Fiscal Note
Fiscal Services Division
SF 611 – Housing Assistance (LSB2822SV)
Staff Contact: Eric Richardson (515.281.6767) eric.richardson@legis.iowa.gov
Fiscal Note Version – New
Description
Senate File 611 creates a Disaster Recovery Housing Assistance Program and related fund to
be administered by the Iowa Finance Authority (IFA). The Program is for forgivable loans and
grants for homeowners and renters with homes that are destroyed or damaged due to a natural
disaster in a county that is the subject of a state of disaster emergency proclamation by the
Governor. The Program also includes homes affected by major disasters in Iowa recognized by
the President of the United States after March 12, 2019, but before the effective date of the
legislation. Administrative rules will determine the amount of assistance for eligible applicants.
The Disaster Recovery Housing Assistance Program can be funded through an appropriation, a
transfer of unobligated moneys from any fund created and controlled by the IFA through Iowa
Code section 16.5(1)(s); a transfer from any fund created and controlled by the Iowa Economic
Development Authority (IEDA) through Iowa Code section 15.106A; and from the Senior Living
Revolving Loan Program Fund, the Home and Community-Based Services Revolving Loan
Program Fund, the Transitional Housing Revolving Loan Program Fund, and the Community
Housing and Services for Persons with Disabilities Revolving Loan Program Fund.
The Disaster Recovery Housing Assistance Fund, administered by the IFA, may also allocate
grants to the Eviction Prevention Program, created in the Bill, which can make rental assistance
grants.
The Bill is effective upon enactment.
Background
Beginning March 13, 2019, historic flooding impacted the State of Iowa. Thousands of homes
were destroyed, causing hundreds of millions of dollars in damages. On March 23, 2019, the
President declared a major disaster in the State of Iowa and signed the presidential declaration
FEMA-4421-DR-IA. With the declaration, the President authorized federal funds from Public
Assistance Programs for 56 Iowa counties (see Map 1 below). FEMA-4421-DR-IA also
authorized federal funds from Individual Assistance grants in Fremont, Harrison, Mills, Monona,
and Woodbury counties. A total of 1,735 individual assistance applications from the Federal
Emergency Management Agency (FEMA) were approved for reimbursement, totaling
$15.3 million. Funding from federal public assistance totaled $194.8 million and was allocated
to debris removal, infrastructure, and recreational facilities. State appropriations for flood
mitigation from 2019 Iowa Acts, SF 638 (Standing Appropriations Act), and 2020 Iowa Acts,
SF 2144 (Supplemental Appropriations Act), totaled $36.0 million.
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 Map 1: Counties Designated Under FEMA-4421-DR, Iowa Disaster Declaration as of
July 18, 2019
On August 10, 2020, a derecho hit central and eastern Iowa, causing both significant structural
and crop damage across a large part of the State. The President issued a major disaster
declaration for 16 counties on August 17, 2020. The declaration has been amended on multiple
occasions to add additional counties and to make individual assistance available in the counties
most impacted by the storm. Map 2 below shows that as of October 5, 2020, 23 counties
qualify for public assistance and 12 counties qualify for both public assistance and individual
assistance. As of February 3, 2021, FEMA has approved 3,063 individual assistance
applications totaling $11.1 million to rebuild after the storm.
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 Map 2: Counties Designated Under FEMA-4557-DR, Iowa Disaster Declaration as of
October 5, 2020
The IFA also administered the COVID-19 Iowa Eviction and Foreclosure Prevention Program,
funded through $37.4 million in Iowa Coronavirus Relief Fund allocations. The Program
provided up to four months of actual rent or $3,200, whichever was lower, in grants to income-
eligible renters and homeowners who were at risk of eviction or foreclosure due to the
pandemic. As of January 11, 2021, nearly 15,000 applicants have received $33.4 million in
assistance from the Program.
Assumptions
There are no General Fund appropriations into the Disaster Recovery Housing Assistance Fund
for FY 2022 or FY 2023. The Program may be funded from unobligated funds transferred from
other programs administered by the IFA, and this funding is to be reported monthly to the
Legislative Fiscal Committee.
Fiscal Impact
Costs or expenditures from the creation of a Disaster Recovery Housing Assistance Program
and an Eviction Prevention Program cannot be estimated, as no appropriation or transfer has
been made to fund the Program.
In the event a future disaster produces a disaster declaration by the Governor, activating the
Disaster Recovery Housing Assistance Program, 0.25 full-time equivalent (FTE) position will be
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necessary to assist the IFA Housing Program Manager to administer the Program. Costs will be
funded through an annual 5.0% administrative allowance cap in the Disaster Recovery Housing
Assistance Fund or from other internal resources.
Sources
Legislative Services Agency
Iowa Finance Authority
Federal Emergency Management Agency
/s/ Holly M. Lyons
April 28, 2021
Doc ID 1219989
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in
developing this fiscal note is available from the Fiscal Services Division of the Legislative Services
Agency upon request.
www.legis.iowa.gov
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