City seeking designation from Iowa Thriving Communities

The City of Red Oak is considering pursuing an Iowa Thriving Communities designation from Iowa Finance Authority and Iowa Economic Development Authority.
The initiative is designed to provide communities that are leveraging innovative methods to attract housing opportunities for their workforce with the chance to be recognized for the efforts. A limited number of communities will be awarded the designation, which comes with highly sought-after and lucrative scoring points for Federal Housing Tax Credit and Workforce Housing Tax Credit programs.
The scoring points would be available through the end of the calendar year following the community’s potential designation as an Iowa Thriving Community. The designation is specifically for rural communities with a population of 20,000 or less, and not contiguous with a city that has a population of 40,000 or more.
Developers are highly incentivized to select a community that has been designated as an Iowa Thriving Community for a proposed development through the 2024 Federal Housing Tax Credit or Workforce Housing Tax Credit programs.
Additionally, both programs accept applications from developers for specific housing development proposals through an intensive and competitive scoring process. The extra points awarded to a development through the Iowa Thriving Communities designation increases the likelihood the project will be awarded credits.
Red Oak Mayor Shawnna Silvius said it will greatly benefit the community to seek a designation.
“Basically, we had nothing to lose by applying for it, and I thought it was necessary that we did. This brand-new program was announced May 15, and the application is due July 17,” Silvius said.
In order to qualify, Silvius said the community has to score well on six different criteria.
“Applications will be scored based on financial support from the city; Iowa Thriving Communities attributes; planning and assessment; proposed neighborhoods or sites for housing developments; strategic leadership and partnerships, and workforce attraction and retention. The state really wants communities to submit applications to show their readiness for these particular types of projects,” stated Silvius.
The City of Red Oak already has a project under the Federal Low-Income Housing Tax Credit, for the Red Oak Middle School housing project. Silvius said there were elements required under each of the six criteria.  
“Some of the things we need to acknowledge are that we have completed our housing readiness assessment, that we have a housing committee, that the city has designated housing as a priority, and some other workforce details.  Also, the city has to have adopted the most recent building codes for  inspections, which we have been having discussions with the Southwest Iowa Planning Council about.”
One key element requires the support of the mayor, city council city staff, chamber of commerce, and the school district. Also required is local employer engagement and partnership.
“I believe we can pull all of this together before the July 17 deadline, so we can apply for it with no problem,” commented Silvius.
Silvius said she’s been working on the application, and as part of the application process, the question has been asked what the city’s contribution towards housing will be. Silvius said there were some options.
“We’ve discussed if the StudioOne Townhomes project is going to occur; there are some financial options,” stated Silvius.
The Red Oak City Council unanimously approved to allow the city to seek the designation at a May 30 special meeting.