This bill amends the existing housing renewal pilot program, which is administered by the Iowa finance authority, to modify the handling of financial assistance awards and repayments. Specifically, it stipulates that repayments of interest, income generated from the sale of ownership units, and recaptures of financial assistance awards will no longer be deposited into the housing renewal program fund but will instead be retained by the nonprofit Iowa affiliate for the purpose of awarding financial assistance to eligible participants. Additionally, if an eligible participant does not engage in project activity within twelve months of executing a contract, the financial assistance award will be returned to the nonprofit Iowa affiliate rather than the Iowa finance authority.

Furthermore, the bill clarifies the income eligibility criteria for homebuyers purchasing completed ownership units. It specifies that these units must be sold to homebuyers whose income is equal to or less than 120 percent of the area median income, and it mandates that a restrictive resale requirement be included in the deed to prevent the sale of the unit to individuals with higher incomes for a period of five years. This aims to ensure that the housing assistance provided through the program remains targeted to those who need it most.

Statutes affected:
Introduced: 8.33