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Cedar Rapids, Iowa 52401
Capitol Notebook: Iowa accepting applications for new disaster relief housing program
Also, Iowa Insurance Commissioner named receiver of companies that defrauded investors
State officials are accepting applications for state housing programs to help homeowners and communities damaged by severe weather over the past few months.
Record flooding and tornadoes have devastated many parts of Iowa this spring and summer. More than 5,000 homes in Iowa have been affected by the natural disasters, including roughly 2,000 that have been destroyed, Gov. Kim Reynolds said during a news conference last week where she announced the new state housing programs.
The State Disaster Recovery New Housing Grant Program offers developers financial assistance of up to $1 million to build new housing units for sale or rent in counties that have had disaster declarations, with a preference given to single-family detached units, duplex and townhouse-style developments. The program will be administered by the Iowa Economic Development Authority.
Meanwhile, the Disaster Recovery Housing Assistance Program addresses unmet housing recovery needs not covered by insurance or the Federal Emergency Management Agency. Eligible homeowners can receive up to $50,000 for the repair or rehabilitation of their disaster-affected homes.
Homeowners who live in counties included in a federal disaster declaration are eligible to apply. These counties currently include Adair, Adams, Buena Vista, Cedar, Cherokee, Clarke, Clay, Emmet, Harrison, Jasper, Lyon, Mills, Montgomery, O’Brien, Plymouth, Polk, Pottawattamie, Ringgold, Shelby, Sioux, Story, Union and Woodbury. More counties may be added if approved by FEMA for federal disaster assistance.
To apply for the Disaster Recovery Housing Assistance Program, homeowners must first register for FEMA Individual Assistance and have been awarded some form of FEMA housing assistance. Homeowners must also have filed a claim with their insurance company and received final approval or denial.
To register for individual assistance from FEMA:
- Visit DisasterAssistance.gov
- Call FEMA directly at 800-621-FEMA (3362)
- Download and use the FEMA app
- Visit any Disaster Recovery Center to apply or get application assistance
Applicable FEMA and insurance documentation is requested as part of the application process.
Applications for both state programs are available on IowaGrants.gov. First-time users must create an account.
State takes control of companies that defrauded investors
Iowa Insurance Commissioner Doug Ommen was recently appointed the receiver of four companies operated by a central Iowa real estate executive accused of defrauding real estate investors.
A Polk County District Court order appointed Ommen receiver of Beckstone Partners, DesFined, East King Management and The Corporate Leasing Co. to wind down the operation of the businesses and marshal the remaining assets for the benefit of defrauded investors.
The July 8 order followed a petition filed by Iowa Attorney General Brenna Bird on behalf of the Iowa Insurance Commissioner and a previous court order freezing the assets of the four companies formed and operated by Polk County resident Brett T. Immel.
The petition alleges Immel and the companies sold investments related to properties they did not own and to which they never obtained a free and clear title. The investments were allegedly sold at roughly a 35 percent markup, despite Immel using investors’ own money to purchase Beckstone’s interest in the property, which Beckstone and Immel had already purportedly sold to the investor, according to court records.
Immel and the companies also allegedly sold promissory notes to investors, failed to consistently make interest payments to investors and failed to return any of the principal owed when the promissory notes matured, according to the Iowa Insurance Division. Neither Immel nor any of the companies were licensed to sell securities, according to the Iowa Insurance Division.
“My advice to all Iowans who are making investments is to always double-check with the Iowa Insurance Division to make sure that both the investment is registered with our office, and that you are dealing with a licensed professional,” Ommen said in a statement.
As part of the receivership process, the Iowa Insurance Division will determine the assets and liabilities of the companies, and assist investors in recovering funds owed.
Anyone who has invested with Immel or the companies under the court order is encouraged to contact Jason A. Bryan with the Iowa Insurance Division at 515-654-6600 or enforcement@iid.iowa.gov.
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