Disaster Recovery Housing Assistance Program

The Disaster Recovery Housing Assistance Program will provide financial assistance to eligible homeowners affected by recent natural disasters, helping them to expediate repairs to their homes.    

NOTICE

Eligible homes must be located in a county approved for FEMA Individual Assistance following the three presidentially declared natural disasters this spring and summer. These counties currently include Adair, Adams, Buena Vista, Cedar, Cherokee, Clarke, Clay, Dickinson, Emmet, Harrison, Humboldt, Jasper, Lyon, Mills, Montgomery, O’Brien, Osceola, Palo Alto, Plymouth, Polk, Pottawattamie, Ringgold, Shelby, Sioux, Story Union and Woodbury.*

*Additional counties may be added. A map of counties, including those approved for FEMA Individual Assistance, as required for this program, is available here.

Assistance Available

Maximum Award
$50,000 for repair or rehabilitation of the eligible disaster-affected home

Assistance provided in the form of a forgivable loan, forgiven monthly over five years and secured by a recorded retention agreement. If the homeowner sells the home or the home ceases to be the homeowner’s primary residence before the end of the five-year retention period, the homeowner will be required to repay the remaining loan balance upon the sale of their home.

Eligible Homeowners

Eligible homeowners who have unmet housing recovery needs that fall beyond the scope of insurance coverage and/or FEMA Individual Assistance must meet all the following requirements:
The disaster-affected home must have been the applicant’s primary, owner-occupied residence as of the date of the disaster and be located in a county declared eligible for FEMA Individual Assistance.
If the homeowner had insurance coverage covering disaster damage, the homeowner must have filed a claim with their insurance company and received final approval or denial of that claim.
The homeowner must have registered with FEMA and been awarded some form of FEMA Housing Assistance, which may include assistance for home repairs or temporary housing.
The homeowner’s disaster-affected home must have sustained damage greater than the damage that is covered by insurance plus any other state or federal disaster-related financial assistance the homeowner is eligible to receive.
The disaster-affected home must be deemed suitable for rehabilitation by the local program administrator.
The disaster-affected home is not eligible for buyout or the homeowner is requesting a forgivable loan for repair or rehabilitation in lieu of a buyout.
The homeowner must be in good standing with the Iowa Department of Revenue.
Assistance under the program must not duplicate benefits provided by any local, state, or federal disaster recovery assistance program.

Eligible Homes

Single-family home, defined as a residence with one to four dwelling units, including townhomes.
Condominium unit
Manufactured homes permanently affixed to real property and taxed as real estate

Ineligible Homes

Homes located within the 100-year floodplain are not eligible for the program.

Eligible Repairs

Eligible repairs will be limited to those determined reasonable and necessary by the local program administrator to return the home to its pre-disaster condition.
Disaster preventative measures such as a sump pump or backflow prevention valve or Safe Rooms designed in Accordance with FEMA P-361 may be included in the approved scope of work.
Assistance provided under the program must be in compliance with all applicable local and state rules and ordinances, including but not limited to, those relating to building codes, zoning, flood plain ordinances, lead-safe renovators and work practices, and asbestos inspection and removal.

Ineligible Repairs

Repairs to outbuildings, detached garages, boat docks, shoreline restoration, landscaping, repair or replacement of household appliances, clean-up expenses, repairs to a home business or business located on the same site, remodeling to enhance the home’s pre-disaster features, expansion or addition of a deck or porch beyond the pre-disaster footprint other than to enhance mobility accessibility, purchase of personal items or furniture.

Required Documentation

Copy of driver’s license or other legal form of identification
Insurance settlement information, if applicable
FEMA Housing Assistance approval letter
If seeking reimbursement for eligible expenses, required documentation includes receipts for the purchase of materials, paid invoices from hired contractors who are registered to work in the State of Iowa, and other documentation deemed acceptable by IFA.  IFA may verify the accuracy of the submitted paid invoice through verification from the contractor.
Photos of damage to the home caused by the disaster.

Award Process

Applications will be reviewed for eligibility, duplication of benefits, and if deemed preliminarily eligible, will be referred to a local administrative partner who will be the homeowner’s point of contact for inspections, feasibility for repair determination, scope of work and payment of eligible expenses.

Payment Process

Assistance may be paid directly to contractors completing the repair or rehabilitation work or to the homeowner as reimbursement for eligible costs incurred.

Applications will be accepted on an ongoing basis beginning Monday, July 15 and will remain available until funds have been exhausted. Applications will be reviewed and approved on a first submitted, first ready to proceed basis. Incomplete application submissions may be offered a reasonable timeframe to cure those deficiencies.

Application

Contact the disaster housing recovery assistance team.

Frequently Asked Questions

How do I apply?

Homeowners need to take the eligibility precheck available here. If deemed preliminary eligible, applicants will be provided a link to the full application.

Do I have to pay the loan back?

The assistance is provided in the form of a forgivable loan, forgiven monthly over five years and secured by a recorded retention agreement. If the homeowner sells the home or the home ceases to be the homeowner’s primary residence before the end of the five-year retention period, the homeowner will be required to repay the remaining loan balance upon the sale of their home.

Who receives the payment?

Assistance may be paid directly to contractors completing the repair or rehabilitation work or to the homeowner as reimbursement for eligible costs incurred.

Do I have to pay taxes on the assistance funds?

A 1099-G will be issued to all homeowners who receive an assistance payment. Any questions regarding whether the grant is taxable income, please consult your tax advisor.

Is there an application submission deadline?

Applications will be accepted until all available funds have been exhausted.

Do I have to register with FEMA to be eligible assistance?

