Workforce Housing Loan Program

The Iowa Finance Authority (IFA) will provide financial assistance in the form of a repayable loan to cities and counties that demonstrate a need for additional workforce rental housing for Iowans as a result of employment growth within the local unit of government’s jurisdictional boundaries.  Only cities and counties in Iowa are eligible applicants for Workforce Housing Loan Program assistance. 

  Program Highlights: 

Applicants must provide a rental housing market analysis that documents a housing shortage relative to demand, low vacancy rates and/or rising housing costs combined with low unemployment such that the: 

  • The proposed project must be new construction or adaptive reuse (conversion of an existing, non-housing structure to housing) to create new workforce rental homes.
  • The maximum loan amount per applicant will be the lesser of $1 million or $50,000 per assisted workforce housing rental unit.
  • The Workforce Housing Loan cannot exceed 50 percent of the total project development budget.
  • Workforce housing units shall not be age restricted and shall be limited to tenant households earning 140 percent or less of the statewide median income as published by HUD.
  • Rents must be commensurate with market conditions.
  • The city in which the proposed workforce housing project will be located must have local building code enforcement, including inspections, or agree to state building code enforcement.
  • The applicant must identify a specific project to be assisted with the loan funds and that project must be “ready to proceed” defined as a reasonable ability, as demonstrated in the application timeline, to expend at least 10 percent of the project’s approved development budget within six months of loan award approval.
  • The identified project in the application submission may not begin construction until on or after the date the IFA Board of Directors approves the Workforce Housing Loan Program award.


  • Applications for Workforce Housing Loan Program funding may be submitted to IFA at any time provided funding remains available.  To ensure threshold for a loan award is met, IFA will review applications according to specified criteria such as but not limited to the following:
  • Greater amounts of local contributing financial effort
  • Employer investment in the proposed workforce housing project
  • Project location in a designated Home Base Iowa or an Iowa Great Places community
  • Annual job growth during the past three years
  • Iowa Economic Development Authority has awarded High Quality Jobs Program tax credits or direct financial assistance since July 1, 2012 to the community where the workforce housing will be developed
  • Number of Fully Accessible or Type A rental housing units included in the proposed project
  • County where the workforce housing will be developed has a low average unemployment rate

  Terms of Assistance
Assistance under this program will be provided as a repayable loan to the city or county applicant.  IFA’s loan to the applicant will be made at a one percent rate of interest with a maximum term of 20 years.  Loan repayment must be backed by the full faith and credit of the applicant.  The tenant income limitations of the Workforce Housing Loan Program and reasonable rents will apply to the assisted units for the greater of five years from the date of construction completion or the date upon which the loan is repaid to IFA in full. 


Notice Application & Forms
Notice Contact

Terri Rosonke | Housing Programs Manager

Derek Folden | Underwriter