Bill Text: IA SF2328 | 2013-2014 | 85th General Assembly | Enrolled

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Bill Title: A bill for an act providing for the reorganization of the Code provisions relating to the Iowa finance authority, revising and eliminating programs, including the beginning farm loan program, providing for existing tax credits, providing for the powers and duties of the authority, and including effective date provisions. (Formerly SSB 3141.) Various effective dates; see bill.

Spectrum: Committee Bill

Status: (Passed) 2014-04-10 - Signed by Governor. S.J. 762. [SF2328 Detail]

Download: Iowa-2013-SF2328-Enrolled.html

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Senate File 2328
AN ACT
PROVIDING FOR THE REORGANIZATION OF THE CODE PROVISIONS
RELATING TO THE IOWA FINANCE AUTHORITY, REVISING AND
ELIMINATING PROGRAMS, INCLUDING THE BEGINNING FARM LOAN
PROGRAM, PROVIDING FOR EXISTING TAX CREDITS, PROVIDING
FOR THE POWERS AND DUTIES OF THE AUTHORITY, AND INCLUDING
EFFECTIVE DATE PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
REORGANIZATION OF THE IOWA FINANCE AUTHORITY
GENERAL PROVISIONS
Section 1. Section 16.1, subsection 1, paragraphs a, f, g,
i, o, aa, ak, and al, Code 2014, are amended by striking the
paragraphs.
Sec. 2. Section 16.1, subsection 1, paragraphs d, n, p, and
af, Code 2014, are amended to read as follows:
d. “Bond” means a bond issued by the authority pursuant to
sections 16.26 to 16.30 , this chapter and includes a note or
other instrument evidencing a debt authorized or referred to in
this chapter .
n. “Guiding principles” means the principles provided in
section 16.4 subchapter III which shall be considered for
amplification and interpretation of the goals of the authority.
p. (1) “Housing” means single family and multifamily
dwellings, and facilities incidental or appurtenant to the
dwellings, and includes group homes of fifteen beds or less
licensed as health care facilities or child foster care
facilities and modular or mobile homes which are permanently
affixed to a foundation and are assessed as realty.
(2) “Adequate housing” means housing which meets minimum

Senate File 2328, p. 2
structural, heating, lighting, ventilation, sanitary,
occupancy, and maintenance standards compatible with applicable
building and housing codes, as determined under rules of the
authority.
af. “Programs” “Program” means any program administered
by the authority or any program in which the authority is
directed or authorized to participate pursuant to any statute,
executive order, or interagency agreement, or any other program
participation or administration of which the authority finds
useful and convenient to further the goals and purposes of the
authority. “Program” shall include but not be limited to all
of the following:
(1) The housing assistance payments program.
(2) The rent supplements program.
(3) The emergency housing fund program.
(4) The special housing assistance program.
(5) The single-family housing program.
(6) The multifamily housing program.
(7) The title guaranty program.
(8) The housing improvement fund program.
(9) The economic development loan program.
(10) The Iowa economic development bond bank program.
(11) The sewage treatment and drinking facilities financing
program.
(12) The Iowa tank assistance bond program.
(13) The residential treatment facilities program.
(14) The E-911 program.
(15) The community college dormitory program.
(16) The prison infrastructure program.
(17) The wastewater treatment financial assistance program.
(18) Any other program established by the authority which
the authority finds useful and convenient to further goals of
the authority and which is consistent with the legislative
findings. Such additional programs shall be administered in
accordance with the guiding principles of the authority after
such notice and hearing as is determined to be reasonable
by the authority under the circumstances. Such additional
programs shall be administered in accordance with rules, if
any, which the authority determines useful and convenient to
adopt pursuant to chapter 17A .
Sec. 3. Section 16.1, subsection 1, Code 2014, is amended by
adding the following new paragraphs:
NEW PARAGRAPH . 0a. “Adequate housing” means housing which

Senate File 2328, p. 3
meets minimum structural, heating, lighting, ventilation,
sanitary, occupancy, and maintenance standards compatible with
applicable building and housing codes, as determined under
rules of the authority.
NEW PARAGRAPH . 0g. “Depreciable property” means personal
property for which an income tax deduction for depreciation is
allowable in computing federal income tax under the Internal
Revenue Code as defined in section 422.3.
NEW PARAGRAPH . 0p. “Historic properties” means landmarks,
landmark sites, or districts which are significant in the
history, architecture, archaeology, or culture of this state,
its communities, or the nation.
NEW PARAGRAPH . 0v. (1) “Lending institution” means
any bank, trust company, mortgage company, national banking
association, federal savings association, or life insurance
company; any state or federal governmental agency or
instrumentality; the federal land bank or any of its local
associations; or any other institution authorized to make loans
in this state.
(2) “Lending institution” includes a financial institution
as defined in section 496B.2, which lends moneys for farming
purposes as provided in subchapter VIII, or for industrial or
business purposes.
NEW PARAGRAPH . 0ac. “Net worth” means a person’s total
assets minus total liabilities as determined in accordance
with generally accepted accounting principles with appropriate
exceptions and exemptions reasonably related to an equitable
determination of a person’s net worth. Assets shall be valued
at fair market value.
NEW PARAGRAPH . 0aj. “Secured loan” means a financial
obligation secured by a chattel mortgage, security agreement,
or other instrument creating a lien on an interest in
depreciable property.
NEW PARAGRAPH . an. “Veteran” means the same as defined in
section 35.1.
Sec. 4. Section 16.1, subsection 2, Code 2014, is amended by
striking the subsection.
Sec. 5. Section 16.1A, Code 2014, is amended to read as
follows:
16.1A Creation —— administration of programs.
1. The Iowa finance authority is created, and constitutes
a public instrumentality and agency of the state exercising
public and essential governmental functions.

Senate File 2328, p. 4
2. The authority shall undertake and administer all of the
following:
a. Programs established under this chapter to assist in
attainment of adequate housing for low- or moderate-income
families, elderly families, and families which include one or
more persons with disabilities, and to undertake the various
finance programs under this chapter .
b. Programs which assist qualified farmers or agricultural
producers, including beginning farmers, as provided in chapter
175 established by the authority which the authority finds
useful and convenient to further goals of the authority and
which are consistent with the legislative findings . Such
programs shall be administered in accordance with section 16.4.
Such additional programs shall be administered in accordance
with rules, if any, which the authority determines useful and
convenient to adopt pursuant to chapter 17A.
3. The Iowa finance authority board of directors shall
have general control, supervision, and regulation of all
authority programs established under this chapter and chapter
175 described in this section .
4. The authority is charged with the broad administrative
authority to make, administer, interpret, construe, repeal, and
execute the rules, and to administer, interpret, construe, and
execute the laws of this state relating to such programs.
5. The board may, by resolution, delegate to the
agricultural development board, title guaranty division
board, executive director, or other authority employee such
of its powers, under such terms and conditions, as it deems
appropriate.
Sec. 6. Section 16.2, subsection 9, Code 2014, is amended by
striking the subsection.
Sec. 7. Section 16.2A, subsection 1, Code 2014, is amended
to read as follows:
1. A title guaranty division is created within the
authority. The division may also be referred to as Iowa title
guaranty. The powers of the division relating to the issuance
of title guaranties are vested in and shall be exercised by
a division board of five members appointed by the governor
subject to confirmation by the senate. The membership of
the division board shall include an attorney, an abstractor,
a real estate broker, a representative of a mortgage lender
lending institution that engages in mortgage lending , and
a representative of the housing development industry. The

Senate File 2328, p. 5
executive director of the authority shall appoint an attorney
as director of the title guaranty division, who shall serve as
an ex officio member of the division board. The appointment of
and compensation for the division director are exempt from the
merit system provisions of chapter 8A, subchapter IV .
Sec. 8. NEW SECTION . 16.2B Agricultural development
division —— administration of programs.
1. An agricultural development division is created
within the authority. The agricultural development division
shall administer subchapter VIII , by providing assistance to
beginning farmers, agricultural producers, or other persons
qualifying for such assistance under subchapter VIII .
2. The agricultural development division shall be
administered in accordance with the policies of the
agricultural development board created in section 16.2C .
The executive director of the authority may organize the
agricultural development division and employ necessary
qualified personnel to administer subchapter VIII.
3. The agricultural development division shall, to every
extent practical, assist persons to do all of the following:
a. Acquire agricultural land, agricultural improvements,
or depreciable agricultural property, including as provided in
subchapter VIII.
b. Obtain agricultural assets transfer tax credits,
including by issuing tax credit certificates pursuant to
subchapter VIII, part 5.
c. Obtain financing for other capital requirements or
operating expenses.
4. The net earnings of the agricultural development
division, beyond that necessary for retirement of its notes,
bonds, or other obligations or to implement the public purposes
and programs authorized in subchapter VIII, shall not inure to
the benefit of any person other than the state.
5. a. At least two of the authority’s full-time equivalent
positions, as defined in section 8.36A , shall be entirely
dedicated to administering programs established pursuant to
subchapter VIII. One of those full-time equivalent positions
shall be dedicated to overseeing the administration of those
programs, and to the extent that the programs are affected, the
full-time equivalent position shall be provided the powers and
duties necessary to do all of the following:
(1) Participate in making managerial decisions.
(2) Provide for outreach and promotion.

Senate File 2328, p. 6
(3) Improve delivery of services.
b. This subsection is repealed on July 1, 2015.
Sec. 9. NEW SECTION . 16.2C Agricultural development board.
1. The powers of the agricultural development division
are vested in and shall be exercised by the agricultural
development board as provided in section 16.2B and this
section .
2. The agricultural development board is created to
exercise all powers and perform all duties necessary to
administer subchapter VIII according to policies established
by the authority. The authority shall establish policies
and practices for the division and oversee its operations.
The authority may review or approve decisions affecting the
division or administration of subchapter VIII, including
decisions of the agricultural development board.
3. The agricultural development board consists of five
members appointed by the governor subject to confirmation by
the senate. The executive director of the authority or the
executive director’s designee shall serve as an ex officio,
nonvoting member.
4. The appointed members of the agricultural development
board shall be appointed and retained in office as follows:
a. Not more than three members shall belong to the same
political party.
b. As far as possible, the governor shall include within
the membership persons who represent lending institutions
experienced in agricultural lending, real estate sales,
farmers, beginning farmers, average taxpayers, local
government, soil and water conservation district officials,
agricultural educators, and other persons specially interested
in family farm development.
c. Members shall serve for staggered terms of six years
beginning and ending as provided in section 69.19 . A person
appointed to fill a vacancy shall serve only for the unexpired
portion of the member’s term. A member is eligible for
reappointment. An appointed member may be removed from office
by the governor for misfeasance, malfeasance, willful neglect
of duty, or other just cause, after notice and hearing, unless
the notice and hearing is expressly waived in writing.
5. The agricultural development board shall conduct
business according to all of the following:
a. Three appointed members constitute a quorum and the
affirmative vote of a majority of the appointed members is

Senate File 2328, p. 7
necessary for any substantive action taken by the board. A
majority of appointed members shall not include any member who
has a conflict of interest and a statement by a member that
the member has a conflict of interest is conclusive for this
purpose. A vacancy in the membership does not impair the right
of a quorum to exercise all rights and perform all duties of
the board.
b. Meetings of the board shall be held at the call of the
chairperson or whenever two appointed members so request.
c. The appointed members shall elect a chairperson and vice
chairperson annually, and other officers as they determine.
The executive director of the authority or the executive
director’s designee shall serve as secretary to the board.
6. An appointed member of the agricultural development
board is entitled to receive a per diem as specified in section
7E.6 for each day spent in performance of duties as a member,
and shall be reimbursed for all actual and necessary expenses
incurred in the performance of duties as a member.
7. An appointed member of the agricultural development
board shall give bond as required for public officers in
chapter 64 .
Sec. 10. NEW SECTION . 16.2D Council on homelessness.
1. A council on homelessness is created consisting of
thirty-eight voting members. At least one voting member at all
times shall be a member of a minority group.
2. Members of the council shall consist of all of the
following:
a. Twenty-six members of the general public appointed to
two-year staggered terms by the governor in consultation with
the nominating committee under subsection 4 , paragraph “a” .
(1) Voting members from the general public may include
but are not limited to the following types of individuals
and representatives of the following programs: homeless or
formerly homeless individuals and their family members, youth
shelters, faith-based organizations, local homeless service
providers, emergency shelters, transitional housing providers,
family and domestic violence shelters, private business, local
government, and community-based organizations.
(2) Five of the twenty-six voting members selected from the
general public shall be individuals who are homeless, formerly
homeless, or family members of homeless or formerly homeless
individuals.
(3) One of the twenty-six members selected from the general

Senate File 2328, p. 8
public shall be a representative of the Iowa state association
of counties.
(4) One of the twenty-six members selected from the general
public shall be a representative of the Iowa league of cities.
b. Twelve agency director members consisting of all of the
following:
(1) The director of the department of education or the
director’s designee.
(2) The director of the economic development authority or
the director’s designee.
(3) The director of human services or the director’s
designee.
(4) The attorney general or the attorney general’s
designee.
(5) The director of the department of human rights or the
director’s designee.
(6) The director of public health or the director’s
designee.
(7) The director of the department on aging or the
director’s designee.
(8) The director of the department of corrections or the
director’s designee.
(9) The director of the department of workforce development
or the director’s designee.
(10) The director of the department of public safety or the
director’s designee.
(11) The director of the department of veterans affairs or
the director’s designee.
(12) The executive director of the Iowa finance authority or
the executive director’s designee.
3. An agency director’s designee may vote on council matters
in the absence of the director.
4. a. A nominating committee initially comprised of all
twelve agency director members shall nominate persons to
the governor to fill the general public member positions.
Following appointment of all twenty-six general public members,
the composition of the nominating committee may be modified by
rule.
b. The council may establish other committees and
subcommittees comprised of members of the council.
5. A vacancy on the council shall be filled in the same
manner as the original appointment. A member appointed to fill
a vacancy created other than by expiration of a term shall be

Senate File 2328, p. 9
appointed for the remainder of the unexpired term.
6. a. A majority of the members of the council constitutes
a quorum. Any action taken by the council must be adopted by
the affirmative vote of a majority of its membership.
b. The council shall elect a chairperson and vice
chairperson from the membership of the council. The
chairperson and vice chairperson shall each serve two-year
terms. The positions of chairperson and vice chairperson shall
not be held by members who are both either general public
members or agency directors. The position of chairperson shall
rotate between agency director members and general public
members.
c. The council shall meet at least six times per year.
Meetings of the council may be called by the chairperson or by
a majority of the members.
d. General public members shall be reimbursed by the
authority for actual and necessary expenses incurred while
engaged in their official duties.
7. The authority shall provide staff assistance and
administrative support to the council.
8. The duties of the council shall include but are not
limited to the following:
a. Develop a process for evaluating state policies,
programs, statutes, and rules to determine whether any state
policies, programs, statutes, or rules should be revised to
help prevent and alleviate homelessness.
b. Evaluate whether state agency resources could be more
efficiently coordinated with other state agencies to prevent
and alleviate homelessness.
c. Work to develop a coordinated and seamless service
delivery system to prevent and alleviate homelessness.
d. Use existing resources to identify and prioritize efforts
to prevent persons from becoming homeless and to eliminate
factors that keep people homeless.
e. Identify and use federal and other funding opportunities
to address and reduce homelessness within the state.
f. Work to identify causes and effects of homelessness and
increase awareness among policymakers and the general public.
g. Advise the governor’s office, the authority, state
agencies, and private organizations on strategies to prevent
and eliminate homelessness.
9. a. The council shall make annual recommendations to
the governor regarding matters which impact homelessness on or

Senate File 2328, p. 10
before September 15.
b. The council shall prepare and file with the governor and
the general assembly on or before the first day of December in
each odd-numbered year, a report on homelessness in Iowa.
c. The council shall assist in the completion of the state’s
continuum of care application to the United States department
of housing and urban development.
10. a. The authority, in consultation with the council,
shall adopt rules pursuant to chapter 17A for carrying out the
duties of the council pursuant to this section .
b. The council shall establish internal rules of procedure
consistent with the provisions of this section .
c. Rules adopted or internal rules of procedure established
pursuant to paragraph “a” or “b” shall be consistent with the
requirements of the federal McKinney-Vento Homeless Assistance
Act, 42 U.S.C. §11301 et seq.
11. The council shall comply with the requirements of
chapters 21 and 22 . The authority shall be the official
repository of council records.
Sec. 11. NEW SECTION . 16.2E Legislative findings ——
general.
The general assembly finds and declares all of the
following:
1. The establishment of the authority is in all respects
for the benefit of the people of the state of Iowa, for the
improvement of their health and welfare, and for the promotion
of the economy, which are public purposes.
2. The authority will be performing an essential
governmental function in the exercise of the powers and duties
conferred upon it by this chapter.
3. All of the purposes stated in this chapter are public
purposes and uses for which public moneys may be borrowed,
expended, advanced, loaned, or granted.
Sec. 12. Section 16.3, subsections 1, 2, 14, 15, 16, 17, and
18, Code 2014, are amended by striking the subsections.
Sec. 13. Section 16.4, subsection 7, Code 2014, is amended
to read as follows:
7. The authority shall encourage the protection,
restoration and rehabilitation of historic properties, and
the preservation of other properties of special value for
architectural or esthetic reasons. As used in this subsection ,
“historic properties” means landmarks, landmark sites, or
districts which are significant in the history, architecture,

