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