MASON CITY — Four housing developments in Mason City, Clear Lake and Ventura are in line for more than $2.25 million in state workforce housing tax credits, supporting 133 new residential units in Cerro Gordo County as part of a nearly $40 million statewide housing push announced Tuesday.
The Iowa Economic Development Authority announced $39.84 million in Workforce Housing Tax Credits on September 8 for 69 projects expected to produce 2,093 new residential units across 39 Iowa counties.
North Iowa grabbed a sizable piece of that investment.
The largest local award is going to Willow Pointe, L.L.C. for a project called Willow Pointe in Mason City. The development was awarded the maximum $1 million in tax credits and is expected to create 98 housing units.
Clear Lake landed two awards totaling $727,473 for 21 new homes. Hi Yield LLC was awarded $327,024 for the nine-unit Clear Lake Housing Addition, while LSA, LLC secured $400,449 for 12 detached single-family homes in the first phase of Lakeside Acres.
In Ventura, JMS Property Management LLC was awarded $530,777 for the McIntosh Ridge Estates Housing Project, which is expected to create 14 units.
Combined, the Mason City, Clear Lake and Ventura developments represent 133 new housing units backed by $2,258,250 in state tax credits.
The Mason City award comes as city officials continue trying to expand the community’s housing inventory while dealing with the loss of other anticipated projects.
NIT reported in July that a proposed 45-unit senior housing development near Mason City’s Northbridge area collapsed after developer Horizon Development Group determined there was an approximately $1 million funding gap and withdrew from the project.
Other housing construction remains active.
NIT reported in June that new apartments, retail and office space are planned for the fire-scarred former Kirk Apartments site in downtown Mason City. Plans call for a three-story, 19-unit apartment building along with a two-story retail and office building. That project also received Iowa Workforce Housing Tax Credits.
Mason City has also worked to position itself to attract housing investment.
Mason City was designated an Iowa “Thriving Community” by state officials in 2024, recognition aimed in part at rewarding communities using strategies to attract additional housing opportunities for their workforce. The designation provided valuable scoring advantages for developers seeking state and federal housing tax credits.
Clear Lake has also seen major housing expansion in recent years.
NIT reported in 2024 on the groundbreaking for the 98-unit 1200 Jade Apartments development in Clear Lake, which officials described as the largest apartment complex project in the city’s history and an effort to address a continuing housing shortage.
Tuesday’s latest round of state awards extends beyond Cerro Gordo County, with several other northern and northeast Iowa communities receiving significant housing investments.
Decorah Jobs Inc. received $1 million for Decorah’s Cluster Workforce Housing Project, expected to create 27 owner-occupied single-family and attached townhome units.
In Fredericksburg, HPS Investments LLC received $276,000 for the eight-unit Park View Apartments project.
In Parkersburg, Lynx Properties LLC received $395,943 for the eight-unit Lynx Subdivision.
In Waukon, Tailwind Capital Partners LLC received $397,200 for 10 single-family homes in the second phase of its Waukon development.
Together with the four Cerro Gordo County projects, those northern and northeast Iowa developments account for 186 proposed housing units and more than $4.32 million in state tax credits.
The Decorah project was specifically highlighted by state officials. Decorah Jobs Inc., a local nonprofit economic development organization, plans to redevelop a 3.5-acre former child care site into a compact neighborhood of 27 owner-occupied single-family and attached townhome units.
The two- and three-bedroom homes are expected to incorporate energy-efficient construction and are intended to provide more attainable homeownership opportunities in an area dealing with a shortage of starter homes.
IEDA Director Debi Durham said the housing investments are intended to strengthen both communities and their employers.
“When families have access to quality, affordable homes near good jobs, everyone wins,” Durham said. “Families put down roots, employers can find and keep workers, and communities have the stability they need to grow and thrive. That’s good for local businesses, our communities and our economy.”
State officials received 117 applications requesting approximately $72.6 million in tax credits — nearly twice the amount available.
Of the $40 million available for fiscal year 2027, $22.6 million was specifically reserved for projects in Iowa’s 88 least-populated counties. Applications were evaluated based on project readiness, financing, community impact, developer experience and innovation.
Statewide, the 69 projects are expected to produce 1,225 housing units in larger communities and another 868 units in smaller communities.
The Workforce Housing Tax Credit program supports housing projects around Iowa, including developments that redevelop abandoned, vacant or deteriorated properties.
For North Iowa, the latest round means another substantial injection of state incentives into a housing market where communities have repeatedly identified additional workforce housing as an important piece of continued economic growth.
I wonder who the people behind these LLCs are. Are the houses they are building going to be priced for middle income people or for upper income people?
Or how much of that money will go into the black hole as other grants to iowa have with no accountability.