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Kim Reynolds
governor
Office of the Governor Chris Cournoyer
LT GOVERNOR
June 02, 2026
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretary,
I hereby transmit:
House File 2772, an Act relating to and making appropriations for the economic
development of the state, including to the Economic Development Authority, Iowa
Finance Authority, Department of Workforce Development, and State Board of Regents
and certain regent institutions, and codifying the Housing Renewal Program.
The above House File is hereby approved on this date.
Kim Reynolds ’
Governor of Iowa
cc: Secretary of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 WWW.GOVERNOR.IOWA.GOV
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House File 2772
AN ACT
RELATING TO AND MAKING APPROPRIATIONS FOR THE ECONOMIC
DEVELOPMENT OF THE STATE, INCLUDING TO THE ECONOMIC
DEVELOPMENT AUTHORITY, IOWA FINANCE AUTHORITY, DEPARTMENT
OF WORKFORCE DEVELOPMENT, AND STATE BOARD OF REGENTS AND
CERTAIN REGENTS INSTITUTIONS, AND CODIFYING THE HOUSING
RENEWAL PROGRAM.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
House File 2772, p. 2
DIVISION I
FY 2026-2027 APPROPRIATIONS
Section 1. GOALS AND ACCOUNTABILITY — ECONOMIC
DEVELOPMENT .
1. For the fiscal year beginning July 1, 2026, the goals
for the economic development authority shall be to expand and
stimulate the state economy, increase the wealth of lowans, and
increase the population of the state.
2. To achieve the goals in subsection 1, the economic
development authority shall do all of the following for the
fiscal year beginning July 1, 2026:
a. Concentrate its efforts on programs and activities that
result in commercially viable products and services.
b. Adopt practices and services consistent with free
market, private sector philosophies.
c. Ensure economic growth and development throughout the
state .
d. Work with businesses and communities to continually
improve the economic development climate along with the
economic well-being and quality of life for lowans.
e. Establish a strong and aggressive marketing image to
showcase Iowa's workforce, existing industry, and potential.
The authority shall prioritize recruitment of new businesses,
business expansion, and retention of existing Iowa businesses.
In addition, the authority shall emphasize entrepreneurial
development through helping entrepreneurs secure capital,
and developing networks and a business climate conducive to
entrepreneurs and small businesses.
f. Encourage the development of communities and quality of
life to foster economic growth.
g. Prepare communities for future growth and development
through development, expansion, and modernization of
infrastructure.
h. Develop public-private partnerships with Iowa businesses
in the tourism industry, Iowa tour groups, Iowa tourism
organizations, and political subdivisions in this state to
assist in the development of advertising efforts.
Sec. 2. ECONOMIC DEVELOPMENT AUTHORITY.
1 . APPROPRIATION
House File 2772, p. 3
a. There is appropriated from the general fund of the state
to the economic development authority for the fiscal year
beginning July 1, 2026, and ending June 30, 2027, the following
amount, or so much thereof as is necessary, to be used for the
purposes designated in this subsection, and for not more than
the following full-time equivalent positions:
. $ 12,903,510
. FTEs 111.50
b. (1) For salaries, support, miscellaneous purposes,
programs, marketing, administration, business development,
community development, small business development, and any
divisions the authority may organize.
(2) For business development operations and programs,
international trade, export assistance, workforce recruitment,
and the partner state program.
(3) For transfer to a fund created pursuant to section
15.313 for purposes of financing strategic infrastructure
projects .
(4) For community economic development programs, tourism
operations, community assistance, and the community development
block grant.
(5) For achieving the goals and accountability, and
fulfilling the requirements and duties required under this Act.
(6) The full-time equivalent positions authorized under
this subsection are funded, in whole or in part, by the moneys
appropriated under this subsection or by other moneys received
by the authority, including certain federal moneys.
c. Notwithstanding section 8.33, moneys appropriated in
this subsection that remain unencumbered or unobligated at the
close of the fiscal year shall not revert but shall remain
available for expenditure for the purposes designated in this
subsection until the close of the succeeding fiscal year.
