As discussed in our prior December and February posts, per Section 501 of Congress’s Coronavirus Response and Relief Supplemental Appropriations Act 2021, $25 billion in rental assistance funds are being distributed to states and larger cities and counties as part of the Emergency Rental Assistance Program (ERAP).

Importantly, ERAP funds can be used for back-due rent that accrued after March 13, 2020, the date of the COVID-19 emergency declaration, and both tenants and landlords will be able to apply directly to obtain funds under the ERAP.  The application process will vary slightly from state to state, and, in some cases, city to city.

As detailed below, Iowa’s application process for its ERAP funds will go live on Monday, March 29, but initially, only tenants will be able to apply for the funds. Landlords should have the opportunity to apply directly for Iowa ERAP funds at a later date, and, in the meantime, should encourage their tenants to apply for the rental assistance funds.

Landlords should be aware that as part of the receipt of ERAP funds, they may have to agree and certify they will not evict the tenant for non-payment during a certain length of time and/or will waive late fees and penalties. Landlords should ensure they understand any conditions of receipt of ERAP funds; such conditions may vary from state to state and city to city.

Iowa State-Level Program

Iowa COVID-19-affected renters will be able to apply for assistance with rent (and utility) payments beginning Monday, March 29, at 2:00 p.m. Program details can be found here.

Iowa’s program, called the Iowa Rent and Utility Assistance Program, will provide eligible COVID-19 affected renters with rent and/or utility assistance for a total of up to 12 months, for back rent going back no earlier than March 13, 2020, and for future rental payments up to three months. During the application process, the tenants will need to have certain information verified by their landlord.

General eligibility requirements require that applicants:

• Be current renters earning no more than 80% of their county’s area median income;
• One or more individuals in the household must have either qualified for unemployment benefits or have experienced a documented financial hardship as a result of the COVID-19 in the form of a reduction of household income or incurred significant costs due directly or indirectly to COVID-19; and
• Can demonstrate a risk of experiencing homelessness or housing instability which may include a past due utility or rent notice or eviction notice. 

The application steps, FAQs, and other information can be found on the IA Rent and Utility Assistance Program website, where tenants can also take the eligibility precheck now to see if they meet initial eligibility criteria.

Please note that Polk county and the city of Des Moines are administering the program locally, through IMPACT. Thus, residents of Polk county and the city of Des Moines are ineligible to apply for the Iowa Rent and Utility Assistance Program and instead should apply for rental assistance through the local IMPACT program. More information on this program can be found at IMPACT Community Action Partnership.

Moving Forward 

When additional information is released on the distribution of the funds to states and how the Iowa Finance Authority will administer the program, we will publish an update.