Iowa Thriving Communities Program

The Iowa Thriving Communities initiative is a statewide recognition program administered jointly by the Iowa Finance Authority (IFA) and the Iowa Economic Development Authority (IEDA). Established to address the growing demand for workforce housing, the initiative rewards forward-thinking communities that are actively developing innovative strategies to expand housing options. Now in its third year, the designation serves as a powerful tool for communities seeking to attract both public and private investment in housing infrastructure. By fostering strong local partnerships and promoting development-ready environments, the initiative aims to increase the success rate of housing proposals through various state and federal funding programs. Designated Iowa Thriving Communities benefit from competitive scoring advantages when applying for several key housing programs, including the Federal Housing Tax Credit (LIHTC), Iowa Workforce Housing Tax Credit (WHTC), HOME, and the Community Catalyst programs. These incentive points—available through the calendar year following the designation—offer a significant edge in highly competitive funding processes. For instance, communities can receive up to five additional points for the WHTC and Community Catalyst programs and up to two points for the LIHTC and HOME programs. The result is increased visibility and developer interest, making designated communities more attractive for housing projects that meet a range of affordability and occupancy needs. The program is inclusive and open to all cities across Iowa, regardless of population size. While both rural and urban communities are eligible, the IFA aims to designate more rural communities under a definition that includes cities with populations of 20,000 or fewer and not adjacent to cities of 40,000 or more. This broad eligibility ensures that smaller communities with compelling plans and partnerships have equitable access to critical housing resources. The application process includes a robust evaluation that assesses financial support, planning and assessment, community attributes such as health and cultural vibrancy, workforce attraction strategies, and leadership coalitions. Communities interested in applying for the 2026 designation must adhere to a structured timeline. The application period opens on February 10, 2026, and the final application deadline is May 12, 2026. Selected finalists will be invited to deliver in-person pitches during the week of July 7, with final designations announced the week of July 14. Designated community representatives are also expected to attend the HousingIowa Conference in Cedar Rapids from September 2 to 4, 2026. The online application can be accessed through IowaGrants.gov, and all awarded communities must enter into a written agreement with IFA and IEDA. Evaluation criteria are clearly defined and include six main categories: financial support, community attributes, planning and assessment, the proposed neighborhood or housing site, strategic leadership and partnerships, and workforce attraction and retention. Community attributes under review include infrastructure such as broadband and transportation, access to essential services, and support for public health, safety, and the arts. The emphasis on cross-sector collaboration ensures that communities present holistic, realistic strategies that align with broader development goals. For additional information or technical assistance, applicants are encouraged to contact the Iowa Thriving Communities team at [email protected] or call +1.515.348.6200. No specific performance period is mandated; however, construction timelines for associated funding programs like LIHTC or WHTC suggest projects may span from 2026 to 2029. Given the strategic advantage this designation provides, Iowa Thriving Communities serves as a model for how state-level collaboration can unlock meaningful and sustainable housing development.