Funding announcements are occurring or expected soon for several new affordable multifamily projects planned for Des Moines.
At its March Board meeting, the Iowa Finance Authority (IFA) approved awards of $1,000,000 in low income housing tax credits (annually for 10 years) as well as a $500,000 HOME program Award for Goldfinch Lofts In Des Moines.
Goldfinch Lofts, which is being developed by Cutler Development LLC and Arch Icon Development Corp., won the state’s second-annual Housing Innovation Pitch Competition at the HousingIowa Conference in 2025, giving the project a priority lane to receive this housing tax credit award.
Goldfinch Lofts is planned for 3404 Ingersoll Avenue in Des Moines (across from Price Chopper). The property is planned to be Iowa’s first Low Income Housing Tax Credit project to use mass timber construction, a method the developers have used previously including on Star Lofts a few blocks to the east. The property will feature 28 income-restricted apartments.
Anticipating IFA’s award of credits, the Polk County Housing Trust Fund’s board in February awarded $459,000 in new rental development funds to support Goldfinch Lofts.
IFA is expected to announce the remaining Housing Tax Credit awards in this year’s 9% credit round in early May. PCHTF’s board also approved $250,000 awards for two projects with applications pending in this round, provided they are successful in receiving credits. Those projects include Newbury Commons and Foundry Lofts, both planned for the Market District (along Martin Luther King, Jr. Parkway just east of the Des Moines River) in Des Moines.
Both of those projects could be the beneficiary of the Thriving Communities designation awarded to Des Moines in 2024 to encourage multifamily affordable development in communities that demonstrate development readiness.
- PCHTF
- May 21, 2024
- 4 min read
At a special meeting in May the Polk County Housing Trust Fund’s (PCHTF’s) board of directors approved just under $1.6 million in funding to support 3 proposed Low Income Housing Tax Credit developments planned for Polk County. Each project is awaiting a key funding decision in the Iowa Finance Authority’s competitive housing tax credit round with decisions expected in late summer. If all three projects receive full funding, they would collectively bring an additional 127 units of affordable housing to the Des Moines metro.
“Adding to the region’s supply of quality, affordable rental housing is one of the most important roles we play,” said Toby O’Berry, executive director of the Polk County Housing Trust Fund. “These projects provide housing that people truly need, close to transit and jobs, and they will play a big role in revitalizing the areas in which they are planned to be built.”
PCHTF will utilize two sources of funds to make its allocations. PCHTF New Rental Development Program funds will be awarded to all three projects which are drawn from the State Housing Trust Fund. In addition, PCHTF has awarded American Rescue Plan Act funds to Healey Pointe and The Townhall that were originally part of a special fund for new housing development entrusted to PCHTF by the Polk County Board of Supervisors in 2022.
Projects awarded in this round
Valley Ridge, 1245 8th Street, West Des Moines, IA
Valley Ridge is focused on expanding the affordable units, specifically for families, by expanding the availability with 8 one-bedroom and 24 two-bedroom units as well as introducing 20 three-bedroom units to the 8th Street Corridor in West Des Moines. The 52-unit property will include amenities like in-unit laundry and shared patio space and playscape for children. (Developer: Hubbell Realty Company)
PCHTF awards: $300,000 from PCHTF New Rental Development Program.
Affordability: All apartments are income restricted 39 at or below 60% of area median income and 13 at or below 40% of AMI
Transit: Property is served by DART 96 EP True Express route with service to downtown; Local 72 West Des Moines Circulator route is nearby.
A previous phase of this development was built by JCG Holdings and Benchmark Real Estate Group and is open and occupied next door. If awarded housing tax credits, construction on this $11.8m phase is expected to begin in spring 2025 with completion in spring 2026.
The Townhall, 1609 6th Avenue, Des Moines
The Townhall project is a multifaceted $12.3 million development planned for the Sixth Avenue Corridor in Des Moines with an anticipated completion date in late 2026. This project includes two adjacent buildings with 29 units. One building will involve the new construction of a three-story building containing affordable apartment units plus a first-floor food hall. The second building will involve the rehabilitation of the historic North Des Moines City Hall building, listed on the National Historic Register, to include additional affordable apartment units plus a first-floor coffee shop. Altogether, the project's primary objectives include the creation of much-needed affordable housing, economic empowerment through the innovative Food Hall concept, and the enhancement of community engagement in the River Bend neighborhood. (Developers: Ntontan RE and Newbury Living.)
