Iowa Homeowner Assistance Fund

For U.S. Treasury Department Approval 

Date: December 1, 2021
Date: December 1, 2021 Page 1

OVERVIEW

The COVID-19 public health crisis and resulting economic crisis have severely strained many households 

across the United States, threatening housing stability for both renters and homeowners. In response to 

this crisis, Congress passed the American Rescue Plan Act (ARPA), setting aside a total of $1.9 trillion in 

federal funding for coronavirus pandemic related expenses and needs. Section 3206 of the ARPA 

established the Homeowner Assistance Fund (HAF), which provides approximately $10 billion in federal 

funding to states, territories, and tribal governments to assist vulnerable homeowners who have 

experienced a negative financial impact associated with the coronavirus pandemic. 

The HAF was established to mitigate financial hardships associated with the coronavirus pandemic by 

providing funds to eligible entities for the purpose of preventing homeowner mortgage delinquencies, 

defaults, foreclosures, loss of utilities or home energy services, and displacements of homeowners 

experiencing financial hardship after January 21, 2020, through qualified expenses related to mortgages 

and housing.

Guidance provided by Treasury stipulates that not less than 60 percent of the state’s total HAF allocation 

be made available to homeowners at or below 100 percent of the area median income (AMI) or 100 

percent of the median income for the United States, whichever is greater. The remaining portion of 

funding must be prioritized for socially disadvantaged individuals before providing funding to other eligible 

homeowners. 

IFA understands these eligibility requirements and is committed to developing and administering a 

program that meets the intent of the guidance, while promoting sustainability by ensuring that Iowa 

homeowners negatively impacted by COVID-19 who receive funds are positioned to fulfill their mortgage 

requirements independently going forward. This Needs Assessment and Plan (Plan) estimates the impact 

that the COVID-19 pandemic has had on Iowa homeowners. There are an estimated 900,000 owneroccupied dwellings in Iowa, including mortgaged homeowners who are in forbearance or delinquent on 

their mortgage; non-mortgaged homeowners who may be delinquent on their property taxes; 

condominium owners who may be behind on their monthly maintenance or HOA fees; and manufactured 

homeowners who may have other types of housing debt, such as chattel loans or retail installment 

contracts, which also may be in arrears due to the impacts of the pandemic.

Based on the data and methodology used by the United States Department of Treasury (Treasury), the 

State of Iowa (State) will receive $50,000,000 from the Homeowner Assistance Fund help eligible 

homeowners. Iowa Finance Authority (IFA) will administer the HAF program on behalf of the State. 

As a result, IFA has developed two initial programs to assist in curing mortgage and property charge 

defaults for low- and moderate-income and Socially Disadvantaged Individuals1. In addition, funding has 

been set aside to provide housing counseling and legal aid services to Iowa homeowners. IFA will 

reassess the need for additional programs or changes in current programs within thee months from the 

launch. At that time, IFA will determine whether any program changes are necessary, or if new programs

need to be established to serve the goals of HAF. 

1 Socially Disadvantaged Individuals is defined, per U.S. Treasury guidance, as “those who have been subjected to racial or ethnic prejudice 

or cultural bias because of their identity as a member of a group without regard to their individual qualities. The social disadvantage must 

stem from circumstances beyond their control. There is a rebuttable presumption that the following individuals are socially disadvantaged: 

Black Americans, Hispanic Americans, Native Americans, Asian Americans and Pacific Islanders. In addition, an individual may be determined 

to be [Socially Disadvantaged] in accordance with the procedures set forth at 13 CFR 124.103(c) or (d).”
Date: December 1, 2021 Page 2

HOMEOWNER NEEDS AND COMMUNITY ENGAGEMENT

Data-Driven Assessment of Homeowner Needs

Homeownership in Iowa

Iowa has one of the highest rates of homeownership in the country2, with nearly 900,000, or 71%, of the 

state’s 1.26 million housing units identified as owner-occupied3. The 900,000 owner-occupied housing 

units include: mortgaged homeowners, some of whom are in forbearance or are delinquent on their 

mortgage; non-mortgaged homeowners who may be delinquent on their property taxes and/or other 

property charges; condominium owners who may be behind on their monthly maintenance or 

homeowners’ association fees; and manufactured/mobile homeowners who may have other types of 

housing debt. 

Among Iowa’s owner-occupied housing units, 

847,000, or 94%, are classified as single-family 

dwellings, another 18,800 units are small and large 

multifamily buildings, and nearly 33,000 homeowning 

households live in manufactured or mobile homes.

Approximately 60%, or more than 543,000, of 

households in Iowa have a mortgage. White 

households are more likely than households of color 

(HHOC) to own their homes free and clear; 32% vs 

24%, respectively. In addition, lower income 

households, regardless of their rates and ethnicity, 

are slightly more likely to own their homes without a 

mortgage; 35% for households making less than 

150% of the AMI versus 32% for households of all 

incomes. 

