261—25.8 (15) Allocation of funds.
	 25.8(1) IDED may retain a portion of the amount provided for at rule 261—23.4(15) of the state’s annual CDBG allocation from HUD and up to 10 percent of the state’s annual HOME allocation from HUD for administrative costs associated with program implementation and operation.
	 25.8(2) Not less than 15 percent of the state’s annual HOME allocation shall be reserved for eligible housing activities developed, sponsored or owned by CHDOs.
	 25.8(3) IDED reserves the right to reserve a portion of the state’s annual HOME allocation for rental housing activities jointly funded with HOME and low-income housing tax credits.
	 25.8(4) IDED will determine the appropriate source of funding, either CDBG or HOME, for each housing fund award based on the availability of funds, the nature of the housing activity and the recipient type.
	 25.8(5) IDED reserves the right to limit the amount of funds that shall be awarded for any single activity type.
	 25.8(6) Awards shall be limited to no more than $500,000 for all single-family activities assisting homeowners or homebuyers. Awards shall be limited to no more than $900,000 for all multifamily rental activities.
	 25.8(7) Single-family per unit subsidies.
	  a.   	 The maximum per unit subsidy for all single-family activities involving rehabilitation is $37,500. The $37,500 per unit limit includes all applicable costs including, but not limited to, the hard costs of rehabilitation or the acquisition subsidy or both; home ownership assistance activities; technical services costs, including lead hazard reduction carrying costs; lead hazard reduction costs; and temporary relocation. All rehabilitation hard costs funded with housing funds are limited to $24,999. All applicable technical services costs, including any lead hazard reduction carrying costs, are limited to $4,500 per unit.
	  b.   	 Assistance for single-family activities providing acquisition assistance for newly constructed housing (mortgage buy-down, downpayment or closing costs assistance or both, or combinations thereof) is limited to $35,000 per unit, inclusive of all costs, including technical services costs.
	  c.   	 Assistance for single-family activities providing development subsidies for newly constructed housing is limited to $20,000 per unit. Development subsidies may be provided in addition to acquisition assistance activities.
	 25.8(8) Multifamily per unit subsidies. The maximum per unit housing fund subsidy for all multifamily activities is $60,000 per unit including both newly constructed units and the rehabilitation of existing multifamily units, including conversion activities. The $60,000 per unit multifamily limit includes all applicable costs including, but not limited to, hard costs of construction or rehabilitation; architectural design or technical services costs; lead hazard reduction or abatement costs; lead hazard reduction or abatement carrying costs; and temporary relocation.
	 25.8(9) Recipients shall identify general administrative costs in the housing fund application. IDED reserves the right to negotiate the amount of funds provided for general administration, but in no case shall the amount for general administration exceed 10 percent of a total housing fund award. Only local government and nonprofit recipients are eligible for general administrative funds.
	 25.8(10) IDED reserves the right to negotiate the amount and terms of a housing fund award.
	 25.8(11) IDED reserves the right to make award decisions such that the state maintains the required level of local match to HOME funds.
[ARC 8418B, IAB 12/30/09, effective 2/3/10]