2. FINANCIAL ASSISTANCE RESTRICTIONS
a. A business creating jobs through moneys appropriated in
subsection 1 shall be subject to contract provisions requiring
new and retained jobs to be filled by individuals who are
citizens of the United States who reside within the United
States, or individuals authorized to work in the United States
pursuant to federal law, including legal resident aliens
House File 2772, p. 4
residing in the United States.
b. Any vendor who receives moneys appropriated in
subsection 1 shall adhere to such contract provisions and
provide periodic assurances as the state shall require that the
jobs are filled solely by citizens of the United States who
reside within the United States, or individuals authorized to
work in the United States pursuant to federal law, including
legal resident aliens residing in the United States.
c. A business that receives financial assistance from
the authority from moneys appropriated in subsection 1 shall
only employ individuals legally authorized to work in this
state. In addition to all other applicable penalties provided
by current law, all or a portion of the assistance received
by a business which is found to knowingly employ individuals
not legally authorized to work in this state is subject to
recapture by the authority.
3. USES OF APPROPRIATIONS
a. From the moneys appropriated in subsection 1, the
authority may provide financial assistance in the form of
grants, loans, or forgivable loans for advanced research and
commercialization projects involving value-added agriculture,
advanced technology, or biotechnology.
b. The authority shall not use any moneys appropriated in
subsection 1 for purposes of providing financial assistance
for any program or project that involves the installation of
geothermal systems for melting snow and ice from streets or
sidewalks .
4. WORLD FOOD PRIZE
In lieu of the standing appropriation in section 15.368,
there is appropriated from the general fund of the state to the
economic development authority for the fiscal year beginning
July 1, 2026, and ending June 30, 2027, the following amount to
be used for support of the world food prize:
. $ 450,000
5. TOURISM OFFICE
a. There is appropriated from the general fund of the state
to the economic development authority for the fiscal year
beginning July 1, 2026, and ending June 30, 2027, the following
amount, or so much thereof as is necessary, to be used for the
House File 2772, p. 5
tourism office for the advertisement, promotion, placement,
and implementation of the economic development authority's
strategic plan for tourism and travel:
. $ 1,050,000
b. Notwithstanding section 8.33, moneys appropriated in
this subsection that remain unencumbered or unobligated at the
close of the fiscal year shall not revert but shall remain
available for expenditure for the purposes designated until the
close of the succeeding fiscal year.
c. The economic development authority shall submit an
annual report on or before January 15 to the general assembly
regarding the tourism office's activities funded with moneys
appropriated under this subsection. The report must be
provided in an electronic format and must include metrics
and criteria that allow the general assembly to quantify and
evaluate the effectiveness and economic impact of the tourism
office's activities related to the advertisement, promotion,
placement, and implementation of the economic development
authority's strategic plan for tourism and travel.
6. CULTURAL AFFAIRS ACTIVITIES
a. There is appropriated from the general fund of the state
to the economic development authority for the fiscal year
beginning July 1, 2026, and ending June 30, 2027, the following
amount, or so much thereof as is necessary, to be used for
support of the Iowa arts council:
. $ 1,601,800
b. Of the moneys appropriated in paragraph "a", the economic
development authority shall allocate $321,800 for deposit in
the arts and culture enhancement fund established in section
15.436.
c. Notwithstanding section 8.33, moneys appropriated in
this subsection that remain unencumbered or unobligated at the
close of the fiscal year shall not revert but shall remain
available for expenditure for the purposes designated until the
close of the succeeding fiscal year.
Sec. 3. LIMITATIONS OF STANDING APPROPRIATIONS - FY
2026-2027. Notwithstanding the standing appropriations in the
following designated sections for the fiscal year beginning
July 1, 2026, and ending June 30, 2027, the amount appropriated
House File 2772, p. 6
from the general fund of the state pursuant to the following
sections for the following purposes shall not exceed the
following amounts:
1. For the arts and culture enhancement fund under section
99F.11, subsection 4, paragraph "d", subparagraph (1):
. $ 448,403
2. For the purposes of tourism marketing under section
99F.11, subsection 4, paragraph "d", subparagraph (2):
. $ 1,443,700
Sec. 4. FINANCIAL ASSISTANCE REPORTING — ECONOMIC
DEVELOPMENT AUTHORITY. The economic development authority
shall submit an annual report to the general assembly no later
than November 1, 2026, that details the amount of every direct
loan, forgivable loan, tax credit, tax exemption, tax refund,
grant, or any other financial assistance awarded to a person
during the prior fiscal year by the authority under an economic
development program administered by the authority. The report
must identify the county where the project associated with each
such award is located.
