Bill Text: IA SSB3092 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to the establishment of a disaster recovery homeowner assistance program and fund administered by the Iowa finance authority, transfers of moneys to certain funds, and including effective date provisions.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2020-02-18 - Committee report approving bill, renumbered as SF 2314. [SSB3092 Detail]
Download: Iowa-2019-SSB3092-Introduced.html
Senate
Study
Bill
3092
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
IOWA
FINANCE
AUTHORITY
BILL)
A
BILL
FOR
An
Act
relating
to
the
establishment
of
a
disaster
recovery
1
homeowner
assistance
program
and
fund
administered
by
the
2
Iowa
finance
authority,
transfers
of
moneys
to
certain
3
funds,
and
including
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
5422DP
(7)
88
ko/jh
S.F.
_____
H.F.
_____
Section
1.
NEW
SECTION
.
16.43
Use
of
revolving
loan
funds.
1
Notwithstanding
any
other
provision
of
law
to
the
contrary,
2
the
authority
may
transfer
any
unobligated
and
unencumbered
3
moneys
in
any
revolving
loan
program
fund
created
pursuant
to
4
section
16.46,
16.47,
16.48,
or
16.49,
for
deposit
in
any
other
5
fund
created
under
this
part.
6
Sec.
2.
NEW
SECTION
.
16.44
Disaster
recovery
homeowner
7
assistance
program
and
fund.
8
1.
As
used
in
this
section,
unless
the
context
otherwise
9
requires:
10
a.
“Disaster-affected
home”
means
any
of
the
following:
11
(1)
A
primary
residence
that
is
destroyed
or
damaged
due
to
12
a
natural
disaster
that
occurs
on
or
after
the
effective
date
13
of
this
Act,
and
is
located
in
a
county
that
due
to
the
natural
14
disaster
is
the
subject
of
a
state
of
disaster
emergency
15
proclamation
by
the
governor
that
authorizes
disaster
recovery
16
homeowner
assistance.
17
(2)
A
primary
residence
that
is
destroyed
or
damaged
due
to
18
a
natural
disaster
that
occurred
on
or
after
March
12,
2019,
19
but
before
the
effective
date
of
this
Act,
and
is
located
in
a
20
county
that
has
been
declared
a
major
disaster
by
the
president
21
of
the
United
States
on
or
after
March
12,
2019,
but
before
the
22
effective
date
of
this
Act,
and
that
is
also
a
county
in
which
23
individuals
are
eligible
for
federal
individual
assistance.
24
b.
“Fund”
means
the
disaster
recovery
homeowner
assistance
25
fund.
26
c.
“Local
program
administrator”
means
any
of
the
following:
27
(1)
The
cities
of
Ames,
Cedar
Falls,
Cedar
Rapids,
Council
28
Bluffs,
Davenport,
Des
Moines,
Dubuque,
Iowa
City,
Waterloo,
29
and
West
Des
Moines.
30
(2)
A
council
of
governments
whose
territory
includes
at
31
least
one
county
that
is
the
subject
of
a
state
of
disaster
32
emergency
proclamation
by
the
governor
that
authorizes
disaster
33
recovery
homeowner
assistance
on
or
after
the
effective
date
34
of
this
Act.
35
-1-
LSB
5422DP
(7)
88
ko/jh
1/
8
S.F.
_____
H.F.
_____
(3)
A
qualified
local
organization
or
governmental
entity
1
as
determined
by
rules
as
adopted
by
the
authority.
2
d.
“Program”
means
the
disaster
recovery
homeowner
3
assistance
program.
4
e.
“Replacement
housing”
means
housing
purchased
by
a
5
homeowner
to
replace
a
disaster-affected
home
that
is
destroyed
6
or
damaged
beyond
reasonable
repair
as
determined
by
a
local
7
program
administrator.
8
f.
“State
of
disaster
emergency”
means
the
same
as
described
9
in
section
29C.6,
subsection
1.
10
2.
a.
