Iowa could lose millions in federal housing assistance - Axios

Iowa could suffer tens of millions of dollars successful unspent national exigency rent assistance if authorities officials don’t reallocate the wealth to section lodging initiatives earlier the extremity of this week, IMPACT manager Anne Bacon tells Axios.

Why it matters: Some of the wealth could assistance make semipermanent lodging for low-income families successful Iowa.

• But programs successful different states could person ample portions of Iowa’s stock if spending and allocation deadlines are not met.

Catch up fast: Iowa was allocated $195 cardinal successful the archetypal circular of backing from the Emergency Rental Assistance Program approved by Congress successful precocious 2020. The deadline to walk that wealth — known arsenic ERA1 — was mostly connected Sept. 30.

• About $50 cardinal of that information was not spent oregon reallocated to section lodging initiatives, Ashley Jared, a spokesperson for the Iowa Finance Authority (IFA) told Axios.

Of note: IFA hasn’t yet been directed to instrumentality the unused portion, Jared noted.

• Yes, but: Federal guidance shows that a return would beryllium made aft last reporting requirements are completed, which could beryllium arsenic precocious as Dec. 29.

Meanwhile: Iowa received an further $149 cardinal allocation — known arsenic ERA 2. It expires connected Sept. 30, 2025 but requires the authorities to conscionable spending deadlines.

• More than $89 cardinal of Iowa's 2nd allocation is successful jeopardy of being forfeited if it is not allocated by the extremity of the year, Bacon said successful referencing Treasury Department guidance sent to states.

Zoom in: Des Moines and Polk County were separately awarded astir $15 cardinal successful ERA1 and $11.6 cardinal successful Era 2 allocations.

• The counties were besides allowed to usage $65 cardinal of the State’s archetypal ERA1 allocations, which assisted thousands of families.

Driving the news: Polk County and DSM’s portions are astir spent.

• IMPACT, the nonprofit radical hired to administer DSM and Polk County allocations, volition halt accepting ERA rent assistance applications connected Nov. 27.

State of play: Assistance volition beryllium extended if IFA officials o.k. a reallocation of the state’s ERA 2 portions that are taxable to a national claw back, Bacon said.

• Treasury officials person informed IMPACT that a voluntary reallocation indispensable beryllium submitted by Nov. 4 to conscionable deadlines, Bacon said.

The large picture: More than a twelve states person not yet met national ERA programme spending deadlines, according to Axios’ reappraisal using National Low Income Housing Coalition (NLIHC) projections.

• Iowa has had occupation spending ample portions of its stock due to the fact that of bureaucracy issues, Iowa Finance Authority (IFA) manager Debi Durham told the Register past year.

What we’re watching: Iowa has a shortage of much than 57,000 affordable rental homes, according to 2020 NLIHC data.

• Polk County is continuing conversations this week with national and authorities officials to perchance usage immoderate of the state’s unused portions to assistance physique low-income housing, Polk County Supervisor Angela Connolly told Axios Wednesday.

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