Senate File 2328, p. 11
archaeology, or culture of this state, its communities, or the
nation.
Sec. 14. NEW SECTION . 16.4A Legislative findings ——
agricultural development.
The general assembly finds and declares all of the
following:
1. There exists a serious problem in this state regarding
the ability of nonestablished farmers to acquire agricultural
land and agricultural improvements and depreciable agricultural
property in order to enter farming.
2. This barrier to entry into farming is conducive to
consolidation of acreage of agricultural land with fewer
individuals resulting in a grave threat to the traditional
family farm.
3. These conditions result in a loss in population,
unemployment, and a movement of persons from rural communities
to urban areas accompanied by added costs to communities for
creation of new public facilities and services.
4. One major cause of this condition has been recurrent
shortages of funds in private channels and the high interest
cost of borrowing.
5. These shortages and costs have made the sale and
purchase of agricultural land to beginning farmers a virtual
impossibility in many parts of the state.
6. The ordinary operations of private enterprise have not in
the past corrected these conditions.
7. A stable supply of adequate funds for agricultural
financing is required to encourage beginning farmers in
an orderly and sustained manner and to reduce the problems
described in this section .
8. Article IX, 2nd subarticle, section 3, of the
Constitution of the State of Iowa requires that, “The
General Assembly shall encourage, by all suitable means, the
promotion of intellectual, scientific, moral, and agricultural
improvement,” and agricultural improvement and the public good
are served by a policy of facilitating access to capital by
beginning farmers unable to obtain capital elsewhere in order
to preserve, encourage, and protect the family farm which has
been the economic, political, and social backbone of rural
Iowa.
9. It is necessary to create a program to encourage
ownership of farms by beginning farmers by providing purchase
money loans to beginning farmers who are not able to obtain

Senate File 2328, p. 12
adequate capital elsewhere to provide such funds and to lower
costs through the use of public financing.
10. There exists a serious problem in this state regarding
the ability of farmers to obtain affordable operating loans for
reasonable and necessary expenses and cash flow requirements
of farming.
11. Farming is one of the principal pursuits of the
inhabitants of this state. Many other industries and pursuits,
in turn, are wholly dependent upon farming.
12. The inability of farmers to obtain affordable operating
loans is conducive to a general decline of the economy in this
state.
13. A serious problem continues to exist in this state
regarding the ability of agricultural producers to obtain,
retain, restructure, or service loans or other financing on
a reasonable and affordable basis for operating expenses,
cash flow requirements, and capital asset acquisition or
maintenance.
14. Because the Iowa economy is dependent upon the
production and marketing of agricultural produce, the inability
of agricultural producers to obtain, retain, restructure,
or service loans or other financing on a reasonable and
an affordable basis for operating expenses, cash flow
requirements, or capital asset acquisition or maintenance
contributes to a general decline of the state’s economy.
Sec. 15. NEW SECTION . 16.4B Guiding principles ——
agricultural development.
In the performance of its duties, implementation of its
powers, and the selection of specific programs and projects to
receive its assistance under subchapter VIII, the authority
shall be guided by the following precatory principles:
1. The authority shall not become an owner of real or
depreciable property, except on a temporary basis where
necessary in order to implement its programs, to protect its
investments by means of foreclosure or other means, or to
facilitate transfer of real or depreciable property for the use
of beginning farmers.
2. The authority shall exercise diligence and care in
selection of projects to receive its assistance and shall apply
customary and acceptable business and lending standards in
selection and subsequent implementation of the projects. The
authority may delegate primary responsibility for determination
and implementation of the projects to any federal governmental

Senate File 2328, p. 13
agency which assumes any obligation to repay the loan, either
directly or by insurance or guaranty.
3. The authority shall develop programs for providing
financial assistance to agricultural producers in this state.
Sec. 16. NEW SECTION . 16.4C Legislative findings —— title
guaranty.
The general assembly finds and declares that the abstract
attorney’s title opinion system promotes land title stability
for determining the marketability of land titles and is a
public purpose. A public purpose is served by providing, as
an adjunct to the abstract attorney’s title opinion system,
a low-cost mechanism to provide for additional guaranties of
real property titles in Iowa. The title guaranties facilitate
mortgage lenders’ participation in the secondary market and
add to the integrity of the land-title transfer system in the
state.
Sec. 17. NEW SECTION . 16.4D Legislative findings ——
economic development.
The general assembly finds and declares all of the
following:
1. Economic development and expansion of business,
industry, and farming in the state is dependent upon the
availability of financing of the development and expansion at
affordable interest rates.
2. The pooling of private financing enhances the
marketability of the obligations involved and increases access
to other state, regional, and national credit markets.
3. The creation of an economic development program as
provided in section 16.102 will make the pooling of private
financing available to small businesses, farmers, agricultural
landowners and operators, and commercial, industrial, and other
business enterprises at favorable interest rates with reduced
marketing costs.
Sec. 18. Section 16.5, subsection 1, paragraph p, Code 2014,
is amended to read as follows:
p. Through the Iowa title guaranty division, make and issue
title guaranties on Iowa real property in a form acceptable
to the secondary market, to fix and collect the charges for
the guaranties and to procure reinsurance against any loss in
connection with the guaranties.
Sec. 19. Section 16.5C, subsections 6 and 8, Code 2014, are
amended to read as follows:
6. Renegotiate a mortgage loan or loan to a mortgage lender

Senate File 2328, p. 14
lending institution in default; waive a default or consent to
the modification of the terms of a mortgage loan or a loan to a
mortgage lender lending institution ; forgive or forbear all or
part of a mortgage loan or a loan to a mortgage lender lending
institution ; and commence, prosecute, and enforce a judgment
in any action, including but not limited to a foreclosure
action, to protect or enforce any right conferred upon the
authority by law, mortgage loan agreement, contract, or other
agreement, and in connection with any such action, bid for and
purchase the property or acquire or take possession of it,
complete, administer, and pay the principal of and interest on
any obligations incurred in connection with the property, and
dispose of and otherwise deal with the property in a manner as
the authority deems advisable to protect its interests.
8. Purchase, and make advance commitments to purchase,
residential mortgage loans from mortgage lenders lending
institutions at prices and upon terms and conditions it
determines consistent with its goals and legislative findings.
However, the total purchase price for all residential
mortgage loans which the authority commits to purchase from
a mortgage lender lending institution at any one time shall
not exceed the total of the unpaid principal balances of the
residential mortgage loans purchased. Mortgage lenders Lending
institutions are authorized to sell residential mortgage loans
to the authority in accordance with this section and the rules
of the authority. The authority may charge a mortgage lender
lending institution a commitment fee or other fees as set by
rule as a condition for the authority purchasing residential
mortgage loans.
Sec. 20. NEW SECTION . 16.5D Specific powers and duties ——
agricultural development.
The authority has all of the general and specific powers
needed to carry out its purposes and duties as provided in this
subchapter and to exercise its specific powers under subchapter
VIII.
Sec. 21. Section 16.7, Code 2014, is amended to read as
follows:
16.7 Annual report.
1. The authority shall submit to the governor and to the
general assembly, not later than January 15 each year , a an
annual report.
2. The complete annual report shall contain at least three
parts which include all of the following:

Senate File 2328, p. 15
a. A general description of the authority setting forth:
a. (1) Its operations and accomplishments.
b. (2) Its receipts and expenditures during the fiscal
year, in accordance with the classifications it establishes for
its operating and capital accounts.
c. (3) Its assets and liabilities at the end of its fiscal
year and the status of reserve, special , and other funds.
d. (4) A schedule of its bonds and notes outstanding at
the end of its fiscal year, together with a statement of the
amounts redeemed and issued during its fiscal year.
e. (5) A statement of its proposed and projected
activities.
f. (6) Recommendations to the general assembly, as it deems
necessary.
g. An analysis of current housing needs in the state.
2. The annual report shall identify performance
(7) Performance goals of the authority, and clearly
indicate indicating the extent of progress during the reporting
period, in attaining the goals.
b. A summary of housing programs administered under this
chapter. The summary shall include an analysis of current
housing needs in this state. Where possible, results shall be
expressed in terms of housing units.
c. A summary of agricultural development programs
administered under subchapter VIII. Where possible, findings
and results shall be expressed in terms of number of loans, tax
credits, participating qualified beginning farmers, and acres
of agricultural land, including by county.
Sec. 22. Section 16.9, Code 2014, is amended by striking the
section and inserting in lieu thereof the following:
16.9 Nondiscrimination and affirmative action.
In administering its programs under this chapter, the
authority shall comply with all applicable state and federal
laws relating to nondiscrimination and affirmative action.
Sec. 23. NEW SECTION . 16.11 Assistance by state officers,
agencies, and departments.
State officers and state departments and agencies may render
services to the authority within their respective functions as
requested by the authority.
Sec. 24. NEW SECTION . 16.13 Conflicts of interest.
1. As used in this section, “member” means each individual
appointed to any of the following:
a. The board of directors of the authority created pursuant

Senate File 2328, p. 16
to section 16.2.
b. The board of directors of the agricultural development
division created pursuant to section 16.2C.
2. a. If a member or employee of the authority other than
the executive director of the authority has an interest, either
direct or indirect, in a contract to which the authority is,
or is to be, a party, or in a mortgage lender requesting a loan
from, or offering to sell mortgage loans to, the authority,
the interest shall be disclosed to the authority in writing
and shall be set forth in the minutes of the authority. The
member or employee having the interest shall not participate
in any action of the authority with respect to that contract
or mortgage lender.
b. A violation of a provision of this subsection is
misconduct in office under section 721.2. However, a
resolution of the authority is not invalid because of a vote
cast by a member in violation of this subsection unless the
vote was decisive in the passage of the resolution.
c. For the purposes of this subsection, “action of the
authority with respect to that contract or mortgage lender”
means only an action directly affecting a separate contract or
mortgage lender, and does not include an action which benefits
the general public or which affects all or a substantial
portion of the contracts or mortgage lenders included in a
program of the authority.
3. Nothing in this section shall be deemed to limit the
right of a member, officer, or employee of the authority to
acquire an interest in bonds or notes of the authority or to
limit the right of a member, officer, or employee other than
the executive director to have an interest in a financial
institution, including a lending institution, in which the
funds of the authority are, or are to be, deposited or which
is, or is to be, acting as trustee or paying agent under a trust
indenture to which the authority is a party.
4. The executive director shall not have an interest in
a financial institution, including a lending institution, in
which the funds of the authority are, or are to be, deposited
or which is, or is to be, acting as trustee or paying agent
under a trust indenture to which the authority is a party. The
executive director shall not receive, in addition to fixed
salary or compensation, any money or valuable thing, either
directly or indirectly, or through any substantial interest
in any other corporation or business unit, for negotiating,

Senate File 2328, p. 17
procuring, recommending, or aiding in any purchase or sale
of property, or loan, made by the authority, nor shall the
executive director be pecuniarily interested, either as
principal, coprincipal, agent, or beneficiary, either directly
or indirectly, or through any substantial interest in any other
corporation or business unit, in any such purchase, sale, or
loan.
Sec. 25. NEW SECTION . 16.16 Liability.
1. A member, as defined in section 16.13, or a person acting
on behalf of the authority while acting within the scope of the
member’s or person’s agency or employment, is not subject to
personal liability resulting from carrying out the powers and
duties in this chapter.
2. The United States and the secretary of agriculture of
the United States are not subject to liability by virtue of the
transfer of the assets to the authority under this chapter.
3. The treasurer of state shall not be subject to personal
liability resulting from carrying out the powers and duties
of the authority or the treasurer of state, as applicable, in
subchapter X, part 15.
Sec. 26. NEW SECTION . 16.17 Rules.
1. The authority shall adopt all rules necessary to
administer this chapter.
2. The authority may establish by rule further definitions
applicable to this chapter, and clarification of the
definitions in this chapter, as it deems convenient and
necessary to carry out the public purposes of this chapter
including all the following:
a. Any rules necessary to assure eligibility for funds
available under federal housing laws, or to assure compliance
with federal tax laws relating to the issuance of tax exempt
bonds pursuant to the Internal Revenue Code or relating to the
allowance of low-income credits under Internal Revenue Code
§42.
b. Any rule as necessary to assure eligibility for funds,
insurance, or guaranties available under federal laws and to
carry out the public purposes of subchapter VIII.
3. The authority may adopt rules pursuant to chapter 17A
relating to the purchase and sale of residential mortgage loans
and the sale of mortgage-backed securities.
Sec. 27. NEW SECTION . 16.18 Inconsistent provisions.
This chapter takes precedence over any conflicting
provisions contained in section 535.8, subsection 2, with

Senate File 2328, p. 18
respect to the use or enforcement of a due-on-sale or similar
clause in a mortgage loan agreement, and takes precedence over
any conflicting provisions contained in laws enacted after
July 1, 1981, with respect to the use or enforcement of a
due-on-sale or similar clause in a mortgage loan agreement
unless those laws expressly provide that they take precedence
over this chapter.
Sec. 28. NEW SECTION . 16.19 Liberal interpretation.
This chapter, being necessary for the welfare of this state
and its inhabitants, shall be liberally construed to effect its
purposes.
Sec. 29. NEW SECTION . 16.22 Application of funds from sales
of obligations.
All moneys received by or on behalf of the authority, whether
as proceeds from the sale of obligations or as revenues, are
trust funds to be held and applied solely for the purposes
specified in the appropriation, bond resolution, or other
document authorizing receipt of the moneys by the authority.
A person with which the moneys are deposited shall act as
trustee of the moneys and shall hold and apply the moneys for
the purposes specified in this chapter subject to limitations
specified in this chapter and in the bond resolution
authorizing the issuance of the obligations.
Sec. 30. Section 16.26, subsection 4, paragraph a, Code
2014, is amended to read as follows:
a. State the date and series of the issue, be consecutively
numbered, and state on their face that they are payable both
as to principal and interest solely out of the assets of the
authority and do not constitute an indebtedness of this state
or any political subdivision of this state other than the
authority within the meaning of any constitutional or statutory
debt limit.
Sec. 31. Section 16.26, subsections 5 and 6, Code 2014, are
amended to read as follows:
5. The authority may issue its bonds for the purpose of
refunding any bonds or notes of the authority then outstanding,
including the payment of any redemption premiums thereon and
any interest accrued or to accrue to the date of redemption
of the outstanding bonds or notes. Until the proceeds
of bonds issued for the purpose of refunding outstanding
bonds or notes are applied to the purchase or retirement of
outstanding bonds or notes or the redemption of outstanding
bonds or notes, the proceeds may be placed in escrow and be

Senate File 2328, p. 19
invested and reinvested in accordance with the provisions of
this chapter . The interest, income, and profits earned or
realized on an investment may also be applied to the payment
of the outstanding bonds or notes to be refunded by purchase,
retirement, or redemption. After the terms of the escrow have
been fully satisfied and carried out, any balance of proceeds
and interest earned or realized on the investments may be
returned to the authority for use by it in any lawful manner.
All refunding bonds shall be issued and secured and subject to
the provisions of this chapter in the same manner and to the
same extent as other bonds issued pursuant to this chapter .
6. The authority may issue negotiable bond anticipation
notes and may renew them from time to time but the maximum
maturity of the notes, including renewals, shall not exceed
ten years from the date of issue of the original notes. Notes
Bond anticipation notes are payable from any available moneys
of the authority not otherwise pledged, or from the proceeds
of the sale of bonds of the authority in anticipation of
which the bond anticipation notes were issued. Notes Bond
anticipation notes may be issued for any corporate purpose
of the authority. Notes Bond anticipation notes shall be
issued in the same manner as bonds , and bond anticipation
notes , and the resolution authorizing them may contain any
provisions, conditions, or limitations, not inconsistent
with the provisions of this subsection , which the bonds or
a bond resolution of the authority may contain. Notes Bond
anticipation notes may be sold at public or private sale. In
case of default on its bond anticipation notes or violation
of any obligations of the authority to the noteholders, the
noteholders shall have all the remedies provided in this
chapter for bondholders. Notes Bond anticipation notes shall
be as fully negotiable as bonds of the authority.
Sec. 32. NEW SECTION . 16.27A Powers relating to loans.
Subject to any agreement with bondholders or noteholders,
the authority may renegotiate a mortgage or secured loan or
a loan to a lending institution in default, waive a default
or consent to the modification of the terms of a mortgage or
secured loan or a loan to a lending institution, forgive or
forbear all or part of a mortgage or secured loan or a loan to
a lending institution, and commence, prosecute, and enforce
a judgment in any action, including but not limited to a
foreclosure action, to protect or enforce any right conferred
upon it by law, mortgage or secured loan agreement, contract

