Bill Text: IA SF295 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to affordable housing, disaster housing assistance, and redevelopment tax credits by creating an Iowa housing tax credit program, modifying distribution of real estate transfer taxes, modifying workforce housing tax incentives, including a downtown loan guarantee program, creating a disaster housing recovery assistance program and an eviction prevention program, providing for a fee, and including effective date and applicability provisions.(Formerly SSB 1142.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2021-03-23 - Fiscal note. [SF295 Detail]
Download: Iowa-2021-SF295-Introduced.html
Senate
File
295
-
Introduced
SENATE
FILE
295
BY
COMMITTEE
ON
LOCAL
GOVERNMENT
(SUCCESSOR
TO
SSB
1142)
A
BILL
FOR
An
Act
relating
to
affordable
housing,
disaster
housing
1
assistance,
and
redevelopment
tax
credits
by
creating
an
2
Iowa
housing
tax
credit
program,
modifying
distribution
of
3
real
estate
transfer
taxes,
modifying
workforce
housing
tax
4
incentives,
including
a
downtown
loan
guarantee
program,
5
creating
a
disaster
housing
recovery
assistance
program
and
6
an
eviction
prevention
program,
providing
for
a
fee,
and
7
including
effective
date
and
applicability
provisions.
8
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
9
TLSB
1978SV
(2)
89
jm/jh
S.F.
295
DIVISION
I
1
IOWA
HOUSING
TAX
CREDIT
PROGRAM
2
Section
1.
NEW
SECTION
.
16.37A
Definitions.
3
For
purposes
of
this
section
and
sections
16.37B
through
4
16.37G,
unless
the
context
otherwise
requires:
5
1.
“Compliance
period”
means
the
period
of
fifteen
years
6
beginning
with
the
first
taxable
year
of
the
credit
period.
7
2.
“Credit
period”
means
the
period
of
ten
tax
years
8
beginning
with
the
tax
year
in
which
a
qualified
development
9
is
placed
in
service
and
the
Iowa
housing
tax
credit
may
be
10
claimed.
If
a
qualified
development
consists
of
more
than
11
one
building,
the
qualified
development
is
placed
in
service
12
in
the
tax
year
in
which
the
last
building
of
the
qualified
13
development
is
placed
in
service.
14
3.
“Department”
means
the
Iowa
department
of
revenue.
15
4.
“Qualified
allocation
plan”
means
the
qualified
16
allocation
plan
adopted
by
the
authority
pursuant
to
section
17
42(m)
of
the
Internal
Revenue
Code.
18
5.
“Qualified
basis”
means
the
qualified
basis
determined
19
under
section
42(c)(1)
of
the
Internal
Revenue
Code.
20
6.
“Qualified
development”
means
a
qualified
low-income
21
housing
project
under
section
42(g)
of
the
Internal
Revenue
22
Code
that
is
financed
with
tax-exempt
bonds,
pursuant
to
23
section
42(i)(2)
of
the
Internal
Revenue
Code,
and
located
in
24
this
state.
25
7.
“Taxpayer”
means
an
individual,
a
person,
firm,
26
corporation,
or
other
entity
that
owns
an
interest,
direct
27
or
indirect,
in
a
qualified
development
and
who
claims
a
tax
28
credit
under
section
16.37C.
29
Sec.
2.
NEW
SECTION
.
16.37B
Application
——
review
——
30
authorization.
31
1.
The
authority
shall
develop
a
system
for
the
application,
32
review,
and
authorization
of
Iowa
housing
tax
credits
awarded
33
pursuant
to
this
part
and
shall
control
the
issuance
of
all
tax
34
credit
certificates
to
taxpayers
pursuant
to
this
part.
35
-1-
LSB
1978SV
(2)
89
jm/jh
1/
29
S.F.
295
2.
Applications
for
Iowa
housing
tax
credits
shall
be
1
accepted
during
an
application
period
established
by
the
2
authority.
3
3.
The
authority
may
authorize
the
tax
credit
if
all
of
the
4
following
conditions
are
satisfied:
5
a.
The
tax
credit
certificate
is
issued
to
a
taxpayer
who
6
has
an
ownership
interest
in
the
qualified
development.
7
b.
The
tax
credit
amount
is
allocated
pursuant
to
a
8
qualified
allocation
plan.
9
c.
The
tax
credit
is
necessary
for
the
financial
feasibility
10
of
the
qualified
development.
11
d.
The
amount
of
the
tax
credit
allocated
to
an
owner
12
does
not
exceed
thirty
percent
of
the
qualified
basis
of
the
13
qualified
development.
14
e.
The
qualified
development
is
the
subject
of
a
recorded
15
restrictive
covenant
requiring
that,
for
the
compliance
period
16
or
for
a
longer
period
agreed
to
by
the
authority
and
the
17
owner
of
the
qualified
development,
the
development
shall
be
18
maintained
and
operated
as
a
qualified
development
and
shall
be
19
in
compliance
with
Tit.
VIII
of
the
federal
Civil
Rights
Act
of
20
1968,
as
amended.
21
4.
Upon
review
of
an
application,
the
authority
may
approve
22
the
qualified
development
for
the
tax
credit
program
provided
23
in
section
16.37C,
and
issue
a
tax
credit
certificate
stating
24
the
amount
of
the
tax
credit
the
authority
determines
the
25
taxpayer
is
eligible
to
claim
for
each
year
of
the
credit
26
period.
27
5.
Unless
otherwise
provided
in
this
section
or
the
context
28
clearly
requires
otherwise,
the
authority
shall
determine
29
eligibility
for
a
credit
and
allocate
credits
in
accordance
30
with
the
standards
and
requirements
set
forth
in
section
42
of
31
the
Internal
Revenue
Code.
32
6.
An
applicant
that
is
unsuccessful
in
receiving
a
tax
33
credit
award
during
an
application
period
may
make
additional
34
applications
during
subsequent
application
periods.
Such
35
-2-
LSB
1978SV
(2)
89
jm/jh
2/
29
S.F.
295
applicants
shall
be
required
to
submit
a
new
application
which
1
shall
be
reviewed
in
the
same
manner
as
other
applications
in
2
that
application
period.
3
Sec.
3.
NEW
SECTION
.
16.37C
Iowa
housing
tax
credits
——
4
limits.
5
1.
An
Iowa
housing
tax
credit
shall
be
allowed
against
6
the
taxes
imposed
in
chapter
422,
subchapters
II,
III,
and
V,
7
and
in
chapter
432,
and
against
the
moneys
and
credits
tax
8
imposed
in
section
533.329,
in
the
amount
determined
by
the
9
authority
pursuant
to
this
part.
Any
tax
credit
in
excess
of
10
the
taxpayer’s
liability
for
the
tax
year
is
not
refundable
but
11
may
be
credited
to
the
tax
liability
for
the
following
five
12
years
or
until
depleted,
whichever
is
earlier.
13
2.
An
individual
may
claim
a
tax
credit
under
this
section
14
of
a
partnership,
limited
liability
company,
S
corporation,
15
estate,
or
trust
electing
to
have
income
taxed
directly
to
16
the
individual.
The
amount
claimed
by
the
individual
shall
17
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
18
from
the
partnership,
limited
liability
company,
S
corporation,
19
estate,
or
trust.
20
3.
In
any
calendar
year,
the
aggregate
amount
of
all
tax
21
credits
allocated
by
the
authority
shall
not
exceed
fifteen
22
million
dollars,
plus
the
sum
of
the
following
amounts:
23
a.
The
total
of
all
unallocated
tax
credits,
if
any,
for
the
24
preceding
calendar
years.
25
b.
The
total
amount
of
all
previously
allocated
tax
credits
26
that
have
been
recaptured,
revoked,
canceled,
or
otherwise
27
recovered
by
the
authority.
28
4.
a.
To
claim
a
tax
credit
under
this
section,
a
taxpayer
29
shall
include
one
or
more
tax
credit
certificates
issued
by
the
30
authority
with
the
taxpayer’s
tax
return.
31
b.
The
tax
credit
certificate
shall
contain
the
taxpayer’s
32
name,
address,
tax
identification
number,
the
amount
of
the
33
credit
including
the
amount
the
authority
determines
the
34
taxpayer
is
eligible
to
claim
for
each
year
of
the
credit
35
-3-
LSB
1978SV
(2)
89
jm/jh
3/
29
S.F.
295
period,
the
name
of
the
qualified
development,
any
other
1
information
required
by
the
department
of
revenue,
and
a
place
2
for
the
name
and
tax
identification
number
of
a
transferee
and
3
the
amount
of
the
tax
credit
being
transferred.
