Iowa House Bill HF1012

Iowa 2025-2026 Regular Session

• Introduced: 4/14/25

Caption

A bill for an act relating to the natural hazard mitigation financing program, the disaster recovery housing assistance program, the disaster recovery new housing program, post-loss assignment of benefits, the licensing and regulation of adjusters, appraisers, and umpires, and the Iowa economic emergency fund, and providing penalties, making appropriations, and including effective date and retroactive applicability provisions.(Formerly HF 982, HF 957, HSB 246.)

Impact

The bill positively modifies current laws, enhancing the state’s capacity to respond to disasters by expanding access to financial assistance for homeowners and renters affected by natural disasters. A significant change includes the non-requirement for applicants for financial assistance to register with the advocacy program beforehand, which the previous law mandated. By simplifying the access process to financial assistance, it is expected that more individuals can recover faster from disaster-related damages. The appropriations included in the bill also provide substantial funding for this initiative, designating $11.6 million specifically for the disaster recovery housing assistance program for FY 2024-2025.

Summary

House File 1012 addresses the establishment of a natural hazard mitigation financing program, disaster recovery housing assistance, and a new housing program aimed at aiding victims of natural disasters. This bill proposes the creation of a natural hazard mitigation revolving loan fund to provide loans for financing disaster recovery projects. The Iowa Finance Authority (IFA) is tasked with managing these funds and ensuring they are used effectively to assist eligible projects and entities. The intention is to facilitate timely recovery from disasters, ultimately contributing to community resilience in the face of future emergencies.

Contention

Despite strong support for the provisions aimed at disaster recovery, some concerns may arise regarding the oversight and administration of the funds dispersed by the IFA. Stakeholders might question the adequacy of the proposed administrative costs cap of 5% on fund usage, which could limit the program's effectiveness if management is overstretched. Additionally, there may be scrutiny over the terms under which financial assistance is dispensed, concerning equity and accessibility for all affected individuals and families planning to utilize these funds, as it is critical that aid reaches the most vulnerable populations promptly.