Sec. 5. INSURANCE ECONOMIC DEVELOPMENT. From the moneys
collected by the insurance division of the department of
insurance and financial services in excess of the anticipated
gross revenues under section 505.7, subsection 3, during
the fiscal year beginning July 1, 2026, $100,000 shall be
transferred to the economic development authority for insurance
economic development and international insurance economic
development .
Sec. 6. IOWA FINANCE AUTHORITY.
1. There is appropriated from the general fund of the state
to the Iowa finance authority for the fiscal year beginning
July 1, 2026, and ending June 30, 2027, the following amounts,
or so much thereof as is necessary, to be used for the purposes
designated:
a. Rent subsidy program
(1) To provide reimbursement for rent expenses to eligible
persons under the home and community-based services rent
subsidy program established in section 16.55:
. $ 873,000
(2) Of the moneys appropriated in this paragraph, not more
House File 2772, p. 7
than $35,000 may be used for administrative costs.
b. Housing renewal program
To provide housing renewal moneys to the nonprofit Iowa
affiliate to award grants to eligible communities for the
housing renewal program created in section 16.52, as enacted in
Division II of this Act:
. $ 550,000
2. Notwithstanding section 8.33, moneys appropriated in
this section that remain unencumbered or unobligated at the
close of the fiscal year shall not revert but shall remain
available for expenditure for the purposes designated until the
close of the succeeding fiscal year.
Sec. 7. IOWA FINANCE AUTHORITY AUDIT. The auditor of state
is requested to review the audit of the Iowa finance authority
performed by the auditor hired by the authority.
Sec. 8. DEPARTMENT OF WORKFORCE DEVELOPMENT. There
is appropriated from the general fund of the state to the
department of workforce development for the fiscal year
beginning July 1, 2026, and ending June 30, 2027, the following
amounts, or so much thereof as is necessary, to be used for the
purposes designated:
1. WORKFORCE DEVELOPMENT OPERATIONS
a. For the operation of field offices and the workforce
development board, and for not more than the following
full-time equivalent positions:
. $ 6,902,636
. FTEs 157.09
b. Of the moneys appropriated in paragraph "a", the
department shall allocate $150,000 to the state library for
the purpose of licensing an online resource which prepares
individuals to succeed in the workplace through programs which
improve job skills and vocational test-taking abilities.
2. OFFENDER REENTRY PROGRAM
a. For the development and administration of an offender
reentry program to provide offenders with employment skills,
and for not more than the following full-time equivalent
positions :
. $ 387,158
. FTEs 4.00
House File 2772, p. 8
b. The department of workforce development shall partner
with the department of corrections to provide staff within
the correctional facilities resources to improve offenders'
abilities to find and retain productive employment.
3. STATE ACCOUNTING SYSTEM
For the payment of services provided by the department of
administrative services related to the state accounting system:
. $ 228,822
4. WORKPLACE INJURY AND SAFETY SURVEYS
For the operation of workplace safety surveys and workplace
data collection and analysis, including salaries, support,
maintenance, and miscellaneous purposes, and for not more than
the following full-time equivalent positions:
. $ 125,555
. FTEs 1.90
5. VOCATIONAL REHABILITATION SERVICES DIVISION
a. For salaries, support, maintenance, and miscellaneous
purposes, and for not more than the following full-time
equivalent positions:
. $ 6,226,739
. FTEs 233.00
For purposes of optimizing the job placement of individuals
with disabilities, the division shall make its best efforts
to work with community rehabilitation program providers for
job placement and retention services for individuals with
significant disabilities and most significant disabilities. By
January 15, 2027, the division shall submit a written report to
the general assembly regarding the division's outreach efforts
with community rehabilitation program providers.
