Iowa could forfeit million of dollars in federal rent assistance

Iowa has but to spend practically $80 million of federal emergency hire help it obtained in late 2020, in keeping with the Nationwide Low Revenue Housing Coalition (NLIHC).

Why it issues: Thousands and thousands of {dollars} may very well be forfeited if it is not allotted by Sept. 30.

Catch up quick: Iowa obtained simply over $195 million within the first spherical of funding from the Emergency Rental Help program.

Context: Iowa has struggled to spend the cash and was granted federal permission to reallocate $65 million to Polk and Linn Counties earlier this yr.

• Of the remaining $130M, lower than 45% has been appropriated — among the many lowest percentages within the nation in keeping with the NLIHC.

Between the traces: Paperwork is making the state’s work tough, Iowa Finance Authority (IFA) director Debi Durham advised the Register final yr.

• The company distributes the state’s portion to the areas exterior of Polk and Linn and has been stymied by technical and regulatory points, she stated.

In the meantime, Polk and Des Moines have used the nonprofit group IMPACT to handle its allocations and, not like the state, permits the cash for use for future hire funds.

• Its allotments can be used earlier than the spending deadlines, IMPACT’s director Anne Bacon advised Axios final week.

State of play: A second spherical of allocations — generally referred to as ERA2 — gives Iowa with simply over $149 million.

• Sure, however: The spending deadline for that chunk is in 2025.

The most recent: Among the state’s on-deadline spending would possibly qualify to assist pay for housing initiatives that profit low-income households, Polk County Supervisor’s Chairperson Angela Connolly tells Axios.

• County officers are reviewing choices. A request to state and federal officers is feasible in coming weeks, she stated.

Of notice: IFA is accepting hire and utility help purposes for its program by way of Aug. 30.