Charles City to get big townhome development after state tax credits awarded to developer

DES MOINES – Dozens of new townhomes are coming to Charles City after millions in state tax credits were awarded to an Urbandale developer.

Urbandale-based Kading Properties will construct Union Place, a 74-unit rental townhome community on land donated by the city and the Charles City Area Development Corp. The site is within a half mile of major employers including Cambrex, Floyd County Medical Center and Zoetis.

Union Place, L.L.C., received $1,000,000 in state tax credits for the project.

The Iowa Economic Development Authority (IEDA) announced $35.9 million in workforce housing tax credits to support development in 36 counties across the state, including this project in Charles City. The awards will fund 63 projects expected to create nearly 2,000 new residential units — 1,217 in large communities and 752 in smaller towns.

The Workforce Housing Tax Credit program supports projects that redevelop abandoned, vacant or deteriorated properties.

“When families can find quality, affordable homes, they put down roots — and that gives businesses the steady workforce they need,” said Debi Durham, director of IEDA and the Iowa Finance Authority. “It’s that kind of stability that keeps our communities strong and our economy moving forward.”

IEDA received 137 applications requesting about $83 million in tax credits. Of the $35 million available for fiscal 2026, $17.5 million was specifically reserved for projects in Iowa’s 88 least-populated counties. Applications were evaluated on readiness, financing, community impact, developer experience and innovation.