b. For the entrepreneurs with disabilities program
described in section 84H.4:
. $ 138,506
6. ADULT EDUCATION AND LITERACY PROGRAMS
For distribution as grants to community colleges for
the purpose of adult basic education programs for students
requiring instruction in English as a second language:
. $ 500,000
In issuing grants under this subsection, the department of
workforce development shall use the same application process
House File 2772, p. 9
and criteria as are used for purposes of awarding grants to
community colleges for the purpose of adult basic education
programs for students requiring instruction in English as a
second language using moneys that are appropriated to the
department from the Iowa skilled worker and job creation fund
created in section 8.57J.
7. REGISTERED APPRENTICESHIP PROGRAMS
For the funding of the registered apprenticeship programs
under chapter 84F to encourage small to midsize businesses to
start or grow registered apprenticeships:
. $ 760,000
8. REVERSION
Notwithstanding section 8.33, moneys appropriated in this
section that remain unencumbered or unobligated at the close of
the fiscal year shall not revert but shall remain available for
expenditure for the purposes designated until the close of the
succeeding fiscal year.
Sec. 9. DEPARTMENT OF WORKFORCE DEVELOPMENT - SPECIAL
EMPLOYMENT SECURITY CONTINGENCY FUND.
1. There is appropriated from the special employment
security contingency fund created in section 96.13 to the
department of workforce development for the fiscal year
beginning July 1, 2026, and ending June 30, 2027, the following
amount, or so much thereof as is necessary, to be used for
field offices:
. $ 4,616,084
2. Any remaining additional penalty and interest revenue
collected by the department of workforce development is
appropriated to the department for the fiscal year beginning
July 1, 2026, and ending June 30, 2027, to accomplish the
mission of the department.
Sec. 10. IOWA SKILLED WORKER AND JOB CREATION FUND.
1. There is appropriated from the Iowa skilled worker and
job creation fund created in section 8. 57 J to the following
departments, agencies, and institutions for the fiscal year
beginning July 1, 2026, and ending June 30, 2027, the following
amounts, or so much thereof as is necessary, to be used for the
purposes designated:
a. ECONOMIC DEVELOPMENT AUTHORITY
House File 2772, p. 10
(1) For providing financial assistance to eligible
businesses for the business incentives for growth program
pursuant to chapter 15, subchapter II, part 33:
. $ 11,700,000
(a) Of the moneys appropriated in this subparagraph (1),
not more than $1,000,000 may be used for purposes of providing
infrastructure grants to main street communities under the main
street Iowa program.
(b) As a condition of receiving moneys appropriated in this
subparagraph (1), an entity shall testify upon the request of
the joint appropriations subcommittee on economic development
regarding the expenditure of such moneys.
(2) For support of the manufacturing 4.0 technology
investment program established in section 15.371:
. $ 2,350,000
(3) For the empower rural Iowa program:
. $ 700,000
b. STATE BOARD OF REGENTS AND REGENTS INSTITUTIONS
(1) STATE BOARD OF REGENTS
For capacity building infrastructure in areas related
to technology commercialization, marketing and business
development efforts in areas related to technology
commercialization, entrepreneurship, and business growth,
and infrastructure projects and programs needed to assist in
implementation of activities under chapter 262B:
. $ 3,000,000
(a) Of the moneys appropriated pursuant to this
subparagraph (1), 35 percent shall be allocated for Iowa state
university of science and technology, 35 percent shall be
allocated for the state university of Iowa, and 30 percent
shall be allocated for the university of northern Iowa.
(b) The institutions shall provide a one-to-one match
of additional moneys for the activities funded with moneys
appropriated under this subparagraph (1).
(c) The state board of regents shall submit a report by
January 15, 2027, to the governor and the general assembly
regarding the activities, projects, and programs funded with
moneys appropriated under this subparagraph (1). The report
must be provided in an electronic format and must include a
House File 2772, p. 11
list of metrics and criteria mutually agreed to in advance by
the board of regents and the economic development authority.
