New 192-Unit Housing Community Opens in Council Bluffs
The affordable housing project in Council Bluffs adds 192 units to the local market for income-qualified residents.
Updated on Oct. 26, 2026 in Openings & Closings
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The Annex Group has opened Union at Bluffs Run, a 192-unit affordable housing development in Council Bluffs. The $58.2 million project serves households with incomes at or below 60 percent of the area median income.
Why it matters
The project illustrates the use of multi-layered capital stacks, including tax-exempt bonds and 4 percent tax credits, to deliver workforce housing in tight inventory markets. It highlights the role of public-private financing structures in underwriting high-cost developments.
The development cost $58.2 million for 192 units, with financing anchored by $22 million in equity and $24 million in permanent debt from Merchants Capital. Merchants Bank also contributed $40 million in construction financing alongside state-issued 4 percent tax credits.
The players
The Annex Group
A Fishers, Indiana-based developer specializing in affordable and market-rate housing communities.
Merchants Capital
A national financial firm providing debt and equity solutions specifically for multifamily and affordable housing developers.
Iowa Finance Authority
A state agency that manages housing finance programs, including tax credit allocation and the issuance of tax-exempt bonds.
The details
Developed by The Annex Group, the community utilizes a mix of construction debt and permanent equity to manage capital costs. The project structure relies on Iowa Finance Authority tax-exempt bonds and 4 percent tax credits to maintain eligibility for residents earning 60 percent of the area median income. The 10-acre site includes amenities such as a fitness center and community room designed to support long-term tenant retention.
Timeline
October 25, 2026: The Annex Group hosted an open house and ribbon cutting for the community.
October 26, 2026: The project officially announced the opening of the community.
Market Landscape
The project utilizes the 4 percent tax credit program to offset high construction costs for affordable housing. This approach follows established industry trends where developers leverage state-issued bonds and federal credits to ensure financial viability in mid-sized markets.
Operators in development and construction should monitor the reliance on 4 percent tax credits as a primary tool for project feasibility in the current rate environment. Local businesses should note the increased density of residents in this area as a potential driver for demand in nearby retail and service sectors.
The takeaway
The Annex Group project underscores how developers align site amenities and density with specific income-restricted tax credit requirements to secure financing. Operators should track local area median income adjustments, as these thresholds dictate the long-term feasibility of similar rent-restricted housing projects.
Further reading
For more on new developments and real estate activity, visit the Openings & Closings section.
Source note: This article includes information reported by MultifamilyBiz.
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