Jerry Floyd of the Iowa Finance Authority on multifamily housing resources. Presentation from the Housing Assistance Councils symposium "Housing Seniors & Veterans in Rural America: Preservation, Development and Services" in Council Bluffs, IA on August 28-29, 2013

1. Iowa Finance Authority
Jerry Floyd
HOME Program Analyst

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

3. Overview
5 Divisions
• HousingIowa
• Iowa Agricultural Development
Division (7/1/13)
• Section 8
• Title Guaranty
• Water Quality
At a Glance:
• Self-funded
• 89 employees

4. 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

5. Investing in All of Iowa

6. 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.

7. 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.

8. 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.

9. 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.

10. 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

11. 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

12. 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

13. 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.

14. 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.

15. 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.

16. THANK YOU!

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