I'm an Iowan entrepreneur with a disability and while my business is doing well, housing is a serious problem. I want to own my own home, what resources are there to help?

Like most largely rural states, Iowans (especially those with disabilities) face different challenges to homeownership than those living in metropolitan areas. A significant problem in these areas is that rental housing either does not exist, the quality is sub-standard, and/or the rental cost may even exceed the typical mortgage payments. For people with disabilities, especially those living on Supplemental Security Income (SSI), the asset restrictions make saving for a downpayment on a home extremely difficult. A report by the Housing Center for People with Disabilities estimates that an individual in Iowa relying on SSI benefits to pay for rent would need to pay 74.8% of their income for a typical one-bedroom apartment (Housing Center 2001). However, Iowans with disabilities have some options that can assist in the dream of owning a home.

For Individuals:

FirstHome (Iowa Finance Authority's First-Time Home Buyer Mortgage Loan Program) This program can help your borrower obtain a below-market interest rate on their mortgage loan if they are purchasing a home in the state of Iowa. Over the past 25 years, more than 50,000 Iowa families and individuals have been able to purchase their first homes, thanks to this successful public-private partnership. FirstHome may be used to finance mortgages on new and existing single family homes, including condominium units, modular and manufactured homes with permanent foundations on owned land or on rented land with a long term lease. http://www.ifahome.com/partner_firsthome.asp

FirstHome Plus (Iowa Finance Authority's First-Time Home Buyer Mortgage Loan Program) Many first-time homebuyers have a hard time coming up with cash for down payment and closing costs. IFA's FirstHome Plus program provides qualified first-time homebuyers with incomes of $46,120 or less affordable mortgage financing plus cash assistance up to 3 percent of the mortgage amount for down payment and closing costs. IFA will pay up to 3 percent of the mortgage amount toward cash assistance for closing costs, down payment and/or required repairs. Since this is borrower assistance, only those amounts the borrower will be paying are eligible for assistance. (Used in conjunction with FirstHome program) http://www.ifahome.com/partner_firsthome_plus.asp

Iowa Housing Assistance Program
This program helps low-income Iowa families purchase a home by providing grants to help pay eligible closing costs, down payments or required home repairs. In 2001, a total of $349,009 in grants were awarded to 221 homebuyers. http://www.ifahome.com/ihap.asp

Home and Vehicle Modification (HVM)
Physical modifications to the home and/or vehicle to assist with the health, safety and welfare needs of the consumer and to increase or maintain independence. All modification requests are reviewed individually and a determination is made regarding the appropriateness of the modification request. Modifications, which increase the square footage of the home, items for replacement which are the responsibility of the homeowner/landlord, vehicle purchase, fences, furnaces or any modifications or adaptations available through regular Medicaid are not included in the HVM program. HVM is offered through the Iowa Department of Human Services Home and Community-Based Services Medicaid waivers (HCBS). http://www.dhs.state.ia.us/dhs2005/dhs_homepage/medical_assistance/medical_insurance/help_ownhome.html

Iowa Able Foundation
Since its inception in 1998, the Iowa Able Foundation has been offering loans to Iowans who need to purchase assistive technology such as specialized computers or software, wheelchairs, communication devices, home modifications, vehicle modifications and other devices.
In an effort to counter the lack of private financial resources many individuals with disabilities face that prohibit the acquisition of assistive technology, the Iowa Alternative Financing Program (AFP), established by the Iowa Finance Authority and jointly administered by the Iowa Able Foundation and The Abilities Fund, will primarily offer loan guarantees through partnering financial institution(s) to allow these individuals greater access to necessary funding. Direct loans from the AFP will be available to qualified individuals requesting loans of less than $5,000.The AFP Program will offer a supplemental resource for Iowans with disabilities who desire greater independence and participation in their family and community lives.

