Iowa Admin. Code r. 265-29.5

Current through Register Vol. 47, No. 6, September 18, 2024

Rule 265-29.5 - Loan terms

Loans made under the program shall, at a minimum, contain the following terms:

(1)Five-year term. The duration of the loan will be for a term of five years.

(2)Amount. The maximum amount of a loan made under this program shall be $50,000.

(3)Interest. Loans made pursuant to the program shall bear no interest.

(4)Forgivability. Loans made pursuant to the program will be forgiven and the principal amount of the loan reduced by one-sixtieth of the initial loan amount for each full month of the retention period in which the homeowner is not in default pursuant to the loan agreement, beginning on the date of the final disbursement of forgivable loan proceeds.

(5)Repayment due upon sale of home. If a homeowner who has been awarded a forgivable loan sells a disaster-affected home or replacement housing for which the homeowner received the forgivable loan prior to the end of the loan term, the remaining principal on the forgivable loan shall be due and payable upon the sale of the home.

(6)Retention agreement. Each loan made pursuant to this program shall be secured by a retention agreement that shall constitute a lien on the title of the real property for which the forgivable loan is made until such time as the forgivable loan has either been fully forgiven or paid in full. However, if an eligible homeowner receives a buyout of the disaster-affected home from the hazard mitigation grant program established in Iowa Code chapter 29C or any other funding source, the receipt of the buyout will not trigger a repayment of assistance received under subrule 29.4(1).

(7)General conditions of assistance.

a. If an eligible homeowner receives other disaster compensation after a forgivable loan is awarded, the authority may require repayment of some or all of the forgivable loan based on the amount of disaster compensation received and review for any duplication of benefits.

b. Any home to be purchased, repaired or rehabilitated using assistance under the program must be in compliance with all applicable state and local laws, rules and ordinances. To be eligible for assistance, the home must be in compliance as of the time of closing in the case of purchases, and as of the date of the final disbursement of forgivable loan proceeds in the case of repair or rehabilitation.

Iowa Admin. Code r. 265-29.5

ARC 7842B, lAB 6/17/09, effective 5/14/09; ARC 7899B, lAB 7/1/09, effective 6/10/09; ARC 8074B, lAB 8/26/09, effective 9/30/09; ARC 8075B, lAB 8/26/09, effective 9/30/09; ARC 8907B, lAB 6/30/10, effective 6/10/10; ARC 9029B, lAB 8/25/10, effective 9/29/10

Amended by IAB May 31, 2023/Volume XLV, Number 24, effective 7/5/2023