Belated JumpStart rental assistance checks flowing

Businesses in Cedar Rapids' flood-affected areas are finally beginning to see JumpStart rental assistance checks that they expected to receive several months ago.

The first $1.3 milion in commercial rental checks went out last week under the rental assistance program, according JumpStart business administrator Theresa Bornbach. She said two more disbursements are expected to come in October, and checks will then begin to flow on a monthly basis.The program was designed to encourage businesses to return to flood-affected buildings by providing six months of rent to qualifying applicants. Many of the businesses expected the rent to begin back in July.

Complications slowed the disbursement of funds. The largest complications were federal requirements that were not clear at the outset of the program for documentation to avoid duplication of disaster benefits to the businesses.

When those issues were finally addressed, Bornbach said the JumpStart office found out on Sept. 28 that the U.S. Department of Housing and Urban Development would be requiring applicants to fill out an additional form.

Stephanie Irvin of the Bliss Salon in Czech Village was among the JumpStart rental assistance applicants who finally received a first check last week.

Irvin was in a double-pinch because she was counting on JumpStart funds to pay her landlord, and the stylists who rent stations in Bliss Salon were also using JumpStart to pay her. She said she did not blame the local JumpStart administrators for the frustrating delays.

The program provides for up to $50,000 in rental assistance. Many landlords have agreed not to penalize businesses for the delay in paying rent because they understood that they were relying on JumpStart funding.