DES MOINES - Governor Chet Culver Thursday announced the creation of a new program will now help owners of large rental properties damaged by last year’s severe storms and floods.
The Large Rental Rehabilitation program allows disaster-impacted landlords with eight or more units to receive up to $24,999 per unit for repairs. Supplemental funds will also be available for the following: 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) which will be forgiven in full at the end of the five-year compliance period.
“Like small business owners statewide, many landlords have experienced great difficulties as a result of the floods of 2008,” said Governor Culver. “The Large Rental Rehabilitation program is one more step toward assisting these business owners, while at the same time helping to provide accessible housing for Iowans who live in flood-affected areas.”
This assistance is available for landlords who own eight or more units in one building. The Large Rental Rehabilitation program will be administered by the 11 Council of Governments (COG) and Entitlement Cities that currently administer the Jumpstart Housing Program. Applications must be submitted to one of these eleven entities.
Eligible applicants must be:
- Rental property owners (individuals; for-profit entities; and non-profit entities) whose properties were impacted by the disasters of 2008
- The owner of record for the property prior to the disaster event
- Able to 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 Large Rental Rehabilitation guidelines, Fair Housing, Labor Standards and Equal Opportunity requirements, accessibility for persons with disabilities, procurement and contracting requirements, etc.).
The Small Rental Rehabilitation Program for units of seven or fewer units was announced in January and is still available.
Both the Small and Large Rental Rehabilitation programs are funded by Community Development Block Grant (CDBG) funds. The distribution of funds to various communities will be based on the housing needs 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.
To access an application and guidelines for the Large and Small Rental Rehabilitation programs, visit the Iowa Department of Economic Development’s Web site at http://www.iowalifechanging.com/jumpstart/rental.html.
Iowa Governor Chet Culver thanks volunteers filling sand bags at the Palo Community Center in Palo on Tuesday, June 10, 2008. The governor met with Palo and Linn County officials to talk about flood preparations. He also visited Vinton and Iowa City. (Cliff Jette/The Gazette)
