New Incentive Available for Local Workforce Housing
Burlington, Iowa. Relying on a study by Gruen Gruen + Associates early this year that showed 1,500 net new housing units were needed by 2025 in Des Moines County, the Greater Burlington Partnership and Southeast Iowa Regional Planning Commission applied for and have received a designation from the Iowa Economic Development Authority (IEDA) opening the door for new, qualifying residential development projects to access Iowa’s Workforce Housing Tax Credit Program.
“Our area’s employers and their employees have cited the lack of safe, affordable and quality housing as a major impediment to future business growth and our ability to attract and retain workers,” said Jason Hutcheson, President & CEO for the Greater Burlington Partnership. “Getting developers/builders this access to Iowa’s Workforce Housing Tax Credit Program gives us one more tool to attract needed investment in new housing stock.”
New, qualifying residential developments in Burlington, West Burlington, Middletown, Mediapolis and Danville may now apply for Iowa’s Workforce Housing Tax Credit Program.
“Before we could get IEDA’s approval, we had to complete the housing study,” explained David Toyer, Director for Economic Development at the Greater Burlington Partnership. “Thanks to contributions from the cities of Burlington and West Burlington, Des Moines County, Alliant Energy and the Greater Burlington Partnership, we’re one step closer to securing the housing we need for future growth.”
- Projects must meet one of four criteria:
- Housing development located on a grayfield or brownfield site
- Repair or rehabilitation of dilapidated housing stock
- Upper story housing development
- New construction in a greenfield (community with demonstrated workforce housing needs)
- The developer must build or rehabilitate at least four single-family homes or at least one multi-family building containing three or more units or at least two upper story units.
- Total project costs may not exceed $200,000 per unit for new construction or $250,000 per unit for historic rehabilitation.
- Total program benefits are limited to a maximum of $1 million per recipient.
- The housing project must be completed within three years of award.
- IEDA must approve the developer’s application for Workforce Housing Tax Credit prior to project initiation.
- A refund of state sales, service or use taxes paid during construction.
- An investment tax credit of up to a maximum of 10% of the investment directly related to the construction or rehabilitation of the housing for the first $150,000 of value for each home or unit. This tax credit is earned when the home or unit is certified for occupancy and can be carried forward for up to five additional years or until depleted, whichever occurs first.
More about Greater Burlington
The Greater Burlington Partnership is comprised of the area’s Chamber of Commerce, Economic Development Corporation, Downtown Partners Inc., and Convention and Visitors Bureau. The Partnership is a 5-star Accredited Chamber by the U.S. Chamber of Commerce.
Greater Burlington is beautifully situated on the bluffs of the Mississippi River and has a rich heritage as a center of commerce and culture. With a population around 40,000 Greater Burlington is a regional center for employment, shopping, education, healthcare and recreation in Southeast Iowa.
Follow the success in Greater Burlington at #GreaterBurlingtonWins and #GreaterBurlingtonPartnership
For more information or to get a copy of the housing study, visit: www.greaterburlington.com.
David Toyer, Director of Economic Development
319-208-0053 or 319-850-0670