4
c.
Tax
credit
certificates
issued
under
this
section
may
5
be
transferred
to
any
person
or
entity.
Within
ninety
days
6
of
transfer,
the
transferee
shall
submit
the
transferred
tax
7
credit
certificate
to
the
authority
along
with
a
statement
8
containing
the
transferee’s
name,
tax
identification
number,
9
and
address,
the
denomination
that
each
replacement
tax
credit
10
certificate
is
to
carry,
and
any
other
information
required
by
11
the
department
of
revenue.
12
d.
Within
thirty
days
of
receiving
the
transferred
tax
13
credit
certificate
and
the
transferee’s
statement,
the
14
authority
shall
issue
one
or
more
replacement
tax
credit
15
certificates
to
the
transferee.
Each
replacement
tax
credit
16
certificate
must
contain
the
information
required
for
the
17
original
tax
credit
certificate
and
must
have
the
same
18
expiration
date
that
appeared
in
the
transferred
tax
credit
19
certificate.
Tax
credit
certificate
amounts
of
less
than
the
20
minimum
amount
established
by
rule
of
the
authority
shall
not
21
be
transferable.
22
e.
A
tax
credit
shall
not
be
claimed
by
a
transferee
23
under
this
section
until
a
replacement
tax
credit
certificate
24
identifying
the
transferee
as
the
proper
holder
has
been
25
issued.
The
transferee
may
use
the
amount
of
the
tax
credit
26
transferred
against
the
taxes
imposed
in
chapter
422,
27
subchapters
II,
III,
and
V,
and
in
chapter
432,
and
against
the
28
moneys
and
credits
tax
imposed
in
section
533.329,
for
any
tax
29
year
the
original
transferor
could
have
claimed
the
tax
credit.
30
Any
consideration
received
for
the
transfer
of
the
tax
credit
31
shall
not
be
included
as
income
under
chapter
422,
subchapters
32
II,
III,
and
V.
Any
consideration
paid
for
the
transfer
of
the
33
tax
credit
shall
not
be
deducted
from
income
under
chapter
422,
34
subchapters
II,
III,
and
V.
35
-4-
LSB
1978SV
(2)
89
jm/jh
4/
29
S.F.
295
Sec.
4.
NEW
SECTION
.
16.37D
Recapture.
1
1.
As
of
the
last
day
of
any
tax
year
during
the
compliance
2
period,
if
the
amount
of
the
qualified
basis
of
a
qualified
3
development
owned
by
a
taxpayer
claiming
the
credit
is
less
4
than
the
amount
of
the
qualified
basis
as
of
the
last
day
of
the
5
immediately
preceding
tax
year,
the
amount
of
the
taxpayer’s
6
liability
under
chapter
422,
subchapter
II,
III,
or
V,
chapter
7
432,
or
section
533.329,
as
applicable,
shall
be
increased
by
8
the
recapture
amount
determined
using
the
method
under
section
9
42(j)
of
the
Internal
Revenue
Code.
10
2.
If
a
recapture
event
occurs,
the
taxpayer
shall
include
11
the
recaptured
proportion
of
the
credit
on
the
return
submitted
12
for
the
tax
year
in
which
the
recapture
event
is
identified.
13
Sec.
5.
NEW
SECTION
.
16.37E
Compliance
monitoring.
14
The
authority
shall
monitor
and
oversee
compliance
with
15
sections
16.37A
through
16.37D
and
shall
report
specific
16
occurrences
of
noncompliance
to
the
department.
17
Sec.
6.
NEW
SECTION
.
16.37F
Report
to
the
general
assembly.
18
On
or
before
January
31
of
each
year,
the
authority
shall
19
submit
to
the
general
assembly
a
report
that
includes
all
of
20
the
following:
21
1.
A
statement
of
the
number
of
qualified
developments
for
22
which
the
authority
issued
tax
certificates
the
prior
year.
23
2.
A
description
of
each
qualified
development
for
which
the
24
authority
issued
a
tax
certificate
the
prior
year,
including
25
the
geographic
location
of
the
development,
the
household
type
26
and
any
specific
demographic
information
available
concerning
27
the
residents
intended
to
be
served
by
the
development,
28
the
income
levels
of
residents
intended
to
be
served
by
the
29
development,
and
the
rents
or
set-asides
authorized
for
each
30
development.
31
Sec.
7.
NEW
SECTION
.
16.37G
Rules.
32
The
authority
and
the
department
shall
adopt
rules
pursuant
33
to
chapter
17A
as
necessary
for
the
implementation
and
34
administration
of
this
part.
35
-5-
LSB
1978SV
(2)
89
jm/jh
5/
29
S.F.
295
Sec.
8.
NEW
SECTION
.
422.10C
Iowa
housing
tax
credit.
1
The
taxes
imposed
under
this
subchapter,
less
the
credits
2
allowed
under
section
422.12,
shall
be
reduced
by
an
Iowa
3
housing
tax
credit
allowed
under
section
16.37C.
4
Sec.
9.
Section
422.33,
Code
2021,
is
amended
by
adding
the
5
following
new
subsection:
6
NEW
SUBSECTION
.
17.
The
taxes
imposed
under
this
subchapter
7
shall
be
reduced
by
an
Iowa
housing
tax
credit
as
allowed
under
8
section
16.37C.
9
Sec.
10.
Section
422.60,
Code
2021,
is
amended
by
adding
the
10
following
new
subsection:
11
NEW
SUBSECTION
.
14.
The
taxes
imposed
under
this
subchapter
12
shall
be
reduced
by
an
Iowa
housing
tax
credit
as
allowed
under
13
section
16.37C.
14
Sec.
11.
NEW
SECTION
.
432.12N
Iowa
housing
tax
credit.
15
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
an
16
Iowa
housing
tax
credit
allowed
under
section
16.37C.
17
Sec.
12.
Section
533.329,
subsection
2,
Code
2021,
is
18
amended
by
adding
the
following
new
paragraph:
19
NEW
PARAGRAPH
.
l.
The
moneys
and
credits
tax
imposed
under
20
this
section
shall
be
reduced
by
an
Iowa
housing
tax
credit
21
allowed
under
section
16.37C.
22
Sec.
13.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
shall
23
designate
sections
16.37A
through
16.37G,
as
enacted
by
24
this
division
of
this
Act,
as
a
new
part
within
chapter
16,
25
subchapter
VII,
and
may
redesignate
the
new
and
preexisting
26
parts,
replace
references
to
sections
16.37A
through
16.37G
27
with
references
to
the
new
part,
and
correct
internal
28
references
as
necessary,
including
references
in
subchapter
or
29
part
headnotes.
30
Sec.
14.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
31
effect
January
1,
2022.
32
Sec.
15.
APPLICABILITY.
This
division
of
this
Act
applies
33
to
tax
years
beginning
on
or
after
January
1,
2022.
34
DIVISION
II
35
-6-
LSB
1978SV
(2)
89
jm/jh
6/
29
S.F.
295
HOUSING
TRUST
FUND
1
Sec.
16.
Section
428A.8,
subsection
3,
Code
2021,
is
amended
2
by
striking
the
subsection.
3
DIVISION
III
4
WORKFORCE
HOUSING
TAX
INCENTIVES
5
Sec.
17.
Section
15.119,
subsection
2,
paragraph
g,
Code
6
2021,
is
amended
to
read
as
follows:
7
g.
(1)
The
workforce
housing
tax
incentives
program
8
administered
pursuant
to
sections
15.351
through
15.356
.
9
In
allocating
tax
credits
pursuant
to
this
subsection
,
the
10
authority
shall
not
allocate
more
than
twenty-five
million
11
dollars
for
purposes
of
this
paragraph.
Of
the
moneys
12
allocated
under
this
paragraph,
ten
million
dollars
shall
be
13
reserved
for
allocation
to
qualified
housing
projects
in
small
14
cities,
as
defined
in
section
15.352
,
that
are
registered
on
15
or
after
July
1,
2017.
16
(2)
(a)
Notwithstanding
subparagraph
(1),
in
allocating
17
tax
credits
pursuant
to
this
subsection
for
each
fiscal
18
year
of
the
period
beginning
July
1,
2021,
and
ending
June
19
30,
2024,
the
authority
shall
not
allocate
more
than
fifty
20
million
dollars
for
purposes
of
this
paragraph.
Of
the
moneys
21
allocated
under
this
paragraph
for
each
fiscal
year
of
the
22
period
beginning
July
1,
2021,
and
ending
June
30,
2024,
twenty
23
million
dollars
shall
be
reserved
for
allocation
to
qualified
24
housing
projects
in
small
cities,
as
defined
in
section
15.352,
25
that
are
registered
on
or
after
July
1,
2017.
