A bill for an act relating to the housing renewal pilot program, including repayments of interest and income, and recaptures or returns of financial assistance awards.

HF 2559 amends Iowa's housing renewal pilot program to redirect repayments (including interest, income from sales of ownership units, and recaptured funds) to the nonprofit Iowa affiliate managing the program, rather than to the state fund. It also changes the rule for inactive participants: if no project activity occurs within 12 months of a contract, the financial assistance award must be returned to the nonprofit affiliate for reuse, not to the state fund. The bill clarifies that homebuyers must have income at or below 120% of the area median income, occupy the home as their primary residence, and adhere to a five-year resale restriction preventing sales to higher-income buyers. These changes directly affect eligible participants, the nonprofit Iowa affiliate, and future housing assistance recipients under the program.