IA
Iowa House Bill HF617

Iowa 2025-2026 Regular Session

Iowa House Bill HF617

Introduced
2/26/25  

Caption

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.)

Impact

The implications of HF617 are significant for state and local laws governing urban development and housing. By increasing the funding requirements for low and moderate-income housing, it seeks to align the interests of urban renewal projects with community needs for affordable housing. The change in revenue distribution duration also means that cities can plan long-term housing projects financed through TIF more sustainably. This bill is a response to the growing concern about housing affordability, particularly in urban areas that have been experiencing economic growth.

Summary

House File 617 (HF617) aims to provide more robust support for low and moderate-income family housing within urban renewal areas in the state of Iowa. Currently, projects that qualify for tax increment financing (TIF) must assure an allocation for low and moderate-income housing but only meet a minimum requirement of 10% of the original project cost. This bill proposes to change that threshold to 20% for cities with populations over 15,000, thus ensuring more substantial investment in affordable housing initiatives. Furthermore, it extends the division of revenue period from 10 to 20 years for tax collections related to these projects, allowing municipalities more time to leverage TIF for housing projects.

Contention

However, the bill does not come without points of contention. Critics may argue that increasing the percentage of funding required for low and moderate-income housing could deter developers who are concerned about profit margins. Some stakeholders may suggest that the mandatory allocation could lead to reduced investment in these urban areas if the developers perceive the financial incentives as insufficient compared to the risks of overregulation. Additionally, the extended time frame for tax collection might be viewed skeptically in terms of its impact on local budgets and the allocation of resources for various urban development initiatives.

Latest IA HF617 Activity

View All Events: IA 2025-2026 Regular Session HF617

Companion Bills

IA HF1037

Similar To A bill for an act modifying economic development provisions relating to housing and residential development in urban renewal areas.(Formerly HF 617.)

Previously Filed As

IA HF1

A bill for an act relating to local government funding by modifying school district funding provisions, property assessment provisions, and bond issuance requirements, and including effective date and applicability provisions.(See HF 718.)

IA SF575

A bill for an act relating to the economic development authority, including renewable chemical production, workforce housing, and innovation fund tax credits, the Iowa wine, beer, and spirits promotion board, and the beer and liquor control fund, and including applicability provisions. (Formerly SF 408, SSB 1087.) Effective date: 07/01/2023. Applicability date: 06/30/2023, 07/01/2023.

IA HF697

A bill for an act establishing an Iowa housing tax credit program and increasing first-time homebuyer tax incentives, and including effective date and applicability provisions.

IA SF2398

A bill for an act relating to state taxation by modifying alternate and individual income tax rates, and including effective date and retroactive applicability provisions.(Formerly SSB 3038.)

IA HSB672

A bill for an act relating to education, including modifying provisions related to education data collection and the determination of enrollment, and including effective date and applicability provisions.(See HF 2542.)

IA SSB1124

A bill for an act relating to local government property taxes, financial authority, and budgets, and including effective date and applicability provisions.(See SF 356.)

IA HF567

A bill for an act relating to nonsubstantive Code corrections, and including effective date and retroactive applicability provisions. (Formerly HSB 159.) Contingent effective date. Applicability date: 01/01/2022, 01/01/2023.

IA HSB159

A bill for an act relating to nonsubstantive Code corrections, and including effective date and retroactive applicability provisions.(See HF 567.)

IA HSB224

A bill for an act relating to property taxation for commercial child care centers and facilities and including effective date, applicability, and retroactive applicability provisions.(See HF 668.)

IA HSB187

A bill for an act relating to state and local finance and the administration of the tax and related laws by the department of revenue, and including effective date, applicability, and retroactive applicability provisions.(See HF 715.)

Similar Bills

No similar bills found.