26
(b)
This
subparagraph
is
repealed
July
1,
2024.
27
Sec.
18.
Section
15.353,
subsection
3,
Code
2021,
is
amended
28
to
read
as
follows:
29
3.
a.
Except
as
provided
in
paragraph
“b”
,
the
The
average
30
dwelling
unit
cost
does
not
exceed
two
hundred
thousand
dollars
31
per
dwelling
unit
an
amount
determined
by
the
authority
by
32
rule.
In
determining
the
average
dwelling
unit
cost
the
33
authority
shall
consider,
at
a
minimum,
building
materials,
34
labor,
site
development,
and
land
or
property
acquisition
35
-7-
LSB
1978SV
(2)
89
jm/jh
7/
29
S.F.
295
costs
.
1
b.
(1)
The
average
dwelling
unit
cost
does
not
exceed
2
two
hundred
fifty
thousand
dollars
per
dwelling
unit
if
the
3
project
involves
the
rehabilitation,
repair,
redevelopment,
4
or
preservation
of
property
described
in
section
404A.1,
5
subsection
8
,
paragraph
“a”
.
6
(2)
The
average
dwelling
unit
cost
for
the
project
does
not
7
exceed
two
hundred
fifteen
thousand
dollars
per
dwelling
unit
8
if
the
project
is
located
in
a
small
city.
9
Sec.
19.
Section
15.354,
subsection
3,
paragraph
d,
Code
10
2021,
is
amended
to
read
as
follows:
11
d.
Upon
completion
of
a
housing
project,
an
a
housing
12
business
shall
submit
all
of
the
following
to
the
authority:
13
(1)
An
examination
of
the
project
in
accordance
with
the
14
American
institute
of
certified
public
accountants’
statements
15
on
standards
for
attestation
engagements,
completed
by
a
16
certified
public
accountant
authorized
to
practice
in
this
17
state
,
shall
be
submitted
to
the
authority
.
18
(2)
A
statement
of
the
final
amount
of
qualifying
new
19
investment
for
the
housing
project.
20
(3)
Any
information
the
authority
deems
necessary
to
ensure
21
compliance
with
the
agreement
signed
by
the
housing
business
22
pursuant
to
paragraph
“a”
,
the
requirements
of
this
part,
23
and
rules
the
authority
and
the
department
of
revenue
adopt
24
pursuant
to
section
15.356.
25
Sec.
20.
Section
15.354,
subsection
3,
paragraph
e,
26
subparagraph
(1),
Code
2021,
is
amended
to
read
as
follows:
27
(1)
Upon
review
of
the
examination
,
and
verification
of
28
the
amount
of
the
qualifying
new
investment,
and
review
of
29
any
other
information
submitted
pursuant
to
paragraph
“d”
,
30
subparagraph
(3),
the
authority
may
notify
the
housing
business
31
of
the
amount
that
the
housing
business
may
claim
as
a
refund
32
of
the
sales
and
use
tax
under
section
15.355,
subsection
2
,
33
and
may
issue
a
tax
credit
certificate
to
the
housing
business
34
stating
the
amount
of
workforce
housing
investment
tax
credits
35
-8-
LSB
1978SV
(2)
89
jm/jh
8/
29
S.F.
295
under
section
15.355
,
subsection
3
,
the
eligible
housing
1
business
may
claim.
The
sum
of
the
amount
that
the
housing
2
business
may
claim
as
a
refund
of
the
sales
and
use
tax
and
3
the
amount
of
the
tax
credit
certificate
shall
not
exceed
the
4
amount
of
the
tax
incentive
award.
5
Sec.
21.
Section
15.354,
subsection
6,
paragraphs
b
and
c,
6
Code
2021,
are
amended
to
read
as
follows:
7
b.
Notwithstanding
subsection
1
,
the
authority
may
accept
8
applications
for
disaster
recovery
housing
projects
on
a
9
continuous
basis
establish
a
disaster
recovery
application
10
period
following
the
declaration
of
a
major
disaster
by
the
11
president
of
the
United
States
for
a
county
in
Iowa
.
12
c.
Notwithstanding
subsection
2
,
paragraphs
“a”
,
“b”
,
and
13
“d”
,
upon
Upon
review
of
a
housing
business’s
application
,
14
and
scoring
of
all
applications
received
during
a
disaster
15
recovery
application
period,
the
authority
may
make
a
tax
16
incentive
award
to
a
disaster
recovery
housing
project.
The
17
tax
incentive
award
shall
represent
the
maximum
amount
of
tax
18
incentives
that
the
disaster
recovery
housing
project
may
19
qualify
for
under
the
program.
In
determining
a
tax
incentive
20
award,
the
authority
shall
not
use
an
amount
of
project
costs
21
that
exceeds
the
amount
included
in
the
application
of
the
22
housing
business.
Tax
incentive
awards
shall
be
approved
by
23
the
director
of
the
authority.
24
Sec.
22.
Section
15.355,
subsection
2,
Code
2021,
is
amended
25
to
read
as
follows:
26
2.
A
housing
business
may
claim
a
refund
of
the
sales
and
27
use
taxes
paid
under
chapter
423
that
are
directly
related
to
28
a
housing
project
and
specified
in
the
agreement.
The
refund
29
available
pursuant
to
this
subsection
shall
be
as
provided
in
30
section
15.331A
,
excluding
subsection
2
,
paragraph
“c”
,
of
31
that
section.
For
purposes
of
the
program,
the
term
“project
32
completion”
,
as
used
in
section
15.331A
,
shall
mean
the
date
33
on
which
the
authority
notifies
the
department
of
revenue
that
34
all
applicable
requirements
of
an
the
agreement
entered
into
35
-9-
LSB
1978SV
(2)
89
jm/jh
9/
29
S.F.
295
pursuant
to
section
15.354
,
subsection
3,
paragraph
“a”
,
and
1
all
applicable
requirements
of
this
part,
including
the
rules
2
the
authority
and
the
department
of
revenue
adopted
pursuant
to
3
section
15.356,
are
satisfied.
4
DIVISION
IV
5
DOWNTOWN
LOAN
GUARANTEE
PROGRAM
6
Sec.
23.
NEW
SECTION
.
15.431
Downtown
loan
guarantee
7
program.
8
1.
The
economic
development
authority,
in
partnership
with
9
the
Iowa
finance
authority,
shall
establish
and
administer
a
10
downtown
loan
guarantee
program
to
encourage
Iowa
downtown
11
businesses
and
banks
to
reinvest
and
reopen
following
the
12
COVID-19
pandemic.
13
2.
In
order
for
a
loan
to
be
guaranteed,
all
of
the
14
following
conditions
must
be
true:
15
a.
The
loan
finances
an
eligible
downtown
resource
center
16
community
catalyst
building
remediation
grant
project
or
main
17
street
Iowa
challenge
grant
within
a
designated
district.
18
b.
The
loan
finances
a
rehabilitation
project,
or
finances
19
acquisition
or
refinancing
costs
associated
with
the
project.
20
c.
At
least
twenty-five
percent
of
the
project
costs
are
21
used
for
construction
on
the
project
or
renovation.
22
d.
The
project
includes
a
housing
component.
23
e.
The
loan
is
used
for
construction
of
the
project,
24
permanent
financing
of
the
project,
or
both.
25
f.
A
federally
insured
financial
lending
institution
issued
26
the
loan.
27
g.
The
loan
does
not
reimburse
the
borrower
for
working
28
capital,
operations,
or
similar
expenses.
29
h.
The
project
meets
downtown
resource
center
and
main
30
street
Iowa
design
review.
31
3.
a.
For
a
loan
amount
less
than
or
equal
to
five
hundred
32
thousand
dollars,
the
economic
development
authority
may
33
guarantee
up
to
fifty
percent
of
the
loan
amount.
34
b.
For
a
loan
amount
greater
than
five
hundred
thousand
35
-10-
LSB
1978SV
(2)
89
jm/jh
10/
29
S.F.
295
dollars,
the
economic
development
authority
may
provide
a
1
maximum
loan
guarantee
of
up
to
two
hundred
fifty
thousand
2
dollars.
3
4.
A
project
loan
must
be
secured
by
a
mortgage
against
the
4
project
property.
5
5.
The
economic
development
authority
may
guarantee
loans
6
for
up
to
five
years.
The
economic
development
authority
7
may
extend
the
loan
guarantee
for
an
additional
five
years
8
if
an
underwriting
review
finds
that
an
extension
would
be
9
beneficial.
10
6.
