The fourth annual Federal Housing Tax Credit Innovation Set-Aside competition recognizes innovative housing projects that address critical needs across Iowa. Finalist development teams will present their proposals at the 2026 HousingIowa Conference, showcasing new approaches to affordable housing development and community impact.
A panel of expert judges will select the winning project, which will have the opportunity to receive up to $14 million in Federal Housing Tax Credits over a 10-year period.
Register for the 2026 HousingIowa Conference to see the finalist teams pitch their projects live on September 10, 2026, from 9:15 a.m. -12:00 p.m. and hear directly from the development teams behind these innovative proposals.
Finalists:
Merle Hay Plaza and Apartments
Developer: Gratus Development, Des Moines
Merle Hay Plaza and Apartments will transform the vacant six-story Merle Hay Tower in Des Moines into deeply affordable senior housing, advancing Merle Hay Mall’s evolution from a traditional shopping center into a mixed-use community district and regional destination. The project is the adaptive reuse of an underutilized commercial structure to create accessible, thoughtfully designed and income-restricted apartments for adults age 55 and older. The concept responds to several important needs, including aging in place, walkable communities, senior isolation, rising housing cost burdens among older adults, and the opportunity to reimagine traditional indoor malls and vacant commercial infrastructure.
Residents will live within the 74.6-acre Merle Hay campus, with indoor access to groceries, dining, banking, salons, recreation, entertainment, health-related services, retail and year-round walking opportunities. The location turns the familiar practice of mall walking into a practical neighborhood model, helping residents stay active, connected and independent, with daily needs and amenities just down the hall. As part of the broader project, the former theater north of the Tower will be demolished and transformed into a new outdoor Plaza Park featuring senior-friendly exercise equipment, public art and gathering areas.
Wilmac
Developer: Hoppe Development, Dubuque
The Wilmac project is a transformative adaptive reuse of a historic millworking building in Dubuque’s Millwork District, delivering up to 120 units of high-quality, mixed-income affordable housing. The development uses an innovative financing structure, combining 4% and 9% Low-Income Housing Tax Credits in a “Twinned” LIHTC structure, which provides additional project resources and further leverages the limited 9% tax credits.
These additional resources will support a high-quality rehabilitation with integrated community services and enable affordable housing to be integrated into a rapidly revitalizing downtown neighborhood, enabling higher levels of affordability. The Wilmac project serves as a forward-thinking model for how Iowa can leverage its limited 9% LIHTC program alongside the 4% program, a template that can be replicated in communities across the state.
Core 94
Developer: Community Housing Initiatives
Community Housing Initiatives, Inc. (CHI), Iowa’s largest non-profit housing provider, is proposing Core 94 a project that will create a high-quality asset in a desired community that is resilient and durable. This innovative design concept will be a model affordable housing design focused on the singular goal of resiliency. It will incorporate building materials that can withstand extreme climate events and are naturally resilient, on both the interior and exterior, for the lifecycle of the building.
The resulting property will be the first of its kind in the Midwest, because it will be informed by partnerships with architects, banks, investors and material manufacturers. Core 94 will create learning opportunities, incorporate innovative building practices, and be a replicable model that can be used by others as a sustainable and long-term low-cost operating solution.