Senate File 2328, p. 20
or other agreement, and in connection with any action, bid for
and purchase the property or acquire or take possession of it,
complete, administer, pay the principal of and interest on
any obligations incurred in connection with the property, and
dispose of and otherwise deal with the property in a manner the
authority deems advisable to protect its interests.
Sec. 33. NEW SECTION . 16.29 Agreement of the state.
The state pledges and agrees with the holders of any bonds or
notes that the state will not limit or alter the rights vested
in the authority to fulfill the terms of agreements made with
the holders or in any way to impair the rights and remedies of
the holders until the bonds or notes together with the interest
on them, plus interest on unpaid installments of interest,
and all costs and expenses in connection with an action by or
on behalf of the holders are fully met and discharged. The
authority may include this pledge and agreement of the state in
any agreement with the holders of bonds or notes.
Sec. 34. NEW SECTION . 16.32 Surplus moneys —— loan and
grant fund.
1. Moneys declared by the authority to be surplus moneys
which are not required to service bonds and notes issued by the
authority, to pay administrative expenses of the authority,
or to accumulate necessary operating or loss reserves, shall
be used by the authority to provide grants, loans, subsidies,
and services or assistance through programs authorized in this
chapter.
2. The authority may establish a loan and grant fund which
may be comprised of the proceeds of appropriations, grants,
contributions, surplus moneys transferred as provided in this
section, and repayment of authority loans made from such fund.
Sec. 35. NEW SECTION . 16.34A Special definition.
As used in this subchapter, unless the context otherwise
requires, “state housing credit ceiling” means the state
housing credit ceiling as defined in Internal Revenue Code
§42(h)(3)(C).
Sec. 36. NEW SECTION . 16.35 State housing credit ceiling
allocation.
1. The authority is designated the housing credit agency
for the allowance of low-income housing credits under the state
housing credit ceiling.
2. The authority shall adopt rules and allocation
procedures which will ensure the maximum use of available tax
credits in order to encourage development of low-income housing

Senate File 2328, p. 21
in the state. The authority shall consider the following
factors in the adoption and application of the allocation
rules:
a. Timeliness of the application.
b. Location of the proposed housing project.
c. Relative need in the proposed area for low-income
housing.
d. Availability of low-income housing in the proposed area.
e. Economic feasibility of the proposed project.
f. Ability of the applicant to proceed to completion of the
project in the calendar year for which the credit is sought.
3. The authority shall adopt rules specifying the
application procedure and the allowance of low-income housing
credits under the state housing credit ceiling.
Sec. 37. NEW SECTION . 16.36 Participation in federal
housing assistance payments program.
The authority shall participate in the housing assistance
payments program under section 8 of the United States Housing
Act of 1937, as amended by §201 of the Housing and Community
Development Act of 1974, Pub. L. No. 93-383, codified at 42
U.S.C. §1437 et seq.
Sec. 38. NEW SECTION . 16.38 Loans to lending institutions.
1. The authority may make, and contract to make, loans to
lending institutions on terms and conditions as the authority
determines are reasonably related to protecting the security
of the authority’s investment and to implementing the purposes
of this chapter , and subject to this section . All lending
institutions are authorized to borrow from the authority in
accordance with the provisions of this section and the rules
of the authority.
2. The authority shall require as a condition of each
loan to a lending institution that the lending institution,
within a reasonable period after receipt of the loan proceeds
as the authority prescribes by rule, shall have entered into
written commitments to make, and, within a reasonable period
thereafter as the authority prescribes by rule, shall have
disbursed the loan proceeds in new mortgage loans to low or
moderate income families in an aggregate principal amount equal
to the amount of the loan. New mortgage loans shall have terms
and conditions as the authority prescribes by rules which
are reasonably related to implementing the purposes of this
chapter .
3. The authority shall require the submission to the

Senate File 2328, p. 22
authority by each lending institution to which the authority
has made a loan, of evidence satisfactory to the authority of
the making of new mortgage loans to low or moderate income
families as required by this section , and in that connection
may, through its members, employees, or agents, inspect the
books and records of a lending institution.
4. Compliance by a lending institution with the terms of
its agreement with the authority with respect to the making
of new mortgage loans to low or moderate income families may
be enforced by decree of any district court of this state.
The authority may require as a condition of a loan to a
national banking association or a federally chartered savings
and loan association, the consent of the association to the
jurisdiction of courts of this state over any such proceeding.
The authority may also require, as a condition of a loan to
a lending institution, agreement by the lending institution
to the payment of penalties to the authority for violation by
the lending institution of its agreement with the authority,
and the penalties shall be recoverable at the suit of the
authority.
5. The authority shall require that each lending
institution receiving a loan pursuant to this section
shall issue and deliver to the authority an evidence of its
indebtedness to the authority which shall constitute a general
obligation of the lending institution and shall bear a date,
mature at a time, be subject to prepayment, and contain other
provisions consistent with this section and reasonably related
to protecting the security of the authority’s investment, as
the authority determines.
6. Notwithstanding any other provision of this section to
the contrary, the interest rate and other terms of loans to
lending institutions made from the proceeds of an issue of
bonds or notes of the authority shall be at least sufficient
to assure the payment of the bonds or notes and the interest on
them as they become due.
7. The authority shall require that loans to lending
institutions are additionally secured as to payment of both
principal and interest by a pledge of and lien upon collateral
security by special escrow funds or other forms of guaranty and
in such amounts and forms as the authority shall by resolution
determine to be necessary to assure the payment of the loans
and the interest thereon as they become due. Collateral
security shall consist of direct obligations of, or obligations

Senate File 2328, p. 23
guaranteed by, the United States or one of its agencies,
obligations satisfactory to the authority which are issued by
other federal agencies, direct obligations of or obligations
guaranteed by a state or a political subdivision of a state, or
investment quality obligations approved by the authority.
8. The authority may require that collateral for loans
be deposited with a bank, trust company, or other financial
institution acceptable to the authority located in this state
and designated by the authority as custodian. In the absence
of such a requirement, each lending institution shall enter
into an agreement with the authority containing provisions
as the authority deems necessary to adequately identify and
maintain the collateral, service the collateral, and require
the lending institution to hold the collateral as an agent
for the authority and be accountable to the authority as the
trustee of an express trust for the application and disposition
of the collateral and the income from it. The authority may
also establish additional requirements as the authority deems
necessary with respect to the pledging, assigning, setting
aside, or holding of collateral and the making of substitutions
for it or additions to it and the disposition of income and
receipts from it.
9. The authority may require as a condition of loans to
lending institutions, any representations and warranties the
authority determines are necessary to secure the loans and
carry out the purposes of this section .
10. If a provision of this section is inconsistent with a
provision of law of this state governing lending institutions,
the provision of this section controls for the purposes of this
section .
Sec. 39. NEW SECTION . 16.39 Purchase of mortgage loans.
1. The authority may purchase, and make advance commitments
to purchase, mortgage loans from lending institutions at prices
and upon terms and conditions as the authority determines
subject to this section . However, the total purchase price
for all mortgage loans which the authority commits to purchase
from a lending institution at any one time shall not exceed
the total of the unpaid principal balances of the mortgage
loans purchased. Lending institutions are authorized to
sell mortgage loans to the authority in accordance with the
provisions of this section and the rules of the authority.
2. The authority shall require as a condition of purchase
of mortgage loans from lending institutions that the lending

Senate File 2328, p. 24
institutions, within a reasonable period after receipt of the
purchase price as the authority prescribes by rule, shall enter
into written commitments to loan and, within a reasonable
period thereafter as the authority prescribes by rule, shall
loan an amount equal to the entire purchase price of the
mortgage loans, on new mortgage loans to low or moderate
income families or certify that mortgage loans purchased are
mortgage loans made to low or moderate income families. New
mortgage loans to be made by lending institutions shall have
terms and conditions as the authority prescribes by rule. The
authority may make a commitment to purchase mortgage loans
from lending institutions in advance of the time such loans
are made by lending institutions. The authority shall require
as a condition of such commitment that lending institutions
certify in writing that all mortgage loans represented by the
commitment will be made to low or moderate income families, and
that other authority specifications will be complied with.
3. The authority shall require the submission to the
authority by each lending institution from which the authority
has purchased mortgages, of evidence satisfactory to the
authority of the making of new mortgage loans to low or
moderate income families as required by this section and in
that connection may, through its members, employees, or agents,
inspect the books and records of a lending institution.
4. Compliance by a lending institution with the terms of
its agreement with the authority with respect to the making of
new mortgage loans to low or moderate income families may be
enforced by decree of any district court of this state. The
authority may require as a condition of purchase of mortgage
loans from any national banking association or federally
chartered savings and loan association, the consent of the
association to the jurisdiction of courts of this state over
any such proceeding. The authority may also require as a
condition of the authority’s purchase of mortgage loans from
a lending institution, agreement by the lending institution
to the payment of penalties to the authority for violation by
the lending institution of its agreement with the authority,
and the penalties shall be recoverable at the suit of the
authority.
5. The authority may require as a condition of purchase of
a mortgage loan from a lending institution that the lending
institution represent and warrant to the authority that:
a. The unpaid principal balance of the mortgage loan and

Senate File 2328, p. 25
the interest rate on it have been accurately stated to the
authority.
b. The amount of the unpaid principal balance is justly due
and owing.
c. The lending institution has no notice of the existence of
any counterclaim, offset, or defense asserted by the mortgagor
or the mortgagor’s successor in interest.
d. The mortgage loan is evidenced by a bond or promissory
note and a mortgage which has been properly recorded with the
appropriate public official.
e. The mortgage constitutes a valid first lien on the
real property described to the authority subject only to real
property taxes not yet due, installments of assessments not
yet due, and easements and restrictions of record which do not
adversely affect, to a material degree, the use or value of the
real property or improvements on it.
f. The mortgagor is not now in default in the payment of
any installment of principal or interest, escrow funds, or real
property taxes, or otherwise in the performance of obligations
under the mortgage documents and has not to the knowledge of
the lending institution been in default in the performance of
any obligation under the mortgage for a period of longer than
sixty days during the life of the mortgage.
g. The improvements to the mortgaged real property are
covered by a valid and subsisting policy of insurance issued
by a company authorized to issue such policies in this state
and providing fire and extended coverage in amounts as the
authority prescribes by rule.
h. The mortgage loan meets the prevailing investment quality
standards for mortgage loans in this state.
6. A lending institution is liable to the authority for
damages suffered by the authority by reason of the untruth
of a representation or the breach of a warranty and, in the
event that a representation proves to be untrue when made or
in the event of a breach of warranty, the lending institution
shall, at the option of the authority, repurchase the mortgage
loan for the original purchase price adjusted for amounts
subsequently paid on it, as the authority determines.
7. The authority shall require the recording of an
assignment of a mortgage loan purchased by the authority from
a lending institution and shall not be required to notify
the mortgagor of the authority’s purchase of the mortgage
loan. The authority shall not be required to inspect or take

Senate File 2328, p. 26
possession of the mortgage documents if the mortgage lender
from which the mortgage loan is purchased by the authority
enters into a contract to service the mortgage loan and account
to the authority for it.
8. If a provision of this section is inconsistent with
another provision of law of this state governing lending
institutions, the provision of this section controls for the
purposes of this section .
Sec. 40. Section 16.40, subsection 3, Code 2014, is amended
to read as follows:
3. The authority may use moneys in the fund to provide
financial assistance to a housing sponsor or an individual in
the form of a loan, loan guarantee guaranty , grant, or interest
subsidy, or by other means under the general powers of the
authority.
Sec. 41. NEW SECTION . 16.46 Senior living revolving loan
program fund.
1. A senior living revolving loan program fund is created
within the authority. The moneys in the senior living
revolving loan program fund shall be used by the authority for
the development and operation of a revolving loan program to
provide financing to construct affordable assisted living and
service-enriched affordable housing for seniors and persons
with disabilities, including through new construction or
acquisition and rehabilitation.
2. Moneys transferred by the authority for deposit in the
senior living revolving loan program fund, moneys appropriated
to the senior living revolving loan program, and any other
moneys available to and obtained or accepted by the authority
for placement in the senior living revolving loan program fund
shall be deposited in the fund. Additionally, payment of
interest, recaptures of awards, and other repayments to the
senior living revolving loan program fund shall be deposited
in the fund. Notwithstanding section 12C.7, subsection
2 , interest or earnings on moneys in the senior living
revolving loan program fund shall be credited to the fund.
Notwithstanding section 8.33 , moneys that remain unencumbered
or unobligated at the end of the fiscal year shall not
revert but shall remain available for the same purpose in the
succeeding fiscal year.
3. The authority shall annually allocate moneys available
in the senior living revolving loan program fund for the
development of affordable assisted living and service-enriched

Senate File 2328, p. 27
affordable housing for seniors and persons with disabilities.
The authority shall develop a joint application process for
the allocation of federal low-income housing tax credits and
funds available under this section . Moneys allocated to
such developments may be in the form of loans, grants, or a
combination of loans and grants.
Sec. 42. NEW SECTION . 16.47 Home and community-based
services revolving loan program fund.
1. A home and community-based services revolving loan
program fund is created within the authority to further the
goals specified in section 231.3 , adult day services, respite
services, congregate meals, health and wellness, health
screening, and nutritional assessments. The moneys in the home
and community-based services revolving loan program fund shall
be used by the authority for the development and operation
of a revolving loan program to develop and expand facilities
and infrastructure that provide adult day services, respite
services, congregate meals, and programming space for health
and wellness, health screening, and nutritional assessments
that address the needs of persons with low incomes.
2. Moneys transferred by the authority for deposit in the
home and community-based services revolving loan program fund,
moneys appropriated to the home and community-based services
revolving loan program, and any other moneys available to
and obtained or accepted by the authority for placement in
the home and community-based services revolving loan program
fund shall be deposited in the fund. Additionally, payment of
interest, recaptures of awards, and other repayments to the
home and community-based services revolving loan program fund
shall be deposited in the fund. Notwithstanding section 12C.7,
subsection 2 , interest or earnings on moneys in the home and
community-based services revolving loan program fund shall be
credited to the fund. Notwithstanding section 8.33 , moneys
that remain unencumbered or unobligated at the end of the
fiscal year shall not revert but shall remain available for the
same purpose in the succeeding fiscal year.
3. The authority, in cooperation with the department on
aging, shall annually allocate moneys available in the home
and community-based services revolving loan program fund to
develop and expand facilities and infrastructure that provide
adult day services, respite services, congregate meals, and
programming space for health and wellness, health screening,
and nutritional assessments that address the needs of persons

Senate File 2328, p. 28
with low incomes.
Sec. 43. NEW SECTION . 16.48 Transitional housing revolving
loan program fund.
1. A transitional housing revolving loan program fund is
created within the authority to further the availability of
affordable housing for parents that are reuniting with their
children while completing or participating in substance abuse
treatment. The moneys in the fund are annually appropriated
to the authority to be used for the development and operation
of a revolving loan program to provide financing to construct
affordable transitional housing, including through new
construction or acquisition and rehabilitation of existing
housing. The housing provided shall be geographically located
in close proximity to licensed substance abuse treatment
programs. Preference in funding shall be given to projects
that reunite mothers with the mothers’ children.
2. Moneys transferred by the authority for deposit in
the transitional housing revolving loan program fund, moneys
appropriated to the transitional housing revolving loan
program, and any other moneys available to and obtained or
accepted by the authority for placement in the fund shall be
deposited in the fund. Additionally, payment of interest,
recaptures of awards, and other repayments to the transitional
housing revolving loan program fund shall be credited to the
fund. Notwithstanding section 12C.7, subsection 2 , interest or
earnings on moneys in the transitional housing revolving loan
program fund shall be credited to the fund. Notwithstanding
section 8.33 , moneys that remain unencumbered or unobligated at
the close of the fiscal year shall not revert but shall remain
available for the same purpose in the succeeding fiscal year.
3. The authority shall annually allocate moneys available
in the transitional housing revolving loan program fund for
the development of affordable transitional housing for parents
that are reuniting with the parents’ children while completing
or participating in substance abuse treatment. The authority
shall develop a joint application process for the allocation of
federal low-income housing tax credits and the funds available
under this section . Moneys allocated to such projects may be
in the form of loans, grants, or a combination of loans and
grants.
Sec. 44. NEW SECTION . 16.49 Community housing and services
for persons with disabilities revolving loan program fund.
1. A community housing and services for persons with

Senate File 2328, p. 29
disabilities revolving loan program fund is created within the
authority to further the availability of affordable housing and
supportive services for Medicaid waiver-eligible individuals
with behaviors that provide significant barriers to accessing
traditional rental and supportive services opportunities. The
moneys in the fund are annually appropriated to the authority
to be used for the development and operation of a revolving
loan program to provide financing to construct affordable
permanent supportive housing or develop infrastructure in
which to provide supportive services, including through new
construction, acquisition and rehabilitation of existing
housing or infrastructure, or conversion or adaptive reuse.
2. Moneys transferred by the authority for deposit in the
community housing and services for persons with disabilities
revolving loan program fund, moneys appropriated to the
community housing and services for persons with disabilities
revolving loan program, and any other moneys available to and
obtained or accepted by the authority for placement in the
fund shall be credited to the fund. Additionally, payment of
interest, recaptures of awards, and other repayments to the
community housing and services for persons with disabilities
revolving loan program fund shall be credited to the fund.
Notwithstanding section 12C.7, subsection 2 , interest or
earnings on moneys in the fund shall be credited to the fund.
Notwithstanding section 8.33 , moneys credited to the fund from
any other fund that remain unencumbered or unobligated at the
close of the fiscal year shall not revert to the other fund.
3. a. The authority shall annually allocate moneys
available in the fund for the development of permanent
supportive housing for Medicaid waiver-eligible individuals.
The authority shall develop a joint application process for the
allocation of United States housing and urban development HOME
investment partnerships program funding and the funds available
under this section . Moneys allocated to such projects may be
in the form of loans, forgivable loans, or a combination of
loans and forgivable loans.
b. The authority shall annually allocate moneys available
in the fund for the development of infrastructure in which
to provide supportive services for Medicaid waiver-eligible
individuals who meet the psychiatric medical institution for
children level of care. Moneys allocated to such projects may
be in the form of loans, forgivable loans, or a combination of
loans and forgivable loans.

