HSB 696 (LSB 6259YC (5) 87)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON VANDER LINDEN)

A BILL FOR

An Act relating to the workforce housing tax incentives program by providing for limited extensions of completion deadlines for housing projects, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 15.354, subsection 3, paragraph c, Code 2018, is amended to read as follows:
   c.  (1)  A Except as provided in subparagraph (2), a housing business shall complete its housing project within three years from the date the housing project is registered by the authority.
   (2)  The authority may for good cause within the discretion of the authority extend a housing project’s completion deadline once by up to twelve months upon application by the housing business, which application shall be made prior to the expiration of the three-year completion deadline in subparagraph (1) in the manner and form prescribed by the authority.
    Sec. 2.  EXTENSION APPLICATIONS MADE PRIOR TO AUGUST 1, 2018.  Notwithstanding section 15.354, subsection 3, paragraph “c”, subparagraph (2), as enacted in this Act, which requires that a housing business make a housing project completion deadline extension application prior to the expiration of the housing project’s three-year completion deadline, a written request by a housing business to extend a housing project’s completion deadline shall be considered a timely application under section 15.354, subsection 3, paragraph “c”, subparagraph (2), if the written request is received by the economic development authority prior to August 1, 2018, and if the housing business provides any additional information requested by the economic development authority.
    Sec. 3.  APPLICABILITY.  This Act applies to housing projects registered by the economic development authority under the workforce housing tax incentives program prior to, on, or after July 1, 2018.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the workforce housing tax incentives program (program) administered by the economic development authority (authority). Under current law, in order to qualify for tax incentives under the program, a housing business must complete its housing project within three years from the date the housing project is registered by the authority. The bill provides that the authority may for good cause extend this three-year deadline once by up to 12 months for a housing project. To be eligible for such an extension, the bill requires a housing business to apply to the authority before the expiration of its housing project’s three-year project completion deadline. However, the bill also provides that notwithstanding this application deadline, a written request by a housing business to extend its housing project’s completion deadline shall be considered a timely extension application if the written request is received by the authority prior to August 1, 2018, and if the housing business provides other additional information requested by the authority.
   The bill applies to housing projects registered under the program prior to, on, or after July 1, 2018.