The metrics and criteria must allow the governor's office and
the general assembly to quantify and evaluate the progress
of the board of regents institutions with regard to their
activities, projects, and programs in the areas of technology
commercialization, entrepreneurship, regional development, and
market research.
(2) IOWA STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY
For small business development centers, the research park,
and the center for industrial research and service, and for not
more than the following full-time equivalent positions:
. $ 2,424,302
. FTEs 50.94
(a) Of the moneys appropriated in this subparagraph (2),
Iowa state university of science and technology shall allocate
at least $735,728 for purposes of funding small business
development centers. Iowa state university of science and
technology may allocate the appropriated moneys to the various
small business development centers in any manner necessary to
achieve the purposes of this subparagraph (2).
(b) Iowa state university of science and technology shall
do all of the following:
(i) Direct expenditures for research toward projects that
will provide economic stimulus for Iowa.
(ii) Emphasize providing services to Iowa-based companies.
(c) It is the intent of the general assembly that the
center for industrial research and service industrial incentive
program focus on Iowa industrial sectors and seek contributions
and in-kind donations from businesses, industrial foundations,
and trade associations, and that moneys for the program shall
be allocated only for projects which are matched by private
sector moneys for directed contract research or for nondirected
research. The match required of small businesses as defined
in section 15.102 for directed contract research or for
nondirected research shall be $1 for each $3 of state funds.
The match required for other businesses for directed contract
research or for nondirected research shall be $1 for each $1 of
state funds. The match required of industrial foundations or
House File 2772, p. 12
trade associations shall be $1 for each $1 of state funds.
(d) Iowa state university of science and technology shall
report annually to the general assembly the total amount of
private contributions, the proportion of contributions from
small businesses and other businesses, and the proportion for
directed contract research and nondirected research of benefit
to Iowa businesses and industrial sectors.
(3) STATE UNIVERSITY OF IOWA
(a) For the state university of Iowa research park and for
university of Iowa pharmaceuticals located at the research
park, including salaries, support, maintenance, equipment, and
miscellaneous purposes, and for not more than the following
full-time equivalent positions:
. $ 209,279
. FTEs 6.00
The state university of Iowa shall do all of the following:
(i) Direct expenditures for research toward projects that
will provide economic stimulus for Iowa.
(ii) Emphasize providing services to Iowa-based companies.
(b) For the purpose of implementing the entrepreneurship
and economic growth initiative, and for not more than the
following full-time equivalent positions:
. $ 2,000,000
. FTEs 8.00
(4) UNIVERSITY OF NORTHERN IOWA
(a) For the metal casting and foundry 4.0 centers,
advance Iowa, family business center, and the institute for
decision making, including salaries, support, maintenance, and
miscellaneous purposes, and for not more than the following
full-time equivalent positions:
. $ 1,466,419
. FTEs 13.00
The university of northern Iowa shall do all of the
following :
(i) Direct expenditures for research toward projects that
will provide economic stimulus for Iowa.
(ii) Emphasize providing services to Iowa-based companies.
(b) For the purpose of providing in-state undergraduate
tuition and undergraduate mandatory fees to individuals
House File 2772, p. 13
who reside in a state contiguous to Iowa, who enroll in an
undergraduate program offered by the university of northern
Iowa, and who are classified as residents of this state for
purposes of undergraduate tuition and undergraduate mandatory
fees :
. $ 1,000,000
(c) For the purpose of expanding the nursing program:
. $ 600,000
(5) DUTY TO TESTIFY
As a condition of receiving moneys appropriated in this
lettered paragraph ”b", an entity shall testify upon the
request of the joint appropriations subcommittee on economic
development regarding the expenditure of such moneys.
C. DEPARTMENT OF WORKFORCE DEVELOPMENT
(1) For staffing costs related to completing workforce
preparation outcome reporting in conjunction with the
department of education:
. $ 125,000
(2) For distribution to community colleges for the purposes
of implementing adult education and literacy programs pursuant
to section 84A.19:
. $ 4,500,000
(a) From the moneys appropriated in this numbered
subparagraph, $3,125,000 shall be allocated pursuant to the
formula established in section 260C.18C.