Senate File 2328, p. 30
4. a. A project shall demonstrate written approval of the
project by the department of human services to the authority
prior to application for funding under this section .
b. In order to be approved by the department of human
services for application for funding for development of
permanent supportive housing under this section, a project
shall include all of the following components:
(1) Provision of services to any of the following Medicaid
waiver-eligible individuals:
(a) Individuals who are currently underserved in community
placements, including individuals who are physically aggressive
or have behaviors that are difficult to manage or individuals
who meet the psychiatric medical institution for children level
of care.
(b) Individuals who are currently residing in out-of-state
facilities.
(c) Individuals who are currently receiving care in a
licensed health care facility.
(2) A plan to provide each individual with crisis
stabilization services to ensure that the individual’s
behavioral issues are appropriately addressed by the provider.
(3) Policies and procedures that prohibit discharge of the
individual from the waiver services provided by the project
provider unless an alternative placement that is acceptable to
the client or the client’s guardian is identified.
c. In order to be approved by the department of human
services for application for funding for development of
infrastructure in which to provide supportive services under
this section , a project shall include all of the following
components:
(1) Provision of services to Medicaid waiver-eligible
individuals who meet the psychiatric medical institution for
children level of care.
(2) Policies and procedures that prohibit discharge of the
individual from the waiver services provided by the project
provider unless an alternative placement that is acceptable to
the client or the client’s guardian is identified.
d. Housing provided through a project under this section is
exempt from the requirements of chapter 135O .
Sec. 45. NEW SECTION . 16.50 Workforce housing assistance
grant fund.
1. A workforce housing assistance grant fund is created
under the control of the authority. The fund shall consist of

Senate File 2328, p. 31
appropriations made to the fund. The fund shall be separate
from the general fund of the state and the balance in the fund
shall not be considered part of the balance of the general fund
of the state. However, the fund shall be considered a special
account for the purposes of section 8.53 , relating to generally
accepted accounting principles.
2. Notwithstanding section 12C.7, subsection 2 , interest or
earnings on moneys in the fund shall be credited to the fund.
3. a. Moneys in the fund in a fiscal year are appropriated
to the authority to be used for grants for projects that create
workforce housing or for projects that include adaptive reuse
of buildings for workforce housing. For purposes of this
section , “workforce housing” means housing that is affordable
for a household whose income does not exceed one hundred twenty
percent of the median income for the area.
b. Priority shall be given to the following types of
projects:
(1) Projects that are eligible for historic preservation
and cultural and entertainment district tax credits under
section 404A.1 .
(2) Projects for the construction of new single-family
dwellings that incorporate one or more energy-efficient
measures. The authority shall by rule identify the types of
energy-efficient measures that will qualify a project for
priority under this subparagraph.
(3) Projects that utilize new markets tax credits,
established under the federal Community Renewal Tax Relief Act
of 2000, Pub. L. No. 106-554, 114 Stat. 2763A, and undertaken
by a qualified community development entity, as defined in the
federal Act.
(4) Projects that are located in an area where other state
funding has been used to support the creation of new jobs.
c. In any fiscal year, an area shall not receive grants
totaling more than twenty-five percent of the moneys expended
from the fund in that fiscal year. For purposes of this
paragraph, “area” means the same area used to determine the
median income under paragraph “a” .
4. Annually, on or before January 15 of each year, the
authority shall report to the legislative services agency and
the department of management the status of all projects that
received moneys from the workforce housing assistance grant
fund. The report shall include a description of each project,
the progress of work completed, the total estimated cost of

Senate File 2328, p. 32
each project, a list of all revenue sources being used to fund
each project, the amount of funds expended, the amount of
funds obligated, and the date each project was completed or an
estimated completion date of each project, where applicable.
5. Payment of moneys from appropriations from the fund shall
be made in a manner that does not adversely affect the tax
exempt status of any outstanding bonds issued by the treasurer
of state pursuant to section 12.87 .
Sec. 46. NEW SECTION . 16.56 Jumpstart housing assistance
program.
1. As used in this section , unless the context otherwise
requires:
a. “Disaster-affected home” means a primary residence that
was destroyed or damaged due to a natural disaster occurring
after May 24, 2008, and before August 14, 2008.
b. “Local government participant” means the cities of Ames,
Cedar Falls, Cedar Rapids, Council Bluffs, Davenport, Des
Moines, Dubuque, Iowa City, Waterloo, and West Des Moines; a
council of governments whose territory includes at least one
county that was declared a disaster area by the president
of the United States after May 24, 2008, and before August
14, 2008; and any county that is not part of any council of
governments and was declared a disaster area by the president
of the United States after May 24, 2008, and before August 14,
2008.
2. The authority shall establish and administer a jumpstart
housing assistance program. Under the program, the authority
shall provide grants to local government participants for
purposes of distributing the moneys to eligible residents for
eligible purposes which relate to disaster-affected homes.
3. An eligible resident is a person residing in a
disaster-affected home who is the owner of record of a right,
title, or interest in the disaster-affected home and who has
been approved by the federal emergency management agency for
housing assistance. An eligible resident must have a family
income equal to or less than one hundred fifty percent of the
area median family income.
4. Eligible purposes include forgivable loans for down
payment assistance, emergency housing repair or rehabilitation,
and interim mortgage assistance. An eligible resident who
receives a forgivable loan may also receive energy efficiency
assistance which shall be added to the principal of the
forgivable loan.

Senate File 2328, p. 33
5. A local government participant may retain a portion of
the grant moneys for administrative purposes as provided in a
grant agreement between the authority and the local government
participant.
6. Any money paid to a local government participant by
an eligible resident shall be remitted to the authority for
deposit in the housing assistance fund created in section
16.40 .
7. As determined by the authority, unused or unobligated
moneys may be reclaimed and reallocated by the authority to
other local government participants.
Sec. 47. NEW SECTION . 16.57 Residential treatment
facilities.
1. The authority may issue its bonds and notes and loan the
proceeds of the bonds or notes to a nonprofit corporation for
the purpose of financing the acquisition or construction of
residential housing or treatment facilities serving juveniles
or persons with disabilities.
2. The authority may enter into a loan agreement with
a nonprofit corporation for the purpose of financing the
acquisition or construction of residential housing or treatment
facilities serving juveniles or persons with disabilities and
shall provide for payment of the loan and security for the loan
as the authority deems advisable.
3. In the resolution authorizing the issuance of the
bonds or notes pursuant to this section , the authority may
provide that the related principal and interest are limited
obligations payable solely out of the revenues derived from the
debt obligation, collateral, or other security furnished by or
on behalf of the nonprofit corporation, and the principal or
interest does not constitute an indebtedness of the authority
or a charge against the authority’s general credit or general
fund.
4. The powers granted the authority under this section are
in addition to the authority’s other powers under this chapter .
All other provisions of this chapter , except section 16.28,
subsection 4 , apply to bonds or notes issued pursuant to, and
powers granted to the authority under this section , except to
the extent the provisions are inconsistent with this section .
Sec. 48. NEW SECTION . 16.58 Definitions.
As used in this subchapter , unless the context otherwise
requires:
1. “Agricultural assets” means agricultural land,

Senate File 2328, p. 34
depreciable agricultural property, crops, or livestock.
2. “Agricultural improvements” means any improvements,
buildings, structures, or fixtures suitable for use in farming
which are located on agricultural land.
3. “Agricultural land” means land suitable for use in
farming.
4. “Agricultural producer” means a person that engages
or wishes to engage or intends to engage in the business of
producing and marketing agricultural produce in this state.
5. “Bankhead-Jones Farm Tenant Act” means the Act cited as
50 Stat. 522 (1937), formerly codified as 7 U.S.C. §1000 et
seq., repealed by Pub. L. No. 87-128 (1961).
6. “Beginning farmer” means an individual, partnership,
family farm corporation, or family farm limited liability
company, with a low or moderate net worth that engages in
farming or wishes to engage in farming.
7. “Beginning farmer tax credit program” means all of the
following:
a. The agricultural assets transfer tax credit as provided
in section 16.80 .
b. The custom farming contract tax credit as provided in
section 16.81 .
8. “Family farm corporation” means the same as defined in
section 9H.1.
9. “Family farm limited liability company” means the same as
defined in section 9H.1.
10. “Farming” means the cultivation of land for the
production of agricultural crops, the raising of poultry, the
production of eggs, the production of milk, the production of
fruit or other horticultural crops, grazing, the production of
livestock, aquaculture, hydroponics, the production of forest
products, or other activities designated by the authority by
rules subject to chapter 17A .
11. “Low or moderate net worth” means a net worth that does
not exceed the maximum allowable net worth established by the
authority. The authority shall establish the maximum allowable
net worth in accordance with the prices paid by farmers index
as compiled by the United States department of agriculture.
12. “Production item” includes tools, machinery, or
equipment principally used to produce crops or livestock.
13. “Qualified beginning farmer” means a beginning farmer
who meets the requirements to participate in a beginning farmer
tax credit program as provided in part 5, subpart B.

Senate File 2328, p. 35
Sec. 49. NEW SECTION . 16.59 Special financing ——
calculations.
A low or moderate net worth requirement provided in this
subchapter applies to an individual, partnership, family farm
corporation, or family farm limited liability company. The
requirement as applied to each such person is calculated as
follows:
1. For an individual, an aggregate net worth of the
individual and the individual’s spouse and minor children not
greater than the low or moderate net worth.
2. For a partnership, an aggregate net worth of all
partners, including each partner’s net capital in the
partnership, and each partner’s spouse and minor children not
greater than twice the low or moderate net worth. However, the
aggregate net worth of each partner and that partner’s spouse
and minor children shall not exceed the low or moderate net
worth.
3. For a family farm corporation, an aggregate net worth
of all shareholders, including the value of each shareholder’s
share in the family farm corporation, and each shareholder’s
spouse and minor children not greater than twice the low or
moderate net worth. However, the aggregate net worth of each
shareholder and that shareholder’s spouse and minor children
shall not exceed the low or moderate net worth.
4. For a family farm limited liability company, an aggregate
net worth of all members, including each member’s ownership
interest in the family farm limited liability company, and each
member’s spouse and minor children of not greater than the low
or moderate net worth. However, the aggregate net worth of
each member and that member’s spouse and minor children shall
not exceed the low or moderate net worth.
Sec. 50. NEW SECTION . 16.60 Combination programs.
Programs authorized in this subchapter may be combined with
any other programs authorized in this chapter or any other
public or private programs.
Sec. 51. NEW SECTION . 16.62 Trust assets.
The authority shall make application to and receive from the
United States secretary of agriculture, or any other proper
federal official, pursuant and subject to the provisions of
Pub. L. No. 81-499, 64 Stat. 152 (1950), formerly codified at
40 U.S.C. §440 et seq. (1976), all of the trust assets held by
the United States in trust for the Iowa rural rehabilitation
corporation now dissolved.

Senate File 2328, p. 36
Sec. 52. NEW SECTION . 16.63 Agreements.
The authority may enter into agreements with the United
States secretary of agriculture pursuant to Pub. L. No. 81-499
§2(f) (1950) upon terms and conditions and for periods of
time as mutually agreeable, authorizing the authority to
accept, administer, expend, and use in the state of Iowa all
or any part of the trust assets or other funds in the state
of Iowa which have been appropriated for use in carrying out
the purposes of the Bankhead-Jones Farm Tenant Act and to do
any and all things necessary to effectuate and carry out the
purposes of such agreements.
Sec. 53. NEW SECTION . 16.64 Bonds and notes —— tax
exemption.
1. An action shall not be brought questioning the legality
of any bonds or notes or the power of the authority to issue
any bonds or notes or to the legality of any proceedings in
connection with the authorization or issuance of the bonds or
notes after determination by the board of the authority to
proceed with the issuance of the bonds or notes sixty days from
the date of publication of the notice.
2. Bonds and notes issued by the authority for purposes of
financing the beginning farmer loan program provided in section
16.75 are exempt from taxation by the state, and interest
earned on the bonds and notes is deductible in determining
net income for purposes of the state individual and corporate
income tax under divisions II and III of chapter 422.
Sec. 54. NEW SECTION . 16.70 Loans to lending institutions.
1. The authority may make and contract to make loans to
lending institutions on terms and conditions the authority
determines are reasonably related to protecting the security of
the authority’s investment and to implementing the purposes of
this subchapter . Lending institutions are authorized to borrow
from the authority in accordance with the provisions of this
section and the rules of the authority.
2. The authority shall require as a condition of each loan
to a lending institution that the lending institution, within
a reasonable period after receipt of the loan proceeds as the
authority prescribes by rule, shall have entered into written
commitments to make and, within a reasonable period thereafter
as the authority prescribes by rule, shall have disbursed the
loan proceeds in new mortgage or secured loans to beginning
farmers in an aggregate principal amount of not less than the
amount of the loan. New mortgage or secured loans shall have

Senate File 2328, p. 37
terms and conditions as the authority prescribes by rules which
are reasonably related to implementing the purposes of this
subchapter as provided in subchapter III.
3. The authority shall require the submission by each
lending institution to which the authority has made a loan, of
evidence satisfactory to the authority of the making of new
mortgage or secured loans to beginning farmers as required by
this section , and in that connection may, through its members,
employees, or agents, inspect the books and records of a
lending institution.
4. Compliance by a lending institution with the terms of
its agreement with the authority with respect to the making
of new mortgage or secured loans to beginning farmers may be
enforced by decree of any district court of this state. The
authority may require as a condition of a loan to a national
banking association or a federally chartered savings and loan
association, the consent of the association to the jurisdiction
of the courts of this state over any enforcement proceeding.
The authority may also require, as a condition of a loan to
a lending institution, agreement by the lending institution
to the payment of penalties to the authority for violation by
the lending institution of its agreement with the authority,
and the penalties shall be recoverable at the suit of the
authority.
5. The authority shall require that each lending
institution receiving a loan pursuant to this section shall
issue and deliver to the authority evidence of its indebtedness
to the authority which shall constitute a general obligation
of the lending institution and shall bear a date, mature at a
time, be subject to prepayment, and contain other provisions
consistent with this section and reasonably related to
protecting the security of the authority’s investment, as the
authority determines.
6. Notwithstanding any other provision of this section , the
interest rate and other terms of loans to lending institutions
made from the proceeds of an issue of bonds or notes of the
authority shall be at least sufficient to assure the payment of
the bonds or notes and the interest on them as they become due.
7. The authority may require that loans to lending
institutions are additionally secured as to payment of both
principal and interest by a pledge of and lien upon collateral
security by special escrow funds or other forms of guaranty and
in amounts and forms as the authority by resolution determines

Senate File 2328, p. 38
to be necessary to assure the payment of the loans and the
interest as they become due. Collateral security shall consist
of direct obligations of or obligations guaranteed by the
United States or one of its agencies, obligations satisfactory
to the authority which are issued by other federal agencies,
direct obligations of or obligations guaranteed by a state
or a political subdivision of a state, or investment quality
obligations approved by the authority.
8. The authority may require that collateral for loans
be deposited with a bank, trust company, or other financial
institution acceptable to the authority located in this state
and designated by the authority as custodian. In the absence
of that requirement, each lending institution shall enter
into an agreement with the authority containing provisions
the authority deems necessary to adequately identify and
maintain the collateral, service the collateral and require the
lending institution to hold the collateral as an agent for the
authority, and be accountable to the authority as the trustee
of an express trust for the application and disposition of the
collateral and the income from it. The authority may also
establish additional requirements the authority deems necessary
with respect to the pledging, assigning, setting aside, or
holding of collateral and the making of substitutions for it or
additions to it and the disposition of income and receipts from
it.
9. The authority may require as a condition of loans to
lending institutions any representations and warranties the
authority determines are necessary to secure the loans and
carry out the purposes of this section .
10. The authority may require the beginning farmer to
satisfy conditions and requirements normally imposed by lending
institutions in making similar loans, including but not limited
to the purchase of capital stock in the federal land bank.
11. If a provision of this section is inconsistent with a
provision of law of this state governing lending institutions,
the provision of this section controls for the purposes of this
section .
Sec. 55. NEW SECTION . 16.71 Purchase of loans.
1. The authority may purchase and make advance commitments
to purchase mortgage or secured loans from lending institutions
at prices and upon terms and conditions as the authority
determines. However, the total purchase price for all mortgage
or secured loans which the authority commits to purchase from a

