By DOUG SCHMITZ
Iowa Correspondent

DES MOINES, Iowa — The Iowa Finance Authority (IFA) last week received $4.4 million from the USDA Rural Development Office and one of the nation’s largest philanthropic foundations to renovate more than 770 apartment buildings in rural Iowa.

“Apartment complexes play an important role in the sustainability of rural communities,” said Timothy Helmbrecht, Rural Development acting state director in Iowa. “They allow residents to continue to live in their home community, many times close to family and friends.

“Apartments also offer numerous opportunities for social activities with friends and others in the same age group and with the same interests.”

The John D. and Catherine T. MacArthur Foundation recently announced that a $400,000 grant and $2 million low-interest loan had been awarded to the IFA to assist in a large-scale revitalization effort of Rural Development-financed apartments statewide.

Gov. Chet Culver said the IFA would receive the $2.4 million investment from the foundation to help ensure the preservation of rural affordable housing for an estimated 1,200 Iowa families, seniors and people with disabilities at risk of losing their homes. Though state and local governments in 40 states competed for the MacArthurs’ support, Iowa was one of 12 to receive funds and launch innovative projects to preserve affordable rental homes.

“We are committed to preserving the quality of life in our rural communities and serving the needs of our most vulnerable citizens, and these funds help us accomplish both,” Culver said.

Helmbrecht said these new funds would be added to the $2 million loan that Rural Development awarded the IFA in September 2008, which established a revolving loan fund for this extensive renovation effort, that will cost approximately $80,000 per unit.
Rural Development provides financing for nearly 550 multifamily housing projects located in 370 rural Iowa communities – many with populations fewer than 20,000 – giving residents access to more than 10,000 apartments. Rent in the apartments is based on income, Helmbrecht said, and rental assistance from the government is available, depending on the tenant’s income level.
“If a renter’s household income is below 80 percent of the county median, they qualify for rental assistance,” he said. “For example, families of three in Benton County with household incomes of less than $43,850 qualify for rental assistance. A one-person household in this county making less than $34,100 also qualifies.

“Rental assistance is provided to make up the difference between 30 percent of a renter’s income and basic rent,” he added.
Each year, Rural Development invests approximately $100 million in loans and grants that provide rural residents with decent, safe and sanitary single or multifamily housing, with loans directly obtained either with the agency or from a private financial institution.

“USDA Rural Development’s mission is to increase economic opportunities and improve the quality of life for all rural Americans,” Helmbrecht said. “By helping finance apartment buildings, our agency is providing rural residents with decent, safe, sanitary housing for eligible families, elderly residents and those that may be disabled.”

During the past year, Rural Development helped rural businesses create or retain nearly 10,000 jobs, aided 1,600 families in buying their own homes and assisted nearly 120 communities in improving facilities and upgrading local infrastructure.

IFA Executive Director Bret Mills said while every IFA program betters the lives of people around the state, the partnership with the MacArthurs’ politically liberal foundation would specifically help the IFA aid residents in rural areas who may be limited in their housing options.

“This new initiative demonstrates the IFA’s commitment to preserving the stock of affordable housing for all Iowans,” he said.
Helmbrecht said economic changes in the rural rental market have caused some property owners to become less able to maintain aging properties. As a result, he said the IFA will be working with developers to accelerate the revitalization of these aging facilities, many of which were constructed more than 30 years ago and have had minimal efficiency updates.

The USDA-funded apartment buildings, which are expected to have the slated renovations completed by 2019, would receive updates on everything from siding, roofs, sidewalks, windows and parking lots on the outside, to cabinetry, flooring, and heating and cooling on the inside.

“This will vary from project to project, as many of these buildings have not had significant updating in many years,” Helmbrecht said. “As a general rule, pretty much anything you can think of can be updated. A comprehensive needs assessment will be completed by an architect at each facility before improvements are started.”
To date, 24 new apartment buildings for elderly residents are being constructed or are planned to be built in Boone, Tama and Toledo, with 8 units being repaired from last year’s flooding in Palo, he added.

”The ability to provide current and prospective residents with affordable and safe multifamily housing is fundamental to a community’s ability to sustain a high quality of life for its residents,” he said.