Bill Text: IA HF506 | 2023-2024 | 90th General Assembly | Introduced


Bill Title: A bill for an act relating to the workforce housing tax incentives program.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2023-02-28 - Introduced, referred to Ways and Means. H.J. 441. [HF506 Detail]

Download: Iowa-2023-HF506-Introduced.html
House File 506 - Introduced HOUSE FILE 506 BY BOSSMAN A BILL FOR An Act relating to the workforce housing tax incentives 1 program. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2366YH (2) 90 ko/jh
H.F. 506 Section 1. Section 15.119, subsection 2, paragraph g, Code 1 2023, is amended to read as follows: 2 g. The workforce housing tax incentives program administered 3 pursuant to sections 15.351 through 15.356 . In allocating 4 tax credits pursuant to this subsection , the authority shall 5 not allocate more than thirty-five fifty million dollars for 6 purposes of this paragraph. Of the moneys allocated under this 7 paragraph, seventeen twenty-five million five hundred thousand 8 dollars shall be reserved for allocation to qualified housing 9 projects in small cities, as defined in section 15.352 , that 10 are registered on or after July 1, 2017. 11 Sec. 2. Section 15.353, subsection 3, paragraph a, Code 12 2023, is amended to read as follows: 13 a. Except as provided in paragraph “b” , the average dwelling 14 unit cost does not exceed the maximum amount established by 15 the board for each fiscal year for the applicable project 16 type and project location. The board shall establish the 17 maximum average dwelling unit cost for a project that includes 18 single-family dwelling units that is located in a small city 19 and for a project that includes single-family dwelling units 20 that is located in an urban area. The board shall establish 21 the maximum average dwelling unit cost for a project that 22 includes multiple dwelling unit buildings and is located 23 in a small city and for a project that includes multiple 24 dwelling unit buildings and is located in an urban area. In 25 establishing each maximum average dwelling unit cost, the board 26 shall primarily consider the most recent annual United States 27 census bureau building permits survey and historical program 28 data. For fiscal years beginning on or after July 1, 2023, the 29 maximum average dwelling unit cost established by the board 30 shall be no less than the following: 31 (1) Three hundred sixteen thousand three hundred twenty 32 dollars for a project that includes single-family units that is 33 located in either an urban area or in a small city. 34 (2) Two hundred sixty-eight thousand twenty-two dollars for 35 -1- LSB 2366YH (2) 90 ko/jh 1/ 2
H.F. 506 a project that includes multiple dwelling unit buildings that 1 is located in either an urban area or in a small city. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 This bill provides that the economic development authority 6 (authority) shall not allocate more than $50 million in tax 7 credits (credits) to the workforce housing tax incentives 8 program (workforce housing), and that $25 million of the total 9 cap shall be reserved for allocation to qualified housing 10 projects (projects) located in small cities, as defined in 11 Code section 15.352. Under current law, the authority shall 12 not allocate more than $35 million in credits to workforce 13 housing, and $17.5 million of the total cap shall be reserved 14 for allocation to projects located in small cities. 15 Under current law, the authority’s board shall establish the 16 maximum average dwelling unit cost (maximum average cost) under 17 workforce housing for a project that includes single-family 18 dwelling units that is located in a small city or in an urban 19 area, and the maximum average cost for a project that includes 20 multiple dwelling unit buildings that is located in a small 21 city or in an urban area. Under current law, the maximum 22 average cost established by the board is $266,320 for a project 23 that includes single-family units that is located in either an 24 urban area or in a small city, and $218,022 for a project that 25 includes multiple dwelling unit buildings that is located in 26 either an urban area or in a small city. 27 The bill provides that for fiscal years beginning on or after 28 July 1, 2023, the maximum average cost established by the board 29 shall be no less than $316,320 for a project that includes 30 single-family units that is located in either an urban area 31 or in a small city, and $268,022 for a project that includes 32 multiple dwelling unit buildings that is located in either an 33 urban area or in a small city. 34 -2- LSB 2366YH (2) 90 ko/jh 2/ 2
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