Senate File 2328, p. 39
lending institution at any one time shall not exceed the total
of the unpaid principal balances of the mortgage or secured
loans purchased. Lending institutions are authorized to sell
mortgage or secured loans to the authority in accordance with
the provisions of this section and the rules of the authority.
2. The authority shall require as a condition of purchase
of mortgage or secured loans from lending institutions that
the lending institutions certify that the mortgage or secured
loans purchased are loans made to beginning farmers. Mortgage
or secured loans to be made by lending institutions shall have
terms and conditions as the authority prescribes by rule.
The authority may make a commitment to purchase mortgage or
secured loans from lending institutions in advance of the time
the loans are made by lending institutions. The authority
shall require as a condition of a commitment that lending
institutions certify in writing that all mortgage or secured
loans represented by the commitment will be made to beginning
farmers and that the lending institution will comply with other
authority specifications.
3. The authority shall require the submission to it by each
lending institution from which the authority has purchased
loans of evidence satisfactory to the authority of the making
of mortgage or secured loans to beginning farmers as required
by this section and in that connection may, through its
members, employees, or agents, inspect the books and records of
a lending institution.
4. Compliance by a lending institution with the terms of
its agreement with the authority with respect to the making
of mortgage or secured loans to beginning farmers may be
enforced by decree of any district court of this state. The
authority may require as a condition of purchase of mortgage
or secured loans from any national banking association or
federally chartered savings and loan association the consent
of the association to the jurisdiction of the courts of this
state over any enforcement proceeding. The authority may also
require as a condition of the purchase of mortgage or secured
loans from a lending institution agreement by the lending
institution to the payment of penalties to the authority for
violation by the lending institution of its agreement with the
authority and the penalties shall be recoverable at the suit
of the authority.
5. The authority may require as a condition of purchase of
a mortgage or secured loan from a lending institution that the

Senate File 2328, p. 40
lending institution make representations and warranties the
authority requires. A lending institution is liable to the
authority for damages suffered by the authority by reason of
the untruth of a representation or the breach of a warranty
and, in the event that a representation proves to be untrue
when made or in the event of a breach of warranty, the lending
institution shall, at the option of the authority, repurchase
the mortgage or secured loan for the original purchase price
adjusted for amounts subsequently paid on it, as the authority
determines.
6. The authority shall require the recording of an
assignment of a mortgage loan purchased by the authority
from a lending institution and is not required to notify the
mortgagor of the authority’s purchase of the mortgage loan.
The authority is not required to inspect or take possession
of the mortgage documents if the lending institution from
which the mortgage loan is purchased enters into a contract to
service the mortgage loan and account to the authority for it.
7. If a provision of this section is inconsistent with
another provision of law of this state governing lending
institutions, the provision of this section controls for the
purposes of this section .
Sec. 56. NEW SECTION . 16.75 Beginning farmer loan program.
1. The authority shall develop a beginning farmer loan
program to facilitate the acquisition of agricultural land and
improvements and depreciable agricultural property by beginning
farmers. The authority shall exercise the powers granted to
the authority in this chapter in order to fulfill the goal of
providing financial assistance to beginning farmers in the
acquisition of agricultural land and agricultural improvements
and depreciable agricultural property. The authority may
participate in and cooperate with programs of the United States
department of agriculture consolidated farm service agency,
federal land bank, or any other agency or instrumentality of
the federal government or with any program of any other state
agency in the administration of the beginning farmer loan
program and in the making of loans or purchasing of mortgage or
secured loans pursuant to this subchapter .
2. The authority may participate in any federal programs
designed to assist beginning farmers or in any related federal
or state programs.
3. The authority shall provide in a beginning farmer loan
program that a loan to or on behalf of a beginning farmer shall

Senate File 2328, p. 41
be provided only if the following criteria are satisfied:
a. The beginning farmer is a resident of the state.
b. The agricultural land and agricultural improvements or
depreciable agricultural property the beginning farmer proposes
to purchase will be located in the state.
c. The beginning farmer has sufficient education, training,
or experience in the type of farming for which the beginning
farmer requests the loan.
d. If the loan is for the acquisition of agricultural
land, the beginning farmer has or will have access to adequate
working capital, farm equipment, machinery, or livestock. If
the loan is for the acquisition of depreciable agricultural
property, the beginning farmer has or will have access to
adequate working capital or agricultural land.
e. The beginning farmer shall materially and substantially
participate in farming.
f. The agricultural land and agricultural improvements shall
only be used for farming by the beginning farmer, the beginning
farmer’s spouse, or the beginning farmer’s minor children.
g. Other criteria as the authority prescribes by rule.
4. The authority may provide in a loan made or purchased
pursuant to this subchapter that the loan shall not be assumed
or that any interest in the agricultural land or improvements
or depreciable agricultural property may not be leased, sold,
or otherwise conveyed without the authority’s prior written
consent, and may provide a due-on-sale clause with respect
to the occurrence of any of the foregoing events without the
authority’s prior written consent. The authority may provide
by rule the grounds for permitted assumptions of a mortgage or
for the leasing, sale, or other conveyance of any interest in
the agricultural land or improvements. However, the authority
shall provide and state in a loan that the authority has the
power to raise the interest rate of the loan to the prevailing
market rate if the loan is assumed by a farmer who is already
established in that field at the time of the assumption of the
loan. This provision controls with respect to a loan made
or purchased pursuant to this subchapter notwithstanding the
provisions of chapter 535 .
5. The authority may participate in any interest in any
loan made or purchased pursuant to this subchapter with a
lending institution. The participation interest may be on a
parity with the interest in the loan retained by the authority,
equally and ratably secured by a mortgage or security agreement

Senate File 2328, p. 42
securing the loan.
Sec. 57. NEW SECTION . 16.76 Loans to beginning farmers.
1. As used in this section, “loan” includes financing
pursuant to an installment contract or contract for purchase
arrangement.
2. The authority may make loans, including but not limited
to mortgage or secured loans, or loans insured, guaranteed,
or otherwise secured by the federal government or a federal
governmental agency or instrumentality, or a state agency or
private mortgage insurers, to beginning farmers to provide
financing for agricultural land and agricultural improvements
or depreciable agricultural property.
3. A loan shall contain terms and provisions, including
interest rates, and be in a form established by rules of
the authority. The authority may require a beginning farmer
to execute a note, loan, or financing agreement, or other
evidence of indebtedness and to furnish additional assurances
and guaranties, including insurance, reasonably related to
protecting the security of the loan, as the authority deems
necessary.
Sec. 58. NEW SECTION . 16.78 Administration of beginning
farmer tax credit program.
1. To every extent practicable, the authority shall
administer tax credits under the beginning farmer tax credit
program in a uniform manner that encourages participation by
qualified beginning farmers. The authority shall determine a
qualified beginning farmer’s low or moderate net worth by using
a single method applicable to all its programs, including the
beginning farmer tax credit program.
2. The authority shall establish a due date to receive
applications to participate in the beginning farmer tax credit
program. The authority may establish different due dates for
applications to qualify for each beginning farmer tax credit.
3. The department of revenue shall cooperate with the
authority in administering the beginning farmer tax credit
program.
Sec. 59. NEW SECTION . 16.79 Criteria for beginning farmers
qualifying to participate in the beginning farmer tax credit
program.
A beginning farmer qualifies to participate in the beginning
farmer tax credit program as provided in this subchapter by
meeting all of the following criteria:
1. Is a resident of the state. If the beginning farmer is a

Senate File 2328, p. 43
partnership, all partners must be residents of the state. If a
beginning farmer is a family farm corporation, all shareholders
must be residents of the state. If the beginning farmer is
a family farm limited liability company, all members must be
residents of the state.
2. Has sufficient education, training, or experience in
farming. If the beginning farmer is a partnership, each
partner who is not a minor must have sufficient education,
training, or experience in farming. If the beginning farmer
is a family farm corporation, each shareholder who is not a
minor must have sufficient education, training, or experience
in farming. If the beginning farmer is a family farm limited
liability company, each member who is not a minor must have
sufficient education, training, or experience in farming.
3. Has access to adequate working capital and production
items.
4. Will materially and substantially participate in
farming. If the beginning farmer is a partnership, family
farm corporation, or family farm limited liability company,
each partner, shareholder, or member who is not a minor must
materially and substantially participate in farming.
5. Is not responsible for managing or maintaining
agricultural land and other agricultural assets that are
greater than necessary to adequately support a beginning farmer
as determined by the authority according to rules which shall
be adopted by the authority.
Sec. 60. NEW SECTION . 16.80 Agricultural assets transfer
tax credit —— agreement.
1. An agricultural assets transfer tax credit is allowed
under this section . The tax credit is allowed against the
taxes imposed in chapter 422, division II , as provided in
section 422.11M , and in chapter 422, division III , as provided
in section 422.33 , to facilitate the transfer of agricultural
assets from a taxpayer to a qualified beginning farmer.
2. In order to qualify for the tax credit, the taxpayer
must meet qualifications established by rules adopted by the
authority. At a minimum, the taxpayer must comply with all of
the following:
a. Be a person who may acquire or otherwise obtain or lease
agricultural land in this state pursuant to chapter 9H or 9I .
However, the taxpayer must not be a person who may acquire
or otherwise obtain or lease agricultural land exclusively
because of an exception provided in one of those chapters or in

Senate File 2328, p. 44
a provision of another chapter of this Code including but not
limited to chapter 10 , 10D , or 501 , or section 15E.207 .
b. Execute an agricultural assets transfer agreement with a
qualified beginning farmer as provided in this section .
3. An individual may claim a tax credit under this section
of a partnership, limited liability company, S corporation,
estate, or trust electing to have income taxed directly to
the individual. The amount claimed by the individual shall
be based upon the pro rata share of the individual’s earnings
from the partnership, limited liability company, S corporation,
estate, or trust.
4. The tax credit is allowed only for agricultural assets
that are subject to an agricultural assets transfer agreement.
The agreement shall provide for the lease of agricultural land
located in this state, including any improvements, and may
provide for the rental of agricultural equipment as defined in
section 322F.1 .
a. The agreement shall include a lease made on a cash basis
or on a commodity share basis which includes a share of the
crops or livestock produced on the agricultural land. The
agreement shall be in writing.
b. The agreement shall be for at least two years, but
not more than five years. The agreement or that part of
the agreement providing for the lease may be renewed by the
qualified beginning farmer for a term of at least two years,
but not more than five years. An agreement does not include a
lease or the rental of equipment intended as a security.
c. The agricultural transfer agreement cannot be assigned
and the land subject to the agreement cannot be subleased.
5. The tax credit shall be based on the agricultural assets
transfer agreement. The agreement shall be based on a cash
basis or a commodity share basis or both.
a. For an agreement that includes a lease on a cash basis,
the tax credit shall be computed as follows:
(1) If the qualified beginning farmer is not a veteran, the
taxpayer may claim a tax credit equal to seven percent of the
gross amount paid to the taxpayer under the agreement for each
tax year that the tax credit is allowed.
(2) If the qualified beginning farmer is a veteran, the
taxpayer may claim eight percent of the gross amount paid to
the taxpayer under the agreement for the first year that the
tax credit is allowed and seven percent of the gross amount
paid to the taxpayer for each subsequent tax year that the

Senate File 2328, p. 45
tax credit is allowed. However, the taxpayer may only claim
seven percent of the gross amount paid to the taxpayer under
a renewed agreement or a new agreement executed by the same
parties.
b. For an agreement that includes a lease on a commodity
share basis, the tax credit shall be computed as follows:
(1) (a) If the qualified beginning farmer is not a veteran,
the taxpayer may claim a tax credit equal to seventeen percent
of the amount paid to the taxpayer from crops or animals sold
under the agreement in which the payment is exclusively made
from the sale of crops or animals.
(b) If the qualified beginning farmer is a veteran, the
taxpayer may claim a tax credit equal to eighteen percent of
the amount paid to the taxpayer from crops or animals sold
under the agreement for the first tax year that the taxpayer
is allowed the tax credit and seventeen percent of the amount
paid to the taxpayer for each subsequent tax year that the
taxpayer is allowed the tax credit. However, the taxpayer may
only claim seventeen percent of the amount paid to the taxpayer
from crops or animals sold for any tax year under a renewed
agreement or a new agreement executed by the same parties.
(2) Notwithstanding subparagraph (1), the authority may
elect an alternative method to compute a tax credit for a lease
based on a crop share basis. The alternative method shall
utilize a formula which uses data compiled by the United States
department of agriculture. The formula shall calculate the
amount of the tax credit by multiplying the average per bushel
yield for the same type of grain as produced under the lease
in the same county where the leased land is located by a per
bushel state price established for such type of grain harvested
the previous fall.
6. A tax credit in excess of the taxpayer’s liability for
the tax year may be credited to the tax liability for the
following five years or until depleted, whichever is earlier.
A tax credit shall not be carried back to a tax year prior to
the tax year in which the taxpayer redeems the tax credit. A
tax credit shall not be transferable to any other person other
than the taxpayer’s estate or trust upon the taxpayer’s death.
7. A taxpayer shall not claim a tax credit under this
section unless a tax credit certificate issued by the authority
is included with the taxpayer’s tax return for the tax year for
which the tax credit is claimed. The authority must review
and approve an application for a tax credit as provided by

Senate File 2328, p. 46
rules adopted by the authority. The application must include
a copy of the agricultural assets transfer agreement. The
authority may approve an application and issue a tax credit
certificate to a taxpayer who has previously been allowed a
tax credit under this section . The authority may require
that the parties to an agricultural assets transfer agreement
provide additional information as determined relevant by the
authority. The authority shall review an application for
a tax credit which includes the renewal of an agricultural
assets transfer agreement to determine that the parties to the
renewed agreement meet the same qualifications as required for
an original application. The authority shall not approve an
application or issue a tax credit certificate to a taxpayer for
an amount in excess of fifty thousand dollars. In addition,
the authority shall not approve an application or issue a
certificate to a taxpayer if any of the following applies:
a. The taxpayer is at fault for terminating a prior
agricultural assets transfer agreement as determined by the
authority.
b. The taxpayer is any of the following:
(1) A party to a pending administrative or judicial action,
including a contested case proceeding under chapter 17A ,
relating to an alleged violation involving an animal feeding
operation as regulated by the department of natural resources,
regardless of whether the pending action is brought by the
department or the attorney general.
(2) Classified as a habitual violator for a violation of
state law involving an animal feeding operation as regulated by
the department of natural resources.
c. The agricultural assets are being leased or rented at
a rate which is substantially higher or lower than the market
rate for similar agricultural assets leased or rented within
the same community, as determined by the authority.
8. A taxpayer or the qualified beginning farmer may
terminate an agricultural assets transfer agreement as provided
in the agreement or by law. The taxpayer must immediately
notify the authority of the termination.
a. If the authority determines that the taxpayer is not
at fault for the termination, the authority shall not issue a
tax credit certificate to the taxpayer for a subsequent tax
year based on the approved application. Any prior tax credit
is allowed as provided in this section . The taxpayer may
apply for and be issued another tax credit certificate for the

Senate File 2328, p. 47
same agricultural assets as provided in this section for any
remaining tax years for which a certificate was not issued.
b. If the authority determines that the taxpayer is at fault
for the termination, any prior tax credit allowed under this
section is disallowed. The amount of the tax credit shall be
immediately due and payable to the department of revenue. If
a taxpayer does not immediately notify the authority of the
termination, the taxpayer shall be conclusively deemed at fault
for the termination.
Sec. 61. NEW SECTION . 16.81 Custom farming contract tax
credit.
1. A custom farming contract tax credit is allowed under
this section . The tax credit is allowed against the taxes
imposed in chapter 422, division II , as provided in section
422.11M , and in chapter 422, division III , as provided in
section 422.33 , to encourage taxpayers who are considering
custom farming agricultural land located in this state to
negotiate with qualified beginning farmers.
2. In order to be eligible to claim a custom farming
contract tax credit, the taxpayer must meet qualifications
established by rules adopted by the authority. At a minimum,
the taxpayer must be a person who may acquire or otherwise
obtain or lease agricultural land in the same manner as
provided for a taxpayer claiming an agricultural assets
transfer tax credit under section 16.80 .
3. An individual may claim a custom farming contract
tax credit of a partnership, limited liability company,
S corporation, estate, or trust electing to have income
taxed directly to the individual. The amount claimed by the
individual shall be based upon the pro rata share of the
individual’s earnings from the partnership, limited liability
company, S corporation, estate, or trust.
4. A custom farming contract tax credit is allowed only for
the amount paid by the taxpayer to a qualified beginning farmer
under a custom farming contract as provided in rules adopted by
the department. The contract must provide for the production
of crops located on agricultural land or the production of
livestock principally located on agricultural land. The
agricultural land must be real estate and any improvements used
for farming in which the taxpayer holds a legal or equitable
interest.
5. The custom farming contract must provide that the
taxpayer pay the qualified beginning farmer on a cash basis.

