Iowa’s CDBG Housing Fund COSCDA Program Manager Training, March 14-15, 2016 Nichole Hansen

Iowa’s CDBG Housing Fund » Iowa has used CDBG funds for housing activities for over 30 years. » The Iowa Economic Development Authority (IEDA) administers the state’s CDBG funding. » Until 2010, IEDA combined CDBG funds with HOME funds to create its housing fund. Activities included rehabilitation, down payment assistance, etc.

Iowa’s CDBG Housing Fund » In 2010, the HOME program moved from IEDA to the Iowa Finance Authority. » With this program change, IEDA made the decision to continue to utilize CDBG funds for housing rehabilitation. » We currently allocate 22% of our annual CDBG allocation for housing rehabilitation (approx. $4.7 million)

Iowa’s CDBG Housing Fund » Iowa’s current program limited to owner-occupied housing rehabilitation (no rental) » Maximum amount of CDBG limited to $37,500 per unit ($24,999 per unit in rebab + $7,500 per unit for lead hazard & technical services) » Average project in a community includes 6-8 homes » Applications are competitive. Submitted on an annual basis.

Iowa’s CDBG Housing Fund » Current program faced challenges, including:  Limited funding + high demand  Lead based paint spending cap- Difficult to complete all work with $24,999  Lack of interest from contractors= limited competition  Rehabilitation standards were difficult to meet with funds available.  Program not as impactful as we desired

Iowa’s CDBG Housing Fund In an effort to improve our housing program, IEDA has: » Revised our state’s minimum rehabilitation standards  Now mirror HQS standards  Allows for more local decision making on what repairs should be made  Allows for our CDBG dollars to be stretched further » Looked at how we can make our program more impactful  How can the program have more community-wide impact?  How can we do more with the funds we have available?  How can we encourage more contractor interest?

Iowa’s CDBG Housing Fund So what did we come up with?

Iowa’s CDBG Housing Fund We have developed 2 new housing pilots that we will initiate in 2016: 1. Historic Preservation Single Family Rehabilitation 2. Single Family Gut Rehabilitation * All homes must be owner occupied and homeowner must be LMI.

Iowa’s CDBG Housing Fund Historic Preservation Single Family Rehabilitation » No limit on funds per qualifying property » Property must be determined eligible for or listed in the National Register of Historic Places » Rehab must meet HQS Minimum Housing Standards and comply with the Secretary of the Interior’s Standards for Rehabilitation » Coordination with SHPO will determine if full abatement or the use of interim controls in accordance with Lead Safe Housing Regulations 24CFR35.115(13)

Iowa’s CDBG Housing Fund Single Family Gut Rehabilitation » No limit on funds per property » Rehab must meet HQS minimum Housing Standards and Iowa’s Green Streets for Gut Rehab Single Family » All lead hazards must be identified and fully abated in accordance with 24CFR35.120(b)

Iowa’s CDBG Housing Fund What do we hope to see from these pilots? » Greater community wide impact » Encourage additional community improvements » Increased interest from contractors (larger projects) » Preservation of Iowa’s historic housing stock

Iowa’s CDBG Housing Fund » Plan to implement at least one pilot project for each category this year. May do another pilot in 2017 depending on interest. » If successful, we plan to add pilots to our housing program. Communities could then apply for the type of program they wish to implement (standard rehab, historic, or gut rehab) » We will continue to work with our partners and revise program guidelines as needed to make program more useful and impactful.

Iowa’s CDBG Housing Fund Questions? Thanks for your time!