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LEADERSHIP AGENDA

OPERATIONAL SCAN

DEPARTMENT PERFORMANCE

Iowa Finance Authority (IFA)

Bret Mills, Director

Mission Statement:
To finance, administer, advance and preserve affordable housing and to promote community and economic development for Iowans.

Measures:
Helping Iowans purchase their first homes
Helping minorities purchase their first homes

•  Performance Plan - How we measure our progress


•  Strategic Plan - How we plan for progress


•  Performance Report - How we report our progress


• Department Home Page - Learn more about this department

Why this is important:
Homeownership is good for families, communities and the economy. Owning a home, and building equity in that home, is the single-most effective way for most Iowans to create wealth. Owning a home promotes family and neighborhood stability. The FirstHome program helps low-and moderate-income Iowans achieve the dream of home ownership by providing low-cost mortgage financing through several hundred participating lenders across the state.


What we're doing about this:
The Iowa Finance Authority is actively promoting its FirstHome program to potential homebuyers throughout the state. Staff frequently attend homeownership events across the state and provide homebuyer education classes in cooperation with lenders and non-profit housing organizations. Cooperative advertising funds are available to lenders who promote the program in their own marketing efforts. IFA also participates in events hosted by the Iowa Bankers Association, the Iowa Credit Union League, and the Iowa Association of Realtors®, etc. In FY09, the number of assisted home buyers decreased from FY08 with nearly $102 million in FirstHome loans assisting over 1,200 first time buyers. Fourth Quarter FY09, 51 FirstHome loans were made totaling $3.8 million.

Why this is important:
IFA's FirstHome and FirstHome Plus programs help qualified Iowa borrowers obtain a below-market interest rate on mortgage loans and provide cash grants toward down payments and closing costs. In the past three years, the number of minorities using these programs have steadily increased showing IFA's commitment to helping all Iowans achieve the dream of homeownership. In 4th Quarter FY09, 2% of the FirstHome and FirstHome Plus loans were to minority home buyers.


What we're doing about this:
In 2004 the Iowa Finance Authority hired a bilingual marketing specialist specifically to focus on the needs of underserved populations, including minorities. IFA is taking proactive steps to form partnerships with several minority groups including the Iowa Asian Alliance, the FDIC's New Americans Task Force, and the Asset Building Coalition of Des Moines. In September 2005 IFA held its first housing fair for Hispanic homebuyers in Marshalltown. During 2008, IFA staff attended several diversity conferences and minority festivals. Additionally, staff is involved with the new Iowan Centers across the state. In 4th Quarter FY09, 2% of 1, of the FirstHome and FirstHome Plus loans were to minority home buyers. Thus far in FY09, there have been 48 minority home buyers, which is 4% of the FY09 volume.

Why this is important:
Many Iowa communities have water quality needs, but lack the financial resources to address them. The Iowa Finance Authority (IFA) provides the lowest cost funds for drinking water and wastewater facilities in Iowa. This program, known as the State Revolving Fund (SRF), receives federal/EPA grants that allow for low-interest loans to help communities affordably build or update water facilities. This saves money on citizens' water and sewer bills.


What we're doing about this:
IFA and the Iowa Department of Natural Resources jointly administer the State Revolving Fund that aids the construction and rehabilitation of Clean Water and Drinking Water infrastructure facilities. In an effort to encourage more communities to use the SRF, IFA launched marketing initiatives in FY06 designed to increase awareness of the program. Also, IFA has introduced new Planning & Design (P&D) Loans that offer zero percent interest for up to three years as interim financing for the first phases of developing a water facility. In FY09, IFA approved over $22 million in P&D loans. The loans may be rolled into a SRF construction loan or can be repaid when permanent financing is committed. Since the program began in FY06, P&D loans have resulted in over $165.5 million in SRF construction loans.

As a result of closures in the FY09 4th Quarter alone, 148,000 more Iowans will benefit from improved drinking water and waste water infrastructures.

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