Iowa Administrative Code
Agency 265 - Iowa Finance Authority
Chapter 21 - Home and Community-based Services Revolving Loan Program
Rule 265-21.5 - Program Guidelines
Universal Citation: IA Admin Code 265-21.5
Current through Register Vol. 47, No. 6, September 18, 2024
For-profit and nonprofit sponsors are eligible to apply for assistance under this program based on the following program guidelines:
(1) Projects eligible for assistance must meet the following criteria:
a. In the case of
adult day services, the project must:
(1) Set
aside 40 percent of the admissions for those with incomes at or below 40
percent of area median income (AMI) for the county in which the property is
located;
(2) Establish a service
fee that is affordable to those with incomes at or below 40 percent of AMI for
the county in which the property is located, or agree to adjust fees based on a
person's ability to pay;
(3) Accept
third-party reimbursement, including Medicaid 1915(c) waiver(s), and meet the
standards set forth in 441-Chapter 77; and
(4) Become and remain certified as an adult
day services provider, as set forth in 321-Chapter 24.
b. In the case of respite services, the
project must:
(1) Provide services to
underserved people in the community;
(2) Establish a service fee that is
affordable to those with incomes at or below 40 percent of AMI for the county
in which the property is located, or agree to adjust fees based on a person's
ability to pay;
(3) Accept
third-party reimbursement, including Medicaid 1915(c) waiver(s), and meet the
standards set forth in 441-Chapter 77; and
(4) Meet all local, state and federal
requirements subject to health care limits of the proposed setting.
c. In the case of congregate
meals, the project must establish and maintain a contract with the area agency
on aging to provide congregate meals under the standards established for such a
program under the federal Older Americans Act.
d. In the case of programming space for
health and wellness, the program must:
(1)
Adopt research-based practices to prevent disease and improve overall wellness,
resulting in measurable outcomes for participants;
(2) Provide educational opportunities on
disease prevention, physical activity, and nutritional choices; and
(3) Establish a service fee that is
affordable to those with incomes at or below 40 percent of AMI for the county
in which the property is located, or agree to adjust fees based on a person's
ability to pay.
e. In
the case of programming space for health screening, the program must:
(1) Use a licensed health care professional
to provide screening and assessment services within the limits of the
professional's license;
(2) Provide
services to underserved people in the community; and
(3) Establish a service fee that is
affordable to those with incomes at or below 40 percent of AMI for the county
in which the property is located, or agree to adjust fees based on a person's
ability to pay.
f.In the
case of programming space for nutritional assessments, the program must:
(1) Use a registered dietitian to provide
assessment and counseling services;
(2) Establish a service fee that is
affordable to those with incomes at or below 40 percent of AMI for the county
in which the property is located, or agree to adjust fees based on a person's
ability to pay; and
(3) Accept
third-party reimbursement for nutritional counseling, including one or both of
the following:
1. Medicaid 1915(c) waiver(s)
and meet the standards set forth in human services department rules in
441-Chapters 77 and 78;
2. The
Older Americans Act, 42 U.S.C. § 3001 et seq., and meet the standards set
forth in elder affairs department rules in 321-Chapter 7.
g. A demonstrated market need for
the project must exist and the project must be in a good location, both as
determined by the authority in its sole discretion.
h. Assistance provided under this program
must enable the project to maintain financial feasibility and affordability for
at least the term of the loan.
i.
Maintenance and debt service reserve funds must be adequately funded, as
determined by the authority in its sole discretion.
j. Programs shall comply with all applicable
federal, state and local laws and rules related to the specified service or
services offered by the sponsor
(2) The following types of activities are eligible for assistance:
a. Acquisition and
rehabilitation.
b. New
construction.
c. Rehabilitation to
expand a current program.
d. Such
other similar activities as may be determined by the authority to fall within
the guidelines and purposes established for this program.
(3) Assistance will be provided upon the following terms and conditions:
a. Generally,
the minimum loan amount is $50,000, and the maximum loan amount is $1,000,000.
The maximum loan term and amortization period are each 20 years.
b. The debt service ratio must be at least
1.30:1, as calculated by the authority. In addition, the loan-to-value ratio of
the project, as calculated by the authority, will be considered.
Notwithstanding the above, the authority may, in its sole discretion, accept a
lower debt service ratio based on the final underwriting of the
project.
c. Interest rates will be
set by the authority, in its sole discretion.
d. Loans shall be secured by a first
mortgage; provided, however, that in limited cases the authority may consider a
subordinate mortgage when the first mortgage is held by another
entity.
e. Recipients of assistance
must agree to observe several covenants and restrictions, including but not
limited to recorded affordability and transfer restrictions, all in accordance
with such loan and mortgage documents as may be required by the authority under
this program.
f.Each project
receiving assistance must demonstrate a local contributing effort, as such term
is used in Iowa Code section
16.4, of not
less than I percent of the total loan amount.
g. Recipients shall execute such documents
and instruments and must provide such information, certificates and other items
as determined necessary by the authority, in its sole discretion, in connection
with any assistance.
(4) Loan fees.
a. Loan fees are as follows:
(1) Commitment fee (construction period) -
I.O percent of the loan amount.
(2)
Commitment fee (permanent loan) - 2.0 percent of the loan amount.
(3) Inspection fee - 0.5 percent of
construction loan amount.
(4)
Application fee - 0.3 percent of total loan amount requested, payable with the
submission of loan application.
b. The authority may, in limited cases,
reduce such fees if necessary in connection with assistance provided under this
program. Such decision will be made in the sole discretion of the
authority.
c. The authority will
refund to the borrower one-half of the permanent loan commitment fee if the
borrower's loan is paid off within five years of the closing of the
loan.
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