Figure 1: Share of Iowa Homeowners Without a Mortgage

Source: U.S. Census Bureau, American Community Survey (ACS) 5-Year Estimates Public Use Microdata Sample 2019

2 https://www.urban.org/urban-wire/homeownership-will-look-much-different-across-states-2040-how-does-your-state-rank

3 U.S. Census Bureau, American Community Survey (ACS) 5-Year Estimates 2015-2019

32%

24%

32%

36%

28%

35%

0%

5%

10%

15%

20%

25%

30%

35%

40%

White Household Households of Color All Households

All Income ≤ 150% AMI

Housing Units

Number % of Total

1 Unit 847,144 94.2%

2-4 Units 7,228 0.8%

5+ Units 11,644 1.3%

Mobile Homes 32,949 3.7%

Other 258 0.0%

All Housing Types 899,223 100.0%

Owned with 

Mortgage or Loan

Owned Free 

and Clear Total

543,407 355,679 899,086

60.4% 39.6% 100.0%
Date: December 1, 2021 Page 3

Demographics

Iowa is home to more than 3.2 million people, living in approximately 1.4 million housing units4. The State 

is administratively divided into 99 counties and 947 incorporated cities. While approximately 64 percent of 

Iowa’s population lives in urban areas, more than half of Iowa’s incorporated cities have populations less 

than 500.

The Iowa Department of Homeland Security and 

Emergency Management has organized the state 

into six planning districts (See Map). These 

districts are used at various points in this 

Homeowner Needs Assessment to describe the 

State’s demographic, economic, and housing 

conditions and how they vary geographically.

Each district is comprised of whole, contiguous 

counties, as follows: 

District Counties

District 1 Boone, Calhoun, Carroll, Dallas, Greene, Grundy, Hamilton, Hardin, Jasper, Marshall, Polk, Poweshiek, 

Story, Tama, Warren, Webster

District 2 Allamakee, Bremer, Butler, Cerro Gordo, Chickasaw, Emmet, Fayette, Floyd, Franklin, Hancock, Howard, 

Humboldt, Kossuth, Mitchell, Winnebago, Winneshiek, Worth, Wright

District 3 Buena Vista, Cherokee, Clay, Crawford, Dickinson, Ida, Lyon, Monona, O’Brien, Osceola, Palo Alto, 

Plymouth, Pocahontas, Sac, Sioux, Woodbury

District 4 Adair, Adams, Audubon, Cass, Clarke, Decatur, Fremont, Guthrie, Harrison, Madison, Mills, Montgomery, 

Page, Pottawattamie, Ringgold, Shelby, Taylor, Union

District 5 Appanoose, Davis, Des Moines, Henry, Jefferson, Keokuk, Lee, Louisa, Lucas, Mahaska, Marion, Monroe, 

Muscatine, Van Buren, Wapello, Washington, Wayne

District 6 Benton, Black Hawk, Buchanan, Cedar, Clayton, Clinton, Delaware, Dubuque, Iowa, Jackson, Johnson, 

Jones, Linn, Scott

The vast majority of loans originated in Iowa are for homeowners with income less than or equal to 150% 

of the Area Median Income (AMI). More than 70% of the 1.2 million mortgages originated in Iowa between 

2007 and 2020 were for homeowners with income less than or equal to 150% of AMI. The same data 

reveals that just 12% of these loans were originated to non-White applicants.

Applicant AMI

# of Loans 

Originated % Total

Greater than 150% AMI 278,164 23.04%

Over 100 - 150% AMI 299,334 24.80%

100% AMI or lower 555,935 46.05%

Not Available 73,705 6.11%

Total 1,207,138 100.00%

Applicant Race and Ethnicity

# of Loans 

Originated % Total

Race/Ethnicity Data Unavailable 70,623 5.85%

Household of Color 76,025 6.30%

White Household 1,060,490 87.85%

Grand Total 1,207,138 100.00%

Source: HMDA 2007-2020

4 https://www.iowadatacenter.org/quickfacts#section-9
Date: December 1, 2021 Page 4

Regions 1 and 6 are home to some of Iowa’s most populous counties, including Polk, Dallas, Story, 

Warren, Linn, Johnson, and Scott. More than 44% of the state’s population live in one of these seven 

counties alone. Home Mortgage Disclosure Act (HMDA) data show Regions 1 and 6 accounted for more 

than 73.4% of all loans originated in Iowa between 2007-2020 (roughly 886,000 loans). The table in Figure 

2 and the maps in Figures 3, 4, and 5 further demonstrate this concentration of lending. In addition, 

Regions 1 and 6 also account for 73.5% of the loans originated for individuals at or below 150% AMI and 

86% of the loans originated for non-White households5.

Figure 2: Loans Originated to Applicants at ≤150% AMI

Region

White 

Household

Non-White 

Household

Race Data 

Unavailable

Total 

(150% AMI)

All 

Originated 

Loans

% Total 

White HH

% Total 

Non-White 

HH

Region 1 257,957 14,803 22,385 295,145 422,718 30.2% 1.7%

Region 2 39,543 460 2,299 42,302 59,598 4.6% 0.1%

Region 3 56,215 1,875 2,693 60,783 87,924 6.6% 0.2%

Region 4 57,547 938 3,955 62,440 84,262 6.7% 0.1%

Region 5 56,146 1,245 3,535 60,926 83,714 6.6% 0.1%

Region 6 303,158 12,813 17,700 333,671 464,054 35.4% 1.5%

Location Data N/A 2 2 4,868 0.0% 0.0%

Statewide 770,568 32,134 52,567 855,269 1,207,138 90.1% 3.8%

Source: HMDA 2007-2020

Figure 3: Portion of Originated Loans in Iowa to 

Households with ≤ 100% AMI

Figure 4: Number of Originated Loans in Iowa to 

Households with ≤ 100% AMI

Source: HMDA 2007-2020

Iowa has a relatively small non-White population, representing just 10% of the overall population. 

However, data from the U.S. Census Bureau’s American Community Survey show that approximately 96% 

of all homeowners in the state are White. Furthermore, a report by the National Association of Realtors6

found that homeownership rates within certain households of color are significantly lower than White 

households. According to the report, 24% of African American households in Iowa are homeowners, 54% 

of Asian households are homeowners, and 53% of Hispanic or Latino households are homeowners; 

comparatively, 74% of White households in Iowa are homeowners.

5 Does not take into account loans originated to households where race data was unavailable.

6 National Association of Realtors, “A Snapshot of Race & Home Buying in America” 2019
Date: December 1, 2021 Page 5

Figure 5: Race and Homeownership in Iowa

Race

Total 

Population 

% of Total 

Population 

Owner-occupied 

Housing Units

% of Total OwnerOccupied Units 

White alone 2,826,070 90.0% 863,658 96.0%

Black or African American alone 116,359 3.7% 9,470 1.1%

American Indian and Alaska Native alone 11,976 0.4% 1,783 0.2%

Asian alone 75,741 2.4% 12,581 1.4%

Native Hawaiian and Other Pacific Islander alone 3,729 0.1% 287 0.0%

Some other race alone 39,048 1.2% 5,079 0.6%

Two or more races 66,585 2.1% 6,365 0.7%

Total 3,139,508 100.0% 899,223 100.0%

Source: U.S. Census Bureau, American Community Survey (ACS) 5-Year Estimates 2015-2019

Lastly, most of the loans originated in Iowa for households of color are in a handful of counties. Figures 6

and 7 show where loans have been historically originated for households of color at or below 150% of 

AMI. This analysis, combined with the income-based loan data above, will be helpful as IFA targets and 

prioritizes assistance to these groups. 

Figure 6: Portion of Originated Loans in Iowa to 

Households of Color ≤ 150% AMI

Figure 7: Number of Originated Loans in Iowa to 

Households of Color ≤ 150% AMI

Source: HMDA 2007-2020

Employment

Prior to the coronavirus pandemic, Iowa was enjoying a healthy economy and low unemployment rates. 

From January 2018 to March 2020, Iowa’s unemployment rate was one of the lowest in the nation, 

averaging 2.7%. By April 2020, unemployment rates across the country increased dramatically, including 

in Iowa. According to the Bureau of Labor Statistics, in April 2020 the national unemployment rate was 

14.8%, while the unemployment rate in Iowa was 11.1%. 

By October 2021, Iowa’s unemployment rate had fallen to 3.9%, 0.7% better than the national average of 

4.6%. While this shows that the state’s economy has improved from its pandemic high unemployment 

rate, many borrowers have been unable to recover financially from the impact of the pandemic on their 

ability to work and earn a sufficient income to maintain their household.

The state’s Labor Force Participation Rate (LFPR), which represents the percentage of the population 

working or actively seeking work, has also been negatively impacted by the COVID-19 pandemic. LFPR 

rates have steadily been improving again as we emerge from the pandemic and the economy continues to 

regain strength. 
Date: December 1, 2021 Page 6

Both the unemployment rate and labor force participation rate show that while great progress has been 

made recently, the labor market remains less robust than pre-pandemic. 

Figure 8: Statewide Unemployment and Labor Force Participation Rate

Source: Iowa Workforce Development, Local Area Unemployment Statistics – October 2021

Mortgage Loan Delinquency and Forbearance Activity

Despite the gradual improvement in the overall economy since the height of the pandemic in 2020, Iowa 

mortgage delinquencies remain higher than pre-pandemic levels. According to the most recent data 

available from the Mortgage Bankers Association and the Federal Reserve Bank of Atlanta’s Mortgage 

Analytics and Performance Dashboard (MAPD)7, delinquency rates across all loan types hovered around 

4% in the immediate pre-pandemic period. 

The forbearance rate in Iowa peaked in June 2020 at 4.7% (vs. 9.5% nationwide) declined steadily to 3.5%

as of July 2021 (Figure 9). As of September 30, 2021, the delinquency rate for all loans is slightly higher 

than pre-pandemic levels at 4.12%, while VA and FHA loans continue to have significantly elevated 

delinquency rates, at 5.8% and 11.2%, respectively (Figure 11).

Figure 9: Forbearance Outstanding, April 2020 - July 2021 (Iowa vs. National)

Apr 

2020

May 

2020

Jun 

2020

Jul 

2020

Aug 

2020

Sep 

2020

Oct 

2020

Nov 

2020

Dec 

2020

Jan 

2021

Feb 

2021

Mar 

2021

Apr 

2021

May 

2021

Jun 

2021

Jul 

2021

Iowa 4.0% 4.4% 4.7% 4.1% 3.8% 3.8% 3.6% 3.2% 3.2% 3.2% 3.1% 3.1% 2.8% 2.5% 2.3% 2.1%

National 8.0% 9.0% 9.5% 7.7% 7.0% 6.7% 6.1% 5.3% 5.0% 5.1% 5.0% 4.9% 4.4% 4.0% 3.8% 3.5%

7 https://www.atlantafed.org/center-for-housing-and-policy/data-and-tools/mortgage-analytics-and-performance-dashboard

11.1%

3.9%

62.0%

64.0%

66.0%

68.0%

70.0%

72.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Unemployment Rate... Labor Force Participation...

2.1%

3.5%

0.0%

5.0%

10.0%

Iowa National
Date: December 1, 2021 Page 7

Figure 10: Non-Forborne Mortgages 30+ Days Past Due, April 2020 - July 2021 (Iowa vs. National)

Apr 

2020

May 

2020

Jun 

2020

Jul 

2020

Aug 

2020

Sep 

2020

Oct 

2020

Nov 

2020

Dec 

2020

Jan 

2021

Feb 

2021

Mar 

2021

Apr 

2021

May 

2021

Jun 

2021

Jul 

2021

Iowa 1.5% 2.1% 1.8% 1.9% 1.8% 2.0% 2.2% 2.2% 2.2% 2.1% 2.0% 2.1% 1.6% 1.6% 1.8% 1.8%

National 2.1% 2.9% 2.6% 2.5% 2.4% 2.6% 2.9% 3.0% 3.1% 2.8% 2.7% 2.8% 2.5% 2.4% 2.5% 2.5%

Figure 11: Statewide Percent of Loans with Past Due Installments

Source: Mortgage Bankers Association

Highlighting the need to prioritize HAF funding to those who have been disproportionately affected by the 

pandemic, Figures 12 and 13 show that forbearance rates were much higher, both during the peak of the 

pandemic in summer 2020 and as the crisis waned, in the ZIP codes with the highest share of minorities 

and those with higher rates of low- to moderate-income homeowners, as compared to the rest of the 

state. 

Figure 12: Forbearance Rates by Minority Share of ZIP Code (June 2020 and July 2021)

June 2020 (Peak)

4.12 

2.72

5.76 

11.19

 -

 2.00

 4.00

 6.00

 8.00

 10.00

 12.00

 14.00

 16.00

All Loans Conventional Loans VA Loans FHA Loans
Date: December 1, 2021 Page 8

Source: Federal Reserve Bank of Atlanta Mortgage Analytics and Performance Dashboard (MAPD)

July 2021 (most recent data)

Source: Federal Reserve Bank of Atlanta Mortgage Analytics and Performance Dashboard (MAPD)
Date: December 1, 2021 Page 9

Figure 13: Forbearance Rates by Low- to Moderate-Income Share of ZIP Code (June 2020 and July 2021)

June 2020 (Peak)

Source: Federal Reserve Bank of Atlanta Mortgage Analytics and Performance Dashboard (MAPD)

July 2021 (most recent data)
Date: December 1, 2021 Page 10

Source: Federal Reserve Bank of Atlanta Mortgage Analytics and Performance Dashboard (MAPD)

Public Participation and Community Engagement

IFA staff members interact frequently with various stakeholders such as housing counselor organizations, 

insurance companies, legal service organizations, real estate professionals, mortgage lenders, and loan 

servicers throughout the state.

Since the HAF Guidance was originally published on April 14, 2021, IFA has engaged in discussions with 

several of the largest mortgage loan servicers in Iowa. Principal discussions pertain to homeowners with 

delinquent loans and loans in forbearance, and the processes by which these loans can be reinstated 

using HAF funds. Additionally, IFA has reached out to its master servicer and others for data relating to 

the number of loans that are past due and the amount required to reinstate. 

IFA published a draft HAF Plan for public comment on July 21, 2021, with a public comment period 

through July 26, 2021. Two public hearings on the draft HAF Plan were conducted on July 21 and July 23, 

2021. Feedback and input submitted before the submission of this plan were considered and incorporated 

as determined appropriate by IFA.

PROGRAM DESIGN

Iowa’s Homeowner Assistance Fund (HAF) program will mitigate financial hardships associated with the 

COVID-19 pandemic by providing funds to eligible homeowners to prevent homeowner delinquencies, 

defaults, foreclosures, and homeowner displacement. The primary goal of the program is for homeowner 

retention and reduced delinquencies among homeowners receiving assistance. 

The programs in this plan are designed provide financial assistance to eligible Iowa homeowners to 

eliminate or reduce past due payments associated with homeownership, including payments under a 

forbearance plan, deferred payments, full or partial reinstatements, and past due payment on loans 

secured by manufactured home or contracts of deeds. Additionally, financial assistance will be available to 
Date: December 1, 2021 Page 11

eligible Iowa homeowners to eliminate or reduce past due property tax, condominium association dues, 

and other non-mortgage charges. 

IFA is committed to help resolve defaults that threaten a homeowner’s ability to sustain ownership of the 

property. In service of this commitment, IFA is presenting its initial HAF Plan to Treasury with two 

programs, to which up to 80% of the state’s total HAF allocation will be dedicated:

• Mortgage Reinstatement Program

• Property Charge Default Resolution Program

While there may be a need for homeowner assistance with utility costs, IFA intends to initially prioritize 

mortgage and mortgage-related assistance. Qualified assistance uses that are not included in the initial 

program may be offered at a later date. IFA will reassess the need for additional programs or changes in 

current programs within three months from the launch. At that time, a determination will be made as to 

whether any program changes are necessary, or if new programs need to be established to serve the 

goals of HAF.

For all HAF Programs:

• The overall household maximum amount of HAF funds per household will be $25,000.

• Consistent with Treasury guidance, all Eligible Applicants experiencing mortgage default will be 

required to seek loss mitigation options first with their servicer prior to receiving HAF funds.

Mortgage Reinstatement Program

The goal of the Mortgage Reinstatement Program is to eliminate or reduce mortgage loan delinquencies 

to prevent foreclosure and homeowner displacement by reinstating mortgage loans that are at least thirty 

days delinquent. Through this program, delinquent mortgage loans will be fully reinstated, allowing 

homeowners to remain in their homes and avoid foreclosure and displacement. Homeowners will also be 

required to inquire about loss mitigation programs available through their lender/servicer prior to 

receiving HAF assistance. 

Homeowners for whom reinstatement will not be a long-term solution (will not be able to resume regularly 

scheduled payments, even with assistance through this Program) will be referred to their servicer to 

explore other loss mitigation options or to a HUD-certified counseling agency for preforeclosure 

counseling. HAF funds will be used to supplement other loss mitigation options offered by the servicer 

under investor requirements or where, without HAF funds, the homeowner would not qualify for a loss 

mitigation option.

Eligible mortgages include existing first mortgage loans, subordinate mortgages with scheduled principal 

and interest payments, contract for deed instruments, land contracts, and manufactured/mobile home 

loan monthly payment. 

Eligible expenses include amounts advanced by the lender or servicer for property charges, including 

property taxes, insurance premiums, homeowners’ association (HOA) fees, condominium fees, and

manufactured housing lot rent, or common charges that threaten sustained ownership of the property. 
Date: December 1, 2021 Page 12

The maximum amount of household assistance from the Mortgage Reinstatement Program will be 

$25,000 and subject to an overall household maximum HAF benefit amount $25,000 from all programs.

Assistance will be provided as a nonrecourse grant to the homeowner.

Property Charge Default Resolution Program

The goal of the Property Charge Default Resolution Program is to provide financial assistance to resolve 

any property charge default that threatens a homeowner’s ability to sustain ownership of the property.

Eligible expenses include delinquent property taxes, insurance premiums, homeowners’ association 

(HOA) fees, condominium fees, manufactured housing lot rent, or common charges that threaten 

sustained ownership of the property. Through this program, delinquent property charges will be fully 

reinstated, allowing homeowners to remain in their homes and avoid foreclosure and displacement.

The maximum amount of household assistance from the Property Charge Default Resolution Program will 

be $25,000 and subject to an overall household maximum HAF benefit amount $25,000 from all programs.

Assistance will be provided as a nonrecourse grant to the homeowner.

Housing Counseling and Legal Aid Services

In addition to the two programs outlined above, Treasury guidance allows states to use up to 5% of a their 

HAF allocation for housing counseling and/or legal service to assist eligible homeowners.

• Housing Counseling Services: Up to 2.5% ($1,250,000) of HAF will be allocated to Housing 

Counseling Services to assist homeowners with pre-foreclosure counseling. All applicants will be 

eligible to receive these services and IFA will strongly encourage their participation.

• Legal Aid Services: Up to 2.5% ($1,250,000) of HAF will be allocated to Legal Aid Services to 

provide free in-state legal services to at-risk eligible homeowners. All eligible applicants will be 

entitled to receive these services.

General Eligibility Requirements

Homeowner Eligibility

Eligible homeowners must meet the following criteria: 

• Homeowner must attest that they experienced a Qualified Financial Hardship on or after January 

21, 2020 (defined below), or had a financial hardship that began before January 21, 2020, but 

continued after that date. The attestation must describe the nature of the financial hardship.

• Homeowner must currently own and occupy the property as their primary residence.

• Homeowner must meet the Income Eligibility Requirements (defined below).

• The original, unpaid principal balance of the homeowner’s first mortgage loan, at the time of 

origination, cannot be greater than the “conforming loan limit” (as determined under the 

provisions of the Housing and Economic Recovery Act of 2008) in effect at time of origination.
Date: December 1, 2021 Page 13

• Homeowners who have previously filed for bankruptcy but who are no longer in bankruptcy may 

need to provide proof of court ordered “discharge” or “dismissal” or permission from the 

bankruptcy trustee to participate in the HAF program.

• Homeowners whose Qualified Financial Hardship is due to a job loss and are not working at the 

time of application are required to provide documentation showing they are actively seeking work.

• The homeowner must provide all necessary documentation to satisfy program guidelines within 

timeframes established by IFA, including self-certification or attestation of income and Socially 

Disadvantaged Individual status, as applicable. 

Eligible Properties

Eligible properties are those that are: 

• Single-family (attached or detached) properties 

• Condominium units. 

• 2- to 4-unit properties where the homeowner is living in one of the units as their primary 

residence. 

• Manufactured homes permanently affixed to real property and taxed as real estate. 

• Mobile homes not permanently affixed to real property. 

Ineligible properties are those that are: 

• Vacant or abandoned. 

• Second homes. 

• Non-owner-occupied investment property. 

Occupancy will be determined based on a self-certification and additional documentation to be provided 

by the homeowner, which may include any one of the following: driver’s license or state-issued ID, utility 

bill, phone or internet bill, bank statement, mortgage statement, property tax bill, tax return, deed, or any 

government issued document that includes the applicant’s name and address.

Qualified Financial Hardship

Homeowners must attest that they have a Qualified Financial Hardship. A Qualified Financial Hardship is a 

material reduction in income or material increase in living expenses associated with the coronavirus 

pandemic that has created or increased the risk of mortgage delinquency, mortgage default, foreclosure 

or displacement for a Qualified Homeowner.

• Reduction of Income: Temporary or permanent loss of earned income directly related to the 

coronavirus pandemic after January 21, 2020, or that began before January 21, 2020, but 

continued after that date.

• Increase in Living Expenses: Increase in out-of-pocket household expenses after January 21, 

2020, such as: medical expenses, increase in household size, or costs to reconnect utility 

services directly related to the coronavirus pandemic.
Date: December 1, 2021 Page 14

Homeowners must complete and sign an affidavit, which includes an attestation of Qualified Financial 

Hardship. IFA received stakeholder feedback regarding the need to simplify documentation requirements 

wherever feasible, which informed the decision to use attestation.

Income Eligibility

To be eligible for assistance under the HAF programs, homeowners must have incomes equal to or less 

than 150 percent of the area median income (AMI) household limit (three times the income limit for very 

low-income families, for the relevant household size), in accordance with HUD’S FY 2021 HAF Income 

Limits. HAF participants are given two options to use in calculating income for eligibility determination:

• Department of Housing and Urban Development’s (HUD) definition of “annual income” in 24 CFR 

5.6098.

• Use adjusted gross income (AGI) as defined for purposes of reporting on Internal Revenue 

Service (IRS) form 1040 series for individual federal annual income tax purposes.

Income may be determined in two ways: 

• Annual Income: Applicants should provide at the time of application source documents 

evidencing annual income (e.g., wage statement, interest statement, unemployment 

compensation statement), or a copy of Form 1040 as filed with the IRS for the household.

• Monthly Income: Applicants should provide income source documentation, as listed above, for 

one month prior to the submission of the application for assistance.

Intake Systems and Application Process

The application and intake process will be designed and operated in a manner to avoid barriers to 

equitable access and to allow for maximum flexibility. Homeowners will be able to apply through a mobilefriendly online portal that will allow for the upload of all supporting documents. The application portal and 

related information about the application process will be made available in multiple languages. 

Targeting HAF Funding

Treasury guidance requires 60 percent of amounts made available to the state to assist homeowners with 

incomes equal to or less than 100 percent of the Area Median Income (AMI) or equal to or less than 100 

percent of the median income for the United States, whichever is greater. The remaining allocation to the 

state must be prioritized for socially disadvantaged individuals, and after prioritization to those individuals, 

funds will be made available to other eligible households. 

Prioritization

At all times while HAF funds are available, homeowners facing imminent foreclosure will be moved to the 

front of the line irrespective of geographic location of the residence. In accordance with Treasury’s HAF 

Guidance, applicants will be prioritized in the following manner:

8 https://www.law.cornell.edu/cfr/text/24/5.609
Date: December 1, 2021 Page 15

• Homeowners Earning 50 percent or less of the Area Median Income. IFA recognizes that 

homeowners at this income level are often in portfolios of government-backed and guaranteed 

mortgages and may be in most need.

• Homeowners Earning 100 percent or less of the Area Median Income. In accordance with HAF 

Guidance and recognizing that homeowners earning up to 100 percent of the area median 

income are overrepresented in portfolios of government-backed and guaranteed mortgages 

compared to the market as a whole, IFA will prioritize assistance to homeowners with Federal 

Housing Administration (FHA), Veteran’s Administration (VA), and United States Department of 

Agriculture (USDA) mortgages and homeowners who have mortgages made with proceeds of 

mortgage revenue bonds will be prioritized for assistance. 

• Socially Disadvantaged Individuals. As defined in the HAF Guidance dated August 2, 2021, 

socially disadvantaged individuals are those whose ability to purchase or own a home has been 

impaired due to diminished access to credit on reasonable terms as compared to others in 

comparable economic circumstances, based on disparities in homeownership rates in the HAF 

participant’s jurisdiction as documented by the U.S. Census. The impairment must stem from 

circumstances beyond their control. Indicators of impairment under this definition may include 

being a (1) member of a group that has been subjected to racial or ethnic prejudice or cultural 

bias within American society, (2) resident of a majority-minority Census tract; or (3) individual with 

limited English proficiency.

• Government Loan and Affordable Housing Portfolios. IFA will prioritize assistance to eligible 

homeowners with FHA, VA, and USDA mortgages and homeowners who have mortgages made 

with the proceeds of mortgage revenue bonds or other mortgage programs that target low- and 

moderate-income homeowners.

• Non-Traditional Loans and Properties. Recognizing the unique needs of homeowners in rural 

communities with less housing stock than larger MSAs, IFA will prioritize homeowners who would 

not typically be included in Government Loan and Affordable Housing Portfolios. IFA will be able 

to assist homeowners with less traditional financing instruments and will be able to provide 

assistance to homeowners whose property is a manufactured home as defined by Iowa Code 

Chapter 4359. Homeowners of manufactured housing may not be able to qualify for traditional 

loan products containing competitive market rates and may have mortgages with higher rates and 

shorter terms.

All remaining funds not otherwise prioritized will be made available for other Eligible Homeowners.

Outreach and Marketing Plan 

Outreach and marketing will include a designated Homeowner Assistance Fund webpage on IFA’s 

website, email listserv, social media, press releases, and through partner organizations including lenders, 

Realtors, housing counseling organizations, CDFIs, and other affordable housing organizations throughout 

Iowa. Outreach and marketing materials, particularly those detailing homeowner and property eligibility, 

will be made available in multiple languages, including English and Spanish. 

9 https://www.legis.iowa.gov/docs/code/435.pdf
Date: December 1, 2021 Page 16

IFA will review its outreach and marketing efforts periodically, in conjunction with its Performance Goals, 

to ensure that outreach and marketing efforts are effectively reaching target homeowners. Adjustments to 

the outreach and marketing plan will be made accordingly.

Best Practices and Coordination with Other HAF Participants

Since the HAF Guidance was initially published by Treasury on April 14, 2021, IFA has participated in 

regular meetings with other HAF administrators coordinated by the National Council of State Housing 

Agencies (NCSHA). In addition, IFA has considered the best practices and lessons learned by many of the 

Hardest Hit Fund states and reviewed several draft plans developed by other HAF administrators in the 

design of a plan to address the needs of Iowa homeowners impacted by the COVID-19 pandemic. 

IFA is also actively involved in discussions with several of the largest mortgage loan servicers regarding 

delinquent loans and loans in forbearance and the process by which those loans can be reinstated. In an 

effort to streamline collaboration and communication with loan servicers, IFA will adopt the Common Data 

File (CDF) for data exchange with servicers and will use a servicer collaboration agreement that was 

designed for common use across states and programs.

IFA will continue to actively engage with all housing partners to establish and implement best practices for 

HAF for the life of the program.

PERFORMANCE GOALS

The primary goals of the Mortgage Reinstatement Program and the Property Charge Default Program are 

to: 

• Avoid foreclosure and homeowner displacement for homeowners with incomes equal to or less 

than 100 percent of the area median income (two times the income limit for very low-income 

families, for the relevant household size) or equal to or less than 100 percent of the median 

income for the United States, whichever is greater.

• Reduce mortgage loan delinquencies and prevent mortgage loan defaults with respect to 

homeowners with incomes equal to or less than 100 percent of the area median income (two 

times the income limit for very low-income families, for the relevant household size) or equal to or 

less than 100 percent of the median income for the United States, whichever is greater. 

In accordance with Treasury recommendations, specific goals and benchmarks for each program are 

outlined below. 

• The ease and speed by which an applicant receives a final determination of benefit assistance –

from initial inquiry to disbursement of funds, denial or withdrawal of an application, as applicable;

• The number of households served and the amount of financial HAF program assistance provided;

• The number and percentage of applicants who received assistance through the program (versus

the number and percentage or denied and/or withdrawn applications); and

• The number of households served and the dollar amount of HAF assistance provided to

homeowners expressed in area median income ranges and number of persons in the household.
Date: December 1, 2021 Page 17

Program Design Element Metric of Success Goal

Mortgage Reinstatement Program Number of mortgage loans 

reinstated (home loss avoided)

Reinstate 1,500 mortgage loans 

within 24 months of program 

launch

Property Charge Default Program

Delinquent Property Taxes Number of homeowners for which 

delinquent property taxes are 

brought current to avoid tax 

foreclosure

Bring 500 homeowners current on 

delinquent property taxes within 24 

months of program launch

Insurance Premiums Number of insurance policies 

brought current

Bring 500 insurance policies 

current within 24 months of 

program launch

Homeowner and Condo Association 

Fees, Liens, and Common Charges

Number of homeowners brought 

current on delinquent HOA or 

condominium association fees, or 

common charges

Bring 100 homeowners current on 

HOA or condominium association 

fees or common charges to avoid 

homeowner displacement

Pre-foreclosure or Foreclosure-related 

Legal Fees, and Other Related 

Charges

Number of homeowners for which 

outstanding pre-foreclosure or 

foreclosure-related legal fees and 

other charges are brought current

Bring 100 homeowners current 

with respect to outstanding preforeclosure or foreclosure-related 

legal or other related fees to avoid 

homeowner displacement

Periodic Review 

IFA will conduct periodic reviews of the program, not less than quarterly, reviewing a random sampling of 

applications (not less than 10%) to evaluate performance, and to ensure that the required elements of the 

program are being met.

READINESS

Staffing and Systems 

IFA has selected Witt O’Brien’s, LLC (“Witt O’Brien’s”) to assist in program planning and administration. 

Witt O’Brien’s will be the prime contractor, providing expertise in the development of the plan and 

overseeing the processing of HAF applications, including (i) application review, prioritization, underwriting, 

and approval; (ii) calculation of payments; (iii) processing payments; (iv) reporting; and (v) call center 

operations.

Witt O’Brien’s developed partnerships with other vendors to assist in the program administration:

• Yardi Solutions will serve as the technology partner, providing the platform solution and 

necessary system training for the HAF program. The system of record for the program will be 

Yardi Mortgage Relief. 
Date: December 1, 2021 Page 18

• Plexos will provide call center services and potential augmentation support for application 

processing and case management.

IFA expects that the vendors will provide a significant amount of the staffing for the implementation and 

operation of the program. IFA will add additional staff as the program develops, as needed. 

IFA will ensure program integrity by undertaking system- generated, random selection of case reviews 

after eligibility determination and prior to funding; 100% review of all declined cases and a reasonable 

selection of each reviewer’s pipeline, beginning with 10% of volume and eventually decreasing to a 

minimum of three cases weekly. 

Contracts and Partnerships 

In addition to the contracts resulting from requests for proposals described above, IFA will partner with 

mortgage loan servicers through the mutual execution of a cooperation or partnership agreement. IFA will 

work closely with qualified housing counselors, CDCs, CDFIs, and other non-profit organizations with the 

capacity to assist homeowners with obtaining HAF assistance, particularly those that can assist with 

reaching low to moderate income homeowners with less traditional mortgage loans and expects to 

contract with these providers on a pay-for-performance basis. 

Existing and Pilot Programs 

IFA intends to release a pilot program that would be a smaller scale version (limited audience) of the 

Mortgage Reinstatement and Property Charge Default Resolution Programs. The pilot is expected to run 

for several weeks prior to full program release (pending Treasury approval) and will assist in ensuring that 

system and operational processes are running smoothly and efficiently prior to full program launch.

BUDGET

Homeowner Assistance Funds Available $50,000,000

Administrative Expenses* (up to 15%) $7,500,000

Housing Counseling Services (up to 2.5%) $1,250,000

Legal Aid Services (up to 2.5%) $1,250,000

Balance Available for Programs $40,000,000

* Any administrative funds not used for payment of program expenses may be used for additional 

homeowner assistance.