HUD has issued new Maximum Purchase Price or After-Rehab Value ("95% limits") by county for 2012 that are effective March 29, 2012. Currently, the Iowa Finance Authority chooses to use the February 2008 Section 203(b) limit of $200,160 for the entire state. However, proposed HUD rules state that it will not allow states the option of opting for the higher Section 203(b) limits. At the time that the rules become final (expected in the fall of 2012), all subrecipients will be required to use the "by county" limits posted on the Iowa Finance Authority web site. For all subrecipient organizations with current first-time home buyer programs, or current applicants for HOME funds, your organization should begin to consider the impact that this change will have on your existing and future program activities.

The Iowa Finance Authority submitted comments to HUD on the proposed rules and the effect that this rule change will have on the Home Buyer Programs.

Please contact Carla Pope with questions.