This past July, the Iowa Finance Authority (IFA) and Iowa Economic Development Authority (IEDA) named Grinnell an Iowa Thriving Community for 2027-2028, in addition to the towns of Boone, Le Mars and Maquoketa. As a result, Grinnell has received Low-Income Housing Tax Credits to incentivize further housing projects.
“I think being awarded this hopefully gives a message that we are trying to make efforts and inroads into creating more affordable housing in Grinnell,” Grinnell Mayor Sam Cox said.
To achieve recognition from the state, Grinnell has been constructing various housing projects that follow the Low-Income Housing Tax Credit (LIHTC) guidelines. State housing agencies award tax credits as an incentive for developers to apply for new housing projects, which aids in the potential construction of new low-income housing, like recent projects in Grinnell.
“There are already three that are in town that have been built recently that meet those LIHTC standards,” said Tyler Avis, the director of building and planning in Grinnell. The three low-income housing projects are The Reserves at South Lake, The Stella on Bliss St. and the Spaulding Lofts.
The addition of the new tax credit could open the possibility for more housing projects, in addition to preexisting projects.
“What it does is make it easier for developers to become attracted to Grinnell,” Avis said of the Iowa Thriving Community title. “Because of that additional designation, it allows us to score higher or receive additional points for those developers who do submit applications.”
One major benefit of having tax incentives for developers is that housing projects could be constructed faster. Avis said he anticipates that more developers would be interested in applying for projects.
“The housing development that would occur over a course of maybe 10 to 15 years could happen in a matter of two to three years because of this designation,” Avis said. “It could have a pretty big impact right away.”
In a previous survey conducted in 2024, 31.4 percent of Grinnell residents indicated that affordable housing is the most important challenge to address in Grinnell, which was the highest proportion for any issue in the survey.
Moving forward, Avis said he hopes to focus on workforce-centered housing projects. According to the city’s 2024 Comprehensive Plan, as of 2021, over 2,000 more people commuted into Grinnell than Grinnell residents commuted out for work.
“That comes back to affordable housing, because it is less expensive to live in Malcolm and Brooklyn and Victor than it is to live in Grinnell,” Cox said. New projects that may address the workforce concern include the apartments being built by McNally’s Food and Liquor on Main Street.
“We’re hoping by opening up more housing … that people will start moving around and moving in and opening up more areas for other people,” Cox said.
Cox and Avis said the town is also looking to expand in its construction of senior housing, as well as utilizing more lots within downtown over the course of the next few years.
A significant obstacle for new housing projects in Grinnell, however, is working with the limited space the town has.
“Grinnell is landlocked, so we don’t own any of the property around Grinnell,” Cox said. “But I think the three things that we’ve managed to do in the last 12 to 18 months is going in the right direction to create more housing.”
The town has focused on refurbishing old projects in addition to building new housing, such as the Spaulding Lofts.
“Just being awarded the designation puts a pretty big spotlight on us for developers who are very active and wanting to construct housing projects,” Avis said. “Any type of housing, really, can be applied to this designation.”