Developer seeks $700,000 in state workforce-housing credits to rehab 56-unit Sundown Apartments
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Summary
A developer told the Des Moines County Board of Supervisors he will apply for up to $700,000 in state workforce-housing tax credits to rehabilitate a dilapidated 56-unit apartment complex; supervisors said they will consider whether the county can provide the required local match.
Brian McGrawki, a representative of Midwest Realty Group, told the Des Moines County Board of Supervisors that his firm plans to apply for state workforce-housing tax credits to rehabilitate the 56-unit Sundown Apartments near Memorial Park Road in Burlington.
The developer said the state program is competitive, offers a maximum award of $1 million per project, and requires a local match of at least $1,000 per housing unit. "We are going to be seeking around 700,000 from the state, to apply for that," McGrawki said. He told the board the firm purchased the complex last October when 24 of the 56 units were occupied, has rehabbing about 20 units so far, and is beginning to re-lease those units.
The presentation described eligible local match forms including cash, cash equivalents, tax abatements, exemptions, rebates or reimbursements. McGrawki said allowable matches can include several vehicles but noted the property sits outside city jurisdiction, which limits use of city tax-increment financing for an abatement. He asked the board to consider a resolution of support and local match at an upcoming work session.
Supervisors asked questions about prior county practice and the political sensitivity of using public funds to support private housing projects. Several supervisors said they have historically resisted directly subsidizing private development. Board discussion indicated members want additional detail before any formal commitment: "I am not a fan of taxpayers funding housing subsidies," one supervisor said during the meeting (remarks not attributed to a single named speaker in the record). The board and developer agreed to continue the conversation at a future work session so supervisors can review possible local-match options and legal implications.
A representative of the Sheriff's office, speaking during public input later in the meeting, described crime and housing problems the redevelopment aims to address and said recent work at the complex has reduced some public-safety problems in that area.
No formal motion or vote was taken during the presentation; the item was informational and the board signaled it would consider the request at future agendaed work sessions.
The board will receive fuller documentation and may schedule a formal vote if supervisors direct staff to prepare a resolution of support or a local-match agreement.