The
lender
shall
pay
an
annual
loan
guarantee
fee
as
set
11
forth
by
rule.
12
7.
The
economic
development
authority
reserves
the
right
13
to
deny
a
loan
guarantee
for
unreasonable
bank
loan
fees
or
14
interest
rate.
15
8.
The
loan
must
not
be
insured
or
guaranteed
by
another
16
local,
state,
or
federal
guarantee
program.
17
9.
The
loan
guarantee
is
not
transferable
if
the
loan
or
the
18
project
is
sold
or
transferred.
19
10.
In
the
event
of
a
loss
due
to
default,
the
loan
20
guarantee
proportionally
pays
the
guarantee
percentage
of
the
21
loss
to
the
lender.
22
11.
Moneys
for
the
program
may
consist
of
any
moneys
23
appropriated
by
the
general
assembly
for
purposes
of
this
24
section,
and
any
other
moneys
that
are
lawfully
available
to
25
the
authority,
including
moneys
transferred
or
deposited
from
26
other
funds
created
pursuant
to
section
15.106A,
subsection
1,
27
paragraph
“o”
.
28
DIVISION
V
29
DISASTER
RECOVERY
HOUSING
ASSISTANCE
PROGRAM
AND
FUND
30
Sec.
24.
NEW
SECTION
.
16.57A
Transfer
of
unobligated
or
31
unencumbered
funds
——
report.
32
1.
Notwithstanding
any
other
provision
of
law
to
the
33
contrary,
the
authority
may
transfer
any
unobligated
and
34
unencumbered
moneys
in
any
revolving
loan
program
fund
created
35
-11-
LSB
1978SV
(2)
89
jm/jh
11/
29
S.F.
295
pursuant
to
section
16.46,
16.47,
16.48,
or
16.49,
for
deposit
1
in
the
disaster
recovery
housing
assistance
fund
created
in
2
section
16.57B.
3
2.
Notwithstanding
section
8.39,
and
any
other
law
to
4
the
contrary,
with
the
prior
written
consent
and
approval
of
5
the
governor,
the
executive
director
of
the
authority
may
6
transfer
any
unobligated
and
unencumbered
moneys
in
any
fund
7
created
pursuant
to
section
16.5,
subsection
1,
paragraph
8
“s”
,
for
deposit
in
the
disaster
recovery
housing
assistance
9
fund
created
in
section
16.57B.
The
prior
written
consent
and
10
approval
of
the
director
of
the
department
of
management
shall
11
not
be
required
to
transfer
the
unobligated
and
unencumbered
12
moneys.
13
3.
Notwithstanding
section
8.39,
and
any
other
law
to
the
14
contrary,
with
the
prior
written
approval
of
the
governor,
the
15
director
of
the
economic
development
authority
may
transfer
16
any
unobligated
and
unencumbered
moneys
in
any
fund
created
17
pursuant
to
section
15.106A,
subsection
1,
paragraph
“o”
,
18
for
deposit
in
the
disaster
recovery
housing
assistance
fund
19
created
in
section
16.57B.
20
4.
Any
transfer
made
under
this
section
shall
be
reported
in
21
the
same
manner
as
provided
in
section
8.39,
subsection
5.
22
Sec.
25.
NEW
SECTION
.
16.57B
Disaster
recovery
housing
23
assistance
program
——
fund.
24
1.
Definitions.
As
used
in
this
section,
unless
the
context
25
otherwise
requires:
26
a.
“
Disaster-affected
home”
means
any
of
the
following:
27
(1)
A
primary
residence
that
is
destroyed
or
damaged
due
28
to
a
natural
disaster
that
occurs
on
or
after
the
effective
29
date
of
this
division
of
this
Act,
and
the
primary
residence
is
30
located
in
a
county
that
is
the
subject
of
a
state
of
disaster
31
emergency
proclamation
by
the
governor
that
authorizes
disaster
32
recovery
housing
assistance.
33
(2)
A
primary
residence
that
is
destroyed
or
damaged
due
to
34
a
natural
disaster
that
occurred
on
or
after
March
12,
2019,
35
-12-
LSB
1978SV
(2)
89
jm/jh
12/
29
S.F.
295
but
before
the
effective
date
of
this
division
of
this
Act,
and
1
is
located
in
a
county
that
has
been
declared
a
major
disaster
2
by
the
president
of
the
United
States
on
or
after
March
12,
3
2019,
but
before
the
effective
date
of
this
division
of
this
4
Act,
and
is
located
in
a
county
where
individuals
are
eligible
5
for
federal
individual
assistance.
6
b.
“Fund”
means
the
disaster
recovery
housing
assistance
7
fund.
8
c.
“Local
program
administrator”
means
any
of
the
following:
9
(1)
The
cities
of
Ames,
Cedar
Falls,
Cedar
Rapids,
Council
10
Bluffs,
Davenport,
Des
Moines,
Dubuque,
Iowa
City,
Waterloo,
11
and
West
Des
Moines.
12
(2)
A
council
of
governments
whose
territory
includes
at
13
least
one
county
that
is
the
subject
of
a
state
of
disaster
14
emergency
proclamation
by
the
governor
that
authorizes
disaster
15
recovery
housing
assistance
or
the
eviction
prevention
program
16
under
section
16.57C
on
or
after
the
effective
date
of
this
17
division
of
this
Act.
18
(3)
A
community
action
agency
as
defined
in
section
216A.91
19
and
whose
territory
includes
at
least
one
county
that
is
the
20
subject
of
a
state
of
disaster
emergency
proclamation
by
the
21
governor
that
authorizes
disaster
recovery
housing
assistance
22
or
the
eviction
prevention
program
under
section
16.57C
on
or
23
after
the
effective
date
of
this
division
of
this
Act.
24
(4)
A
qualified
local
organization
or
governmental
entity
25
as
determined
by
rules
adopted
by
the
authority.
26
d.
“Program”
means
the
disaster
recovery
housing
assistance
27
program.
28
e.
“Replacement
housing”
means
housing
purchased
29
by
a
homeowner
or
leased
by
a
renter
needed
to
replace
30
a
disaster-affected
home
that
is
destroyed
or
damaged
31
beyond
reasonable
repair
as
determined
by
a
local
program
32
administrator.
33
f.
“State
of
disaster
emergency”
means
the
same
as
described
34
in
section
29C.6,
subsection
1.
35
-13-
LSB
1978SV
(2)
89
jm/jh
13/
29
S.F.
295
2.
Fund.
1
a.
(1)
A
disaster
recovery
housing
assistance
fund
is
2
created
within
the
authority.
The
moneys
in
the
fund
shall
be
3
used
by
the
authority
for
the
development
and
operation
of
a
4
forgivable
loan
and
grant
program
for
homeowners
and
renters
5
with
disaster-affected
homes,
and
for
the
eviction
prevention
6
program
pursuant
to
section
16.57C.
7
(2)
Notwithstanding
section
12C.7,
subsection
2,
interest
8
or
earnings
on
moneys
deposited
in
the
fund
shall
be
credited
9
to
the
fund.
Notwithstanding
section
8.33,
moneys
credited
to
10
the
fund
shall
not
revert
at
the
close
of
a
fiscal
year.
11
b.
Moneys
transferred
by
the
authority
for
deposit
in
the
12
fund,
moneys
appropriated
to
the
fund,
and
any
other
moneys
13
available
to
and
obtained
or
accepted
by
the
authority
for
14
placement
in
the
fund
shall
be
deposited
in
the
fund.
15
c.
The
authority
shall
not
use
more
than
five
percent
of
16
the
moneys
in
the
fund
on
July
1
of
a
fiscal
year
for
purposes
17
of
administrative
costs
and
other
program
support
during
the
18
fiscal
year.
19
3.
Program.
20
a.
The
authority
shall
establish
and
administer
a
disaster
21
recovery
housing
assistance
program
and
shall
use
moneys
in
22
the
fund
to
award
forgivable
loans
to
eligible
homeowners
and
23
grants
to
eligible
renters
of
disaster-affected
homes.
Moneys
24
in
the
fund
may
be
expended
following
a
state
of
disaster
25
emergency
proclamation
by
the
governor
pursuant
to
section
26
29C.6
that
authorizes
disaster
recovery
housing
assistance.
27
b.
The
authority
may
enter
into
an
agreement
with
one
or
28
more
local
program
administrators
to
administer
the
program.
29
4.
Registration
required.
To
be
considered
for
a
forgivable
30
loan
or
grant
under
the
program,
a
homeowner
or
renter
must
31
register
for
the
disaster
case
management
program
established
32
pursuant
to
section
29C.20B.
