STATE POLICY
The State of Iowa also plays a large role in funding affordable housing in our community,
managing federal programs like LIHTC as well as state-funded programs like the State Housing Trust Fund (SHTF). The state also administers several tax credit programs that often support affordable housing development. While a direct appropriation would be preferable due to the volatile tax credit market and questions about long-term sustainability, we support tax credits in the current funding scheme to address our pressing housing needs. The only direct appropriation is for the SHTF, funded through the Rebuild Iowa Infrastructure Fund and the real estate transfer tax. These funds are controlled by the state legislature and appropriated annually.

• We support continued increases in funding to the Local Housing Trust Fund (“LHTF”) for the following reasons:
  • Rising construction costs;
  • LHTF are the most flexible of all housing funds and can therefore be more nimble
  • and reactionary to housing needs; and
  • LHTF’s have local control.

• IHP supports the establishment of a State Low Income Housing Tax Credit program, as enacted by neighboring states Nebraska, Missouri, and Illinois.
  • This credit, when used with the vastly under -utilized federal 4% bond credit, will offer the opportunity for the creation of, rehabilitation of, 1,000 affordable housing units across the state of Iowa.
  • This credit will incite over $200,000,000 of direct economic activity in the communities where these projects are located.

• IHP supports changes to the Iowa Finance Authority’s annual Low Income Housing Tax Credit Qualified Allocation Plan (QAP) that support its local policy goals, including incentives for units that serve extremely low income households and for projects located near jobs, schools, and public transportation.
• IHP supports the expansion and protection of tax credit programs that support the construction or rehabilitation of affordable housing, including Workforce Housing Tax Credits and Historic Preservation and Cultural & Entertainment District (HPCED) Tax Credits.
  • IHP supports increasing the $215,000 max per unit, as the current limit is too low for single-family housing.

• IHP supports policies and opportunities to further affordable homeownership in Iowa. Wesupport:
  • A one-time allocation of grant dollars to Community Development Financial Institutions that offer affordable mortgage and repair loans.
  • Individual Development Accounts that provide matching funds for down-payments saved by first-time homebuyers.
  • The creation of the Housing Renewal Program that offers funding to communities to acquire poorly maintained housing, make significant improvements, and resell to an income qualified buyer.

FEDERAL POLICY
The federal government is the largest funder of affordable housing in the U.S., supporting various programs managed by several federal agencies. Of these, the U.S. Department of Housing and Urban Development (HUD) plays the largest role. HUD administers many housing and community development programs, and leads enforcement of fair housing laws. Federal funding decisions are made by Congress, but cabinet members may also set departmental rules that can impact housing practices. Tax reform proposals may also impact affordable housing through changes to the LIHTC program and other tax credits commonly used in affordable housing development.

• IHP supports the Council of Independent State Housing Associations (CISHA).
• IHP supports increased federal funding for affordable housing, currently offered through a variety of programs including:
  • Managed by the U.S. Department of Housing and Urban Development (HUD):
    • Community Development Block Grant (CDBG)
    • HOME Investment Partnerships Program (HOME)
    • National Housing Trust Fund (NHTF)
    • Continuum of Care (CoC)
    • Public Housing Authority (PHA) administration & maintenance
    • Housing Choice Vouchers (HCV), commonly known as “Section 8”
  • Managed by the Internal Revenue Service (IRS):
    • Low Income Housing Tax Credit (LIHTC)
    • Federal Historic Tax Credit
  • Managed by the U.S. Department of Agriculture (USDA):
    • Single-family and multi-family housing assistance programs serving rural communities.