Iowa Administrative Code
Agency 265 - Iowa Finance Authority
Chapter 29 - Disaster Recovery Housing Assistance
Rule 265-29.4 - Eligible Uses of Funds
Universal Citation: IA Admin Code 265-29.4
Current through Register Vol. 47, No. 13, December 25, 2024
(1) Forgivable loans. The authority may award a forgivable loan to an eligible homeowner for any of the following purposes:
a. Repair or rehabilitation of the
disaster-affected home.
b. Down
payment assistance on the purchase of replacement housing, and the cost of
reasonable repairs to be performed on the replacement housing to render the
replacement housing decent, safe, sanitary, and in good repair. For purposes of
this paragraph, "decent, safe, sanitary, and in good repair" means the same as
described in 24 CFR §
5.703. The amount of down payment assistance
that may be awarded to an eligible homeowner must not exceed 25 percent of the
purchase price of the home being purchased plus any amount allowed for repairs,
or $50,000, whichever is less.
(1) Replacement
housing shall not be located in a 100-year floodplain.
(2) For purposes of calculating the amount of
down payment assistance available to the eligible homeowner, the amount of the
down payment assistance will be reduced by the amount of any disaster
compensation received by the eligible homeowner in excess of any amount
necessary to pay off a mortgage or real estate purchase contract on the
disaster-affected home.
(3) As a
condition of receiving down payment assistance, the eligible homeowner must
agree that any disaster compensation received subsequent to the closing of the
forgivable loan, if not applied toward repayment of a mortgage on the
disaster-affected home, shall be used by the eligible homeowner to pay down the
balance of the forgivable loan outstanding at the time the eligible homeowner
receives such disaster compensation.
(4) An eligible homeowner shall not use the
assistance allowed under this paragraph for the purchase of more than one
home.
(5) Replacement housing must
be used as the eligible homeowner's primary residence.
(2) Grants. The authority may award a grant to an eligible renter to provide short-term financial assistance for the payment of rent for replacement housing, pursuant to the limitations set forth in subrule 29.6(1).
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