The
disaster
case
manager
may
33
refer
the
homeowner
or
renter
to
the
appropriate
local
program
34
administrator.
35
-14-
LSB
1978SV
(2)
89
jm/jh
14/
29
S.F.
295
5.
Homeowners.
1
a.
To
be
eligible
for
a
forgivable
loan
under
the
program,
2
all
of
the
following
requirements
shall
apply:
3
(1)
The
homeowner’s
disaster-affected
home
must
have
4
sustained
damage
greater
than
the
damage
that
is
covered
by
the
5
homeowner’s
property
and
casualty
insurance
policy
insuring
the
6
home
plus
any
other
state
or
federal
disaster-related
financial
7
assistance
that
the
homeowner
is
eligible
to
receive.
8
(2)
A
local
program
administrator
must
either
deem
the
9
disaster-affected
home
suitable
for
rehabilitation
or
damaged
10
beyond
reasonable
repair.
11
(3)
The
disaster-affected
home
is
not
eligible
for
buyout
by
12
the
county
or
city
where
the
disaster-affected
home
is
located,
13
or
the
disaster-affected
home
is
eligible
for
a
buyout
by
the
14
county
or
city
where
the
disaster-affected
home
is
located,
but
15
the
homeowner
is
requesting
a
forgivable
loan
for
the
repair
16
or
rehabilitation
of
the
homeowner’s
disaster-affected
home
in
17
lieu
of
a
buyout.
18
(4)
Assistance
under
the
program
must
not
duplicate
19
benefits
provided
by
any
local,
state,
or
federal
disaster
20
recovery
assistance
program.
21
b.
If
a
homeowner
is
referred
to
the
authority
or
to
a
22
local
program
administrator
by
the
disaster
case
manager
of
the
23
homeowner,
the
authority
may
award
a
forgivable
loan
to
the
24
eligible
homeowner
for
any
of
the
following
purposes:
25
(1)
Repair
or
rehabilitation
of
the
disaster-affected
home.
26
(2)
(a)
Down
payment
assistance
on
the
purchase
of
27
replacement
housing,
and
the
cost
of
reasonable
repairs
to
be
28
performed
on
the
replacement
housing
to
render
the
replacement
29
housing
decent,
safe,
sanitary,
and
in
good
repair.
30
(b)
Replacement
housing
shall
not
be
located
in
a
31
one-hundred-year
floodplain.
32
(c)
For
purposes
of
this
subparagraph,
“decent,
safe,
33
sanitary,
and
in
good
repair”
means
the
same
as
described
in
24
34
C.F.R.
§5.703.
35
-15-
LSB
1978SV
(2)
89
jm/jh
15/
29
S.F.
295
c.
The
authority
shall
determine
the
interest
rate
for
the
1
forgivable
loan.
2
d.
If
a
homeowner
who
has
been
awarded
a
forgivable
loan
3
sells
a
disaster-affected
home
or
replacement
housing
for
which
4
the
homeowner
received
the
forgivable
loan
prior
to
the
end
5
of
the
loan
term,
the
remaining
principal
on
the
forgivable
6
loan
shall
be
due
and
payable
pursuant
to
rules
adopted
by
the
7
authority.
8
6.
Renters.
9
a.
To
be
eligible
for
a
grant
under
the
program,
all
of
the
10
following
requirements
shall
apply:
11
(1)
A
local
program
administrator
either
deems
12
the
disaster-affected
home
of
the
renter
suitable
for
13
rehabilitation
but
unsuitable
for
current
short-term
14
habitation,
or
the
disaster-affected
home
is
damaged
beyond
15
reasonable
repair.
16
(2)
Assistance
under
the
program
must
not
duplicate
17
benefits
provided
by
any
local,
state,
or
federal
disaster
18
recovery
assistance
program.
19
b.
If
a
renter
is
referred
to
the
authority
or
to
a
local
20
program
administrator
by
the
disaster
case
manager
of
the
21
renter,
the
authority
may
award
a
grant
to
the
eligible
renter
22
to
provide
short-term
financial
assistance
for
the
payment
of
23
rent
for
replacement
housing.
24
7.
Report.
On
or
before
January
31
of
each
year,
the
25
authority
shall
submit
a
report
to
the
general
assembly
26
that
identifies
all
of
the
following
for
the
calendar
year
27
immediately
preceding
the
year
of
the
report:
28
a.
The
date
of
each
state
of
disaster
emergency
proclamation
29
by
the
governor
that
authorized
disaster
recovery
housing
30
assistance
under
this
section.
31
b.
The
total
number
of
forgivable
loans
and
grants
awarded.
32
c.
The
total
number
of
forgivable
loans,
and
the
amount
of
33
each
loan
awarded
for
repair
or
rehabilitation.
34
d.
The
total
number
of
forgivable
loans,
and
the
amount
of
35
-16-
LSB
1978SV
(2)
89
jm/jh
16/
29
S.F.
295
each
loan,
awarded
for
down
payment
assistance
on
the
purchase
1
of
replacement
housing
and
the
cost
of
reasonable
repairs
to
be
2
performed
on
the
replacement
housing
to
render
the
replacement
3
housing
decent,
safe,
sanitary,
and
in
good
repair.
4
e.
The
total
number
of
grants,
and
the
amount
of
each
grant,
5
awarded
for
rental
assistance.
6
f.
The
total
number
of
forgivable
loans
and
grants
awarded
7
in
each
county
in
which
at
least
one
homeowner
or
renter
has
8
been
awarded
a
forgivable
loan
or
grant.
9
g.
Each
local
program
administrator
involved
in
the
10
administration
of
the
program.
11
h.
The
total
amount
of
forgivable
loan
principal
repaid.
12
Sec.
26.
NEW
SECTION
.
16.57C
Eviction
prevention
program.
13
1.
a.
“Eligible
renter”
means
a
renter
whose
income
meets
14
the
qualifications
of
the
program,
who
is
at
risk
of
eviction,
15
and
who
resides
in
a
county
that
is
the
subject
of
a
state
of
16
disaster
emergency
proclamation
by
the
governor
that
authorizes
17
the
eviction
prevention
program.
18
b.
“Eviction
prevention
partner”
means
a
qualified
local
19
organization
or
governmental
entity
as
determined
by
rule
by
20
the
authority.
21
2.
The
authority
shall
establish
and
administer
an
eviction
22
prevention
program.
Under
the
eviction
prevention
program,
23
the
authority
shall
award
grants
to
eligible
renters
and
to
24
eviction
prevention
partners
for
purposes
of
this
section.
25
Grants
may
be
awarded
upon
a
state
of
disaster
emergency
26
proclamation
by
the
governor
that
authorizes
the
eviction
27
prevention
program.
Eviction
prevention
assistance
shall
be
28
paid
out
of
the
fund
established
in
section
16.57B.
29
3.
a.
Grants
awarded
to
eligible
renters
pursuant
to
this
30
section
shall
be
used
for
short-term
financial
rent
assistance
31
to
keep
eligible
renters
in
the
current
residences
of
such
32
renters.
33
b.
Grants
awarded
to
eviction
prevention
partners
pursuant
34
to
this
section
shall
be
used
to
pay
for
rent
or
services
35
-17-
LSB
1978SV
(2)
89
jm/jh
17/
29
S.F.
295
provided
to
eligible
renters
for
the
purpose
of
preventing
the
1
eviction
of
eligible
renters.
2
4.
The
authority
may
enter
into
an
agreement
with
one
or
3
more
local
program
administrators
to
administer
the
program.
4
Sec.
27.
NEW
SECTION
.
16.57D
Rules.
5
The
authority
shall
adopt
rules
pursuant
to
chapter
17A
to
6
implement
and
administer
this
part,
including
rules
to
do
all
7
of
the
following:
8
1.
Establish
the
maximum
forgivable
loan
and
grant
amounts
9
awarded
under
the
program.
10
2.
Establish
the
terms
of
any
forgivable
loan
provided
under
11
the
program.
12
3.
Income
qualifications
of
eligible
renters
in
the
13
eviction
prevention
program.
14
Sec.
28.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
shall
15
designate
sections
16.57A
through
16.57D,
as
enacted
by
16
this
division
of
this
Act,
as
a
new
part
within
chapter
16,
17
subchapter
VIII,
and
may
redesignate
the
new
and
preexisting
18
parts,
replace
references
to
sections
16.57A
through
16.57D
19
with
references
to
the
new
part,
and
correct
internal
20
references
as
necessary,
including
references
in
subchapter
or
21
part
headnotes.
22
Sec.
29.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
23
deemed
of
immediate
importance,
takes
effect
upon
enactment.