PCHTF awards: Total of $700,000. Includes $300,000 from PCHTF New Rental Development Program and $400,000 from American Rescue Plan Act funds.
Affordability: All units are income restricted. 26 units are restricted at or below 60% of area median income and 3 units at or below 30% of AMI.
Transit access: Property is served by DART Local 15 (6th Avenue) route and On Demand service in River Bend neighborhood.
This project was the winner of the Iowa Finance Authority’s first-ever innovation competition at the Iowa Finance Authority’s HousingIowa in Cedar Rapids in 2023. Project innovations include sustainable design, a vibrant community space, equitable partnerships, and a resident rewards program.
Healey Pointe, 1350 East Douglas Avenue, Des Moines
Healey Pointe is a planned 46-unit development offering independent living apartments for seniors 62+. The project will consist of 30 1- bedroom and 16 2-bedroom units. The project will consist of one 4-story elevator building with adequate off-street parking for all households. Each unit will feature energy efficient appliances, HVAC systems, and in-unit washer and dryers. Project amenities will feature community gathering spaces, a controlled access building, and a fenced dog park. (Developer: Woda Cooper Development, Inc.)
PCHTF awards: Total of $596,874. Includes $200,000 from PCHTF New Rental Development Program and $396,874 from American Rescue Plan Act funds.
Affordability: All units income restricted; 34 are restricted at or below 60% of area median income and 12 are restricted at or below 40% of AMI.
Special population: Age restricted 62+
Transit: Property is served by DART Local 4 14th Street route on select trips. Route 50 Euclid Crosstown route operates nearby.
If awarded housing tax credits, construction for this $13.6 million project is anticipated to begin in spring 2025 with completion in early summer 2026.
“Through these projects, you can see that multiple levels of government together with private businesses are working together to meet the area’s housing need. Ultimately thousands of residents in our community are paying more than they can afford for homes they rent, so there is a significant continued need to invest in affordable housing,” said O’Berry.
Previously awarded, but announced today
In addition to the three projects awarded funds this month, today PCHTF is also announcing a $762,416 American Rescue Plan Act allocation that was made previously to Evergreen Trail, a group of affordable rental properties in Des Moines locally owned and managed by Community Housing Initiatives.
Evergreen Trail is composed of two smaller independent senior living properties on Forest Avenue (King Irving Neighborhood) and Indianola Ave.in Des Moines as well as 2 and 3-bedroom apartments with no age restrictions located on SE 6th Street in Des Moines (South Central DSM Neighborhood). In total, these buildings offer 26 apartment homes which are income-restricted at 60% of AMI. Funds will support needed upgrades to mechanical systems, appliances, and finishes to preserve the affordability of these units. Evergreen Terrace buildings were originally constructed between 1980 and 1985 and have significant improvement needs. (Developer: Community Housing Initiatives)
Together with the three new announcements, this means the $12 million American Rescue Plan Act fund for affordable housing set aside by the Polk County Board of Supervisors in April 2022 is currently fully awarded. Details about all PCHTF’s funding programs for housing can be found at www.pchtf.org/apply.
The Polk County Housing Trust Fund (PCHTF) congratulates AHEPA Senior Living on celebrating the groundbreaking for their new AHEPA 192-IV community earlier today. The property will offer 90 senior apartments at 6705 SE 5th Street in Des Moines, next to Southridge Mall. PCHTF has committed $1.125 million of federal American Rescue Plan Act (ARPA) funds to support the project.
“This project is a win-win for Des Moines. It continues to transform the area around Southridge Mall by adding additional housing, and it provides an outstanding opportunity for some of the most vulnerable seniors living in our community,” said Toby O’Berry, Executive Director of the Polk County Housing Trust Fund.
AHEPA management company is a non-profit developer of affordable senior housing across the United States founded in 1991. Like many others this organization manages, AHEPA 192-IV is part of the federal HUD 202 program, meaning the property serves extremely low income seniors age 62+. It will offer income-based rental assistance as well as a robust program of supportive services to assist residents with needs of daily living and provide social engagement.
The investment PCHTF has committed uses federal ARPA funds allocated to PCHTF by the Polk County Board of Supervisors in April 2022. Today’s announcement brings the total committed from this $12 million fund to $7.3 million to support 243 units of affordable housing at or below 60% of the area median income within properties that offer a total of 336 housing units.