Iowa Able may provide direct loans and loan guarantees for borrowers who are:

1. Current residents of the State of Iowa;
2. Individuals with a need for assistive technology or those with disabilities or disabling conditions; as well as their legal representatives, guardians, family members, advocates, employers (Telework Only) or authorized representatives;
3. Legally able to enter into a binding contract with a lending institution;
   
4. Able to demonstrate use of loan funds to purchase home modifications, assistive technology and related equipment that are appropriate and authorized by program policy; and
   
5. Able to demonstrate the ability to repay the loan.

Alternative Financing Program To qualify for the Alternative Financing Program, the assistive technology device or services must enable the applicant to become more independent and/or productive.

Iowa Telework Program To qualify for the Iowa Telework Program, the assistive technology device or services must enable the applicant to work as an employee or contractor or to become self-employed on a full-time or part-time basis from home or other remote sites. For Telework loans to fund self-employment, eligibility factors will also include, but not be limited to repayment ability, equity, liquidity, break-even analysis, efficiency of operations, credit history, market analysis, competition, management structure, and collateral. http://www.iowaable.org/index.php

Medicaid for Employed People With Disabilities (MEPD)
Medicaid for Employed People with Disabilities (MEPD) is a Medicaid coverage group implemented to allow persons with disabilities to work and continue to have access to medical assistance. This program can be instrumental in assisting people with disabilities build assets. One of the advantages of the Iowa Buy-In program is that certain resources are excluded from calculations.

• Countable resources can be up to $12,000 for an individual and $13,000 or less for a couple.

  Some resources are exempt from consideration for all SSI-related Medicaid coverage groups.

  There are additional resources that are exempt from consideration for eligibility for MEPD. They are:

  • Retirement accounts held by the disabled individual such as simplified employee pension plans, self-employ­ment pension plans, Keogh plans, individual retirement accounts, Roth individual retirement accounts, savings incentive matched plans for employees and similar plans for retirement.
  • Funds in assistive technology accounts, which are funds saved for the purchase, lease or acquisition of assistive technology, assistive technology devices, or assistive technology services. To be exempt a physician, certified vocational rehabilita­tion counselor, licensed physical therapist, licensed speech therapist, or licensed occupational therapist must establish the need for such technology and that the technology can reasonably be expected to enhance the individual's employment.
  • Funds placed in a medical savings account that is exempt from federal income taxation pursuant to Section 220 of the United States Internal Revenue Code (26 U.S.C. § 220).

http://www.dhs.state.ia.us/mhdd/MHDD%20MEPD%20overview.htm

For Organizations:

OurHome Rehabilitation
Effective July 1, 2005 the Iowa Finance Authority is pleased to announce the availability of $1 million in loan funds for use by qualifying entities to rehabilitate single family homes in their local communities. Qualifying entities will apply for funds by demonstrating core competencies in three areas: (1) rehabilitation construction oversight, (2) management of loan funds, and (3) assistance for lower income households in attaining or maintaining home ownership. Preference will be given to organizations furthering the mission of the Iowa Finance Authority, with special priority given to those applicants serving households at or below 80% of the Area Median Income. http://www.ifahome.com/our_home_rehab.asp

Single Family Construction Loan Program
IFA offers low-interest construction loans to eligible developers for new construction or acquisition/rehabilitation of affordable, owner-occupied single-family homes. Maximum loan for a house is 80% of cost. Price of home, including the home and land, net all subsidies must be below $125,000. Length of the loan is 9 months or when the house is sold (whichever comes first). http://www.ifahome.com/sf_const_loan_program.asp

