A bill for an act modifying public improvements relating to housing and residential development in urban renewal areas, and including effective date and applicability provisions.(See HF 1037 .)

House

File

617

-

Introduced

HOUSE

FILE

617

BY

SIEGRIST

,

TUREK

,

SIECK

,

and

KAUFMANN

A

BILL

FOR

An

Act

modifying

public

improvements

relating

to

housing

1

and

residential

development

in

urban

renewal

areas,

and

2

including

effective

date

and

applicability

provisions.

3

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

4

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617

Section

1.

Section

403.17,

subsection

14,

Code

2025,

is

1

amended

to

read

as

follows:

2

14.

“Low

or

and

moderate

income

families”

means

those

3

families,

including

single

person

households,

earning

no

4

more

than

eighty

percent

of

the

higher

of

the

median

family

5

income

of

the

county

or

the

statewide

nonmetropolitan

area

as

6

determined

by

the

latest

United

States

department

of

housing

7

and

urban

development,

section

8

income

guidelines.

8

Sec.

2.

Section

403.22,

subsection

1,

Code

2025,

is

amended

9

by

adding

the

following

new

paragraph:

10

NEW

PARAGRAPH

.

d.

(1)

(a)

For

projects

subject

to

11

paragraph

“a”

,

if

the

public

improvement

project

is

related

to

12

housing

and

residential

development

in

an

economic

development

13

area

containing

property

that

has

been

located

entirely

within

14

the

corporate

limits

of

a

city

for

twenty

years

or

more,

15

the

amount

to

be

provided

for

low

and

moderate

income

family

16

housing

for

such

projects

shall

not

be

less

than

an

amount

17

equal

to

twenty

percent

of

the

original

project

cost,

subject

18

to

further

reduction

as

provided

in

this

subsection.

19

(b)

In

addition,

notwithstanding

subsection

5,

the

division

20

of

the

revenue

under

section

403.19

for

each

project

under

this

21

paragraph

“d”

shall

be

limited

to

tax

collections

for

twenty

22

fiscal

years

beginning

with

the

second

fiscal

year

after

the

23

year

in

which

the

municipality

first

certifies

to

the

county

24

auditor

the

amount

of

any

loans,

advances,

indebtedness,

or

25

bonds

which

qualify

for

payment

from

the

division

of

the

26

revenue

in

connection

with

the

project.

27

(2)

For

projects

under

this

paragraph,

“low

and

moderate

28

income

family

housing”

includes

housing

that

meets

the

29

requirements

of

section

15.353.

30

Sec.

3.

EFFECTIVE

DATE.

This

Act,

being

deemed

of

immediate

31

importance,

takes

effect

upon

enactment.

32

Sec.

4.

APPLICABILITY.

This

Act

applies

to

revenues

divided

33

for

projects

approved

on

or

after

the

effective

date

of

this

34

Act.

35

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617

EXPLANATION

1

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

2

the

explanation’s

substance

by

the

members

of

the

general

assembly.

3

Under

current

law,

any

urban

renewal

area

established

upon

4

the

determination

that

the

area

is

an

economic

development

5

area,

a

division

of

revenue

(tax

increment

financing)

shall

6

not

be

allowed

for

the

purpose

of

providing

or

aiding

in

7

the

provision

of

public

improvements

related

to

housing

and

8

residential

development,

unless

the

municipality

assures

that

9

the

project

will

include

assistance

for

low

and

moderate

income

10

family

housing.

11

This

bill

expands

assistance

to

low

and

moderate

income

12

family

housing

by

specifying

that

in

a

city

with

a

population

13

of

more

than

15,000,

for

projects

in

an

urban

renewal

area

14

containing

property

that

has

been

located

entirely

within

the

15

corporate

limits

of

a

city

for

20

or

more

years,

the

low

and

16

moderate

income

family

housing

assistance

for

such

projects

17

shall

not

be

less

than

an

amount

equal

to

20

percent

of

the

18

original

project

cost

instead

of

the

current

law

minimum

of

10

19

percent.

20

The

bill

also

extends

the

division

of

the

revenue

for

such

21

projects

to

tax

collections

for

20

fiscal

years

instead

of

the

22

current

law

maximum

of

10

years.

23

For

such

projects

under

the

new

requirements

in

the

bill,

24

the

bill

also

specifies

that

“low

and

moderate

income

family

25

housing”

includes

housing

that

meets

the

requirements

of

Code

26

section

15.353

(workforce

housing).

27

The

bill

also

modifies

the

defined

term

“low

or

moderate

28

income

families”

in

Code

chapter

403

to

“low

and

moderate

29

income

families”

to

align

with

the

terminology

usage

within

the

30

Code

chapter.

31

The

bill

takes

effect

upon

enactment

and

applies

to

revenues

32

divided

for

projects

approved

on

or

after

the

effective

date

33

of

the

bill.

34

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