Content Information
Eligible to Apply:
- Non-profit
- For-profit entities
Eligible Activities:
- New Construction
- Rehabilitation - including conversion and preservation.
- Transitional Housing
Cap per project: $500,000.00
Total Available: $4,000,000.00
CHDO Total Available: At least $500,000.00 per round
For HOME applications, including HOME with CHDO applications, the developer and/or the developer’s affiliates may not have an open HOME project at date of application submittal. This means that any existing funded HOME project(s) the developer/affiliates is associated with must have submitted its final draw with approved completion documentation, received final payment of HOME funds, and received the Initial Allocation Compliance letter indicating the project is closed and has been moved to long-term compliance. The LIHTC applications have other open projects limitations for existing and new Developers and General Partners/Managing Members. Please refer to the LIHTC QAP for further information.
Neither an applicant, nor anyone on the applicant’s behalf, shall not contact any IFA staff or board members in order to unduly influence IFA’s determination related to the award of HOME funds. If it has been determined by IFA that a staff member or board member has been improperly contracted by the applicant or a party on behalf of the Applicant, IFA will reject the application.
Both new construction and rehabilitation (including conversion and preservation) of rental units are eligible activities. Transitional housing is also an eligible rental activity.
Project Locations
Regular projects located within a Participating Jurisdiction (PJ) must include PJ HOME funding when requesting IFA HOME funding. CHDO projects can be located within incorporated areas across the state.
Income Limits
All HOME-assisted Units shall be rented to households with incomes at or below 80% of the Area Median Income (AMI). At initial occupancy, 90% of the Units shall be rented to households with incomes at or below 60% AMI. For Projects with five or more HOME-assisted Units, at least 20% of the Units shall be rented to households with incomes at or below 50% AMI. A link to the AMI levels by county is on the IFA website.
Rent Limits
All HOME-assisted Units must rent at the lesser of the area fair market rents established by HUD or at the high HOME rent limit. For Projects with five or more Units, 20% of the HOME-assisted units shall rent at the lesser of the fair market rent or the low HOME rent limit. If tenants will pay for their own utilities, then a utility allowance must be included in rent calculations.
Utility Allowance
Guidance provided by HUD concerning utility allowances for HOME-assisted units requires that IFA provide or approve the utility allowance for any HOME-assisted unit that is not required to utilize a utility allowance from another federal source. HOME does allow the use of utility allowances provided by a local PHA, HUD Utility Schedule Model (HUSM), or other methods approved by HUD. One methodology must be selected for the entire project. A HOME utility allowance shall be approved prior to issuance of the HOME Contract.
Period of Affordability
HOME-assisted Units must remain affordable for a specific period. The periods of affordability are 20 years for all newly constructed Units; 15 years for rehabilitated Units receiving over $50,000 per Unit; 10 years for rehabilitated Units receiving $25,000 to $50,000; and 5 years for rehabilitated units receiving less than $25,000. Long-term affordability for rental activities must be secured by covenants and deed restrictions.
HOME Assistance
Maximum amount of HOME assistance per rental Unit is the HOME Maximum Per-Unit Subsidy Limit found on the IFA website. The maximum amount of HOME assistance per LIHTC Project is $500,000. The minimum amount of HOME available this round is TBD. A LIHTC project can utilize the HOME funds within incorporated areas of the State of Iowa.
Project and Per-Unit Subsidy Limits
The maximum amount of HOME assistance per rental unit is the HOME Maximum Per-Unit Subsidy Limit found on the IFA website. The maximum amount of HOME assistance per LIHTC Project is $500,000. The minimum amount of HOME available this round is TBD. A LIHTC project can utilize the HOME funds within incorporated areas of the State of Iowa.
The maximum amount of CHDO HOME assistance per rental unit is the HOME Maximum per-Unit Subsidy Limit found on the IFA website. The maximum amount of HOME CHDO assistance per LIHTC project is at least $500,000, which will be the HOME CHDO available for the round. The LIHTC project can utilize the HOME CHDO funds within incorporated areas of the State of Iowa.
Iowa Title Guaranty
The HOME applicant shall obtain a Final Title Guaranty Owner Certificate on the real estate of the Project from the IFA’s Iowa Title Guaranty Division prior to submitting the IRS Form 8609 package. The Ownership Entity shall obtain, at a minimum, a Final Title Guaranty Certificate with an amount of coverage that is not less than the value of the land and pre-existing improvements, if any, combined with the total Hard Construction Costs of the project.
Noise Abatement and Control
Applicants shall take into consideration the noise criteria and standards in the environmental review process (24 CFR Part 51, Subpart B) and consider corrective actions when noise sensitive land development is proposed in noise exposed areas.
The requirements set out in Section 51.104(a) are designed to ensure that noise sensitive projects do not have an interior noise level that exceeds the 45 decibels (dB) level established as a goal in Section 51.10 (a)(9). Complete the IFA form included in Exhibit H-22 – HOME Requirements and if a noise sensitive condition exists for the project, a noise assessment that meets HUD federal requirements must be included in your application.
Floodplain and wetland
HOME does not allow a project to be located within a flood hazard area or a wetland. Include a FEMA FIRMette map to indicate that the project site will not be within a flood hazard area and a wetland map showing the project site will not be within a wetland.
State Historical Preservation Office (SHPO)
If a NEW construction project is funded, the project will also need to provide an archeological desk review in the SHPO packet, at the time of the SHPO submittal. This may require additional time and funds required to get the archeological desk review completed. A project may want to include this in the Phase I request from the consultant. Further guidance will be provided if a new construction project is awarded funding.
National Standards for the Physical Inspection of Real Estate (NSPIRE)
The NSPIRE final rule, published May11, 2023, established a new approach to defining and assessing housing quality called the National Standards for the Physical Inspection of Real Estate (NSPIRE). The purpose of NSPIRE is to strengthen HUD’s physical condition standards and improve HUD oversight through the alignment and consolidation of the inspection regulations used to evaluate “HUD housing,” as defined in 24 CFR 5.701(c), across multiple programs. Implementation of NSPIRE ensures that residents of HUD housing live in safe, habitable dwellings, and the items and components located inside, outside, and within the units of HUD housing are functionally adequate, operable, and free of health and safety hazards. Implementation for LIHTC is currently in effect.
Build America, Buy America Act (BABA)
The Build America, Buy America Act (the Act), enacted as part of the Infrastructure Investment and Jobs Act on November 15, 2021, established a domestic content procurement preference for all Federal financial assistance obligated for infrastructure projects after May 14, 2022. The domestic content procurement preference requires that all iron, steel, manufactured products, and construction materials used in covered infrastructure projects are produced in the United States. Certification of BABA compliance will need to be documented for all products.
Housing Opportunity Through Modernization Act (HOTMA)
The Housing Opportunity through Modernization Act of 2016 (HOTMA) was signed into law on July 29, 2016. HOTMA makes numerous amendments to Sections 3, 8, and 16 of the United States Housing Act of 1937, including changes to income calculations and review. HUD finalized HOTMA rulemaking in 2023 to put Sections 102, 103, and 104 into effect through revisions to HUD’s regulations found in 24 CFR Part 5 and 24 CFR Part 891.