A
disaster
recovery
homeowner
assistance
fund
11
is
created
within
the
authority,
and
the
authority
shall
12
administer
the
fund
in
a
manner
to
award
forgivable
loans
to
13
eligible
homeowners
for
purposes
of
this
section.
14
b.
The
fund
may
consist
of
any
moneys
appropriated
by
the
15
general
assembly
for
purposes
of
this
section
and
any
other
16
moneys
that
are
lawfully
available
to
the
authority.
The
17
authority
shall
use
any
moneys
specifically
appropriated
for
18
purposes
of
this
section
only
for
the
purposes
of
this
section.
19
The
authority
may
use
all
other
moneys
in
the
fund,
including
20
interest,
earnings,
and
recaptures,
for
purposes
of
this
21
section.
22
c.
Notwithstanding
section
8.39,
subsections
1
and
3,
and
23
notwithstanding
any
other
law
to
the
contrary,
without
the
24
prior
written
consent
and
approval
of
the
governor
and
the
25
department
of
management,
the
executive
director
of
the
Iowa
26
finance
authority
may
transfer
any
unobligated
and
unencumbered
27
moneys
in
any
fund
created
pursuant
to
section
16.5,
subsection
28
1,
paragraph
“s”
,
for
deposit
in
the
disaster
recovery
homeowner
29
assistance
fund.
30
d.
Notwithstanding
section
8.39,
subsections
2
and
3,
31
and
notwithstanding
any
other
law
to
the
contrary,
with
the
32
written
approval
of
the
director
of
the
economic
development
33
authority
and
without
the
approval
of
the
governor,
the
34
executive
director
of
the
Iowa
finance
authority
may
transfer
35
-2-
LSB
5422DP
(7)
88
ko/jh
2/
8
S.F.
_____
H.F.
_____
any
unobligated
and
unencumbered
moneys
in
any
fund
created
1
pursuant
to
section
15.106A,
subsection
1,
paragraph
“o”
,
for
2
deposit
in
the
disaster
recovery
homeowner
assistance
fund.
3
e.
Notwithstanding
section
8.33,
moneys
in
the
fund
at
the
4
end
of
each
fiscal
year
shall
not
revert
to
the
general
fund
or
5
any
other
fund
but
shall
remain
in
the
fund
for
expenditure
for
6
subsequent
fiscal
years.
7
f.
The
authority
shall
not
use
more
than
five
percent
of
8
the
moneys
in
the
fund
at
the
beginning
of
a
fiscal
year
for
9
purposes
of
administrative
costs
and
other
program
support.
10
3.
The
authority
shall
establish
and
administer
a
disaster
11
recovery
homeowner
assistance
program
and
shall
use
moneys
in
12
the
fund
to
award
forgivable
loans
to
eligible
homeowners
of
13
disaster-affected
homes.
Moneys
in
the
fund
may
be
expended
14
following
a
state
of
disaster
emergency
proclamation
by
15
the
governor
that
authorizes
disaster
recovery
homeowner
16
assistance.
The
authority
may
enter
into
an
agreement
with
one
17
or
more
local
program
administrators
to
administer
the
program.
18
4.
To
be
considered
for
a
forgivable
loan
under
the
19
program,
a
homeowner
must
register
for
the
disaster
case
20
management
program
established
pursuant
to
section
29C.20B.
21
The
homeowner’s
disaster
case
manager
shall
determine
the
22
homeowner’s
eligibility
for
the
disaster
recovery
homeowner
23
assistance
program.
If
the
homeowner’s
disaster
case
manager
24
confirms
the
homeowner’s
eligibility,
the
disaster
case
manager
25
shall
refer
the
homeowner
to
the
appropriate
local
program
26
administrator.
27
5.
To
be
eligible
for
a
forgivable
loan
under
the
program
a
28
homeowner
must
meet
all
of
the
following
requirements:
29
a.
The
homeowner’s
disaster-affected
home
must
have
30
sustained
damage
greater
than
the
damage
that
is
covered
by
the
31
homeowner’s
property
and
casualty
insurance
policy
insuring
the
32
home
plus
any
other
state
or
federal
disaster-related
financial
33
assistance
that
the
homeowner
is
eligible
to
receive.
