This rent subsidy program 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.
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.
Guidance on Amount of Rent Subsidy
WAITING LIST AND INSUFFICIENT FUNDS
If it is determined that the funds appropriated for the HCBS Rent Subsidy are obligated, additional eligible applicants will be denied rent subsidy. A notice will be sent stating that applicant is eligible for rental assistance, but funds aren’t available. A waiting list will be established according to the order in which the applicant’s eligibility was determined. When funding allows for the addition of eligible applicants from the waiting list, eligibility will be redetermined. If funds are not sufficient to cover monthly payments for all of the persons currently receiving the rent subsidy, persons shall be terminated from the subsidy in inverse order to the date they began receiving payments. A person terminated shall be placed on the waiting list with the person’s original application date dictating the person’s position on the waiting list.
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.
- Current written evidence from income sources of monthly income;
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:
- October 19, 2007
- November 19, 2007
- December 18, 2007
- January 18, 2008
- February 19, 2008
- March 19, 2008
- April 18, 2008
- May 19, 2008
- June 19, 2008
- July 18, 2008
- August 19, 2008
- September 19, 2008
- October 20, 2008
- November 19, 2008
- December 18, 2008
DOCUMENTS AVAILABLE
- Form 470-3302 Instructions
- Form 470-3302
- HUD Fair Market Rents by County
- Presentation
Slides 1-27: HCBS Rent Subsidy Policies
Slides 28-44: How to Complete Form 470-3302
FOR MORE INFORMATION, CONTACT:
Laura Abbott
800.432.7230
laura.abbott@iowa.gov