(b) From the moneys appropriated in this numbered
subparagraph, not more than $150,000 shall be used by the
department of workforce development for implementation of adult
education and literacy programs pursuant to section 84A.19.
(c) From the moneys appropriated in this numbered
subparagraph, not more than $1,015,000 shall be distributed
as grants to community colleges for the purpose of adult
basic education programs for students requiring instruction
in English as a second language. The department of workforce
development shall establish an application process and criteria
to award grants pursuant to this subparagraph division to
community colleges. The criteria must be based on need for
instruction in English as a second language in the region
served by each community college as determined by factors
House File 2772, p. 14
including data from the latest federal decennial census and
outreach efforts to determine regional needs.
(d) From the moneys appropriated in this numbered
subparagraph, $210,000 shall be transferred to the department
of health and human services for purposes of administering
a program to provide access to international resources to
lowans and new lowans to provide economic and leadership
development resulting in Iowa being a more welcoming place
to live, work, and raise a family. The program must provide
supplemental support services for international refugees to
improve learning, English literacy, life skills, cultural
competencies, and integration in a county with a population
over 350,000 as determined by the 2020 federal decennial
census. The department of health and human services shall
utilize a request-for-proposals process to identify the entity
best qualified to implement the program.
2. Notwithstanding section 8.33, moneys appropriated in
this section that remain unencumbered or unobligated at the
close of the fiscal year shall not revert but shall remain
available for expenditure for the purposes designated until the
close of the succeeding fiscal year.
Sec. 11. GENERAL FUND — CERTAIN REGENTS INSTITUTIONS.
1. There is appropriated from the general fund of the state
to the following institutions for the fiscal year beginning
July 1, 2026, and ending June 30, 2027, the following amounts,
or so much thereof as is necessary, to be used for the purposes
designated:
a. IOWA STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY
In cooperation with the economic development authority, for
support of a biosciences innovation ecosystem, to strengthen
Iowa's leadership positions in the area of bio-based chemicals,
digital agriculture, vaccines, and medical devices, including
salaries, support, maintenance, and miscellaneous purposes, and
for not more than the following full-time equivalent positions:
. $ 2,963,995
. FTEs 14.81
b. STATE UNIVERSITY OF IOWA
In cooperation with the economic development authority, for
support of a biosciences innovation ecosystem, to strengthen
House File 2772, p. 15
Iowa's leadership positions in the area of bio-based chemicals,
digital agriculture, vaccines, and medical devices, including
salaries, support, maintenance, and miscellaneous purposes, and
for not more than the following full-time equivalent positions:
. $ 1,000,000
. FTEs 4.35
C. UNIVERSITY OF NORTHERN IOWA
For equipment and technology to expand the university's
additive manufacturing capabilities related to investment
castings technology and industry support, including salaries,
support, maintenance, and miscellaneous purposes, and for not
more than the following full-time equivalent positions:
. $ 394,321
. FTEs 2.73
The university of northern Iowa shall make a good-faith
effort to coordinate with private entities to seek moneys to
supplement this appropriation to support the expansion of the
university's additive manufacturing capabilities.
2. Notwithstanding section 8.33, moneys appropriated in
subsection 1, paragraphs "a" and "b", that remain unencumbered
or unobligated at the close of the fiscal year shall not revert
but shall remain available for expenditure for the purposes
designated until the close of the succeeding fiscal year.
DIVISION II
HOUSING RENEWAL PROGRAM
Sec. 12. NEW SECTION . 16.52 Housing renewal program.
1. For purposes of this section:
a. '‘'Eligible participant" includes cities, counties,
consortiums of local governments, and organizations exempt from
taxation pursuant to section 501(c)(3) of the Internal Revenue
Code.
b. "Nonprofit Iowa affiliate" means a nonprofit Iowa
affiliate of a nonprofit international organization whose
primary activity is the promotion of the construction,
remodeling, or rehabilitation of one-family or two-family
dwellings for use by low-income families.
