There was a great article in yesterday’s Des Moines Register about how state tax credits impact the downtown Des Moines housing market. Below are just a few excerpts from this article, you can find the full article at: http://www.desmoinesregister.com/article/20091012/BUSINESS/910120323.

The state has been advised to stop providing tax credits that sparked affordable housing in downtown Des Moines. A recent market analysis completed for Iowa Finance Authority says the affordable rental apartment market in Des Moines’ downtown area soon will be saturated and the state agency should halt issuing tax credits for created low-income housing.

Any new affordable rental projects would push downtown vacancy rates above 7 percent, the mark of a balanced market, and could harm projects that have already received federal housing credits, the report said. One concern for the group was for-sale condos being leased to renters.

The recommended moratorium on affordable housing tax credits is one of several hurdles Des Moines has encountered in its efforts to revitalize downtown. The city has spent millions of dollars trying to bring entertainment – restaurants, bars, music venues – and housing downtown. In 2002, the city sought to add 6,000 housing units by 2010, but it will only have met about a third of the goal next year. Despite mounting setbacks, developers say the city should continue pushing downtown housing as Des Moines recovers from the recession that has gripped the city and state for about a year.

Posted under Living Downtown
Tags: Condos | Lofts