HCBS Rent Subsidy Program
The Iowa Finance Authority is not currently accepting applications for the Home and Community Based Services (HCBS) program. IFA anticipates to resume accepting applications in September of 2010. More information is available here.
HCBS aids people who receive services under a federal Medicaid waiver program called home- and community-based service (HCBS) and who are at risk of nursing facility placement. The program provides a monthly rent assistance payment to these persons to help them live successfully in their own home and community, until they become eligible for any other local, state or federal rent assistance.
Iowa Rental Help
The Iowa Rental Help program may provide assistance to qualified renters who are at risk of homelessness. Call: 877-386-9104 or text RENT to 30644 for more information.
ERAP Application
Case Manager’s may now review the status and other information for their participant’s in the HCBS Program by using the new ERAP. Click here to look up an applicant.
The ERAP Users Guide may be viewed by clicking here.
Eligibility
For a person to be eligible for the HCBS Rent Subsidy program they must meet the following criteria:
- HCBS Recipient - The person must currently be an adult recipient of one of the home- and community-based service waiver program or a child (under 18 years of age) receiving residential-based supported community living services under the mental retardation HCBS waiver program.
- Demonstrated Need - The person must provide evidence that they are responsible for paying more than 30% of their income for rent and they have been determined ineligible, or have been placed on a waiting list, for U.S. Department of Housing and Urban Development (HUD) rental assistance or any other available rental subsidy programs. Persons receiving other rental assistance at the time of, or prior to the time of application to the HCBS Rent Subsidy program are not eligible. A person who declines a HUD Housing Choice Voucher or fails to respond to a notice from the public housing authority when a voucher becomes available is no longer eligible for the HCBS Rent Subsidy Program. The Housing Choice Voucher is also referred to as a Section 8 voucher.
- Risk of Nursing Facility Placement - The person must demonstrate both: 1) they have insufficient funds to pay for their community housing cost and that insufficient funds will cause them to enter a nursing facility; and 2) participation in an HCBS waiver will prevent them from entering a nursing facility and that access to the rent subsidy program is required so that they may live in a community living arrangement permitted under the waiver.
- Responsible for Rent - The person must be financially responsible for rent cost. In the case of children receiving residential-based supported community living services under the mental retardation home- and community-based services waiver program, they or their families must demonstrate this financial responsibility.
- Qualified Rental Unit – The person must live in a qualified rental unit. A qualified rental unit is an apartment, mobile home, or private room for which a signed written lease exists and which is governed by Iowa Code Chapter 562A Uniform Residential Landlord and Tenant Law. A qualified rental unit does not include a home owned by a family member.
Amount of Rent Subsidy
Maximum monthly payment shall be equal to the rent paid, not to exceed 100% of the eligible applicant’s county of residence Fair Market Rent (FMR) as determined by HUD, less 30% of the gross income of the eligible applicant. The FMR shall be that of a one-bedroom unit or a proportionate share of the rental cost in units containing more than one bedroom.
When the Iowa Finance Authority receives an application for rent subsidy, they determine if the applicant meets the HCBS Rent Subsidy program rules and if adequate funds are available to provide subsidy for the payment period. For eligible applicants, the following formula is used to determine the amount of monthly rent subsidy:
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Start with
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Whichever is less;
Actual rent
OR
110% x Fair Market Rent
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To determine fair market rent for the county that the apartment is located. (Based on # of bedrooms)
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Divide by
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Number of bedrooms
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One bedroom or proportionate share of a rental unit with more than one bedroom*
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This equals
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Allowable rent ÷ number of bedrooms
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The proportionate rent allowed for a single person
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Multiply by
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Proportionate rent ×
(applicant + dependents)
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The applicant and dependent relatives**, if any
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This equals
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Adjusted proportionate rent
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The adjusted proportionate rent allowed
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Subtract
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Gross monthly income × 30%
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30% of the applicant’s monthly income (contribution towards rent)
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The remainder
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Amount of rent subsidy
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The monthly rent subsidy
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Redetermination of Eligibility
The eligibility of persons receiving the rent subsidy will occur: at least every 12 months; or when a change in circumstances occurs that affects eligibility; or when the applicant moves from the residence stated on the application; or when there is a change in income. Recipients of the rent subsidy are required to report any changes that may affect eligibility of the program. Failure may result in responsibility for repayment of funds and termination of the rent subsidy.
Termination of Rent Subsidy
Rent subsidy shall terminate at the end of the month in which any of the following occur: the person does meet an eligibility requirement; or the person dies; or completion of required documentation is not received; or no further funds are available for the rent subsidy program.
Application Process
A person who wishes to apply for the HCBS Rent Subsidy program must:
- Complete a Form 470-3302 and include:
- Current written evidence from income sources of monthly income;
- Written evidence that the applicant has been determined ineligible, or have been placed on a waiting list, for U.S. Department of Housing and Urban Development (HUD) rental assistance or any other available rental subsidy programs, or a notice from the public housing authority that the wait list is closed (must be signed and dated by housing authority staff member); and
- The payment information for electronic funds transfer, including bank routing number and bank account number.
- Send the completed Form 470-3302 with original signatures and the required written evidence to:
Iowa Finance Authority
HCBS Rent Subsidy Program
2015 Grand Ave.
Des Moines, IA 50312
Payment Processing
IFA processes payments approximately ten days prior to the end of the month for the following month’s rent payment. In order to ensure that applicants’ most current information is reflected for upcoming rent subsidy payment, please submit any applications or change of information requests by 4:30 p.m. on the following dates:
2010
August 19
September 23
October 21
November 18
December 21
Documents
Contact
Laura Abbott
800.432.7230