2. a. A housing renewal program fund is created in the
state treasury under the control of the authority. The fund
shall consist of moneys appropriated to or deposited in the
House File 2772, p. 16
fund. Moneys in the fund are appropriated to the authority to
administer the housing renewal program.
b. Notwithstanding section 8.33, moneys appropriated to
the housing renewal program fund that remain unencumbered or
unobligated at the close of a fiscal year shall not revert
but shall remain available for expenditure for the purposes
designated until the close of the succeeding fiscal year.
c. Notwithstanding section 12C.7, subsection 2, interest or
earnings on moneys in the housing renewal program fund shall be
credited to the fund. Payment of interest, income generated
from the sale of an ownership unit pursuant to subsection 6,
recaptures of financial assistance awards, and other repayments
under the housing renewal program shall be retained by the
nonprofit Iowa affiliate for the purpose of awarding financial
assistance under the housing renewal program to eligible
participants .
3. a. The authority shall provide moneys from the housing
renewal program fund to a nonprofit Iowa affiliate that shall
use the moneys to award financial assistance under the housing
renewal program to eligible participants.
b. Eligible participants shall use financial assistance
awarded under the housing renewal program only for purposes of
the acquisition, rehabilitation, and resale of ownership units;
the acquisition and demolition of blighted structures; and the
redevelopment of ownership units.
4. Twenty-five percent of moneys appropriated to the
housing renewal program fund shall be allocated to financial
assistance awards for eligible participants located in the
eighty-eight least populated counties in the state according to
the most recent federal decennial census.
5. a. The nonprofit Iowa affiliate shall determine the
criteria used to evaluate eligible participants and to award
financial assistance to eligible participants selected by the
nonprofit Iowa affiliate.
b. The nonprofit Iowa affiliate shall not award an eligible
participant more than one hundred thousand dollars per
ownership unit. The nonprofit Iowa affiliate may use up to
five percent of the financial assistance awarded to an eligible
participant for administrative expenses related to the housing
House File 2772, p. 17
renewal program.
c. (1) An eligible participant shall have a maximum of
thirty-six months from the date a contract is executed between
the nonprofit Iowa affiliate and the eligible participant
for the eligible participant to complete the eligible
participant's project. The eligible participant's project
shall be considered complete when all financial assistance
awarded to the eligible participant has been expended, and all
ownership units that are covered by the contract are finished
and available for sale.
(2) Unless the nonprofit Iowa affiliate authorizes
additional time for good cause shown, if an eligible
participant has no project activity within twelve months
from the date a contract is executed between the nonprofit
Iowa affiliate and the eligible participant, the financial
assistance award shall be returned to the nonprofit Iowa
affiliate to be used to award financial assistance under the
housing renewal program to eligible participants.
d. An eligible participant shall sell each completed
ownership unit to a homebuyer whose household income is
equal to or less than the one hundred twenty percent area
median income and who must occupy the ownership unit as the
homebuyer's primary residence. The deed to the ownership unit
must contain a restrictive resale requirement that prohibits
the homebuyer or a subsequent owner from selling the ownership
unit to a person with a household income above the one hundred
twenty percent area median income for five calendar years from
the date the eligible participant sold the ownership unit to
the first homebuyer whose household income is equal to or less
than the one hundred twenty percent area median income.
6. The nonprofit Iowa affiliate shall use income generated
from the sale of an ownership unit only for the purpose of
awarding financial assistance to eligible participants under
the housing renewal program.
7. The authority shall not use more than five percent of
moneys appropriated to the housing renewal program fund for
administration and oversight of the housing renewal program.
8. The authority, in coordination with the nonprofit
Iowa affiliate, shall submit an annual report to the general
House File 2772, p. 18
assembly on or before December 31 describing the community,
economic, and financial impact of the housing renewal program.
Sec. 13. REPEAL. 2022 Iowa Acts, chapter 1148, section 20,
as amended by 2023 Iowa Acts, chapter 110, section 18, and 2025
Iowa Acts, chapter 155, section 14, is repealed
pat grassley//
Speaker of the House
AMY SINCLAIR
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2772, Ninety-first General Assembly.
ME'
Ch 1
N NELSON
Älerk the House
Approved 2026
KIM REYNOLDS
Governor