A developer has been awarded about $1.2 million worth of housing tax credits to help finance construction of apartments along Third Avenue Northwest that will be classified as affordable housing.

Hoppe Development, of Lincoln, Nebraska, was awarded $1,195,346 by the Iowa Finance Authority for the project.

That company plans to build 65 apartments in a series of eight two and three story buildings along Third Avenue Northwest between Fifth and 10th streets.

The Fort Dodge City Council sold the property to the developer in February. Construction could begin in June 2026.

“Housing is a critical pillar in fostering strong, thriving communities across the state of Iowa,” Iowa Finance Authority Director Debi Durham said in a written statement. “Congratulations to all nine communities receiving tax credits today, with a special recognition to the four designated as Iowa Thriving Communities — Des Moines, Fort Dodge, Mason City and Newton — for their outstanding efforts in leveraging innovative practices to attract housing opportunities for their workforce.”

The Internal Revenue Service makes an annual per capita allocation of federal tax credits to each state for the Federal Housing Tax Credit program. The Iowa Finance Authority is charged with allocating those credits to affordable housing developers. The developers who receive tax credits sell them to investors to generate equity for the housing developments.