WATERLOO -- Four of five developers hoping to construct affordable housing in Waterloo won endorsements from city leaders.

A shorthanded City Council voted 4-0 on Monday to approve letters of support for the projects seeking tax credits from the Iowa Finance Authority to help offset construction costs.

A fifth project -- Omaha, Neb.-based Interim Holdings' plans for more than 30 rent-to-own homes in a subdivision near the Maywood neighborhood -- failed to get the support.

Council members voted 3-1 in favor of the Interim Holdings project, with Councilman Quentin Hart voting against it. But resolutions require a majority of the full council, or four votes, to pass.

Council members Reggie Schmitt, Carolyn Cole and Harold Getty were absent.

Hart said his vote against the Interim Holdings plan was "taking into account our past relationship with the developer," but declined to elaborate.

Interim Holdings previously renovated apartments in the former Whittier and Emerson school buildings and more recently renovated the Heritage Apartments, scattered throughout the city.

The developers were all looking for a resolution of support when they apply for low-income housing tax credits through the Iowa Finance Authority at the end of this week.

The tax credits are sold to investors to raise money for affordable housing projects, which must then be targeted at low- to moderate-income residents and agree to maintain rent controls for a period of time.

Because of this year's tornadoes and flooding, Iowa received a huge boost in LIHTC funds and is, therefore, expecting an increase in applications.

"Historically we've had about two (applications) per year," said Community Planning and Development Director Noel Anderson. "This year we have five, and there's a possibility they all could get funded."

Councilmen Bob Greenwood, Ron Welper and Steve Schmitt supported all five projects.

"I think they're all good projects that can stand on their own," Greenwood said.

Welper said, "I see no reason for us not to support all five."

The four projects getting council endorsements were:

The Preserve at the Crossroads, a 96-unit affordable rental housing development proposed on land north of the Crossroads SuperTarget store. The Fortus Group of Indianapolis is planning the $10 million project designed to provide housing for those earning less than 60 percent of the area's median income.

CommonBond Communities' plans for a 40-unit, $8.5 million townhouse development in the block bounded by Newell, Mobile, Ash and Webster streets.

CommonBond, of St. Paul, Minn., would rent to those making below 50 percent of the area's median income and would provide support services. The project must still receive council zoning approval Nov. 3.

Whitman Point, an $8 million, 53-unit assisted-living center on Flammang Drive across the street from GMAC Mortgage. The project, proposed by Sagamore Development of Iowa City, would be for seniors at or below 60 percent of the area's median income.

A $3.8 million project to renovate the existing 57-unit Liberty Manor senior apartment complex at 1119 Kent Circle. The apartments were originally constructed in 1980.

Contact Tim Jamison at (319) 291-1577 or tim.jamison@wcfcourier.com.