GOVERNOR CULVER ANNOUNCES NEW DISASTER RENTAL REHABILITATION PROGRAM
1/14/2009 6:41:51 PM
New Program Will Assist Landlords Impacted by 2008 Storms and Floods
(Des Moines, Iowa) – Today, Governor Culver announced a new program that specifically helps owners of rental properties damaged by last year’s severe storms and floods. Further details about the program were announced by the Rebuild Iowa Office at today’s joint Rebuild Iowa & Disaster Recovery House and Senate Committee meeting.
The Rental Rehabilitation program allows landlords to receive up to $24,999 per unit for repairs. Supplemental funds will be available for the following (when applicable): lead hazard reduction, project delivery costs and temporary relocation. Total cost including supplemental assistance cannot exceed $37,500 per unit. Assistance will be in the form of a five-year forgivable loan (non-receding), forgiven in full at the end of the five-year compliance period.
"Landlords are currently not eligible for the Jumpstart program," said Governor Chet Culver. "It is imperative that owners of rental properties receive assistance during this disaster recovery process as well. The Rental Rehabilitation program allows landlords the ability to make repairs and increase the housing availability in and around flood-impacted areas."
Assistance is limited to projects of seven units or fewer. A program for projects of more than seven units is currently being developed. A project is defined as a site or sites together with any building or buildings (including manufactured structures that are taxed as real property) located on a site or sites that are under common ownership, management and financing. For example, a person who owns two disaster-impacted duplexes and one disaster-impacted triplex can repair all three structures.
The Rental Rehabilitation program will be administered by the 11 Council of Governments (COG) and Entitlement Cities that currently administer the Jumpstart Housing Program.
Eligible applicants must be:
Rental property owners (individuals; for-profit entities; and non-profit entities) whose properties were impacted by the disasters of 2008
Rental property owners seeking rental rehab assistance must have been the owner of record of the property for which funding is sought prior to the disaster event
Property owners who can demonstrate the ability to fund on-going operational expenses associated with the rental property over the life of the forgivable loan
Property owners must agree to comply with all federal, state and local requirements (including but not limited to Rental Rehabilitation guidelines, Fair Housing and Equal Opportunity requirements, accessibility for persons with disabilities, procurement and contracting requirements, etc.).
The Rental Rehabilitation program is funded by Community Development Block Grant funds. The distribution of funds to various communities will be based on the need in that area.
No rental rehabilitation benefits to structures or projects located within the 100-year floodplain will be allowed, unless the activity meets all Housing and Urban Development (HUD) environmental requirements, all applicable flood mitigation design standards and the property is insured by the Federal Flood Insurance Program. Also, no rental rehabilitation benefits will be allowed for structures or projects located in a designated or proposed buy-out area.
Rental property owners have until Feb. 20 to apply for the first round of funding.
Applications can be found on the Rebuild Iowa Office’s Web site at