Senate File 2328, p. 48
The contract must be in writing for a term of not more than
twelve months. The total cash payment must equal at least one
thousand dollars.
6. The taxpayer must make all management decisions
substantially contributing to or affecting the production
of crops located on the agricultural land or the production
of livestock principally located on the agricultural land.
However, nothing in this subsection prohibits a qualified
beginning farmer from regularly or frequently taking part in
making day-to-day operational decisions affecting production.
The qualified beginning farmer must provide for all of the
following:
a. Production items principally used to produce crops
located on the agricultural land or to produce livestock
principally located on the agricultural land.
b. Labor principally used to produce crops located on the
agricultural land or to produce livestock principally located
on the agricultural land. The qualified beginning farmer must
personally provide such labor on a regular, continuous, and
substantial basis.
7. A custom farming contract tax credit is not allowed if
the taxpayer and qualified beginning farmer are related as any
of the following:
a. Persons who hold a legal or equitable interest in the
same agricultural land, including as individuals or as general
partners, limited partners, shareholders, or members in the
same business entity as defined in section 501A.102 .
b. Family members related as spouse, child, stepchild,
brother, or sister.
c. Partners in the same partnership which holds agricultural
land, or shareholders in the same family farm corporation or
members in the same family farm limited liability company as
defined in section 9H.1 .
8. A custom farming contract tax credit shall be calculated
based on the gross amount paid to the qualified beginning
farmer under the custom farming contract.
a. If the qualified beginning farmer is not a veteran, the
taxpayer may claim a tax credit equal to seven percent of the
gross amount paid to the qualified beginning farmer under the
contract for each tax year that the tax credit is allowed.
b. If the qualified beginning farmer is a veteran, the
taxpayer may claim a tax credit equal to eight percent of the
gross amount paid to the qualified beginning farmer under the

Senate File 2328, p. 49
contract for the first year that the tax credit is allowed
and seven percent of the gross amount paid to the qualified
beginning farmer under the contract for each subsequent tax
year that the tax credit is allowed. However, the taxpayer
may only claim seven percent of the gross amount paid to the
qualified beginning farmer under a renewed contract or a new
contract executed by the same parties.
9. A custom farming contract tax credit in excess of the
taxpayer’s liability for the tax year may be credited to the
tax liability for the following five years or until depleted,
whichever is earlier. A tax credit shall not be carried back
to a tax year prior to the tax year in which the taxpayer
redeems the tax credit. A tax credit shall not be transferable
to any other person other than the taxpayer’s estate or trust
upon the taxpayer’s death.
10. A taxpayer shall not claim a custom farming contract tax
credit unless a tax credit certificate issued by the authority
under this section is included with the taxpayer’s tax return
for the tax year for which the tax credit is claimed. The
authority must review and approve an application for a
tax credit certificate as provided by rules adopted by the
authority. The application must include a copy of the custom
farming contract. The authority may approve an application
and issue a tax credit certificate to a taxpayer who has
previously been allowed a tax credit under this section .
The authority may require that the parties to the contract
provide additional information as determined relevant by the
authority. The authority shall review an application for a tax
credit certificate which includes the renewal of a contract to
determine that the parties to the renewed contract meet the
same qualifications as required for an original application.
The authority shall not approve an application or issue a tax
credit certificate to a taxpayer for an amount in excess of
fifty thousand dollars. In addition, the authority shall not
approve an application or issue a tax credit certificate to a
taxpayer if any of the following applies:
a. The taxpayer is at fault for terminating another custom
farming contract, as determined by the authority.
b. The taxpayer is party to a pending administrative or
judicial action, or classified as a habitual violator in the
same manner as provided in section 16.80 .
c. The contract amount is substantially higher or lower
than the market rate for a similar custom farming contract, as

Senate File 2328, p. 50
determined by the authority.
11. A taxpayer or the qualified beginning farmer may
terminate a custom farming contract as provided in the contract
or by law. The taxpayer must immediately notify the authority
of the termination.
a. If the authority determines that the taxpayer is not
at fault for the termination, the authority shall not issue a
tax credit certificate to the taxpayer for a subsequent tax
year based on the approved application. Any prior tax credit
is allowed as provided in this section until its expiration.
The taxpayer may apply for and be issued another tax credit
certificate for the same agricultural land under a custom
farming contract with another qualified beginning farmer.
b. If the authority determines that the taxpayer is at fault
for the termination, any prior tax credit allowed under this
section is disallowed, and the amount of the tax credit shall
be immediately due and payable to the department of revenue.
If a taxpayer does not immediately notify the authority of the
termination, the taxpayer shall be conclusively deemed at fault
for the termination.
Sec. 62. NEW SECTION . 16.82 Tax credit certificates ——
availability.
1. The amount of tax credits that may be issued to support
the beginning farmer tax credit program shall not in the
aggregate exceed twelve million dollars in any year. Of the
aggregate amount, eight million dollars is allocated to support
the agricultural assets transfer tax credit as provided in
section 16.80 and four million dollars is allocated to support
the custom farming contract tax credit as provided in section
16.81. However, the authority’s board of directors may at
any time during the year adjust the allocation by adopting a
resolution.
2. The authority shall issue tax certificates to support
a beginning farmer tax credit on a first-come, first-served
basis.
Sec. 63. NEW SECTION . 16.83 Additional loan program.
1. The authority may enter into a loan agreement with a
beginning farmer to finance in whole or in part the acquisition
by construction or purchase of agricultural land, agricultural
improvements, or depreciable agricultural property. The
repayment obligation of the beginning farmer may be unsecured,
or may be secured by a mortgage or security agreement or by
other security as the authority deems advisable, and may

Senate File 2328, p. 51
be evidenced by one or more notes of the beginning farmer.
The loan agreement may contain terms and conditions as the
authority deems advisable.
2. The authority may issue its bonds and notes for the
purposes set forth in subsection 1 and may enter into a lending
agreement or purchase agreement with one or more bondholders
or noteholders containing the terms and conditions of the
repayment of and the security for the bonds or notes. Bonds
and notes must be authorized by a resolution of the authority.
The authority and the bondholders or noteholders may enter into
an agreement to provide for any of the following:
a. That the proceeds of the bonds and notes, and the
investments on the proceeds, may be received, held, and
disbursed by the bondholders or noteholders, or by a trustee or
agent designated by the authority.
b. That the bondholders or noteholders or a trustee or agent
designated by the authority may collect, invest, and apply the
amounts payable under the loan agreement or any other security
instrument securing the debt obligation of the beginning
farmer.
c. That the bondholders or noteholders may enforce the
remedies provided in the loan agreement or security instrument
on their own behalf without the appointment or designation of
a trustee and if there is a default in the principal of or
interest on the bonds or notes or in the performance of any
agreement contained therein, the payment or performance may be
enforced in accordance with the provisions contained therein.
d. That if there is a default in the payment of the
principal or interest on a mortgage or security instrument
or a violation of an agreement contained in the mortgage or
security instrument, the mortgage or security instrument
may be foreclosed or enforced and any collateral sold under
proceedings or actions permitted by law and a trustee under the
mortgage or security agreement or the holder of any bonds or
notes secured thereby may become a purchaser if the trustee or
holder is the highest bidder.
e. Other terms and conditions.
3. The authority may provide in the resolution authorizing
the issuance of the bonds or notes that the principal and
interest shall be limited obligations payable solely out of the
revenues derived from the debt obligation, collateral, or other
security furnished by or on behalf of the beginning farmer,
and that the principal and interest does not constitute an

Senate File 2328, p. 52
indebtedness of the authority or a charge against its general
credit or general fund.
4. The powers granted the authority under this section
are in addition to other powers granted to the authority
to administer this subchapter as provided in this chapter .
All other provisions of this chapter , except section 16.28,
subsection 4 , apply to bonds or notes issued pursuant to and
powers granted to the authority under this section except to
the extent that they are inconsistent with this section .
Sec. 64. NEW SECTION . 16.84 Financial assistance for
agricultural producers.
1. In addition to the other programs authorized pursuant
to this subchapter , the authority is authorized to provide
any type of economic assistance directly or indirectly to
agricultural producers, and may develop and implement programs
including but not limited to the making of loan guaranties,
interest buy-downs, grants, secured or unsecured direct
loans, secondary market purchases of loans or mortgages, loans
to lending institutions or other agricultural lenders as
designated by rule of the authority, or entities that provide
funds or credits to such lenders or institutions, to assist
agricultural producers within the state. The authority may
exercise any of the powers granted to the authority in this
chapter in order to fulfill the goal of providing financial
assistance to agricultural producers. The authority may
participate in and cooperate with programs of any agency or
instrumentality of the federal government or with programs of
any other state agency in the administration of the programs to
provide economic assistance to agricultural producers.
2. The authority shall provide in any program developed and
implemented pursuant to this section that assistance shall be
provided only if the following criteria are satisfied:
a. The agricultural producer is a resident of the state.
b. The agricultural producer’s land and farm operations are
located within the state.
c. Based upon the agricultural producer’s net worth, cash
flow, debt-to-asset ratio, and other criteria as prescribed by
rule of the authority, the authority determines that without
such assistance the agricultural producer could not reasonably
be expected to be able to obtain, retain, restructure, or
service loans or other financing for operating expenses, cash
flow requirements, or capital acquisition and maintenance upon
a reasonable and affordable basis.

Senate File 2328, p. 53
d. Other criteria as the authority prescribes by rule.
3. The authority is granted all powers which are necessary
or useful to develop and implement programs and authorizations
pursuant to subsection 1 . These powers include but are not
limited to:
a. All general and specific powers stated in subchapter IV
and this subchapter.
b. The power to make or enter into or to require the
making or entry into of agreements of any type, with or
by any person, that are necessary to effect the purposes
of this section . These agreements may include but are not
limited to contracts, notes, bonds, guaranties, mortgages,
loan agreements, trust indentures, reimbursement agreements,
letters of credit or other liquidity or credit enhancement
agreements, reserve agreements, loan or mortgage purchase
agreements, buy-down agreements, grants, collateral or security
agreements, insurance contracts, or other similar documents.
The agreements may contain any terms and conditions which the
authority determines are reasonably necessary or useful to
implement the purposes of this section or which are usually
included in agreements or documents between private or public
persons in similar transactions.
c. The power to require submission of evidence satisfactory
to the authority of the receipt by an agricultural producer
of the assistance intended under a program developed and
implemented pursuant to this section . In that connection,
the authority, through its members, employees, or agents,
may inspect the books and records of any person receiving or
involved in the provision of assistance in accordance with this
section .
d. The power to establish by rule appropriate enforcement
provisions in order to assure compliance with this section and
rules adopted pursuant to this section , to seek the enforcement
of such rules and the terms of any agreement or document by
decree of any court of competent jurisdiction, and to require
as a condition of providing assistance pursuant to this
section the consent of any person receiving or involved in the
provision of the assistance to the jurisdiction of the courts
of this state over any enforcement proceeding.
e. The power to require, as a condition of the provision
of assistance pursuant to this section , any representations
and warranties on the part of any person receiving or
involved in providing such assistance that the authority

Senate File 2328, p. 54
determines are reasonably necessary or useful to carry out the
purposes of this section . A person receiving or involved in
providing assistance pursuant to this section is liable to the
authority for damages suffered by the authority by reason of a
misrepresentation or the breach of a warranty.
4. All persons, public and private, are authorized to
cooperate with the authority and to participate in the programs
developed and implemented pursuant to this section and in
accordance with the rules of the authority.
5. The powers granted the authority under this section
are in addition to other powers contained in this chapter .
All other provisions of this chapter , except section 16.28,
subsection 4 , apply to bonds or notes issued pursuant to powers
granted to the authority under this section , to reserve funds,
to appropriations, and to the remedies of bondholders and
noteholders except to the extent that they are inconsistent
with this section .
Sec. 65. NEW SECTION . 16.90 Definition.
As used in this subchapter, unless the context otherwise
requires, “title guaranty” means a guaranty against loss or
damage caused by a defective title to real property.
Sec. 66. Section 16.91, subsection 1, Code 2014, is amended
to read as follows:
1. The authority through the Iowa title guaranty division
shall initiate and operate a program in which the division
shall offer guaranties of real property titles in this state.
The terms, conditions and form of the guaranty contract shall
be forms approved by the division board. The division shall
fix a charge for the guaranty in an amount sufficient to permit
the program to operate on a self-sustaining basis, including
payment of administrative costs and the maintenance of an
adequate reserve against claims under the title guaranty
program. A title guaranty fund is created in the office of
the treasurer of state. Funds collected under this program
shall be placed in the title guaranty fund and are available
to pay all claims, necessary reserves and all administrative
costs of the title guaranty program. Moneys in the fund shall
not revert to the general fund and interest on the moneys
in the fund shall be deposited in the housing trust fund
established in section 16.181 and shall not accrue to the
general fund. If the authority board in consultation with the
division board determines that there are surplus funds in the
title guaranty fund after providing for adequate reserves and

Senate File 2328, p. 55
operating expenses of the division, the surplus funds shall be
transferred to the housing assistance fund created pursuant to
section 16.40 .
Sec. 67. Section 16.92, subsection 1, paragraph c, Code
2014, is amended to read as follows:
c. “Division” means the Iowa title guaranty division in
the Iowa finance authority, the director of the division, or a
designee of the director.
Sec. 68. Section 16.93, subsection 1, unnumbered paragraph
1, Code 2014, is amended to read as follows:
The authority through the Iowa title guaranty division
may issue a closing protection letter to a person to whom a
proposed title guaranty is to be issued, upon the request of
the person, if the division issues a commitment for title
guaranty or title guaranty certificate. The closing protection
letter shall conform to the terms of coverage and form of the
instrument as approved by the division board and may indemnify
a person to whom a proposed title guaranty is to be issued
against loss of settlement funds due to only the following acts
of the division’s named participating attorney, participating
abstractor, or closer:
Sec. 69. Section 16.102, Code 2014, is amended to read as
follows:
16.102 Establishment of bond bank economic development
program —— bonds and notes —— projects.
The authority may assist the development and expansion
of family farming, soil conservation, housing, and business
in the state through the establishment of the Iowa economic
development bond bank program. The authority may issue its
bonds or notes, or series of bonds or notes for the purpose of
defraying the cost of one or more projects and make secured
and unsecured loans for the acquisition and construction of
projects on terms the authority determines.
Sec. 70. Section 16.103, unnumbered paragraph 1, Code 2014,
is amended to read as follows:
In carrying out the Iowa economic development bond bank
program, the authority may do any of the following:
Sec. 71. Section 16.105, subsection 1, unnumbered paragraph
1, Code 2014, is amended to read as follows:
The authority may provide in the resolution authorizing
the issuance of its bonds or notes for the Iowa economic
development bond bank program that the principal of, premium,
if any, and interest on the bonds or notes are payable

Senate File 2328, p. 56
exclusively from any of the following:
Sec. 72. Section 16.105, subsection 13, Code 2014, is
amended by striking the subsection.
Sec. 73. Section 16.131, subsection 1, Code 2014, is amended
to read as follows:
1. The authority shall cooperate with the department
of natural resources in the creation, administration, and
financing of the Iowa water pollution control works and
drinking water facilities financing program established in
sections 455B.291 through 455B.299 .
Sec. 74. Section 16.131A, subsection 8, Code 2014, is
amended to read as follows:
8. “Program” means the Iowa water pollution control works
and drinking water facilities financing program created
pursuant to section 455B.294 .
Sec. 75. Section 16.132, subsection 6, Code 2014, is amended
by striking the subsection.
Sec. 76. Section 16.134, subsection 4, paragraph c, Code
2014, is amended to read as follows:
c. Priority shall be given to projects in which the
financial assistance is used to obtain financing under the Iowa
water pollution control works and drinking water facilities
financing program pursuant to section 16.131 or other federal
or state financing.
RULEMAKING
Sec. 77. RULEMAKING. The Iowa finance authority may adopt
rules pursuant to chapter 17A to implement this division
of this Act prior to January 1, 2015. The rules shall be
effective January 1, 2015, unless a later date is specified in
the rules.
EFFECTIVE DATE
Sec. 78. EFFECTIVE DATE.
1. Except as provided in subsection 2, this division of this
Act takes effect January 1, 2015.
2. The provision of this Act allowing the Iowa finance
authority to adopt rules pursuant to chapter 17A to implement
this division of this Act prior to January 1, 2015, takes
effect upon enactment.
DIVISION II
COORDINATING AMENDMENTS
GENERAL PROVISIONS
Sec. 79. Section 2.48, subsection 3, paragraph c,
subparagraph (4), Code 2014, is amended by striking the

