Bills › 89th General Assembly

SF 611Died when the session ended · April 28, 2021

Creating the disaster recovery housing assistance program and fund, and including effective date provisions

Sponsored by the Senate Appropriations Committee

Topics:State budgetHousing & property

Same legislation: SSB 1272

Where it is now

  1. Done: IntroducedApril 21, 2021
  2. Done: SubcommitteeApril 21, 2021
  3. Done: Senate committeeApril 27, 2021
  4. Stopped: Passes the SenateDied when the General Assembly ended
  5. Next: House committee
  6. Next: Passes the House
  7. Next: To the Governor
  8. Next: Signed into law

Died when the session ended The 2022 session adjourned on May 24, 2022, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?

What’s in it

This bill creates a disaster recovery housing assistance program and fund. DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM —— TRANSFERS.49 (community housing and services for persons with disabilities revolving loan program fund) to the disaster recovery housing assistance fund created in the bill.5(1)(s), for deposit in the fund. The bill waives the prior written consent and approval of the director of the department of management to transfer the unobligated moneys.106A(1)(o), for deposit in the fund.

Read the full explanation

The bill requires any transfer to be reported to the legislative fiscal committee of the legislative council on a monthly basis. DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM —— FUND. The bill creates a disaster recovery housing assistance fund (fund) within the authority. The purpose of the fund is for the development and operation of a forgivable loan and grant program for homeowners and renters with disaster-affected homes, and for an eviction prevention program created in the bill. The bill prohibits the authority from using more than percent of the moneys in the fund on July of a fiscal year for purposes of administrative costs and other program support during the fiscal year. The bill directs the authority to establish and administer a disaster recovery assistance program (program) and to use the moneys in the fund to provide forgivable loans to eligible homeowners and grants to eligible renters with disaster-affected homes. “Disaster-affected home” is defined in the bill as a primary residence that is destroyed or damaged due to a natural disaster that occurs on or after the effective date of the bill, and that is located in a county that due to the natural disaster is the subject of a state of disaster emergency proclamation by the governor that authorizes disaster recovery housing assistance; or a primary residence that is destroyed or damaged due to a natural disaster that occurred on or after March 12, 2019, but before the effective date of the bill, and is located in a county that has been declared a major disaster by the president of the United States on or after March 12, 2019, but before the effective date of the bill, and is located in a county where individuals are eligible for federal individual assistance. The authority may enter into an agreement with one or more local program administrators to administer the program and moneys in the fund may be expended following a state of disaster emergency proclamation by the governor that authorizes disaster recovery housing assistance or the eviction prevention program.91 and whose territory includes at least one county that is the subject of the state of disaster emergency proclamation by the governor that authorizes disaster recovery housing assistance or the eviction prevention program; or a qualified local organization or governmental entity as determined by rule by the authority.20B. The disaster case manager may refer the homeowner or renter to the appropriate local program administrator. DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM —— HOMEOWNERS. To be eligible for a forgivable loan under the program, the bill requires a homeowner to own a disaster-affected home located in a county that has been proclaimed a state of disaster emergency by the governor; the home must have sustained damage greater than the damage that is covered by the homeowner’s property and casualty insurance policy insuring the home plus any other state or federal disaster-related financial assistance that the homeowner is eligible to receive; an administrator must deem the home suitable for rehabilitation or damaged beyond reasonable repair; if the homeowner is seeking a forgivable loan for the repair or rehabilitation of the homeowner’s disaster-affected home, the home cannot be proposed for buyout by the county or city in which the home is located, or the disaster-affected home is eligible for a buyout, but the homeowner is requesting a forgivable loan for the repair or rehabilitation of the homeowner’s disaster-affected home in lieu of a buyout; and the assistance does not duplicate benefits provided by other disaster assistance programs. If a homeowner is referred to an administrator by the homeowner’s case manager, the bill allows the authority to award a forgivable loan to the eligible homeowner for repair or rehabilitation of the disaster-affected home, or for down payment assistance on the purchase of replacement housing, and the cost of reasonable repairs to be performed on the replacement housing to render it decent, safe, sanitary, and in good repair. Replacement housing purchased by a homeowner cannot be located in a 100-year floodplain.703. “Replacement housing” is defined in the bill as housing purchased by a homeowner to replace a disaster-affected home that is destroyed or damaged beyond reasonable repair as determined by a local program administrator. The authority shall determine the interest rate for the forgivable loan. If a homeowner who has been awarded a forgivable loan sells a disaster-affected home or replacement housing for which the homeowner received the forgivable loan prior to the end of the loan term, the remaining principal on the forgivable loan shall be due and payable. DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM —— RENTERS. To be eligible for a grant under the program, the bill requires the local program administrator to either deem the disaster-affected home of the renter suitable for rehabilitation but unsuitable for current short-term habitation, or damaged beyond reasonable repair; and the assistance does not duplicate benefits provided by any other disaster assistance program. DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM —— REPORT. The bill requires the authority to annually submit a report to the general assembly detailing the disaster recovery housing assistance program. EVICTION PREVENTION PROGRAM. The bill requires the authority to establish and administer an eviction prevention program. Under the eviction prevention program, the authority awards grants from the disaster recovery housing assistance fund to eligible renters and eviction prevention partners. Grants may be awarded upon a state of disaster emergency proclamation by the governor that authorizes the eviction prevention program. The bill defines “eligible renter” to mean a renter whose income meets the qualifications of the program, who is at risk of eviction, and who resides in a county that is the subject of a state of disaster emergency proclamation by the governor that also authorizes the eviction prevention program. The bill defines “eviction prevention partner” to mean a qualified local organization or governmental entity as determined by rule by the authority. The bill requires grants awarded to eligible renters to be used for short-term financial rent assistance to keep eligible renters in the current residence of the renter. Grants awarded to eviction prevention partners are to be used to pay for rent or services provided to eligible renters for the purpose of preventing the eviction of eligible renters. DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM —— RULES. The authority shall adopt rules pursuant to Code chapter 17A to implement and administer the program including establishing the maximum forgivable loan and grant amounts, the terms of forgivable loans, and income qualifications of eligible renters in the eviction prevention program. EFFECTIVE DATE. The bill takes effect upon enactment.

Full bill text1

Senate subcommittee

Named April 21, 2021 (as SSB 1272). On April 26, 2021 it recommended passage.

Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part

Fiscal note

Can’t be estimated Compare with other bills

AI summary Senate File 611 creates a Disaster Recovery Housing Assistance Program and an Eviction Prevention Program to provide loans and grants to homeowners and renters affected by natural disasters. The costs or expenditures for these programs cannot be estimated because no appropriation or transfer has been made to fund them. If a future disaster activates the program, 0.25 full-time equivalent position will be necessary to assist with administration.2

Read the fiscal note

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.

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.

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 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

Reading a fiscal note3

Iowa Code it changes

Creates§16.57A§16.57B§16.57C§16.57D

How the Code works4

Lobbying

10 for · 0 against · 14 undecided · Who →

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