Relating to the housing renewal pilot program, including repayments of interest and income, and recaptures or returns of financial assistance awards

This bill relates to the housing renewal pilot program, including repayments of interest and income, and recaptures or returns of financial assistance awards. The housing renewal pilot program (program) was established in 2022 and amended in 2023, and is administered by the Iowa finance authority (authority). Under the current program, payments of interest, income generated from the sale of an ownership unit, recaptures of financial assistance awards, and other repayments under the program are deposited in the housing renewal program fund. Under the bill, such repayments shall be retained by the nonprofit Iowa affiliate (affiliate) selected by the authority to provide financial assistance under the program to eligible participants. Under the current program, unless the affiliate authorizes additional time for good cause shown, if an eligible participant has no project activity within 12 months from the date a contract is executed between the affiliate and the eligible participant, the financial assistance award shall be returned to the authority for deposit in the program fund. Under the bill, such financial assistance award shall be returned to the affiliate to be used to provide financial assistance to eligible participants. The bill clarifies that an eligible participant shall sell each completed ownership unit to a homebuyer whose income is less than or equal to the 120 percent area median income.