Low Income Housing in Iowa

Low Income Housing Information

Low income housing can be a godsend, but if you don't know how to apply, or who to get your information to, how can you ever expect to be approved?

Since laws and procedure vary from state to state, you'll need to learn a few specifics before applying. We can help!

How to Qualify for Low Income Housing in Iowa

Iowa has a well developed affording housing infrastructure and though it faces its own challenges, residents of the state are considerably better off when it comes to support for low income housing than the people of many other states. As a largely rural state, the Rural Development program of the U.S. Department of Agriculture - more popularly known as the Section 515 program - plays a relatively larger role in Iowa than it does in many other states.

The primary government agency that oversees federal and state programs and usually plays at least some role in local projects is the Iowa Finance Authority (IFA, www.iowafinanceauthority.gov). Originally established in 1975, the IFA now plays a central role in most affordable housing initiatives in Iowa. Beyond administrating federal and state programs, the IFA is also a funding agency, which issues its own bonds for various projects and programs. Somewhat uniquely among similar state government agencies, the IFA also plays a regulatory role through its title guarantee division, which overseas title transfers of real property and maintains the integrity of Iowa's title system.

The conditions to qualify for federal Section 8 housing assistance are basically the same nationally: the applicant should have an annual gross income that equals fifty percent or less of the local median income as determined by the U.S. Department of Housing and Urban Development (HUD). These median income levels differ by location and are regularly recalculated, so the exact qualifying income levels can differ widely depending on the location being considered. This is particularly true in Iowa where demographic shifts has resulted in some areas having excess affordable housing available and other areas without enough.

Iowa also offers two other programs, both of which are state-based, that can help people renting their homes. The Home and Community Based Services (HCBS) program offers a rent subsidy program as one of its features. This provides rent subsidies to people that receive services under the federal Medicaid waiver program called home- and community-based service (HCBS) and are faced with the possibility of being placed in a nursing home. The goal is to provide senior citizens with the means to continue living independently as long as possible as opposed to being institutionalized due to poverty.

The second rent subsidy program offered by Iowa is the Aftercare Rent Subsidy Program which is designed to help young adults that are transitioning out of foster care. In order to qualify, the young person has to be enrolled in the state's Aftercare Services Program, which helps foster children transition into independent adults as they age out of the foster care system. Further, the young person has to be gainfully employed and able to sign a twelve month lease for the rental property being subsidized.

There are also a number of federal and state programs that are not meant to subsidize rented homes, but to help low income people purchase homes. These programs differ significantly and so do the necessary requirements needed in order to qualify for these programs. The IFA website provides excellent, easy to understand descriptions of most of these programs as well as the requirements needed to qualify for them.