Low Income Housing Tax Credits
The Tax Reform Act of 1986 created the tax credit as an incentive for Low Income Housing Tax Credit ("LIHTC") project owners to invest in the development of rental housing for individuals and families with fixed or limited incomes. The tax credit, rather than a direct federal subsidy, provides a dollar for dollar reduction (or credit) to offset an owner's federal tax liability on ordinary income. Tax credit interest may be syndicated or sold to generate equity for the developments, thus reducing the necessary mortgage financing and providing more affordable terms. The tax credit frequently provides the last critical element to ensure the financial feasibility of the project. Iowa Finance Authority ("IFA") has been the tax credit allocating agency for the state of Iowa since 1986. Within the past fifteen years, IFA has participated in the creation of over 12,000 LIHTC units in over 400 projects, which are located in 80 counties throughout Iowa. The application process is very competitive. The ratio of demand to supply is approximately three to one. Currently, the amount of annual credit available is approximately five million dollars. http://www.ifahome.com/partner_lihtc.asp

State Housing Trust Fund
In accordance with Iowa Code section 16.181, a State Housing Trust Fund (the "Fund") is held within the Iowa Finance Authority (IFA). The two programs operated under the Fund are the Local Housing Trust Fund Program and the Project-Based Housing Program. The Administrative Rules for the Fund can be found at 265 IAC Chapter 19. Sixty percent of the available moneys in the Fund will be allocated to the Local Housing Trust Fund and forty percent of these moneys must be targeted to serve Extremely Low-Income People. Thirty percent of available moneys from the Fund have been allocated to the Project-Based Housing Program.

Local Housing Trust Fund Program: The goal of this program is to provide financial assistance to local housing trust funds in order that they might provide additional affordable single family or rental housing (production or rehabilitation), infrastructure, transitional housing, homeless shelters and capacity building, or other purposes that further the goals of the Fund. The local trust fund must have a local governing board recognized by the city, county, council of governments or regional officials as the board responsible for coordinating local housing programs. In addition, the organization must have sufficient administrative capacity and the experience necessary to successfully plan and execute the proposed activities in a timely manner and be able to demonstrate collaboration and/or networking with and support from local private and public entities. As part of the approval process, the local housing trust fund applicant must have a Housing Assistance Plan (HAP) approved by IFA. The HAP will include such information as: geographic area, housing needs and gaps in housing needs.

Project-Based Housing Program: The goal of this program is to assist in funding the development and preservation of affordable single and multi-family housing units. Owner occupied rehabilitation is not eligible under this program. The housing must be affordable to Low-Income People. Eligible applicants are cities and counties; non-profit and for-profit housing development organizations; recognized neighborhood associations; economic development organizations; homeless services providers; transitional housing providers and domestic violence shelters. http://www.ifahome.com/state_housing_trust_fund.asp

Recommendations for Improvement

Iowa spends far less on housing than most states. If the State's housing quality problems are not addressed, public health, economic development, and the fiscal basis of its many small rural communities will be threatened. Although Iowa has a somewhat more affordable housing stock than many of its neighbors, nearly 75,000 renter and 64,000 owner households had housing cost burdens that may limit their ability to pay for food, medical expenses or other necessities. Ignoring the affordability crisis for those households will lead to increased urban sprawl, and a continuing shortage of labor.

The Iowa Governor's Housing Task Force reported that many developers fail to either understand or enforce the accessibility requirements of the Federal Americans with Disabilities Act (ADA) or ignore them, making new construction inaccessible. In order to ensure that affordable, accessible housing is available prioritization needs to placed on the following suggestions:

• Implement a Statewide Uniform Building Code
• Ensure that percentages of housing developed with Low Income Housing Tax Credits are accessible and affordable and are linked with other homeownership programs (like Section 8 Homeownership Vouchers and HOME funds)
• Expand funding of Housing Counseling services to include the unique needs of people with disabilities, including providing information on disability housing rights, access to home modification funding sources and other low-interest, low-downpayment programs.

For more information see the Technical Assistance Collaborative's April Issue of Opening Doors
http://www.c-c-d.org/od-April05.htm and "Housing and Community Development in Iowa in 2000: Meeting the Challenges of the Next Decade" (PDF) http://planning.urban.uiowa.edu/Iowa2000/Urban_Planning.pdf