Senate File 2328, p. 57
subparagraph.
Sec. 80. Section 2.48, subsection 3, paragraph e,
subparagraph (1), Code 2014, is amended to read as follows:
(1) (a) The agricultural assets transfer tax credit under
as provided in section 175.37 and the 16.80.
(b) The custom farming contract tax credit as provided in
section 175.38 16.81 .
Sec. 81. Section 7C.4A, subsection 4, Code 2014, is amended
to read as follows:
4. Twenty-one percent of the state ceiling shall be
allocated to qualified small issue bonds issued for first-time
farmers under chapter 175 16, subchapter VIII . However, at any
time during the calendar year the governor’s designee, with the
approval of the Iowa finance authority, may determine that a
lesser amount need be allocated to qualified small issue bonds
for first-time farmers and on that date this lesser amount
shall be the amount allocated for those bonds and the excess
shall be allocated under subsection 7 .
Sec. 82. Section 15F.204, subsection 8, paragraph e, Code
2014, is amended by striking the paragraph.
Sec. 83. Section 159.18, subsection 1, Code 2014, is amended
to read as follows:
1. As used in this section , “farm programs” includes , but
is not limited to , financial incentive programs established
within the division of soil conservation of the department of
agriculture and land stewardship as provided in section 161A.70
and the beginning farmer loan program administered by the Iowa
finance authority as provided in section 175.12 16.75 .
Sec. 84. Section 237.14, Code 2014, is amended to read as
follows:
237.14 Enhanced foster care services.
The department shall provide for enhanced foster
care services by establishing supplemental per diem or
performance-based contracts which include payment of costs
relating to payments of principal and interest for bonds and
notes issued pursuant to section 16.155 16.57 with facilities
licensed under this chapter which provide special services to
children who would otherwise be placed in a state juvenile
institution or an out-of-state program. Before completion of
the department’s budget estimate as required by section 8.23 ,
the department shall determine and include in the estimate the
amount which should be appropriated for enhanced foster care
services for the forthcoming fiscal year in order to provide

Senate File 2328, p. 58
sufficient services.
Sec. 85. Section 422.7, subsection 2, paragraphs e and k,
Code 2014, are amended to read as follows:
e. Iowa water Water pollution control works and drinking
facilities financing program bonds pursuant to section 16.131,
subsection 5 .
k. Iowa finance authority beginning farmer loan program
bonds pursuant to section 175.17 16.64 , subsection 10 2 .
Sec. 86. Section 422.11M, Code 2014, is amended to read as
follows:
422.11M Beginning farmers —— agricultural assets transfer
tax credit and custom farming contract tax credit.
The taxes imposed under this division , less the credits
allowed under section 422.12 , shall be reduced by the
following:
1. An agricultural assets transfer tax credit as allowed
under section 175.37 16.80 .
2. A custom farming contract tax credit as allowed under
section 175.38 16.81 .
Sec. 87. Section 422.33, subsection 21, Code 2014, is
amended to read as follows:
21. The taxes imposed under this division shall be reduced
by the following:
a. An agricultural assets transfer tax credit as allowed
under section 175.37 16.80 .
b. A custom farming contract tax credit as allowed under
section 175.38 16.81 .
Sec. 88. Section 422.33, subsection 27, Code 2014, is
amended by striking the subsection.
Sec. 89. Section 455B.291, subsection 8, Code 2014, is
amended to read as follows:
8. “Program” means the Iowa water pollution control works
and drinking water facilities financing program created
pursuant to section 455B.294 .
Sec. 90. Section 455B.294, Code 2014, is amended to read as
follows:
455B.294 Establishment of the Iowa water pollution control
works and drinking water facilities financing program.
The Iowa water pollution control works and drinking water
facilities financing program is established for the purpose of
making loans available to eligible entities to finance all or
part of the costs of projects. The program shall be a joint and
cooperative undertaking of the department and the authority.

Senate File 2328, p. 59
The department and the authority may enter into and provide
any agreements, documents, instruments, certificates, data,
or information necessary in connection with the operation,
administration, and financing of the program consistent with
this part, the Safe Drinking Water Act, the Clean Water Act,
the rules of the department and the commission, the rules of
the authority, and other applicable federal and state law. The
authority and the department may act to conform the program to
the applicable guidance and regulations adopted by the United
States environmental protection agency.
Sec. 91. Section 456A.38, subsection 1, paragraph a, Code
2014, is amended to read as follows:
a. “Agricultural land” , “authority” , “beginning farmer” , and
“farming” mean the same as defined in section 175.2 16.58 .
Sec. 92. Section 456A.38, subsection 4, Code 2014, is
amended to read as follows:
4. The department shall execute a lease with a beginning
farmer selected to participate in the program after such person
has been certified by the authority as a beginning farmer who
meets the requirements of the authority, which shall be based
on section 175.12 16.75 , subsection 3 , paragraphs “a” , “c” , “f” ,
and “g” .
Sec. 93. Section 502.201, subsection 9B, Code 2014, is
amended to read as follows:
9B. Iowa finance authority. Any security issued by the
Iowa finance authority under chapter 175 16, subchapter VIII .
Sec. 94. Section 535B.10, subsection 6, paragraph h, Code
2014, is amended to read as follows:
h. The administrator may furnish information to the Iowa
title guaranty division of the Iowa finance authority relating
to supervision of closing agent licensees whose activities
relate to the issuance of title guaranty certificates issued
by the title guaranty division. The Iowa title guaranty
division may use this information to satisfy its reinsurance
requirements and may provide the information to its reinsurer
to the extent necessary to satisfy reinsurer requirements
provided the reinsurer agrees to maintain the confidentiality
of the information. The Iowa title guaranty division shall
maintain the confidentiality of the information provided
pursuant to this paragraph in all other respects.
Sec. 95. Section 654.16, unnumbered paragraph 1, Code 2014,
is amended to read as follows:
If a sheriff’s sale is ordered on agricultural land used for

Senate File 2328, p. 60
farming, as defined in section 175.2 16.58 , the mortgagor may,
by a date set by the court but not later than ten days before
the sale, designate to the court the portion of the land which
the mortgagor claims as a homestead. The homestead may be any
contiguous portion of forty acres or less of the real estate
subject to the sheriff’s sale. The homestead shall contain
the residence of the mortgagor and shall be as compact as
practicable.
Sec. 96. Section 654.16A, subsection 1, Code 2014, is
amended to read as follows:
1. Not later than the time a sheriff’s deed to agricultural
land used for farming, as defined in section 175.2 16.58 , is
recorded, the grantee recording the sheriff’s deed shall notify
the mortgagor of the mortgagor’s right of first refusal. The
grantee shall record the sheriff’s deed within one year and
sixty days from the date of the sheriff’s sale. A copy of
this section , titled “Notice of Right of First Refusal” is
sufficient notice.
RULEMAKING
Sec. 97. RULEMAKING. The Iowa finance authority may adopt
rules pursuant to chapter 17A to implement this division
of this Act prior to January 1, 2015. The rules shall be
effective January 1, 2015, unless a later date is specified in
the rules.
EFFECTIVE DATE
Sec. 98. EFFECTIVE DATE.
1. Except as provided in subsection 2, this division of this
Act takes effect January 1, 2015.
2. The provision of this Act allowing the Iowa finance
authority to adopt rules pursuant to chapter 17A to implement
this division of this Act prior to January 1, 2015, takes
effect upon enactment.
DIVISION III
CODIFICATION
GENERAL PROVISIONS
Sec. 99. REORGANIZATION. The Code editor shall create new
subchapters, parts, and subparts in chapter 16, as amended in
this Act, for publication in the 2015 Code as follows:
1. Subchapter I may include section 16.1 as amended in this
Act. The subchapter may be entitled “General Definitions”.
2. Subchapter II may include sections 16.1A, 16.2, and
16.2A, as amended in this Act, and sections 16.2B through
16.2D as enacted in this Act. The subchapter may be entitled

Senate File 2328, p. 61
“Governance”. The subchapter may be divided into parts as
follows:
a. Part 1 may include sections 16.1A and 16.2 as amended in
this Act. The part may be entitled “General”.
b. Part 2 may include section 16.2A as amended in this Act
and sections 16.2B through 16.2D as enacted in this Act. The
part may be entitled “Special Governing Units”.
3. Subchapter III may include section 16.2E as enacted in
this Act, section 16.3 as amended by this Act, reserved section
16.3A as repealed in this Act, section 16.4 as amended in
this Act, and sections 16.4A through 16.4D as enacted in this
Act. The subchapter may be entitled “Legislative Findings and
Guiding Principles”. The subchapter may be divided into parts
as follows:
a. Part 1 may include section 16.2E as enacted in this Act.
The part may be entitled “General”.
b. Part 2 may include sections 16.3 as amended by this
Act, reserved section 16.3A as repealed in this Act, and
section 16.4 as amended in this Act. The part may be entitled
“Housing”.
c. Part 3 may include sections 16.4A and 16.4B as enacted in
this Act. The part may be entitled “Agricultural Development”.
d. Part 4 may include section 16.4C as enacted in this Act.
The part may be entitled “Title Guaranty”.
e. Part 5 may include section 16.4D as enacted in this Act.
The part may be entitled “Economic Development”.
4. Subchapter IV may include sections 16.5 as amended in
this Act, reserved sections 16.5A and 16.5B, section 16.5C
as amended in this Act, and section 16.5D as enacted in this
Act. The subchapter may be entitled “Powers and Duties”. The
subchapter may be divided into parts as follows:
a. Part 1 may include section 16.5 as amended in this
Act, and reserved sections 16.5A and 16.5B. The part may be
entitled “General Powers and Duties”.
b. Part 2 may include section 16.5C as amended in this Act
and section 16.5D as enacted in this Act. The part may be
entitled “Specific Powers”.
5. Subchapter V may include section 16.6, section 16.7
as amended in this Act, reserved section 16.8, section 16.9
as amended in this Act, reserved section 16.10 as repealed
in this Act, section 16.11 as enacted in this Act, reserved
section 16.12, section 16.13 as enacted in this Act, reserved
section 16.14, reserved section 16.15 as repealed in this Act,

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and sections 16.16 through 16.19 as enacted in this Act. The
subchapter may be entitled “Administration”. The subchapter
may be divided into parts as follows:
a. Part 1 may include section 16.6. The part may be
entitled “Executive Director”.
b. Part 2 may include section 16.7 as amended in this
Act, reserved section 16.8, section 16.9 as amended in this
Act, reserved section 16.10 as repealed in this Act, section
16.11 as enacted in this Act, reserved section 16.12, section
16.13 as enacted in this Act, reserved section 16.14, reserved
section 16.15 as repealed in this Act, and section 16.16 as
enacted in this Act. The part may be entitled “General”.
c. Part 3 may include sections 16.17 through 16.19 as
enacted in this Act. The part may be entitled “Statutory
Construction”.
6. Subchapter VI may include reserved sections 16.20 and
16.21 as repealed in this Act, section 16.22 as enacted in this
Act, reserved sections 16.23 through 16.25, section 16.26 as
amended in this Act, section 16.27, section 16.27A as enacted
in this Act, section 16.28, section 16.29 as enacted in this
Act, sections 16.30 and 16.31, section 16.32 as enacted in this
Act, and reserved section 16.33 as repealed in this Act. The
subchapter may be entitled “Financing”.
7. Subchapter VII may include reserved section 16.34 as
repealed in this Act, sections 16.34A through 16.36 as enacted
in this Act, reserved section 16.37 as repealed in this Act,
sections 16.38 and 16.39 as enacted in this Act, section 16.40
as amended in this Act, section 16.41, reserved section 16.42
as repealed in this Act, reserved section 16.43, section 16.44,
reserved section 16.45, sections 16.46 through 16.50 as enacted
in this Act, section 16.51, reserved section 16.52 as repealed
in this Act, sections 16.53 and 16.54, reserved section 16.55,
and sections 16.56 and 16.57 as enacted in this Act. The
subchapter may be entitled “Housing”. The subchapter may be
divided into parts as follows:
a. Part 1 may include reserved section 16.34 as repealed in
this Act and section 16.34A as enacted in this Act. The part
may be entitled “Special Definition”.
b. Part 2 may include sections 16.35 through 16.36 as
enacted in this Act, and reserved section 16.37 as repealed in
this Act. The part may be entitled “Administration”.
c. Part 3 may include sections 16.38 and 16.39 as enacted in
this Act. The part may be entitled “Lending Institutions”.

Senate File 2328, p. 63
d. Part 4 may include section 16.40 as amended in this Act,
section 16.41, reserved section 16.42 as repealed in this Act,
reserved section 16.43, section 16.44, reserved section 16.45,
and section 16.46 through 16.50 as enacted in this Act. The
part may be entitled “Special Funds”.
e. Part 5 may include section 16.51, reserved section 16.52
as repealed in this Act, sections 16.53 and 16.54, reserved
section 16.55, and sections 16.56 and 16.57 as enacted in this
Act. The part may be entitled “Additional Programs”.
8. Subchapter VIII may include sections 16.58 through 16.64
as enacted in this Act, reserved sections 16.65 through 16.67,
reserved sections 16.68 and 16.69, sections 16.70 and 16.71 as
enacted in this Act, reserved section 16.72, reserved section
16.73 as repealed in this Act, reserved section 16.74, sections
16.75 and 16.76 as enacted in this Act, reserved section
16.77, sections 16.78 through 16.84 as enacted in this Act,
and reserved sections 16.85 through 16.89. The subchapter may
be entitled “Agricultural Development”. The subchapter may be
divided into parts as follows:
a. Part 1 may include sections 16.58 and 16.59 as enacted in
this Act. The part may be entitled “General”.
b. Part 2 may include sections 16.60 through 16.63
as enacted in this Act. The part may be entitled
“Administration”.
c. Part 3 may include section 16.64 as enacted in this
Act, reserved sections 16.65 through 16.67, section 16.68 as
enacted in this Act, and reserved section 16.69. The part may
be entitled “Special Financing”.
d. Part 4 may include sections 16.70 and 16.71 as enacted
in this Act, reserved section 16.72, reserved section 16.73 as
repealed in this Act, and reserved section 16.74. The part may
be entitled “Loans to Lending Institutions”.
e. Part 5 may include sections 16.75 and 16.76 as enacted in
this Act, reserved section 16.77, and sections 16.78 through
16.84 as enacted in this Act, and reserved sections 16.85
through 16.89. The part may be entitled “Beginning Farmer
Programs”. The part may be divided into subparts as follows:
(1) Subpart A may include sections 16.75 and 16.76 as
enacted in this Act and reserved section 16.77. The subpart
may be entitled “Beginning Farmer Loan Program”.
(2) Subpart B may include sections 16.78 through 16.82 as
enacted in this Act. The subpart may be entitled “Beginning
Farmer Tax Credit Program”.

