House File 133 - Introduced HOUSE FILE 133 BY FISHER A BILL FOR An Act creating a vacant school building demolition grant 1 program and fund, and including contingent effective date 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1380YH (2) 91 nls/ko
H.F. 133 Section 1. NEW SECTION . 15.263 Vacant school building 1 demolition grant program fund. 2 1. A vacant school building demolition grant fund is created 3 in the state treasury under the control of the authority. The 4 fund shall consist of moneys appropriated to the authority for 5 deposit in the fund and any other moneys that are lawfully 6 available to the authority. 7 2. Moneys in the vacant school building demolition grant 8 fund are appropriated to the authority for purposes of funding 9 a grant program for the demolition of vacant buildings owned 10 by a political subdivision of this state or proposed to be 11 acquired by a political subdivision of this state that became 12 vacant before January 1, 2021, and were at any time previously 13 used as school attendance centers or school administration 14 buildings, but which are no longer used for any political 15 subdivision purpose. 16 3. Notwithstanding section 12C.7, subsection 2, interest 17 or earnings on moneys deposited in the vacant school building 18 demolition grant fund shall be credited to the vacant school 19 building demolition grant fund. Notwithstanding section 8.33, 20 moneys credited to the vacant school building demolition grant 21 fund shall not revert at the close of a fiscal year. However, 22 if the authority receives no qualifying applications for three 23 consecutive years, the moneys in the vacant school building 24 demolition grant fund shall be transferred for deposit in the 25 rebuild Iowa infrastructure fund. 26 4. The authority may use not more than five percent of 27 the moneys in the fund at the beginning of the fiscal year 28 for purposes of administrative costs, finance, compliance, 29 marketing, and program support. 30 5. a. The authority shall provide grants under this section 31 using a competitive scoring process. The authority shall 32 prioritize grant applications from political subdivisions with 33 the lowest populations as compared to other grant applicants. 34 A grant shall only be approved if the eligible building is 35 -1- LSB 1380YH (2) 91 nls/ko 1/ 4
H.F. 133 located in a city or township with a population less than 1 two thousand five hundred, and the political subdivision 2 applying is either a county with a population that is among the 3 eighty-eight lowest populated counties in the state or is a 4 political subdivision that is located in whole or in part in 5 such a county. 6 b. In providing grants under this section, the authority 7 shall coordinate with the political subdivision to develop a 8 plan for the use of grant funds that is consistent with the 9 community development, housing, or economic development goals 10 of the political subdivision. 11 c. In providing grants under this section, the authority 12 shall coordinate with the political subdivision to ensure that 13 the condition and use of the property following demolition is 14 consistent with the propertys surroundings, including for 15 future new construction, park space, or agricultural use. 16 d. The political subdivision shall not be required to sell 17 the property after demolition as a condition of the grant. 18 However, if the property is sold by the political subdivision 19 following demolition, proceeds from sale of the property, 20 following subtraction of the political subdivisions costs 21 related to the demolition, including costs to acquire the 22 property if applicable, shall be paid to the authority for 23 deposit in the vacant school building demolition grant fund. 24 6. The authority shall submit a report to the general 25 assembly and the governors office on or before January 31 of 26 each year, describing the results of the program implemented 27 pursuant to this section and making recommendations for 28 additional program changes. 29 Sec. 2. CONTINGENT EFFECTIVE DATE. This Act takes effect 30 July 1, 2025, if legislation is enacted appropriating moneys 31 for deposit in the vacant school building demolition grant fund 32 for the fiscal year beginning July 1, 2025. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -2- LSB 1380YH (2) 91 nls/ko 2/ 4
H.F. 133 the explanations substance by the members of the general assembly. 1 This bill creates a vacant school building demolition 2 grant program to be administered by the economic development 3 authority for the demolition of vacant buildings owned by a 4 political subdivision of this state or proposed to be acquired 5 by a political subdivision of this state that became vacant 6 before January 1, 2021, and were at any time previously used as 7 school attendance centers or school administration buildings, 8 but which are no longer used for any political subdivision 9 purpose. 10 The bill creates a vacant school building demolition grant 11 fund in the state treasury under the control of the authority. 12 The fund shall consist of moneys appropriated to the authority 13 and any other moneys that are lawfully available to the 14 authority. Interest or earnings on moneys deposited in the 15 vacant school building demolition grant fund shall be credited 16 to the vacant school building demolition grant fund and moneys 17 credited to the vacant school building demolition grant fund 18 shall not revert at the close of a fiscal year. If, however, 19 the authority receives no qualifying applications for three 20 consecutive years, the moneys in the vacant school building 21 demolition grant fund shall be transferred for deposit in the 22 rebuild Iowa infrastructure fund. 23 The authority is required to provide grants using a 24 competitive scoring process. The authority shall prioritize 25 grant applications from political subdivisions with the lowest 26 populations as compared to other grant applicants. A grant 27 shall only be approved if the eligible building is located in a 28 city or township with a population of less than 2,500, and the 29 applicant is either a county with a population that is among 30 the 88 lowest populated counties in the state or is a political 31 subdivision that is located in whole or in part in such a 32 county. The authority is also required to coordinate with 33 each political subdivision to develop a plan for the use of 34 grant funds that is consistent with the community development, 35 -3- LSB 1380YH (2) 91 nls/ko 3/ 4
H.F. 133 housing, or economic development goals of the political 1 subdivision and to ensure that the condition and use of the 2 property following demolition is consistent with the propertys 3 surroundings. 4 The political subdivision shall not be required to sell 5 the property after demolition as a condition of the grant. 6 However, if the property is sold by the political subdivision 7 following demolition, proceeds from sale of the property, 8 following subtraction of the political subdivisions costs 9 related to the demolition, including costs to acquire the 10 property if applicable, shall be paid to the authority for 11 deposit in the vacant school building demolition grant fund. 12 Under the bill, the authority may use not more than 5 percent 13 of the moneys in the fund at the beginning of the fiscal year 14 for purposes of administrative costs, finance, compliance, 15 marketing, and program support. 16 The authority is required to submit a report to the general 17 assembly and the governors office on or before January 31 of 18 each year, describing the results of the program implemented 19 pursuant to this section and making recommendations for 20 additional program changes. 21 The bill takes effect July 1, 2025, if legislation is enacted 22 appropriating moneys for deposit in the vacant school building 23 demolition grant fund for the fiscal year beginning July 1, 24 2025. 25 -4- LSB 1380YH (2) 91 nls/ko 4/ 4