Regional Housing Trust Fund

The Northwest Iowa Regional Housing Trust Fund (NIRHTF) is an independent nonprofit organization established to support the housing needs of low- and moderate-income residents in eight Iowa counties: Buena Vista, Clay, Dickinson, Emmet, Lyon, O'Brien, Osceola, and Sioux. Certified by the Iowa Finance Authority in October 2009, NIRHTF focuses on promoting the creation and preservation of affordable housing across the region. By leveraging a mix of forgivable grants and low-interest loans, the Trust Fund ensures that qualifying homeowners can make essential repairs, improve energy efficiency, and address environmental hazards such as lead-based paint. The program is exclusively available to homeowners who both own and occupy their property for the duration of the agreement. Eligible homeowners must hold a fee simple title or a 99-year lease; contract-for-deed holders are excluded. All applicants must be current on their mortgage, taxes, and utility payments to qualify. Participation in the program requires submission of detailed paperwork, including financial documentation, proof of immigration status, authorization for a credit review, and execution of loan and grant agreements. NIRHTF assistance is tiered based on household income relative to MRB/HUD income limits. Households earning up to 30% of the area income limits may receive up to $7,500 in forgivable loans or grants for minor home repairs, energy-efficiency upgrades, or lead-based paint hazard mitigation. These grants are forgiven incrementally over five years, at 20% per year, and require a promissory note and mortgage to be filed on the assisted property. Households earning between 31% and 80% of MRB/HUD income limits are eligible for a blended support package. This includes up to $7,500 in forgivable assistance and up to $15,000 in 2% interest loans, with a total project cap of $22,500. To qualify for the repayable loan portion, applicants must have a minimum credit score of 620. The loans are amortized over a 7.5-year period with monthly payments. A required ratio of 1:3 ensures that at least two-thirds of the funding is allocated as repayable loans. As with lower-income applicants, a promissory note and mortgage are filed, and the forgivable portion follows the same five-year forgiveness schedule. To complete their application, all participants must secure written quotes from two contractors detailing the intended work. Once completed, the contractor must certify that the work has been completed in full. Payment is issued within 30 days after verification and made payable to both the applicant and contractor. The NIRHTF may inspect completed work to ensure quality and compliance with local housing codes. Additional fees include a $50 application charge, recording fees, and other processing costs, which are added to the loan amount. The program complies with fair housing standards and prohibits discrimination on numerous bases, including race, color, religion, national origin, gender, sexual orientation, disability, and familial status. However, prioritization is given to applicants that meet income-targeted goals outlined in the regional Housing Assistance Plan.