34
b.
A
local
program
administrator
must
deem
the
homeowner’s
35
-3-
LSB
5422DP
(7)
88
ko/jh
3/
8
S.F.
_____
H.F.
_____
disaster-affected
home
suitable
for
rehabilitation
or
damaged
1
beyond
reasonable
repair.
2
c.
If
the
homeowner
is
seeking
a
forgivable
loan
for
the
3
repair
or
rehabilitation
of
the
homeowner’s
disaster-affected
4
home,
the
homeowner’s
disaster-affected
home
cannot
be
proposed
5
for
buyout
by
the
county
or
city
in
which
the
disaster-affected
6
home
is
located.
7
6.
a.
If
a
homeowner
is
referred
to
the
authority
or
to
a
8
local
program
administrator
by
the
homeowner’s
disaster
case
9
manager,
the
authority
may
award
a
forgivable
loan
to
the
10
eligible
homeowner
for
any
of
the
following
purposes:
11
(1)
Repair
or
rehabilitation
of
the
homeowner’s
12
disaster-affected
home.
13
(2)
Down
payment
assistance
on
the
purchase
of
replacement
14
housing
and
the
cost
of
reasonable
repairs
to
be
performed
15
on
the
replacement
housing
to
render
the
replacement
housing
16
decent,
safe,
sanitary,
and
in
good
repair.
Replacement
17
housing
purchased
by
a
homeowner
shall
not
be
located
18
in
a
one-hundred-year
floodplain.
For
purposes
of
this
19
subparagraph,
“decent,
safe,
sanitary,
and
in
good
repair”
20
means
the
same
as
described
in
24
C.F.R.
§5.703.
21
b.
The
maximum
forgivable
loan
that
the
authority
may
22
award
to
any
one
eligible
homeowner
shall
be
determined
by
the
23
authority
by
rule.
24
c.
All
forgivable
loans
that
are
awarded
to
an
eligible
25
homeowner
shall
have
a
five-year
term
and
shall
be
26
interest-free.
27
d.
A
forgivable
loan
awarded
to
an
eligible
homeowner
shall
28
be
forgiven
by
the
authority
by
a
uniform
percentage
on
a
29
monthly
basis
as
determined
by
rules
adopted
by
the
authority.
30
e.
If
a
homeowner
who
has
been
awarded
a
forgivable
loan
31
sells
a
disaster-affected
home
or
replacement
housing
for
which
32
the
homeowner
received
the
forgivable
loan
prior
to
the
end
33
of
the
five-year
loan
term,
the
remaining
principal
on
the
34
forgivable
loan
shall
be
due
and
payable
pursuant
to
rules
35
-4-
LSB
5422DP
(7)
88
ko/jh
4/
8
S.F.
_____
H.F.
_____
adopted
by
the
authority.
1
7.
The
authority
shall
adopt
rules
pursuant
to
chapter
17A
2
to
implement
and
administer
this
section.
3
Sec.
3.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
4
importance,
takes
effect
upon
enactment.
5
EXPLANATION
6
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
7
the
explanation’s
substance
by
the
members
of
the
general
assembly.
8
This
bill
relates
to
the
establishment
of
a
disaster
9
recovery
homeowner
assistance
program
and
fund
administered
by
10
the
Iowa
finance
authority,
and
transfers
of
moneys
to
certain
11
funds.
12
The
bill
creates
a
disaster
recovery
homeowner
assistance
13
fund
(fund)
within
the
Iowa
finance
authority
(authority).
The
14
fund
may
consist
of
any
moneys
appropriated
by
the
general
15
assembly
and
any
other
moneys
that
are
lawfully
available
to
16
the
authority.
The
authority
may
use
all
moneys
in
the
fund,
17
including
interest,
earnings,
and
recaptures
for
the
purposes
18
of
the
fund.
Moneys
in
the
fund
at
the
end
of
each
fiscal
year
19
do
not
revert
to
any
other
fund
but
remain
in
the
fund
for
20
expenditure
for
subsequent
fiscal
years.
