Essential Estrogen

Earlier this week, USDA Rural Development Director Mark Reisinger announced the limits on maximum home mortgages available through the agency's direct loan program have increased.

The new limit is $174,500 for residents in Adams, Audubon, Cass, Fremont, Harrison, Mills, Montgomery, Page, Pottawattamie, Shelby and Taylor counties. Rural development assisted nearly 1,300 families in buying a home in 2006 and the increased limit is expected to entice more rural families to the program.

The direct and guaranteed loan programs provide low-interest, no-down-payment loans to eligible families living in rural communities and areas purchase new homes. The new lending limits affect only direct home loans from Rural Development which is geared toward low-income individuals. (There are no lending limits for guaranteed home loans.) No down payment is required and closing costs may even be included in the loan. Eligible homes must be located in a community of 20,000 or fewer residents although they can be either existing to new development. Finally, the property cannot have any income-producing outbuildings.

More information is available by visiting the USDA Rural Development web site.

In addition, Wednesday Gov. Chet Culver announced more than $60 million in tax credits (10 years worth) from the federal government will be used to pay for affordable housing for low-income Iowans in nine communities. The monies come from the Low-Income Housing Tax Credit program and the HOME Investment Partnership program and will allow the state to create 621 housing units. The Iowa Finance Authority and the Iowa Dept. of Economic Development will administer the funds.

The communities to benefit include:

• Boone
  • Cedar Manor, 2003 Cedar St. - $1.5 million
• Council Bluffs
  • Heartland Homes, 1505 Avenue J - $2 million
• Creston
  • Creston Plaza Apartments, 1001 So. Sumner St. - $3.2 million
• Davenport
  • RiverWalk Lofts, 420 River Dr. - $5.9 million
  • Horison Homes, 3525 W. 42nd St. - $5.4 million
• Des Moines
  • Deer Ridge V Apartments, 6000 SW Creston Ave. - $5.5 million
  • The Rose of East Des Moines, 1331 Idaho St. - $8 million
  • Cherry Lane, 4500 Hubbell Ave. - $6 million
  • Stockbridge Apartments, 1815 High St. - $5 million
  • Southview Senior Housing, 1720 SW 1st St. - $4.7 million
• Fort Dodge
  • Town Square Apartments, 328 Central Ave. - $3.1 million
• Iowa City
  • Berry Court, various sites - $1.9 million
• North Liberty
  • Jefferson Point II, 45 W. Jefferson St. - $3.8 million
• Pleasant Hill
  • Canterbury Park, 700 NE 56th St. - $5.4 million

In total 94 units will be created for people with disabilities, 104 for seniors and the rest for families. The tax credits are sold by developers to investors who, in turn, use them for reductions in federal tax liability on ordinary income.

The only down note here is that although more than $60 million will be distributed, the Iowa Finance Authority received over $130 million in funding requests. Projects are selected based on the following criteria: Service-enriched, preservation, rural, non-profit, and affordable assisted living. Projects which fall into those categories are considered "set asides" and are given top priority.