You don’t have to gain independence all on your own. The Aftercare Rent Subsidy Program supports youth who are aging out of foster care and are participating in the Aftercare Services Program. The subsidy promotes self-sufficiency goals and teaches youth life skills relative to renter rights and responsibilities.
The youth must be an active participant in aftercare services, making progress toward an identified goal of obtaining or maintaining stable housing. The youth must have left foster care on or after his/her 18th birthday.
The youth must provide evidence that he/she is responsible for paying more than 30% of their gross earned and unearned income for rent.
That they cannot obtain other rental assistance because they have been determined ineligible or are on a waiting list for rent subsidy under the U.S. Department of Housing and Urban Development (HUD) or any other available rent subsidy program, or because a waiting list for the HUD rent subsidy program or any other rent subsidy program is closed.
This program may not be used to substitute for any other subsidy that the youth had been receiving at the time of or immediately prior to the time of application to this program.
Youth receiving rental assistance at the time of or immediately prior to the time of application to this program shall not be eligible.
To demonstrate that the youth understands the rights and responsibilities of being a renter, the youth must have either lived in a transitional apartment (through the Aftercare Services Transitional Apartment program), completed a renter education and awareness program, be enrolled to participate or be currently participating in a renter education and awareness program.
The youth must submit a budget that demonstrates that the subsidy, when combined with their gross earned and unearned income, will enable them to cover all remaining living expenses (i.e., housing, utilities, clothing and food).
The youth must submit a current lease agreement between the youth and the landlord. The lease must state the rental address, monthly rent, terms of lease and the effective date of the agreement.
The self-sufficiency advocate must submit an online application to the Iowa Finance Authority on behalf of eligible youth.
The following should be sent via email:
The subsidy amount is the difference, not to exceed $450, between:
Start with: Whichever is less; actual rent OR Fair Market Rent
Divide by: Number of bedrooms
(One bedroom or proportionate share of a rental unit with more than one bedroom)
This equals: Allowable rent/number of bedrooms
The proportionate rent allowed for a single person
Multiply by: Proportionate rent x (applicant + dependents)
The applicant and minor dependents, if any
This equals: The adjusted proportionate rent allowed
Subtract: Gross monthly income x 30%
30% of the applicant’s monthly income (contribution towards rent)
Whichever is less; rent less the monthly rent subsidy
Remainder: Income OR $450
Waiting List and Insufficient Funds
Redetermination of Eligibility
A redetermination of eligibility for direct rent subsidy payments shall be completed: At least once every 12 months
Termination of Rent Subsidy
The rent subsidy will terminate at the end of the month in which any of the following occurs, and a notice will be sent to the self-sufficiency advocate which states the reason for termination: