The Fayette County Local Housing Trust Fund will assist individuals, community organizations, non-profit and for-profit developers in rehabilitation, repair, and creation of projects that improve the condition of, or contribute to the development of both rental and owner occupied affordable housing in Fayette County. Projects and activities funded must serve Fayette County households with incomes less than 80% of the statewide median family income. At least 30% of the distributions will be used to benefit extremely low income households (households with less than 30% of the statewide median family income).

• Initially, priority will be given to projects addressing repair and rehab issues in our aging housing stock that benefit low income level residents. (i.e. plumbing, electrical, roofing, structural, energy efficiency, lead paint issues and handicap accessibility). The Board will consider both owner-occupied and rental properties, with loan/grant details varying depending on the applicant's situation, as detailed in the program guidelines.
  
• Concurrently, the Fayette County Local Housing Trust Fund will conduct further housing needs assessments. Although recent assessments have been made regionally, the Board feels that it would benefit from additional assessments to assist in identifying the projects and activities to prioritize in Fayette County. It is the Board's intention to spend very limited funds on such assessments. The Board hopes to collaborate with area partners to complete additional assessments which may include:
  
  • County-wide windshield assessment. Partnering with area colleges to obtain specifics on the types of repair issues most prevalent in the county.
    
  • Homelessness survey information. Partnering with the Northeast Iowa Housing and Homeless Alliance and other community agencies to determine need and appropriate type of assistance for this population.
    
  • Transitional housing needs. Partnering with Parent Share and Support, Helping Services of Northeast Iowa and other community agencies to determine suitable and feasible assistance.
    
  • Minority housing issues. Partnering with various diversity representatives from area agencies to identify areas in which we can feasibly assist.

Priorities may change as new needs are identified and as the fund grows, more resources can be dedicated to larger projects and larger financial considerations.

Initial Program Guidelines

• Eligible applicants include individuals, community organizations, non-profit and for-profit developers in Fayette County. All projects funded must serve Fayette County households with incomes less than 80% of the statewide median family income.
  
• Eligible properties include both owner occupied and rental units in Fayette County built prior to 1980.
  
  • Owner occupied requirements: Applicant must occupy the property and maintain the improvements for the life of the loan. Property must be in compliance with health and safety codes. Applicant must have title at time of application. Taxes and insurance must be current.
    
  • Rental requirements: Units must be rented to households with incomes not more than 80% of the statewide MFI. All dwelling units must rent at or below the Fayette County FY FMR as determined by HUD through out the life of the loan. Borrower must provide $1.00 of private funds for each $1.00 of program loan. Units must, at the completion of project, meet Sec. 8 Housing Quality Standards and be in compliance with all applicable local health and safety codes. Taxes and insurance must be current.
    
• Eligible projects include rehabs and repairs of existing housing, including, but not limited to: plumbing, electrical, roofing, structural, energy efficiency, lead paint issues and handicap accessibility.
  
• The FCLHTF will consider financial assistance in the form of partial funding or full funding depending on the project and borrower circumstances.
  
• The FCLHTF will finance projects through loans, both forgivable and non-forgivable. Type of loan and interest, if any, will be based on borrowers income, assets and monthly housing expenses. Payments may be deferred or amortized as fits the circumstance.
  
• Loan will be paid in the event that occupancy or ownership conditions change during the loan term.
  
• Affordability period will be scaled to the level of assistance provided, initially 5 years for each $5000.00 of financial assistance to a maximum of 10 years. A mortgage, receding forgivable or repayable, term to be determined by the aforementioned scale, will be required as security.
  
• Inspections, upon completion of the proposed project, will be required.
  
• Funding limits will initially be set at a maximum of $15,000 per project, rental or owner occupied.
  
• Any applicant for funding will be required to demonstrate the benefit to low income (<80% statewide MFI) residents in Fayette County through sufficient financial documentation.
  
• The FCLHTF will work to ensure that at least 30% of the eligible projects benefit extremely low income (<30% statewide MFI) residents by partnering with cooperating agencies such as Parent Share and Support, Northeast Iowa Community Action Coalition (Weatherization program), Northland Agency on Aging, and Helping Services of NE Iowa to obtain referrals and distribute FCLHTF program information.
  
• Applicants must demonstrate the capacity to complete the project and provide sufficient documentation supporting the feasibility of a proposed project.
  
• Applicants will be required to obtain two or more quotes from the entity providing the improvement to the property and moneys from the trust fund will be paid directly to the provider of the improvement. On some occasions, the FCLHTF may require bids to be received.
  
• The FCLHTF plans to utilize the services of Upper Explorerland Regional Planning Commission to administer the loans. This will include accepting applications, verifying eligibility and managing the distribution and collection (if required) of moneys.

In addition to working with the Fayette County Board of Supervisors and the Mayors and Councils of the 11 supporting communities, the Fayette County Local Housing Trust Fund has already established relationships with several agencies in the county and surrounding area that provide affordable housing and related services. Representatives from Northeast Iowa Community Action Corporation (NEICAC), Habitat for Humanity of Fayette County and Upper Explorerland Regional Planning Commission (UERPC) have been in attendance throughout the initial formation of the FCLHTF.

The FCLHTF will also seek to partner with other public and private human services providers such as Parent Share and Support, the Northeast Iowa Housing and Homeless Alliance, Keystone Area Education Agency, the Northland Agency on Aging, Helping Services of NE Iowa, the Salvation Army and the Fayette County Farm Bureau to identify residents with greatest needs.

Alliances and working relationships will be created with businesses, faith-based organizations, developers, neighborhood organizations, construction trade groups, and other community organizations and civic groups interested in the betterment of Fayette County housing. Through a well choreographed media campaign and several public meetings throughout the county, the FCLHTF hopes to garner the support and confidence of the public to ensure success and satisfaction across the county.

The FCLHTF, upon funding, will attempt to partner with: local real estate agencies to provide first time buyers with free classes on financing and purchasing a home; Iowa State University Extension, to provide education and information regarding finance, budgeting, home purchasing, and maintenance; and local banks that are committed to assisting in financial planning to help increase home ownership.

Iowa State University Extension Community Development Field Specialists will continue to assist with board development training and land use planning consultations. The board will partner with the Iowa Finance Authority (IFA) as a source of funds so that developers and county residents may receive information on, and participate in, agency programs such as; Firsthome Program, Single Family Construction Loan Financing, Multifamily Preservation Loan Program, and Main Street Revitalization Loan Programs. The Federal Home Loan Bank, Federal Housing Administration (FHA), United States Department of Agriculture (USDA), the Department of Housing and Urban Development (HUD), and the Iowa Department of Economic Development (IDED) are also future partners of the trust.

As a newly formed Board, time for fundraising has been limited. However, in the short time since the steering committee has formed, and subsequently the Board, TIF funds (in the amount of the local match) have been pledged by the City of West Union, and two other communities have potential TIF funds from which a pledge is expected. Although not monetary, substantial value exists in the in-kind services received from several entities providing support for the formation of the FCLHTF. The Fayette County Economic Development Commission has provided the services of their office staff for initial facilitation and organization of the FCLHTF. ISU Extension, NIECAC, UERPC and several Fayette County communities have dedicated the services of their staff in assisting with the formation of the FCLHTF.

In addition to potential IFA funding, the Board is currently researching other grant opportunities as sources of future funding. The FCLHTF will work to develop funds from a variety of sources. Fayette County communities and the county may support the fund through designated TIF funds, land or asset donations, and possible per capita fees. Monetary or in-kind contributions will be solicited from local businesses, developers and real estate agents. Donated services will be sought from community organizations and professionals.

Federal sources such as HOME Investment Partnerships and Community Development Block Grants, HUD and USDA programs will be researched and applied for as they fit our goals. Potential future funds will be sought from local groups such as the Fayette County Community Foundation, the Northeast Iowa Charitable Foundation and various local community Betterment Foundations.

Funds distributed in the form of loans will return again to the fund to be redistributed to another project or activity. The FCLHTF will also explore the potential for establishing a consortium of local lenders or other financial partnering opportunities.