Yes, you must both register with FEMA and be awarded some form of FEMA Housing Assistance to be eligible to apply.

What does it mean that the homeowner must have been awarded some form of FEMA Housing Assistance?

FEMA’s Individual Assistance Program (or the Individuals and Households Program) has two provisions: Housing Assistance and Other Needs Assistance. FEMA Housing Assistance provides funding for temporary housing, home repairs, or replacement housing. To be eligible to apply for assistance under this program, homeowners must have received some type of FEMA Housing Assistance award. Homeowners who were only awarded Other Needs Assistance from FEMA, which might cover damage to household items or vehicles, are ineligible.

How do I know if my home has been proposed for buyout?

Your city or county will be able to tell you if they have applied for a property acquisition program including your property.

What is the definition of a primary residence?

It is the residence where you spend most of your time and would use as a residence for tax purposes, driver’s license and other functions.

Are there any income limits?

There are no income limits for homeowners.

If after a few years I stop living in my home and start renting it out, will I have to pay the money back?

Assistance is for the homeowner’s primary residence. If you stop using the house as your primary residence sometime in the future, including converting it to a rental property, you are required to repay any amount of assistance that is not forgiven under the terms of the recorded 5-year retention agreement at that time.

Who decides what repairs are reasonable and necessary to my disaster-affected home?

Your local program administrator will make that determination.

I have received some repair funds from FEMA. Can I get repair funds from this program too?

Yes, if you have unmet home repair needs approved by your local program administrator, you are eligible to apply for assistance. This program cannot duplicate benefits with FEMA or any other source of housing recovery assistance, so the additional repair expenses must be over and above any assistance amount awarded by FEMA.

I would like to create some additional living space in my house with a small addition. Will this program help?

No, the program is intended to repair a home only to its pre-disaster condition.

Can I apply for reimbursement for repair work that has already been completed to my home?

Yes, you may apply for reimbursement for repair work completed by a registered contractor after the date of the disaster with proper documentation of payment for those expenses if the cost of the work totals more than amounts you received from insurance, FEMA Individual Assistance, and/or other disaster recovery resources. If the homeowner already completed repair work themselves without use of a registered contractor, the homeowner may submit itemized receipts for the cost of reasonable and necessary materials used to complete the work.

How do I know if the contractor who completed my repair work is a registered contractor in Iowa?

The Iowa Department of Inspections, Appeals, and Licensing provides an online public search tool here.

Will the program pay me as the homeowner for my own labor spent repairing my home?

No, the program will not pay a homeowner for any sweat equity or self-labor. To be eligible for payment under the program, all labor must be provided by a registered contractor other than the homeowner.

I’m a landlord. Am I eligible for repair assistance under this program for my rental properties?

No, only eligible homeowners can submit an application for repair assistance to their owner-occupied, primary residence under this program.

Can I use my repair money to fix my house without elevating it?

That depends on your home’s location. You must meet all applicable local codes.

I’m purchasing my home on contract. Am I eligible to apply?

If you have been awarded FEMA Housing Assistance and otherwise meet all program eligibility rules as a homeowner, you may be eligible to apply for repair assistance under this program only if the contract has been lawfully recorded as a contract sale with the county and the contract seller also consents to the repair of the home and signs the retention agreement to be recorded upon the property. Without the contract seller’s consent, the retention agreement becomes invalid, so the seller must be a party to the recorded agreement.

I completed repairs to my home shortly before the date of the disaster. Can I apply for reimbursement for those expenses?

No, eligible repair expenses are limited to reasonable and necessary expenses to repair the home to its pre-disaster condition that were completed after the date the disaster damage occurred, within the timeframe of the FEMA Individual Assistance declaration for that county.

What does it mean that a homeowner must be in good standing with the Iowa Department of Revenue?

Before approving assistance, IFA | IEDA will ask the Iowa Department of Revenue to verify that the homeowner does not have any outstanding state tax liability, tax liens, or other related delinquencies.

My home was destroyed by or has been determined uninhabitable due to the disaster. Can this program help me?

No, this program can only provide repair assistance to eligible homeowners for their disaster-affected home that has been determined feasible for rehabilitation. Please visit disasterrecovery.iowa.gov for information on other resources for which you may be eligible to apply, including the Disaster Recovery Temporary Housing Program.

I provide in-home child care. Am I eligible to apply?

The program cannot provide repairs to a home business or business located on the same site. If only part of the home is used for business purposes and the remainder of the home serves as the homeowner’s primary residence, the homeowner may be eligible to apply; however, any home repair award amount approved would be prorated to exclude that portion of the home that the homeowner claims for business purposes when filing their income taxes. The homeowner must provide a copy of their most recent tax return as part of the application process if they have a home business.

My property was located in the 100-year flood plain, but I have a LOMA / LOMR-F approved by FEMA removing my home from the 100-year flood plain. Could I be eligible to apply if I am meet the other eligibility requirements?

Yes, you may be eligible to apply. Please upload a copy of your Letter of Map Amendment (LOMA) or Letter of Map Revision base on Fill (LOMR-F) as approved by FEMA. Our review team will also independently verify FEMA’s approval.

I have an appeal pending with FEMA. Am I still eligible to apply?

Yes, you may submit an application pending the outcome of your FEMA appeal. We will confirm the status of your appeal directly with FEMA as part of the application review process. However, to be eligible to be awarded assistance under the program, the homeowner must agree that IFA may require repayment of some or all of the DRHAP repair assistance if any additional Disaster Compensation from FEMA, insurance, or any other governmental resource is received by the homeowner after the forgivable loan is awarded.