24
DIVISION
VI
25
BROWNFIELDS
AND
GRAYFIELDS
26
Sec.
30.
Section
15.119,
subsection
3,
Code
2021,
is
amended
27
to
read
as
follows:
28
3.
In
allocating
the
amount
of
tax
credits
authorized
29
pursuant
to
subsection
1
among
the
programs
specified
in
30
subsection
2
,
the
authority
shall
not
allocate
more
than
ten
31
twenty
million
dollars
for
purposes
of
subsection
2
,
paragraph
32
“f”
.
33
Sec.
31.
Section
15.293A,
subsection
8,
Code
2021,
is
34
amended
to
read
as
follows:
35
-18-
LSB
1978SV
(2)
89
jm/jh
18/
29
S.F.
295
8.
This
section
is
repealed
on
June
30,
2021
2031
.
1
Sec.
32.
Section
15.293B,
Code
2021,
is
amended
by
adding
2
the
following
new
subsection:
3
NEW
SUBSECTION
.
5A.
a.
Tax
credits
revoked
under
4
subsection
3
including
tax
credits
revoked
up
to
five
years
5
prior
to
the
effective
date
of
this
Act,
and
tax
credits
6
not
awarded
under
subsection
4
or
5,
may
be
awarded
in
the
7
next
annual
application
period
established
in
subsection
1,
8
paragraph
“c”
.
9
b.
Tax
credits
awarded
pursuant
to
paragraph
“a”
shall
not
10
be
counted
against
the
limit
under
section
15.119,
subsection
11
3.
12
Sec.
33.
Section
15.293B,
subsection
7,
Code
2021,
is
13
amended
to
read
as
follows:
14
7.
This
section
is
repealed
on
June
30,
2021
2031
.
15
Sec.
34.
EFFECTIVE
DATE.
The
following,
being
deemed
of
16
immediate
importance,
take
effect
upon
enactment:
17
1.
The
section
of
this
division
of
this
Act
amending
section
18
15.293A,
subsection
8.
19
2.
The
section
of
this
division
of
this
Act
amending
section
20
15.293B,
subsection
7.
21
EXPLANATION
22
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
23
the
explanation’s
substance
by
the
members
of
the
general
assembly.
24
This
bill
relates
to
affordable
housing,
disaster
housing
25
assistance,
and
redevelopment
tax
credits
by
creating
an
26
Iowa
housing
tax
credit
program,
modifying
distribution
of
27
real
estate
transfer
taxes,
modifying
workforce
housing
tax
28
incentives,
and
creating
a
disaster
housing
recovery
assistance
29
program,
modifying
redevelopment
tax
credits,
and
including
30
effective
date
and
applicability
provisions.
31
IOWA
HOUSING
TAX
CREDIT
PROGRAM.
The
bill
creates
an
Iowa
32
housing
tax
credit
program
available
against
the
individual
and
33
corporate
income
taxes,
franchise
tax,
insurance
premium
tax,
34
and
moneys
and
credits
tax.
35
-19-
LSB
1978SV
(2)
89
jm/jh
19/
29
S.F.
295
The
bill
requires
the
Iowa
finance
authority
(authority)
to
1
develop
a
system
for
the
application,
review,
and
authorization
2
of
Iowa
housing
tax
credits.
A
tax
credit
may
be
claimed
by
3
a
taxpayer
for
a
“qualified
development”
defined
to
mean
a
4
qualified
low-income
housing
project
under
section
42(g)
of
the
5
Internal
Revenue
Code
that
is
financed
by
tax-exempt
bonds.
6
An
Iowa
housing
tax
credit
may
be
authorized
by
the
authority
7
if
all
of
the
following
apply:
the
tax
credit
is
issued
to
8
a
taxpayer
who
has
an
ownership
interest
in
the
qualified
9
development;
the
tax
credit
amount
is
allocated
pursuant
to
10
a
qualified
allocation
plan
adopted
by
the
authority;
the
11
tax
credit
is
necessary
for
the
financial
feasibility
of
the
12
qualified
development;
the
amount
of
the
tax
credit
allocated
13
to
an
owner
does
not
exceed
30
percent
of
the
qualified
basis
14
of
the
qualified
development;
and
the
qualified
development
is
15
the
subject
of
a
recorded
restrictive
covenant
requiring
the
16
qualified
development
be
maintained
and
operated
as
a
qualified
17
development
for
a
certain
number
of
years.
18
The
amount
of
an
Iowa
housing
tax
credit
award
is
determined
19
by
the
authority
and
may
be
claimed
during
the
credit
period
20
(10
years),
and
any
credit
in
excess
of
the
taxpayer’s
21
liability
for
the
tax
year
is
not
refundable
but
may
be
22
credited
to
the
tax
liability
for
the
following
five
years.
23
In
any
calendar
year,
the
bill
limits
the
aggregate
amount
24
of
the
tax
credit
to
$15
million
plus
the
sum
of
the
total
of
25
unallocated
tax
credits
from
the
preceding
calendar
year
and
26
the
previously
allocated
tax
credits
that
have
been
revoked,
27
canceled,
or
recaptured.
28
A
taxpayer
shall
claim
the
credit
by
including
one
or
more
29
tax
certificates
issued
by
the
authority
with
the
taxpayer’s
30
return.
The
bill
allows
a
tax
credit
certificate
to
be
31
transferred
to
any
person
or
entity.
The
bill
requires
the
32
transferee
to
submit
the
transferred
tax
credit
certificate
to
33
the
authority
within
90
days
of
the
transfer,
and
requires
the
34
authority
to
issue
a
replacement
tax
credit
certificate
within
35
-20-
LSB
1978SV
(2)
89
jm/jh
20/
29
S.F.
295
30
days
of
receiving
the
transferred
tax
credit
certificate.
1
The
bill
allows
the
authority
to
recapture
tax
credit
2
amounts
from
previously
issued
tax
credits.
The
bill
provides
3
that
if
on
the
last
day
of
a
taxable
year
during
the
compliance
4
period
(15
years)
the
amount
of
the
qualified
basis
of
a
5
qualified
development
owned
by
a
taxpayer
claiming
the
credit
6
is
less
than
the
amount
of
the
qualified
basis
as
of
the
last
7
day
of
the
immediately
preceding
tax
year,
then
the
amount
of
8
the
taxpayer’s
liability
shall
be
increased
by
the
recapture
9
amount
determined
using
the
method
under
section
42(j)
of
the
10
Internal
Revenue
Code.
If
a
recapture
event
occurs,
the
bill
11
requires
the
taxpayer
to
include
the
recaptured
amount
on
the
12
return
submitted
for
the
tax
year
in
which
the
recapture
event
13
is
identified.
14
The
bill
requires
the
authority
to
submit
a
report
to
the
15
general
assembly
by
January
31
each
year,
detailing
the
Iowa
16
housing
tax
credit
program.
The
division
takes
effect
January
17
1,
2022,
and
applies
to
tax
years
beginning
on
or
after
that
18
date.
19
HOUSING
TRUST
FUND.
Currently,
the
treasurer
of
state
20
transfers
30
percent
of
real
estate
transfer
tax
receipts
21
received
by
the
treasurer
of
state
to
the
housing
trust
fund
up
22
to
$3
million.
The
bill
removes
the
$3
million
cap
placed
on
23
the
transfer
of
the
real
estate
transfer
tax
receipts
to
the
24
housing
trust
fund
by
the
treasurer
of
state.
25
WORKFORCE
HOUSING
TAX
INCENTIVES.
Code
section
15.119
sets
26
an
aggregate
tax
credit
amount
limit
for
certain
economic
27
development
programs.
Under
current
law,
workforce
housing
28
tax
incentive
programs
administered
under
Code
sections
15.351
29
through
15.356
shall
not
be
allocated
more
than
$25
million
30
in
tax
credits,
and
of
the
tax
credits
allocated
to
these
31
programs,
$10
million
of
the
tax
credits
is
reserved
for
32
allocation
to
qualified
housing
projects
in
small
cities.
The
33
bill
increases
the
workforce
housing
tax
credit
allocations
34
from
$25
million
to
$50
million.
Of
the
moneys
allocated
35
-21-
LSB
1978SV
(2)
89
jm/jh
21/
29
S.F.
295
to
workforce
housing
tax
credits,
the
bill
increases
the
tax
1
credits
reserved
for
qualified
housing
projects
in
small
2
cities
from
$10
million
to
$20
million.
The
increased
amounts
3
for
workforce
housing
and
small
city
tax
credit
allocations
4
established
in
the
bill
are
repealed
July
1,
2024.
