Iowa HOME-ARP Program

The HOME-ARP program was created by the American Rescue Plan (ARP) to reduce homelessness and increase housing stability. IFA was designated approximately $29 million in HOME-ARP funds in a one-time allocation.

Available Funds

Total HOME-ARP Funds
$29.2 million
Rental Housing Development
$14.7 million*
Supportive Services
$7.3 million*
Nonprofit Operating
$1.4 million*
Nonprofit Capacity Building
$1.4 million*

Please note: Allocations are subject to modification in accordance with a recent adjustment to Iowa’s allocation amount.

NOTICE

IFA will only be accepting applications in the initial application round for the construction of rental units and the construction of rental units with supportive services. A future application round may be held for supportive services only. Nonprofit operating and nonprofit capacity building assistance is available to projects that will carry out HOME-ARP eligible activities.

The application period is now closed.

Qualified Populations

Individuals experiencing homelessness*
Individuals at risk of homelessness*
Persons fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking or human trafficking.
Other populations for which providing supportive services or assistance would prevent homelessness or would serve those at greatest risk of housing instability.

*As defined by 24 CFR 91.5

Eligible Activities

Development of affordable rental housing
Supportive services
Nonprofit operating expenses
Nonprofit capacity building

Eligible Applicants

Nonprofit and for-profit entities
Local governments

Minimum Award

The minimum amount of HOME-ARP funds that must be invested in a rental housing project is $1,000 times the number of HOME-ARP assisted units in the project as established in 24 CFR 92.205 (c).

Maximum Award

Development
The maximum amount of funding awarded per affordable rental housing development project is $5 million.
Supportive Services
Up to $900,000 ($150,000 per year for 6 years) in Supportive Services may be added to qualified rental projects.

Maximum Award Details:

The maximum per-unit subsidy established in the National Affordable Housing Act does not apply to HOME-ARP units. Projects will be underwritten for financial feasibility and be scored to incentivize lower subsidy amounts.
The maximum amount of funding awarded for nonprofit operating assistance and capacity building is limited by NAHA and the HOME regulations. In any fiscal year, operating assistance OR capacity building assistance provided to a nonprofit organization may not exceed the greater of 50 percent of the general operating expenses of the organization or $50,000. If an organization receives both operating assistance and capacity building assistance in any fiscal year, the aggregate total amount of assistance it may receive is the greater of 50 percent of the organization’s total operating expenses for that fiscal year or $75,000.
Each application must provide documentation to show that a minimum of 25% of the project is funded by an outside source. HOME ARP funds will be awarded as a loan.

Supportive Services

Supportive services are offered for activities necessary to assist the qualifying populations, prevent homelessness or enable qualifying households to obtain and maintain housing.
Eligible services are listed in CPD 21-10, and in the Supportive Services section of the application.
Supportive services must be combined with, and serve, residents of newly developed affordable rental units.

Housing First:

IFA expects to prioritize HOME-ARP projects that will provide permanent supportive housing embracing Housing First practices.
Housing First practices incorporate:

- Minimal barriers to housing entry,
- Person-oriented and respects tenant choice,
- Failure to participate in formal service programs is not a cause for eviction

Development of Affordable Rental Units

Development includes:
- Building acquisition, construction and rehabilitation.
- Assistance may be provided to a single site or sites together with any building or buildings located on them.

Online Application Opens: January 5, 2024 – 9:00 a.m.

Application Deadline: March 5, 2024 – 12:00 p.m. (noon)

Tentative Award announcement: June, 2024

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Frequently Asked Questions - Updated 1/31/24

Are HOME-ARP funds separate from LIHTC funds?

Yes, HOME-ARP and Low Income Housing Tax Credit (LIHTC) programs are separate funding sources. The application window for each program will occur at different times in 2024 with the HOME-ARP applications accepted between January 5 and March 5.

Are we able to apply for HOME-ARP funds on an already approved LIHTC deal?

Yes, you could apply. However, HOME-ARP has program requirements that are different than LIHTC, and applications will be underwritten accordingly. We encourage you to review the HOME-ARP program requirements prior to application, to ensure that the scope of your project is eligible for funding.

Are we able to apply for HOME-ARP funds on a potential LIHTC deal? If we intend to apply for a LIHTC project this April, are we able to apply for these funds?

For the HOME-ARP funding round offered between January 5 and March 5, 2024, Iowa Finance Authority is not offering a combined application process for HOME-ARP and LIHTC. You could apply for each program, separately, during their respective application windows. We recommend reviewing the requirements for each program, prior to applying, as there are specific differences between HOME-ARP and LIHTC. Consult with the LIHTC allocation team to confirm the project is eligible for an additional funding source.

Can you give us the names of the consultants?

As discussed during the presentation, IFA and HUD are both working with technical assistance consultation firms related to HOME-ARP implementation. Please contact Jason Hall directly to discuss options to contact TA consultants directly. IFA is the participating jurisdiction for HOME-ARP funds and prefer program or project related questions are directed to us for consideration.

Because of the Davis Bacon and Section 3 requirements, are funds for a grant administrator an eligible grants expense?

IFA will award funds through a loan agreement similar to the regular HOME program. Developer fees may be included with unit development costs, similar to regular HOME. A list of all HOME-ARP eligible costs can be found in HUD notice CPD-21-10.

Is there a per Home-ARP unit maximum (or minimum) amount of funds a project can request?

