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| 1 | 1 | 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 TLSB 1605YH (6) 91 jm/md | |
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| 3 | 3 | H.F. 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 -1- LSB 1605YH (6) 91 jm/md 1/ 2 | |
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| 5 | 5 | H.F. 617 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanations 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 -2- LSB 1605YH (6) 91 jm/md 2/ 2 |