HomeMy WebLinkAboutA008 - Workforce Housing Tax Credit ApplicationsITEM #:11
DATE:05-26-26
DEPT:P&H
SUBJECT:SUPPORT FOR WORKFORCE HOUSING TAX CREDIT (WHTC)
APPLICATIONS
COUNCIL ACTION FORM
BACKGROUND:
The State of Iowa offers a competitive Workforce Housing Tax Credit (WHTC) program
designed to encourage construction of moderately priced housing. The state establishes
eligibility and target sales prices annually. A developer is required to submit an application to
the IEDA by June 10 to be considered for the 2026 program, announcements of awards are
scheduled for September 2026.
A prerequisite of applying for the state program is local financial support. The
developer benefits from the program with a rebate of sales tax and an income tax credit
of up to $15,000 per unit that meets the requirements of the State. The state program
requires the local government to provide at least $1,000 of local incentives per unit. The
incentive can be provided in any manner, such as land cost, tax abatement, fee waiver,
etc. The City has no ongoing responsibility to administer or monitor compliance with
the WHTC program.
Baker Subdivision Single Family Market Rate Lots Request:
Keystone Equity was selected by the City Council on April 28 for the purchase of six lots within
the Baker Subdivision. A purchase agreement for the lots is on this same agenda. The
developer indicated the final average sales prices of the homes would be targeted at
$375,000, consistent with state requirements for the WHTC program. The purchase price of
lots was below appraised value for market rate lots as an incentive for the construction of
moderately priced housing. The reduced lot cost meets the minimum $1,000 value per home
of the state program.
608 Burnett (CityLight Apartments):
City Council reviewed a request from Luke Jensen, dba LJREC, LLC, on May 12 for financial
incentives for the development of approximately 39 apartment units at 608 Burnett. The
project would redevelop an existing parking lot into a four-story apartment building.
On May 12, the City Council voted to indicate support for the CityLight project with the intent of
approving a property tax abatement or other incentive in support of the project to meet the
requirements of the WHTC. City Council also intitiated consideration of changes to zoning
standards to facilitate the project.
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ALTERNATIVES:
1. Approve the attached resolu tions of support for both Keystone Equity Group and LJREC,
LLC WHTC applications, including a commitment of a local incentive value of at least
$1,000 per unit.
2. Approve a resolution of support for only one of the two requests for WHTC applications.
3. Decline to support either WHTC application.
CITY MANAGER'S RECOMMENDED ACTION:
Supporting the WHTC applications is a minor cost to the City in comparison of the
benefit of producing infill housing at a moderate price point consistent with Ames Plan
2040 and City Council Goals for diverse housing types. Therefore, it is the
recommendation of the City Manager that the City Council approve Alternative No. 1, as
described above.
ATTACHMENT(S):
Resolution of Support - Baker Subdivision WHTC.docx
Resolution of Support - CityLight Apartments WHTC.docx
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RESOLUTION NO. 26-___
RESOLUTION IN SUPPORT OF WORKFORCE HOUSING TAX CREDIT INCENTIVE
APPLICATION FOR SUBMISSION TO THE IOWA ECONOMIC DEVELOPMENT
AUTHORITY (IEDA) FOR A HOUSING PROJECT
BY KEYSTONE EQUITY GROUP, LLC
FOR THE CITY OF AMES, IOWA
WHEREAS, Keystone Equity Group, LLC, has requested support from the City of
Ames for its application to the Iowa Economic Development Authority (IEDA) for state tax
incentives under the Workforce Housing Tax Credit Incentive Program in support of the
construction of six owner occupied market rate attainable housing units in the City of
Ames; and,
WHEREAS, the Keystone Equity project will address a critical need for market rate
attainable owner occupied housing in the City of Ames consistent with Council Goals for
diversified housing and the City’s Comprehensive Plan, Ames Plan 2040; and,
WHEREAS, the IEDA’s Workforce Housing Tax Credit allows tax incentives for
developers that include a refund of sales, service or use taxes paid during construction;
and WHEREAS, Keystone Equity intends to apply for Iowa Workforce Housing Tax
Credits to support its plan that includes the construction of 6 owner occupied housing
units within the City of Ames ; and,
WHEREAS, the City of Ames will support the creation of the 6 owner occupied
housing units with land sales for six individual lots owned by the City at a reduced cost
compared to appraised values as the local match of at least $1,000 per unit in order to
assist Keystone Equity with pricing of homes as market rate attainable housing consistent
with parameters of the Workforce Housing Tax Credit program.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames,
Iowa:
Section One. The City of Ames offers its full support for the Keystone Equity
housing project in Ames, Iowa, and the associated Workforce Housing Tax Credit
Incentive Application to the Iowa Economic Development Authority.
Section Two. The City Council authorizes City staff to assist in the preparation of
the application and related materials deemed necessary for the submission.
Section Three. The City Council commits to local assistance of at least $1000 per
unit with reduce lot sale prices.
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ADOPTED THIS 26th day of May, 2026.
_______________________________ _________________________________
Renee Hall, City Clerk John A. Haila, Mayor
Introduced by:
Seconded by:
Voting aye:
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 26th day of May, 2026.
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RESOLUTION NO. 26-___
RESOLUTION IN SUPPORT OF WORKFORCE HOUSING TAX CREDIT INCENTIVE
APPLICATION FOR SUBMISSION TO THE IOWA ECONOMIC DEVELOPMENT
AUTHORITY (IEDA) FOR A HOUSING PROJECT BY LJREC, LLC
FOR THE CITY OF AMES, IOWA
WHEREAS, LJREC, LLC, represented by Luke Jensen, has requested support
from the City of Ames for its application to the Iowa Economic Development Authority
(IEDA) for state tax incentives under the Workforce Housing Tax Credit Incentive Program
in support of the construction of up to 39 infill apartment housing units; and,
WHEREAS, the LJREC, LLC project will address a critical need of additional
Downtown housing as market rate attainable housing units within the City of Ames
consistent with Council Goals for diversified housing and the City’s Comprehensive Plan,
Ames Plan 2040; and,
WHEREAS, the IEDA’s Workforce Housing Tax Credit allows tax incentives for
developers that include a refund of sales, service or use taxes paid during construction;
and,
WHEREAS, LJREC, LLC intends to apply for Iowa Workforce Housing Tax Credits
to support its plan that includes the construction of 39 apartment units within the City of
Ames; and,
WHEREAS, the City of Ames will support the creation of the housing units with a
local match of at least $1,000 per unit through partial property tax abatement or other City
housing incentive to the developer, consistent with parameters of the Workforce Housing
Tax Credit program.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames,
Iowa:
Section One. The City of Ames offers its full support for the LJREC, LLC housing
project in Ames, Iowa, and the associated Workforce Housing Tax Credit Incentive
Application to the Iowa Economic Development Authority.
Section Two. The City Council authorizes City staff to assist in the preparation of
the application and related materials deemed necessary for the submission.
Section Three. The City Council commits to local assistance of at least $1000 per
unit ($39,000) with future partial property tax abatement or other local housing assistance
to the developer.
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ADOPTED THIS 26th day of May, 2026.
_______________________________ _________________________________
Renee Hall, City Clerk John A. Haila, Mayor
Introduced by:
Seconded by:
Voting aye:
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 26th day of May, 2026.
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