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December 3, 2025 (DES MOINES) – Today, the Iowa Finance Authority (IFA) Board of Directors announced $12.2 million in grants to 26 Local Housing Trust Funds to strengthen local housing initiatives. The awards were made through the Local Housing Trust Fund Program and are expected to benefit 2,473 families.

“These grants are an essential and highly effective resource, empowering regions to direct funds where they are needed most to meet local housing needs,” said IFA Director Debi Durham. 

The success of this program is reflected in the thousands of Iowans who now have safe, affordable homes, made possible through strong partnerships with Local Housing Trust Funds across the state.

IFA Director Debi Durham

The grant funds will support a range of initiatives aimed at developing or preserving housing for low-income households across the spectrum of housing needs. This includes the development and preservation of housing, assistance for persons experiencing homelessness, rental assistance, homeownership support, bolstering the capacity of local housing organizations and other efforts that directly address local housing needs.

“This support advances our mission to ensure residents in Northeast Iowa have access to well-maintained, safe and affordable housing,” said Spiff Slifka, Board Chair of the Northeast Iowa Regional Housing Trust Fund (NEIRHTF). “With much of our region’s housing stock aging, these funds are critical to preserving homes and strengthening the vitality of our communities.”

The State Housing Trust Fund helps ensure decent, safe and affordable housing for Iowans through two programs. The Local Housing Trust Fund Program receives at least 60 percent of the SHTF allocation to provide grants for organizations certified by IFA as Local Housing Trust Funds. The remaining funding supports the Project-Based Housing Program, which aids in the development of affordable single-family and multifamily housing. IFA administers both programs and provides technical assistance to housing-related organizations.

Established by the Iowa Legislature in 2003, the State Housing Trust Fund continues to play a vital role in advancing Iowa’s housing priorities. The awards announced today are expected to leverage an additional $3.6 million in other financing or approximately 30 cents for every dollar of Local Housing Trust Fund Program funding.

Since its inception, the State Housing Trust Fund has supported more than 41,400 Iowa households through the LHTF Program, investing more than $140 million and leveraging an additional $130 million in other funding to advance local housing initiatives.

DES MOINES – The Iowa Finance Authority (IFA) Board of Directors today awarded more than $11 million in 4% federal housing tax credits to support the construction and rehabilitation of 781 affordable rental homes across five projects in Cedar Rapids, Des Moines, Iowa City and Sioux City.

Recent federal changes to the 4% program have strengthened our ability to bring more projects forward, allowing us to award nearly twice as many units as last year and grow our pipeline at a time when Iowa needs more than 18,000 new homes by 2030.

IFA Director Debi Durham

The 4% Housing Tax Credit program pairs the state’s tax-exempt bonding authority with federal tax credits to help finance affordable housing developments. Similar to the 9% Housing Tax Credit program, it follows income limits and rent restrictions. Demand for the 4% program has grown significantly and federal reforms now allow more developments to qualify while using fewer bonds, substantially increasing the number of affordable housing projects that can proceed in Iowa.

As a result, the 2025 round marked the first competitive application cycle for the program. Applications were evaluated under a defined scoring system to ensure resources were awarded to projects best positioned to move forward.

IFA received eight applications requesting more than $18 million in tax credits and $125 million in tax-exempt bonds, with $90 million in bonds available for issuance. The tax credits awarded exceed $111 million as they are distributed annually over 10 years. The awarded projects will receive a combined $76.4 million in tax-exempt bond financing.

The federal Low-Income Housing Tax Credit program includes both 9% and 4% credits, each supporting different types of affordable housing needs. The 9% credit provides a higher level of equity and is awarded through a highly competitive process. The 4% credit, paired with tax-exempt bonds, provides a lower but still substantial level of equity and has seen significant growth in demand in Iowa. Together, the two programs expand the state’s affordable housing pipeline by supporting the construction and preservation of rental homes.

DES MOINES – The Iowa Finance Authority (IFA) Board of Directors recently approved more than $6.5 million in grants to support the development of a total of 34 rental homes and supportive services for individuals experiencing, or at risk of homelessness in Davenport, Dubuque, Grinnell and Ottumwa. The funding is made available through the Federal HOME-American Rescue Plan (HOME-ARP) and National Housing Trust Fund programs.

“Homelessness may look different in a rural town than in an urban neighborhood, but the need is just as urgent,” said Iowa Finance Authority Director Debi Durham. “The grants announced today will provide critical housing in four communities across Iowa and support Iowans working to regain stability.”

“We’re working to meet people where they are, including in communities like Grinnell and Ottumwa, so individuals can stay close to the support systems they rely on,” said CISS CEO Melissa O’Neil.

By investing in preventative solutions, we’re able to support individuals on the verge of homelessness and help prevent them from becoming unhoused in the first place.

Melissa O’Neil

Award Summary

HOME-ARP 

Grinnell and Ottumwa Housing Project

Central Iowa Shelter & Services (CISS) will use a $3.6 million HOME-ARP grant to support the development of 13 affordable housing units in Ottumwa and four in Grinnell for residents experiencing or at risk of homelessness.  The grant award includes more than $2.7 million in development funds, $600,000 for supportive services and $300,000 in nonprofit operating funds. 

Boundless on Bluff – Dubuque  

Dubuque Initiatives 1700 LLC was awarded more than $1.1 million to assist in transforming an empty infill loft in the Jackson Place Historic District of downtown Dubuque into six permanent affordable 2-bedroom housing units for families experiencing or at-risk of homelessness. The project was also awarded more than $226,000 in supportive service funds. 

National Housing Trust Fund

Humility Homes Permanent Supportive Housing – Davenport 

Humility Homes Services, Inc. will use a $1.65 million National Housing Trust Fund grant to help bring 11 new Permanent Supportive Housing units to Davenport in partnership with Gratus Development. These rental homes will serve individuals and families experiencing homelessness, offering stable housing paired with supportive services. The development includes a mix of one-, two- and three-bedroom units in quadplex and triplex buildings, designed so each household has its own front door.

Humility Homes and Gratus Development took part in Iowa’s first Supportive Housing Institute in 2025, where they shaped the concept that led to this development. Hosted by IFA in partnership with the Corporation for Supportive Housing (CSH), a national leader in the field, the five-month Institute guided teams through creating strategic, income-targeted housing with supportive services for Iowans with the greatest needs, especially those experiencing homelessness.

More information on the HOME-ARP and National Housing Trust Fund programs is available at iowafinance.com.

HOME-ARP

The HOME-American Rescue Plan (HOME-ARP) program was created under the American Rescue Plan to reduce homelessness and increase housing stability. It is administered by the U.S. Department of Housing and Urban Development. Iowa received a one-time allocation of approximately $29 million in HOME-ARP funds, administered by the Iowa Finance Authority.

National Housing Trust Fund

The National Housing Trust Fund, also administered by the U.S. Department of Housing and Urban Development, provides annual funding to states to increase and preserve the supply of affordable housing for extremely low-income households and those experiencing or at risk of homelessness.