordable housing in our community and I am excited that the Iowa Finance Authority approved our application so that we can continue with this project.”
The Iowa Finance Authority offers programs to assist in community development, including issuing tax-exempt bonds. This was the second year that Fritz, along with the City of Boone, submitted a Qualified Allocation Plan for the housing development.
According to the Iowa Finance Authority website, the housing tax credit often provides the last critical element to ensure the financial feasibility of projects like this one. The program acts as an incentive for property owners to invest in the development of rental housing for individuals and families with fixed or limited incomes.
“I am thrilled for the Boone community, and it is gratifying to see this project leveraging assistance from the Iowa Finance Authority,” said Dan Culhane, President & CEO of the Ames Chamber of Commerce & Economic Development. “This successful application underscores the importance of staying on top of programs that can enhance projects like this, which ultimately drives more economic activity in the community. This is really good news.”
The project will be located adjacent to an already approved 40-unit family project that will begin construction yet this fall. Construction for the senior housing project is tentatively scheduled to begin in spring 2023 and conclude in summer 2024.
