All buildings begin to show signs of age, but private, for-profit apartment complexes can share rehabilitation costs with their generally higher income residents. For nonprofit groups, there are few good options: senior citizens, the disabled, and other low-income residents cannot afford rent increases the rehab would require; federal, state and local programs often are not a good match for the existing need; or available programs are oversubscribed. Confronted by the problem in Iowa, the Multifamily Division of HUD's state office began searching for a new approach to keep these important projects viable.

Des Moines Multifamily Director James Ryan and Project Manager Ranae Ridlen met with a multifamily consultant, and Ridlen noted some unique funding sources for HUD Section 202 developments. One promising source was the Des Moines Federal Home Loan Bank's (FHLB) Affordable Housing Program (AHP). To take advantage of the opportunity, Multifamily staff worked with Field Policy and Management 's Cindy Jenkins to give nonprofit owners facing this dilemma a program-specific briefing on the AHP program by the Des Moines FHLB. Many of the projects are in rural Iowa, and the State of Iowa Department of Economic Development also was invited to discuss HUD HOME funds and other State of Iowa resources.

It was a no frills meeting, but the notice sent out by HUD brought in nine nonprofit owners and managers who worked hard for a half-day to learn how to apply for the Affordable Housing Program. A FHLB representative explained how each section of the application was scored, and gave specific examples on what information the FHLB would consider for the 2002 AHP. The presentation on this valuable funding source was effective - three owners of project-based Section 202/Section 8 developments are expected to apply for the first round of 2002 AHP, and at least two additional owners plan to submit applications in the autumn.

In addition to information about one of HUD's staples, the HOME program, and Iowa's $2.5 million Local Housing Assistance Program (LHAP), which is administered by the Iowa Department of Economic Development (IDED), the nonprofit groups also heard about a unique Iowa partnership called HART (Housing Application Review Team). HART is a cooperative inter-agency work group organized by the Iowa Rural Development Council, and includes representatives of the Iowa Finance Authority; Federal Home Loan Bank of Des Moines; USDA Rural Development; HUD Iowa State Office; Iowa Department of Economic Development; and the Fannie Mae Iowa Partnership Office. HART uses a one-page form and a brief narrative that a potential applicant submits for a proposed project, which is informally reviewed by all six funding agencies with one communication. IDED staffs this process and provides follow-up letters to applicants on where funding may be located.

With the elderly population growing across the country - and the critical need to maintain the existing affordable housing stock - HUD offices are becoming increasingly proactive to stay ahead of the problem. Based on Iowa's experience, it is expected that more and more aging HUD-assisted housing developments will regain their "youthful vigor" and remain affordable with the help of unique state programs and valuable national funding sources like the FHLB's Affordable Housing Program.

More information on the AHP: HUD's Iowa State Office explains that AHP has a lot of flexibility to serve low-income people and create affordable housing throughout the country. AHP can be a valuable resource for a variety of HUD-assisted developments, including 202 rehab, new 202 developments, homeownership through Habitat, use with tax credit properties with HUD insurance and more. Different uses have different standards, but in all cases, AHP funds must be used to benefit low-income or very low-income persons.