There is no per unit subsidy maximum, however projects will be evaluated to determine reasonableness. Points will be awarded based on the amount of subsidy required to develop each rental unit. See the HOME-ARP application manual for scoring guidelines. HOME-ARP will utilize the HOME subsidy minimum of $1000 per unit.

Is there one application for all sectors of HOME ARP?

Yes, we will utilize one application for all types of HOME-ARP funds. Separate written agreements will be required for each fund type.

If serving homeless, is the housing time limited? Meaning can this be someone's permanent home or must it be transitional to other housing?

Funds awarded with this program will be for the development of affordable rental units, rather than transitional housing. There is no limitation on how long a resident can occupy a rental unit. Additionally, as long as the tenant is a member of a qualifying population at entry, they will maintain this status through the duration of the HOME-ARP affordability period (15 years).

What if we’re serving all four populations but only the women in those populations? Could we still qualify for funding?

Possibly, this would require several layers of review. A civil rights and fair housing review would need to be completed to ensure no violations. The applicant and IFA would then need to conduct a gap analysis to support and confirm the gender specific need is greater than the qualifying population as a whole. Finally, IFA would need to submit an amendment, to be approved by HUD, for our allocation plan.

Could we potentially apply for HOME ARP funds to supplement a construction shortfall if we are developing a 21-unit permanent supportive housing complex that has already secured HOME and NHTF funds?

Yes, you could apply. However, the project scope would be reviewed and underwritten to ensure that all HOME-ARP program requirements are met. We encourage you to review the HOME-ARP program requirements, prior to application, to ensure that the scope of your project is eligible for funding.

Would jail diversion be considered a qualified population?

Diversion program participants may qualify for HOME-ARP as an individual, but would need to be considered for entry through an entry system that is open to all persons of that qualifying population.

Can HOME-ARP funds cover expenses already incurred with building new supportive rental housing? For example, if expenses were incurred in 2023 for construction, can 2024 awarded funds cover costs from the previous year?

Possibly. You could submit an application. However, the project scope would be reviewed and underwritten to ensure that all HOME-ARP program requirements are met. We encourage you to review the HOME-ARP program requirements, prior to application, to ensure that the scope of your project is eligible for funding. Additionally, HOME-ARP funds can only be used for costs incurred after program award.

Can the funds be used for 9% LIHTC projects?

Yes, you could apply. However, HOME-ARP has program requirements that are different than LIHTC, and applications will be underwritten accordingly. We encourage you to review the HOME-ARP program requirements, prior to application, to ensure that the scope of your project is eligible for funding. Additionally, IFA is considering options to partner National Housing Trust Fund (NHTF) funds with LIHTC projects in 2024.

Where can we find a PowerPoint with more information about the HOME-ARP program?

A PowerPoint, and all program specific documents, will be posted to IFA’s HOME-ARP webpage: Iowa HOME-ARP Program – Iowa Finance Authority

How is the funding structured? What are the terms of the loan?

HOME-ARP will be a 15 year term to align with the affordability period. There will be no (0%) interest. Repayment requirements, if applicable, are being discussed. Final terms will be included with award and will be in the project written agreement.

In rural locations, can construction take place outside city limits on water and sewer that aren't on city services?

Yes, construction could take place in rural areas. We will ask in the application to confirm that a prospective project has access to reliable utilities. Rural water supply and access to a sewer system that is sufficient to service the project would be required.

How will Housing First principles will be applied to these applications?

HOME-ARP will accept applications for all eligible projects. IFA encourages projects which apply Housing First principles.

Are these funds only available for new unit construction or would rehab of existing units qualify?

HOME-ARP funds will be awarded to projects which develop new/additional affordable rental units. Development activities include new construction or rehabilitation of an existing structure to create new units. Rehabilitation or improvement projects for existing affordable rental units will not be considered.

Is this fund only for the non-entitlement area of the state?

IFA’s HOME-ARP funds are intended to be used in areas of the state other than the city jurisdictions which also received HOME-ARP funds. IFA is not limited to only funding projects outside of listed city jurisdictions though. If a project is located within a city that is also awarded HOME-ARP funds, the project may apply for funds from both sources. We encourage these projects to discuss, and apply, for HOME-ARP funds at the city level prior to applying for IFA funds.

Is there a preferred or better construction loan, local banks or HUD d4 construction loans?

No, for HOME-ARP, IFA does not have a preference regarding construction loan types. For HOME-ARP, a loan is not a requirement if the 25% matching funds can be verified from other sources.

Does this funding require an environmental review and release of funds?

Yes, HOME-ARP is a federal funds source and will require an environmental review. It is unlikely that HOME-ARP funds could be applied to a project that is already under development, unless that project is also funded by a federal source and cleared a federal environmental review. We would need to discuss the specifics related to a project already under development to determine eligibility.

What are the details of supportive services being eligible for up to $150k/year?

Supportive services funding is offered up to $150,000 per year during the funding period (2024-2029). A project which partners supportive services will enter into a separate written agreement for these funds annually. IFA may choose to re-evaluate the annual limit in future funding rounds.

Can our organization apply for Operating Funds if we do not submit an application for any other funding?

The HOME-ARP program requires that a nonprofit applicant seeking operating expense assistance or capacity building assistance carry out HOME-ARP eligible activities. We would not be able to consider an application for nonprofit support funds alone. The two eligible activities IFA has allocated funds to are Supportive Services and Development of Affordable Rental Housing.

Contact the Iowa HOME-ARP team.

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