The
bill
prohibits
21
the
authority
from
using
more
than
5
percent
of
the
moneys
in
22
the
fund
at
the
beginning
of
a
fiscal
year
for
purposes
of
23
administrative
costs
and
other
program
support.
24
Notwithstanding
any
other
law
to
the
contrary,
the
bill
25
permits
the
authority
to
transfer
any
unobligated
and
26
unencumbered
moneys
in
the
revolving
loan
program
funds
created
27
pursuant
to
Code
sections
16.46,
16.47,
16.48,
or
16.49,
for
28
deposit
in
any
other
fund
created
under
Code
chapter
16,
29
part
4.
Notwithstanding
Code
sections
8.39(1)
and
8.39(3),
30
and
notwithstanding
any
other
law
to
the
contrary,
the
bill
31
permits
the
executive
director
of
the
authority
to
transfer
32
any
unobligated
and
unencumbered
moneys
in
any
fund
created
33
pursuant
to
Code
section
16.5(1)(s),
for
deposit
in
the
34
disaster
recovery
homeowner
assistance
fund
without
the
prior
35
-5-
LSB
5422DP
(7)
88
ko/jh
5/
8
S.F.
_____
H.F.
_____
written
consent
and
approval
of
the
governor
and
the
department
1
of
management.
Notwithstanding
Code
sections
8.39(2)
and
2
8.39(3),
and
notwithstanding
any
other
law
to
the
contrary,
3
the
bill
permits
the
executive
director
of
the
Iowa
finance
4
authority
to
transfer
any
unobligated
and
unencumbered
moneys
5
in
any
fund
created
pursuant
to
Code
section
15.106A(1)(o),
for
6
deposit
in
the
disaster
recovery
homeowner
assistance
fund,
7
with
the
written
approval
of
the
director
of
the
economic
8
development
authority
and
without
the
approval
of
the
governor.
9
The
bill
directs
the
authority
to
establish
and
administer
a
10
disaster
recovery
homeowner
assistance
program
(program)
and
to
11
use
moneys
in
the
fund
to
provide
forgivable
loans
to
eligible
12
homeowners
of
disaster-affected
homes.
“Disaster-affected
13
home”
is
defined
in
the
bill
as
a
primary
residence
that
is
14
destroyed
or
damaged
due
to
a
natural
disaster
that
occurs
on
15
or
after
the
effective
date
of
the
bill,
and
that
is
located
16
in
a
county
that
due
to
the
natural
disaster
is
the
subject
17
of
a
state
of
disaster
emergency
proclamation
by
the
governor
18
that
authorizes
disaster
recovery
homeowners
assistance;
or
a
19
primary
residence
that
is
destroyed
or
damaged
due
to
a
natural
20
disaster
that
occurred
on
or
after
March
12,
2019,
but
before
21
the
effective
date
of
the
bill,
and
is
located
in
a
county
that
22
has
been
declared
a
major
disaster
by
the
president
of
the
23
United
States
on
or
after
March
12,
2019,
and
that
is
also
a
24
county
in
which
individuals
are
eligible
for
federal
individual
25
assistance.
26
The
authority
may
enter
into
an
agreement
with
one
or
more
27
local
program
administrators
(administrator)
to
administer
the
28
program,
and
moneys
in
the
fund
may
be
expended
following
a
29
state
of
disaster
emergency
proclamation
by
the
governor
that
30
authorizes
disaster
recovery
homeowner
assistance.
“Local
31
program
administrator”
is
defined
in
the
bill
as
the
cities
of
32
Ames,
Cedar
Falls,
Cedar
Rapids,
Council
Bluffs,
Davenport,
Des
33
Moines,
Dubuque,
Iowa
City,
Waterloo,
and
West
Des
Moines;
and
34
a
council
of
governments
whose
territory
includes
at
least
one
35
-6-
LSB
5422DP
(7)
88
ko/jh
6/
8
S.F.
_____
H.F.