5
The
bill
strikes
the
requirement
that
the
average
dwelling
6
unit
costs
of
a
proposed
housing
development
not
exceed
certain
7
dollar
amounts
per
dwelling
unit
in
order
to
receive
workforce
8
housing
tax
incentives.
The
bill
allows
the
authority
to
set
9
the
average
dwelling
unit
costs
by
rule
as
a
requirement
for
a
10
project
to
receive
workforce
housing
tax
incentives,
based
upon
11
building
materials,
labor,
site
development,
and
acquisition
12
costs.
13
Currently,
upon
completion
of
a
housing
project,
a
housing
14
business
(housing
developer,
contractor,
or
nonprofit
that
15
completes
a
housing
project)
submits
an
examination
of
the
16
project
in
accordance
with
the
American
institute
of
certified
17
public
accountants
to
the
authority.
In
addition
to
an
18
examination
by
certified
public
accountants,
the
bill
requires
19
the
housing
business
to
submit
the
following
to
the
authority
20
upon
completion
of
a
housing
project:
a
statement
of
the
21
final
amount
of
the
qualifying
new
investment
for
the
housing
22
project
and
any
information
the
authority
deems
necessary
to
23
ensure
compliance
with
the
agreement
between
the
authority
and
24
the
housing
business
including
any
rules
the
authority
and
the
25
department
of
revenue
adopt
pursuant
to
Code
section
15.356.
26
The
bill
also
requires
the
authority
to
review
the
information
27
submitted
by
the
housing
business
prior
to
notifying
the
28
housing
business
of
tax
incentive
awards.
29
The
bill
permits
the
authority
to
establish
a
disaster
30
housing
recovery
period
following
the
declaration
of
a
major
31
disaster
by
the
president
of
the
United
States.
Currently,
the
32
authority
may
accept
applications
for
disaster
recovery
housing
33
projects
on
a
continuous
basis.
34
DOWNTOWN
LOAN
GUARANTEE
PROGRAM.
The
bill
creates
a
35
-22-
LSB
1978SV
(2)
89
jm/jh
22/
29
S.F.
295
downtown
loan
guarantee
program
to
be
administered
by
the
1
economic
development
authority
and
the
Iowa
finance
authority.
2
The
purpose
of
the
program
is
to
encourage
downtown
businesses
3
and
banks
to
reinvest
and
reopen
following
the
COVID-19
4
pandemic.
5
In
order
for
a
loan
to
be
guaranteed
under
the
program,
6
numerous
conditions
apply,
including
the
following:
the
loan
7
finances
an
eligible
downtown
resources
center
community
8
catalyst
building
remediation
grant
project
or
main
street
9
Iowa
challenge
grant
within
a
designated
district;
the
loan
10
finances
a
rehabilitation
project
or
acquisition
or
refinancing
11
costs
associated
with
the
project;
25
percent
of
the
project
12
cost
is
used
for
construction
on
the
project
or
renovation;
13
the
financed
project
includes
a
housing
component;
the
loan
is
14
used
for
the
construction
or
permanent
financing
of
a
project;
15
a
federally
insured
financial
lending
institution
issued
the
16
loan;
the
loan
does
not
reimburse
the
borrower
for
working
17
capital
or
operations;
and
the
project
meets
certain
design
18
reviews.
19
The
bill
requires
the
loan
to
be
secured
by
a
mortgage
20
against
the
project
property,
prohibits
the
loan
guarantee
to
21
be
transferred,
and
charges
the
lender
an
annual
loan
guarantee
22
fee
as
set
forth
by
rule.
23
The
bill
limits
the
amount
of
the
loan
guarantee
as
follows:
24
for
a
loan
amount
of
less
than
or
equal
to
$500,000,
the
loan
25
guarantee
shall
not
exceed
50
percent
of
the
loan;
for
a
loan
26
amount
greater
than
$500,000,
the
authority
may
provide
a
27
maximum
loan
guarantee
of
up
to
$250,000.
28
The
authority
may
guarantee
the
loan
for
up
to
five
years,
29
which
may
be
extended
by
the
authority
for
an
additional
five
30
years.
The
authority
may
also
deny
a
loan
guarantee
for
any
31
unreasonable
bank
loan
fees
or
interest
rate.
32
In
the
event
of
a
loss
due
to
default,
the
bill
requires
the
33
loan
guarantee
to
proportionally
pay
the
guarantee
percentage
34
of
the
loss
to
the
lender.
35
-23-
LSB
1978SV
(2)
89
jm/jh
23/
29
S.F.
295
Moneys
available
for
the
program
may
consist
of
moneys
1
appropriated
for
use
in
the
program,
and
any
other
moneys
that
2
are
lawfully
available
to
the
economic
development
authority,
3
including
moneys
transferred
or
deposited
from
other
funds
4
created
pursuant
to
Code
section
15.106A(1)(o).
5
DISASTER
RECOVERY
HOUSING
ASSISTANCE
PROGRAM
——
TRANSFERS.
6
The
bill
permits
the
authority
to
transfer
unobligated
moneys
7
in
Code
section
16.46
(senior
living
revolving
loan
program
8
fund),
16.47
(home
and
community-based
services
revolving
loan
9
program
fund),
16.48
(transitional
housing
revolving
loan
10
program
fund),
or
16.49
(community
housing
and
services
for
11
persons
with
disabilities
revolving
loan
program
fund)
to
the
12
disaster
recovery
housing
assistance
fund
created
in
the
bill.
13
After
the
prior
written
consent
and
approval
of
the
14
governor,
the
bill
permits
the
executive
director
of
the
Iowa
15
finance
authority
to
transfer
any
unobligated
moneys
in
any
16
fund
created
pursuant
to
Code
section
16.5(1)(s),
for
deposit
17
in
the
fund.
The
bill
waives
the
prior
written
consent
and
18
approval
of
the
director
of
the
department
of
management
to
19
transfer
the
unobligated
moneys.
20
After
prior
written
approval
of
the
governor,
the
bill
21
permits
the
director
of
the
Iowa
economic
development
authority
22
to
transfer
any
unobligated
and
unencumbered
moneys
in
any
fund
23
created
pursuant
to
Code
section
15.106A(1)(o),
for
deposit
in
24
the
fund.
25
The
bill
requires
any
transfer
to
be
reported
to
the
26
legislative
fiscal
committee
of
the
legislative
council
on
a
27
monthly
basis.
28
DISASTER
RECOVERY
HOUSING
ASSISTANCE
PROGRAM
——
FUND.
The
29
bill
creates
a
disaster
recovery
housing
assistance
fund
30
(fund)
within
the
authority.
The
purpose
of
the
fund
is
for
31
the
development
and
operation
of
a
forgivable
loan
and
grant
32
program
for
homeowners
and
renters
with
disaster-affected
33
homes,
and
for
an
eviction
prevention
program
created
in
the
34
bill.
The
bill
prohibits
the
authority
from
using
more
than
35
-24-
LSB
1978SV
(2)
89
jm/jh
24/
29
S.F.
295
5
percent
of
the
moneys
in
the
fund
on
July
1
of
a
fiscal
year
1
for
purposes
of
administrative
costs
and
other
program
support
2
during
the
fiscal
year.
3
The
bill
directs
the
authority
to
establish
and
administer
4
a
disaster
recovery
assistance
program
(program)
and
to
5
use
the
moneys
in
the
fund
to
provide
forgivable
loans
to
6
eligible
homeowners
and
grants
to
eligible
renters
with
7
disaster-affected
homes.
“Disaster-affected
home”
is
defined
8
in
the
bill
as
a
primary
residence
that
is
destroyed
or
damaged
9
due
to
a
natural
disaster
that
occurs
on
or
after
the
effective
10
date
of
the
division,
and
that
is
located
in
a
county
that
due
11
to
the
natural
disaster
is
the
subject
of
a
state
of
disaster
12
emergency
proclamation
by
the
governor
that
authorizes
disaster
13
recovery
housing
assistance;
or
a
primary
residence
that
is
14
destroyed
or
damaged
due
to
a
natural
disaster
that
occurred
15
on
or
after
March
12,
2019,
but
before
the
effective
date
of
16
the
division,
and
is
located
in
a
county
that
has
been
declared
17
a
major
disaster
by
the
president
of
the
United
States
on
or
18
after
March
12,
2019,
but
before
the
effective
date
of
the
19
division,
and
is
located
in
a
county
where
individuals
are
20
eligible
for
federal
individual
assistance.
21
The
authority
may
enter
into
an
agreement
with
one
or
22
more
local
program
administrators
to
administer
the
program
23
and
moneys
in
the
fund
may
be
expended
following
a
state
of
24
disaster
emergency
proclamation
by
the
governor
that
authorizes
25
disaster
recovery
housing
assistance
or
the
eviction
prevention
26
program.
