Merle Hay Tower project clears key housing hurdle
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Merle Hay Tower. Photo: Google Maps
Merle Hay Mall's vacant office tower is one step closer to becoming affordable senior housing after its redevelopment proposal won a state housing competition this month.
Why it matters: Converting the tower into housing could provide the aging mall with a new source of foot traffic and support its transition from a traditional shopping center to a mixed-use district.
Driving the news: Merle Hay Plaza and Apartments' proposal won the Iowa Finance Authority's affordable housing innovation competition over two other finalists.
- The win makes the $19.5 million project the only development in the state eligible this year to apply for a dedicated allocation of up to $14 million in federal housing tax credits.
Zoom in: Gratus Development plans to convert the tower into 59 income-restricted apartments for people 55 and older.
- The former theater would be demolished for an outdoor plaza.
The fine print: The project must still meet IFA underwriting and program requirements before it can receive the credits.
What's next: Gratus is already working on early predevelopment, development director Danielle Welsch Massey tells Axios.
- The developer expects the IFA board to formally allocate the credits next summer before financing closes and construction begins, likely in early 2028.