A change signed into law by the governor will cut the time limit on forgivable loans given to Iowans through the Jumpstart disaster recovery program. Rebuild Iowa Office spokesperson Tina Potthoff says it’s a big benefit for those trying to recover.
Potthoff says instead of requiring homeowners to stay in their homes for 10 years the loan forgiven at a rate of 10% per year, it is not being forgiven in five years at a rate of 20% per year. Pothoff says nearly 2,500 Iowans were given the loans from Jumpstart, with the average award of just over $17,000.
She says the Jumpstart money can be used for things like downpayment assistance, interim mortgage assistance, and repair and rehab assistance for homeowners. Potthoff says those who received the Jumpstart money will be getting a notice of the change.
She says there will be some paperwork involved and the respective cities and councils of governments that are administering the money will contact the homeowners to take care of things. Pothoff says the change doesn’t just impact state money.
Pothoff says they will also implement the five-year forgivable loan change for federal money given out through Jumpstart.
The state put nearly $43-million into the Jumpstart program.