“Local
program
administrator”
is
defined
in
the
bill
27
as
cities
of
Ames,
Cedar
Falls,
Cedar
Rapids,
Council
Bluffs,
28
Davenport,
Des
Moines,
Dubuque,
Iowa
City,
Waterloo,
and
West
29
Des
Moines;
a
council
of
governments
whose
territory
includes
30
at
least
one
county
that
is
the
subject
of
the
state
of
31
disaster
emergency
proclamation
by
the
governor
that
authorizes
32
disaster
recovery
housing
assistance
or
the
eviction
prevention
33
program;
a
community
action
agency
as
defined
in
Code
section
34
216A.91
and
whose
territory
includes
at
least
one
county
that
35
-25-
LSB
1978SV
(2)
89
jm/jh
25/
29
S.F.
295
is
the
subject
of
the
state
of
disaster
emergency
proclamation
1
by
the
governor
that
authorizes
disaster
recovery
housing
2
assistance
or
the
eviction
prevention
program;
or
a
qualified
3
local
organization
or
governmental
entity
as
determined
by
rule
4
by
the
authority.
5
To
be
considered
for
a
forgivable
loan
or
grant
under
the
6
program,
the
homeowner
or
renter
must
register
for
the
disaster
7
case
management
program
established
pursuant
to
Code
section
8
29C.20B.
The
disaster
case
manager
may
refer
the
homeowner
or
9
renter
to
the
appropriate
local
program
administrator.
10
DISASTER
RECOVERY
HOUSING
ASSISTANCE
PROGRAM
——
HOMEOWNERS.
11
To
be
eligible
for
a
forgivable
loan
under
the
program,
12
the
bill
requires
a
homeowner
to
own
a
disaster-affected
13
home
located
in
a
county
that
has
been
proclaimed
a
state
14
of
disaster
emergency
by
the
governor;
the
home
must
have
15
sustained
damage
greater
than
the
damage
that
is
covered
by
the
16
homeowner’s
property
and
casualty
insurance
policy
insuring
the
17
home
plus
any
other
state
or
federal
disaster-related
financial
18
assistance
that
the
homeowner
is
eligible
to
receive;
an
19
administrator
must
deem
the
home
suitable
for
rehabilitation
or
20
damaged
beyond
reasonable
repair;
if
the
homeowner
is
seeking
21
a
forgivable
loan
for
the
repair
or
rehabilitation
of
the
22
homeowner’s
disaster-affected
home,
the
home
cannot
be
proposed
23
for
buyout
by
the
county
or
city
in
which
the
home
is
located,
24
or
the
disaster-affected
home
is
eligible
for
a
buyout,
but
25
the
homeowner
is
requesting
a
forgivable
loan
for
the
repair
26
or
rehabilitation
of
the
homeowner’s
disaster-affected
home
27
in
lieu
of
a
buyout;
and
the
assistance
does
not
duplicate
28
benefits
provided
by
other
disaster
assistance
programs.
29
If
a
homeowner
is
referred
to
an
administrator
by
the
30
homeowner’s
case
manager,
the
bill
allows
the
authority
to
31
award
a
forgivable
loan
to
the
eligible
homeowner
for
repair
32
or
rehabilitation
of
the
disaster-affected
home,
or
for
down
33
payment
assistance
on
the
purchase
of
replacement
housing,
34
and
the
cost
of
reasonable
repairs
to
be
performed
on
the
35
-26-
LSB
1978SV
(2)
89
jm/jh
26/
29
S.F.
295
replacement
housing
to
render
it
decent,
safe,
sanitary,
and
1
in
good
repair.
Replacement
housing
purchased
by
a
homeowner
2
cannot
be
located
in
a
100-year
floodplain.
“Decent,
safe,
3
sanitary,
and
in
good
repair”
is
defined
in
the
bill
to
mean
4
the
same
as
described
in
24
C.F.R.
§5.703.
“Replacement
5
housing”
is
defined
in
the
bill
as
housing
purchased
by
a
6
homeowner
to
replace
a
disaster-affected
home
that
is
destroyed
7
or
damaged
beyond
reasonable
repair
as
determined
by
a
local
8
program
administrator.
9
The
authority
shall
determine
the
interest
rate
for
the
10
forgivable
loan.
11
If
a
homeowner
who
has
been
awarded
a
forgivable
loan
sells
12
a
disaster-affected
home
or
replacement
housing
for
which
the
13
homeowner
received
the
forgivable
loan
prior
to
the
end
of
the
14
loan
term,
the
remaining
principal
on
the
forgivable
loan
shall
15
be
due
and
payable.
16
DISASTER
RECOVERY
HOUSING
ASSISTANCE
PROGRAM
——
RENTERS.
17
To
be
eligible
for
a
grant
under
the
program,
the
bill
18
requires
the
local
program
administrator
to
either
deem
19
the
disaster-affected
home
of
the
renter
suitable
for
20
rehabilitation
but
unsuitable
for
current
short-term
21
habitation,
or
damaged
beyond
reasonable
repair;
and
the
22
assistance
does
not
duplicate
benefits
provided
by
any
other
23
disaster
assistance
program.
24
DISASTER
RECOVERY
HOUSING
ASSISTANCE
PROGRAM
——
REPORT.
The
25
bill
requires
the
authority
to
annually
submit
a
report
to
26
the
general
assembly
detailing
the
disaster
recovery
housing
27
assistance
program.
28
EVICTION
PREVENTION
PROGRAM.
The
bill
requires
the
29
authority
to
establish
and
administer
an
eviction
prevention
30
program.
Under
the
eviction
prevention
program,
the
authority
31
awards
grants
from
the
disaster
recovery
housing
assistance
32
fund
to
eligible
renters
and
eviction
prevention
partners.
33
Grants
may
be
awarded
upon
a
state
of
disaster
emergency
34
proclamation
by
the
governor
that
authorizes
the
eviction
35
-27-
LSB
1978SV
(2)
89
jm/jh
27/
29
S.F.
295
prevention
program.
The
bill
defines
“eligible
renter”
to
mean
1
a
renter
whose
income
meets
the
qualifications
of
the
program,
2
who
is
at
risk
of
eviction,
and
who
resides
in
a
county
that
3
is
the
subject
of
a
state
of
disaster
emergency
proclamation
4
by
the
governor
that
also
authorizes
the
eviction
prevention
5
program.
The
bill
defines
“eviction
prevention
partner”
to
6
mean
a
qualified
local
organization
or
governmental
entity
as
7
determined
by
rule
by
the
authority.
8
The
bill
requires
grants
awarded
to
eligible
renters
to
be
9
used
for
short-term
financial
rent
assistance
to
keep
eligible
10
renters
in
the
current
residence
of
the
renter.
Grants
awarded
11
to
eviction
prevention
partners
are
to
be
used
to
pay
for
rent
12
or
services
provided
to
eligible
renters
for
the
purpose
of
13
preventing
the
eviction
of
eligible
renters.
14
DISASTER
RECOVERY
HOUSING
ASSISTANCE
PROGRAM
——
RULES.
The
15
authority
shall
adopt
rules
pursuant
to
Code
chapter
17A
to
16
implement
and
administer
the
program
including
establishing
17
the
maximum
forgivable
loan
and
grant
amounts,
the
terms
of
18
forgivable
loans,
and
income
qualifications
of
eligible
renters
19
in
the
eviction
prevention
program.
20
BROWNFIELD
REDEVELOPMENT
PROGRAM.
Current
law
provides
21
that
the
economic
development
authority
(authority)
cannot
22
allocate
more
than
$10
million
in
tax
credits
in
a
fiscal
year
23
to
the
brownfield
redevelopment
program
(brownfields).
The
24
division
increases
the
maximum
allocation
to
$20
million.
The
25
division
provides
that
tax
credits
that
are
not
awarded
or
26
that
are
revoked
(including
revoked
within
the
previous
five
27
years)
under
brownfields
may
be
awarded
during
the
next
annual
28
application
period,
and
those
tax
credits
do
not
count
against
29
the
$20
million
tax
credit
maximum.
Under
current
law,
Code
30
section
15.293A,
redevelopment
tax
credits,
is
repealed
on
June
31
30,
2021.
The
division
changes
the
repeal
date
to
June
30,
32
2031,
and
the
repeal
date
is
effective
upon
enactment
of
the
33
division.
Under
current
law,
Code
section
15.293B,
related
to
34
the
application,
review,
registration,
and
authorization
of
35
-28-
LSB
1978SV
(2)
89
jm/jh
28/
29