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(3) Subpart C may include sections 16.83 and 16.84 as
enacted in this Act, and reserved sections 16.85 through 16.89.
The subpart may be entitled “Agricultural Producer Programs”.
9. Subchapter IX may include section 16.90 as enacted
in this Act, and section 16.91 as amended in this Act, and
sections 16.92 through 16.97. The subchapter may be entitled
“Title Guaranty”. The subchapter may be divided into parts as
follows:
a. Part 1 may include section 16.90 as enacted in this Act.
The part may be entitled “General”.
b. Part 2 may include section 16.91 as amended in this Act,
sections 16.92 and 16.93, and reserved sections 16.94 through
16.97. The part may be entitled “Program”.
10. Subchapter X may include reserved sections 16.98 and
16.99, reserved sections 16.100 and 16.100A as repealed in this
Act, reserved section 16.101, section 16.102, section 16.103 as
amended in this Act, section 16.104, section 16.105 as amended
in this Act, section 16.106 as repealed by this Act, reserved
sections 16.107 through 16.130, section 16.131 and section
16.132 as amended in this Act, sections 16.133 and 16.133A,
sections 16.134 as amended in this Act, section 16.135,
reserved sections 16.136 through 16.140, section 16.141,
reserved sections 16.142 through 16.154, reserved section
16.155 as repealed in this Act, reserved sections 16.156
through 16.160, sections 16.161 and 16.162, reserved sections
16.163 through 16.170, repealed section 16.171 as repealed in
this Act, reserved sections 16.172 through 16.176, section
16.177, reserved sections 16.178 through 16.180, sections
16.181 and 16.181A, reserved sections 16.182 through 16.185
as repealed in this Act, reserved sections 16.186 and 16.187,
reserved section 16.188 as repealed in this Act, reserved
sections 16.189 through 16.192, sections 16.193 through 16.196,
reserved section 16.197 as repealed by this Act, reserved
sections 16.198 through 16.200, reserved section 16.201 as
repealed in this Act, reserved sections 16.202 through 16.210,
reserved sections 16.211 and 16.212 as repealed in this Act,
reserved sections 16.213 through 16.220, and reserved section
16.221 as repealed in this Act. The subchapter may be entitled
“Special Financing Programs”. The subchapter may be divided
into parts as follows:
a. Part 1 may include reserved sections 16.98 and 16.99,
reserved sections 16.100 and 16.100A as repealed in this Act,
reserved section 16.101, sections 16.102 and 16.103 as amended

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in this Act, section 16.104, section 16.105 as amended in this
Act, section 16.106 as repealed in this Act, and reserved
sections 16.107 through 16.130. The part may be entitled
“Economic Development Program”.
b. Part 2 may include sections 16.131 through 16.132 as
amended in this Act, sections 16.133 and 16.133A, section
16.134 as amended in this Act, section 16.135, and reserved
sections 16.136 through 16.140. The part may be entitled
“Water Pollution Control Works and Drinking Water Facilities
Financing”.
c. Part 3 may include section 16.141 and reserved sections
16.142 through 16.154. The part may be entitled “Unsewered
Community Revolving Loan Program”.
d. Part 4 may include section 16.155 as repealed in this
Act, reserved sections 16.156 through 16.160, and section
16.161. The part may be entitled “E911 Program”.
e. Part 5 may include section 16.162 and reserved sections
16.163 through 16.170. The part may be entitled “Community
College Dormitories”.
f. Part 6 may include section 16.171 and reserved sections
16.172 through 16.176. The part may be entitled “Recovery Zone
Bonds”.
g. Part 7 may include section 16.177, and reserved sections
16.178 through 16.180. The part may be entitled “Prison
Infrastructure Revenue Bonds”.
h. Part 8 may include sections 16.181 and 16.181A, reserved
sections 16.182 through 16.185 as repealed in this Act,
reserved sections 16.186 and 16.187, reserved section 16.188 as
repealed in this Act, and reserved sections 16.189 and 16.190.
The part may be entitled “Housing Trust Fund”.
i. Part 9 may include reserved sections 16.191 and 16.192,
sections 16.193 through 16.196, reserved section 16.197 as
repealed in this Act, reserved sections 16.198 through 16.200,
reserved section 16.201 as repealed in this Act, reserved
sections 16.202 through 16.210, reserved sections 16.211 and
16.212 as repealed in this Act, reserved sections 16.213
through 16.220, and reserved section 16.221 as repealed by this
Act. The part may be entitled “Iowa Jobs Program”.
CORRECTIONS AND FURTHER REORGANIZATION
Sec. 100. AUTHORITY TO CODE EDITOR. In reorganizing
chapter 16 for publication as part of the 2015 Code, all of the
following shall apply:
1. The Code editor shall correct internal references as

Senate File 2328, p. 66
necessary.
2. Nothing in this Act prevents the Code editor from
organizing chapter 16, as provided in section 2B.13, in a
manner other than specified in this division. The Code editor
may consolidate the subchapters, parts, subparts, or sections
in chapter 16, including by eliminating unused section numbers
and renumbering sections included in chapter 16 as amended by
this Act, and correcting internal references in a manner that
enhances its readability.
EFFECTIVE DATE
Sec. 101. EFFECTIVE DATE. This division of this Act takes
effect upon enactment.
DIVISION IV
TRANSITIONAL PROVISIONS
ADMINISTRATION
Sec. 102. POWERS AND DUTIES OF THE IOWA FINANCE
AUTHORITY. This Act does not do any of the following:
1. Substantively affect the powers and duties of the Iowa
finance authority provided for in chapter 16 or 175 as either
chapter existed immediately prior to the effective date of this
division of this Act.
2. Restrict the Iowa finance authority from adopting a rule,
form, order, or directive that it could have adopted under
chapter 16 or 175 as either chapter existed immediately prior
to the effective date of this division of this Act.
Sec. 103. ADMINISTRATION OF ONGOING PROGRAMS. The Iowa
finance authority shall continue the administration of ongoing
programs under chapter 16 or 175, in progress on the effective
date of this division of this Act.
Sec. 104. ADMINISTRATIVE RULES AND OTHER ACTIONS AND
DOCUMENTS. Any rule, form, order, or directive promulgated by
the Iowa finance authority pursuant to chapter 16, including
section 16.1A, or chapter 175, as required to administer
and enforce the provisions of chapter 16 as amended in this
Act, shall continue in full force and effect until amended,
rescinded, or supplemented by the affirmative action of the
Iowa finance authority.
Sec. 105. GOVERNING BODIES.
1. This Act’s repeal of section 175.3 and the enactment of
section 16.2C shall not affect the original appointment or term
of office of a member to the agricultural development board by
the governor pursuant to 2013 Iowa Acts, chapter 100. However,
such a member shall comply with any new requirement as provided

Senate File 2328, p. 67
in this Act upon reappointment and a new member shall comply
with all requirements as provided in this Act upon appointment
or reappointment.
2. This Act’s repeal of section 16.100 and the enactment
of section 16.2D shall not affect the appointment or term of
office of a member to the council on homelessness.
Sec. 106. PERSONNEL. Nothing in this Act affects personnel
in the state merit system of employment.
LEGAL OR EQUITABLE RIGHTS
Sec. 107. PENDING ADMINISTRATIVE OR JUDICIAL PROCEEDINGS.
1. An administrative or judicial proceeding arising under
chapter 16 or 175 prior to the effective date of this division
of this Act, and pending on the effective date of this division
of this Act, shall not be affected due to the enactment of this
Act.
2. A cause of action or statute of limitation relating to
an action taken by a party in a matter arising under chapter 16
or 175 prior to the effective date of this division of this Act
shall not be affected by this Act.
3. The Iowa finance authority or the attorney general acting
on behalf of the Iowa finance authority in an administrative
or judicial proceeding pending on the effective date of this
division of this Act shall not be affected as a result of this
Act. Any statute of limitation that would have otherwise
applied to the parties in such proceeding shall continue to
apply to the parties as if this Act had not been enacted.
Sec. 108. EXISTING RIGHTS AND OBLIGATIONS OF THE IOWA
FINANCE AUTHORITY. Nothing in this Act affects any of the
following:
1. An interest in real property, tangible personal
property, or intangible personal property held by the Iowa
finance authority.
2. A property right, security interest, or lien held by the
Iowa finance authority, including but not limited to a deed,
contract, or endorsement.
3. Any debt, obligation, or liability incurred by the Iowa
finance authority which shall continue according to the same
terms and conditions as applied prior to the effective date of
this division of this Act.
Sec. 109. PRESERVATION OF EXISTING RIGHTS.
1. This Act shall preserve and shall neither increase nor
decrease a right or obligation of a party or any other person
connected with the issuance, holding, transfer, redemption, or

Senate File 2328, p. 68
payment of a bond or note under chapter 16 or 175 as either
chapter existed prior to the effective date of this division
of this Act.
2. This Act shall not limit, modify, or otherwise affect
the term or condition of an agreement between the Iowa finance
authority and another person which was originally executed
under chapter 16 or 175 as either chapter existed prior to
the effective date of this division of this Act. This Act
specifically does not affect any program for beginning farmers
or first-time farmers as that program existed under chapter 175
prior to the effective date of this division of this Act.
3. This Act shall not limit, modify, or otherwise
adversely affect a taxpayer’s right to claim or redeem a tax
credit issued, awarded, or allowed under sections 175.36A
through 175.39, including but not limited to any tax credit
carryforward amount so long as the tax credit was issued,
awarded, or allowed when sections 175.36A through 175.39 were
in effect. A person shall not claim or be issued, awarded,
or allowed the same tax credit under sections 175.36A through
175.39 in effect prior to the effective date of this division
of this Act and chapter 16, subchapter VIII, part 5, as enacted
in this Act on and after the effective date of this division of
this Act.
EFFECTIVE DATE
Sec. 110. EFFECTIVE DATE. This division of this Act takes
effect on January 1, 2015.
DIVISION V
CURRENT REPEAL PROVISIONS
GENERAL
Sec. 111. REPEAL. Sections 16.3A, 16.10, 16.15, 16.20,
16.21, 16.33, 16.34, 16.37, 16.42, 16.44, 16.52, 16.73, 16.100,
16.100A, 16.106, 16.155, 16.171, 16.182, 16.183, 16.184,
16.185, 16.188, 16.197, 16.201, 16.211, 16.212, 16.221, and
422.11X, Code 2014, are repealed.
Sec. 112. REPEAL. Chapter 175, Code 2014, is repealed.
REPEAL OF CONFLICTING INTERVENING PROVISION
Sec. 113. REPEAL. Any intervening provision effective
prior to the effective date of this division of this Act that
amends a section or chapter repealed in another section of
this division of this Act is also repealed, unless that Act or
another Act specifically provides otherwise.
EFFECTIVE DATE
Sec. 114. EFFECTIVE DATE. This division of this Act takes

Senate File 2328, p. 69
effect January 1, 2015.
DIVISION VI
FUTURE PROVISIONS
REPEAL OF THE BEGINNING FARMER TAX CREDIT PROGRAM
Sec. 115. REPEAL. Section 2.48, subsection 3, paragraph e,
subparagraph (1), subparagraph division (b), as amended by this
Act, is amended by striking the subparagraph division.
Sec. 116. REPEAL. Section 16.1, subsection 1, paragraph an,
as enacted by this Act, is amended by striking the paragraph.
Sec. 117. REPEAL. Section 16.58, subsections 7 and 13, as
enacted by this Act, are amended by striking the subsections.
Sec. 118. REPEAL. Section 422.11M, subsection 2, as amended
by this Act, is amended by striking the subsection.
Sec. 119. REPEAL. Section 422.33, subsection 21,
paragraph b, as amended by this Act, is amended by striking the
paragraph.
Sec. 120. REPEAL. Sections 16.78, 16.79, 16.81, and 16.82,
as enacted by this Act, are repealed.
Sec. 121. REPEAL. 2013 Iowa Acts, chapter 125, division II,
is repealed.
ENACTMENT OF THE AGRICULTURAL ASSETS TRANSFER TAX CREDIT
Sec. 122. Section 16.80, as enacted by this Act, is amended
by striking the section and inserting in lieu thereof the
following:
16.80 Agricultural assets transfer tax credit —— agreement.
1. An agricultural assets transfer tax credit is allowed
under this section. The tax credit is allowed against the
taxes imposed in chapter 422, division II, as provided in
section 422.11M, and in chapter 422, division III, as provided
in section 422.33, to facilitate the transfer of agricultural
assets from a taxpayer to a beginning farmer.
2. In order to qualify for the tax credit, the taxpayer
must meet qualifications established by rules adopted by the
authority. At a minimum, the taxpayer must comply with all of
the following:
a. Be a person who may acquire or otherwise obtain or lease
agricultural land in this state pursuant to chapter 9H or 9I.
However, the taxpayer must not be a person who may acquire
or otherwise obtain or lease agricultural land exclusively
because of an exception provided in one of those chapters or in
a provision of another chapter of this Code including but not
limited to chapter 10, 10D, or 501, or section 15E.207.
b. Execute an agricultural assets transfer agreement with a

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beginning farmer as provided in this section.
3. An individual may claim a tax credit under this section
of a partnership, limited liability company, S corporation,
estate, or trust electing to have income taxed directly to
the individual. The amount claimed by the individual shall
be based upon the pro rata share of the individual’s earnings
from the partnership, limited liability company, S corporation,
estate, or trust.
4. The tax credit is allowed only for agricultural assets
that are subject to an agricultural assets transfer agreement.
The agreement shall provide for the lease of agricultural land
including any improvements and may provide for the rental of
agricultural equipment as defined in section 322F.1.
a. The agreement may be made on a cash basis or on a
commodity share basis which includes a share of the crops or
livestock produced on the agricultural land. The agreement
must be in writing.
b. The agreement shall be for at least two years, but
not more than five years. The agreement or that part of
the agreement providing for the lease may be renewed by the
beginning farmer for a term of at least two years, but not more
than five years. An agreement does not include a lease or the
rental of equipment intended as a security.
5. The tax credit shall be calculated based on the gross
amount paid to the taxpayer under the agricultural assets
transfer agreement.
a. Except as provided in paragraph “b” , the tax credit shall
equal five percent of the amount paid to the taxpayer under the
agreement.
b. The tax credit shall equal fifteen percent of the
amount paid to the taxpayer from crops or animals sold under
an agreement in which the payment is exclusively made from the
sale of crops or animals.
6. In order to qualify as a beginning farmer, a person
must be eligible to receive financial assistance under section
16.75.
7. A tax credit in excess of the taxpayer’s liability for
the tax year may be credited to the tax liability for the
following five years or until depleted, whichever is earlier.
A tax credit shall not be carried back to a tax year prior to
the tax year in which the taxpayer redeems the tax credit. A
tax credit shall not be transferable to any other person other
than the taxpayer’s estate or trust upon the taxpayer’s death.

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8. A taxpayer shall not claim a tax credit under this
section unless a tax credit certificate issued by the authority
is included with the taxpayer’s tax return for the tax year for
which the tax credit is claimed. The authority must review
and approve an application for a tax credit as provided by
rules adopted by the authority. The application must include
a copy of the agricultural assets transfer agreement. The
authority may approve an application and issue a tax credit
certificate to a taxpayer who has previously been allowed a
tax credit under this section. The authority may require
that the parties to an agricultural assets transfer agreement
provide additional information as determined relevant by the
authority. The authority shall review an application for a tax
credit which includes the renewal of an agricultural assets
transfer agreement to determine that the parties to the renewed
agreement meet the same qualifications as required for an
original application. However, the authority shall not approve
an application or issue a certificate to a taxpayer if any of
the following applies:
a. The taxpayer is at fault for terminating a prior
agricultural assets transfer agreement as determined by the
authority.
b. The taxpayer is any of the following:
(1) A party to a pending administrative or judicial action,
including a contested case proceeding under chapter 17A,
relating to an alleged violation involving an animal feeding
operation as regulated by the department of natural resources,
regardless of whether the pending action is brought by the
department or the attorney general.
(2) Classified as a habitual violator for a violation of
state law involving an animal feeding operation as regulated by
the department of natural resources.
c. The beginning farmer is responsible for managing or
maintaining agricultural land and other agricultural assets
that are greater than necessary to adequately support a
beginning farmer as determined by the authority according to
rules which shall be adopted by the authority.
d. The agricultural assets are being leased or rented at
a rate which is substantially higher or lower than the market
rate for similar agricultural assets leased or rented within
the same community, as determined by the authority.
9. A taxpayer or the beginning farmer may terminate an
agricultural assets transfer agreement as provided in the

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agreement or by law. The taxpayer must immediately notify the
authority of the termination.
a. If the authority determines that the taxpayer is not
at fault for the termination, the authority shall not issue a
tax credit certificate to the taxpayer for a subsequent tax
year based on the approved application. Any prior tax credit
is allowed as provided in this section. The taxpayer may
apply for and be issued another tax credit certificate for the
same agricultural assets as provided in this section for any
remaining tax years for which a certificate was not issued.
b. If the authority determines that the taxpayer is at fault
for the termination, any prior tax credit allowed under this
section is disallowed. The tax credit shall be recaptured
and the amount of the tax credit shall be immediately due and
payable to the department of revenue. If a taxpayer does
not immediately notify the authority of the termination,
the taxpayer shall be conclusively deemed at fault for the
termination.
10. The amount of tax credit certificates that may be issued
pursuant to this section shall not exceed six million dollars
in any fiscal year. The authority shall issue the tax credit
certificates on a first-come, first-served basis.
REPEAL OF INTERVENING PROVISIONS
Sec. 123. REPEAL. Any intervening provision effective
prior to the effective date of this division of this Act
that amends a section, subsection, paragraph, subparagraph,
or subparagraph division, as enacted or amended in another
division of this Act, and repealed in another section of this
division of this Act is also repealed, unless that Act or
another Act specifically provides otherwise.
PROPOSED LEGISLATION
Sec. 124. IOWA FINANCE AUTHORITY. The Iowa finance
authority established in chapter 16 shall propose legislation
to the general assembly necessary to implement this division
of this Act. The Iowa finance authority shall propose such
legislation for consideration by the general assembly during
its 2017 legislative session.
EFFECTIVE DATE
Sec. 125. EFFECTIVE DATES.
1. a. Except as provided in subsection 2, this division of
this Act takes effect January 1, 2018.
b. The section of this division of this Act which enacts
the agricultural assets transfer tax credit as codified in

Senate File 2328, p. 73
section 16.80 takes effect instantly upon the repeal of the
agricultural assets transfer tax credit previously codified in
section 16.80 and enacted in another division of this Act.
2. The section of this division of this Act which requires
the Iowa finance authority to propose legislation for
consideration by the general assembly takes effect July 1,
2016.
______________________________
PAM JOCHUM
President of the Senate
______________________________
KRAIG PAULSEN
Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 2328, Eighty-fifth General Assembly.
______________________________
MICHAEL E. MARSHALL
Secretary of the Senate
Approved _______________, 2014
______________________________
TERRY E. BRANSTAD
Governor