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:
Amount of Rent Subsidy
The subsidy amount is the difference, not to exceed $450, between:
- The lesser of the actual rent or fair market rent under guidelines of the applicable HUD low-rent housing program in the county where the youth’s residence is located, and
- Thirty percent of the youth’s monthly gross earned and unearned income.
Determining Amount of Rent Subsidy
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
- As long as funds remain and eligibility requirements of this chapter continue to be met, the organization will receive an ongoing monthly payment on behalf of the youth approved for rent subsidy.
- Assistance must be used for rental expense directly related to the youth’s lease of a rental unit.
- The monthly payment must be for a rental unit with one bedroom or a proportionate share of rental costs in units containing more than one bedroom. An exception for additional bedrooms will be made for minor dependents residing in the rental unit.
Waiting List and Insufficient Funds
- If funds are not sufficient to cover payments for all youth on the subsidy, youth shall be terminated from the subsidy in the inverse order in which they began receiving payments.
- The youth terminated shall move back to the waiting list with the original application date dictating the youth’s position on the waiting list.
- Youth not awarded funding but meeting the eligibility requirements will be placed on a statewide waiting list according to the order in which the completed applications were received.
- In the event that more than one application is received at one time, the youth shall be entered on the waiting list on the basis of the day of the youth’s birthday, the lowest number being first on the waiting list. Any subsequent tie shall be decided by the month of birth, with January being month one.
Redetermination of Eligibility
A redetermination of eligibility for direct rent subsidy payments shall be completed: At least once every 12 months
- When a change in circumstances occurs that affects eligibility requirements
- If the youth moves from the rental unit stated on the application
- When there is a change in income of $40 per month
- When there is a change in the names of the people on the lease or number of minor dependents
- When there is an unapproved person residing in the rental unit
- If the youth fails to complete the renter education and awareness program within the time period stated in the application
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:
- The youth does not meet one or more of the eligibility criteria
- The youth does not meet the youth’s obligations and personal responsibility as a renter, as determined by the youth’s self-sufficiency advocate
- No additional uncommitted funds are available for the rent subsidy program