_____
county
that
is
the
subject
of
the
state
of
disaster
emergency
1
proclamation
by
the
governor
that
authorizes
disaster
recovery
2
homeowner
assistance;
or
a
qualified
local
organization
or
3
governmental
entity
as
determined
by
rules
as
adopted
by
the
4
authority.
5
To
be
considered
for
a
forgivable
loan
under
the
program,
6
a
homeowner
must
register
for
the
disaster
case
management
7
program
established
pursuant
to
Code
section
29C.20B.
The
8
homeowner’s
disaster
case
manager
(manager)
is
required
to
9
determine
the
homeowner’s
eligibility
for
the
program.
If
10
the
homeowner’s
manager
confirms
the
homeowner’s
eligibility,
11
the
manager
must
refer
the
homeowner
to
the
appropriate
12
administrator.
13
To
be
eligible
for
a
forgivable
loan
under
the
program,
14
the
bill
requires
a
homeowner
to
own
a
disaster-affected
home
15
(home)
located
in
a
county
that
has
been
proclaimed
a
state
16
of
disaster
emergency
by
the
governor;
the
home
must
have
17
sustained
damage
greater
than
the
damage
that
is
covered
by
the
18
homeowner’s
property
and
casualty
insurance
policy
insuring
19
the
home
plus
any
other
state
or
federal
disaster-related
20
financial
assistance
that
the
homeowner
is
eligible
to
receive;
21
an
administrator
must
deem
the
home
suitable
for
rehabilitation
22
or
damaged
beyond
reasonable
repair;
and
if
the
homeowner
is
23
seeking
a
forgivable
loan
for
the
repair
or
rehabilitation
of
24
the
homeowner’s
disaster-affected
home,
the
home
cannot
be
25
proposed
for
buyout
by
the
county
or
city
in
which
the
home
is
26
located.
27
If
a
homeowner
is
referred
to
an
administrator
by
the
28
homeowner’s
manager,
the
bill
allows
the
authority
to
award
29
a
forgivable
loan
to
the
eligible
homeowner
for
repair
or
30
rehabilitation
of
the
disaster-affected
home,
or
for
down
31
payment
assistance
on
the
purchase
of
replacement
housing,
32
and
the
cost
of
reasonable
repairs
to
be
performed
on
the
33
replacement
housing
to
render
it
decent,
safe,
sanitary,
and
34
in
good
repair.
Replacement
housing
purchased
by
a
homeowner
35
-7-
LSB
5422DP
(7)
88
ko/jh
7/
8
S.F.
_____
H.F.
_____
cannot
be
located
in
a
100-year
floodplain.
All
awarded
1
forgivable
loans
must
be
interest-free
and
have
a
five-year
2
term.
The
maximum
forgivable
loan
that
may
be
awarded
to
any
3
one
eligible
homeowner
shall
be
determined
by
the
authority
4
by
rule.
“Decent,
safe,
sanitary,
and
in
good
repair”
is
5
defined
in
the
bill
to
mean
the
same
as
described
in
24
C.F.R.
6
§5.703.
“Replacement
housing”
is
defined
in
the
bill
as
7
housing
purchased
by
a
homeowner
to
replace
a
disaster-affected
8
home
that
is
destroyed
or
damaged
beyond
reasonable
repair
as
9
determined
by
a
local
program
administrator.
10
A
uniform
percentage
of
a
forgivable
loan
awarded
to
a
11
homeowner
must
be
forgiven
by
the
authority
on
a
monthly
12
basis
as
determined
by
rules
adopted
by
the
authority.
If
13
a
homeowner
who
has
been
awarded
a
forgivable
loan
sells
a
14
disaster-affected
home
or
replacement
housing
for
which
the
15
homeowner
received
the
forgivable
loan
prior
to
the
end
of
16
the
five-year
term,
the
remaining
principal
on
the
forgivable
17
loan
becomes
due
and
payable
pursuant
to
rules
adopted
by
the
18
authority.
19
The
authority
is
required
to
adopt
rules
to
implement
and
20
administer
the
fund
and
the
program.
21
The
bill
takes
effect
upon
enactment.
22
-8-
LSB
5422DP
(7)
88
ko/jh
8/
8