Senate Study Bill 3208 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON APPROPRIATIONS BILL BY CHAIRPERSON SCHNEIDER) A BILL FOR An Act concerning manufactured homes by creating a manufactured 1 housing program fund and providing eligibility under the 2 home ownership assistance program for military members for 3 the purchase of manufactured homes. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6238XC (1) 87 ec/rj

S.F. _____ Section 1. NEW SECTION . 16.45 Manufactured housing program 1 fund. 2 1. A manufactured housing program fund is created within 3 the authority to further the goal of providing affordable 4 housing to Iowans. The moneys in the fund are to be used for 5 the purpose of providing funding to financial institutions or 6 other lenders to finance the purchase by an individual of a 7 manufactured home that is in compliance with all laws, rules, 8 and standards that are applicable to manufactured homes and 9 manufactured housing. The manufactured housing program fund 10 is designed exclusively for manufactured homes sited on leased 11 land. 12 2. a. Moneys received by the authority for the manufactured 13 housing program fund, transferred by the authority for deposit 14 in the fund, appropriated to the fund, and any other moneys 15 available to and obtained or accepted by the authority for 16 placement in the fund shall be deposited in the fund and are 17 appropriated to the authority to be used as set forth in this 18 section. 19 b. Notwithstanding any provision of section 16.46, 20 16.47, 16.48, or 16.49 to the contrary, the authority shall 21 be authorized to transfer for deposit in the manufactured 22 housing program fund for any fiscal year any unobligated and 23 unencumbered moneys in the funds created in sections 16.46, 24 16.47, 16.48, and 16.49 from the prior fiscal year. However, 25 the maximum amount of moneys that may be so transferred for any 26 fiscal year shall not exceed the lesser of one million dollars 27 or an amount equal to the total amount of any unobligated and 28 unencumbered moneys in the funds available for transfer from 29 the previous fiscal year reduced by one million dollars. 30 c. Additionally, recapture of awards and other repayments to 31 the fund shall be deposited in the fund and are appropriated 32 to the authority to be used as set forth in this section. 33 Notwithstanding section 8.33, unencumbered or unobligated 34 moneys remaining in the fund on June 30 of any fiscal year 35 -1- LSB 6238XC (1) 87 ec/rj 1/ 4

S.F. _____ shall not revert to any other fund but shall be available for 1 expenditure in subsequent years. However, any unencumbered 2 or unobligated moneys remaining in the fund on June 30 of any 3 fiscal year that were transferred to the fund as provided in 4 paragraph “b” shall revert to the fund from which the transfer 5 was made. Notwithstanding section 12C.7, subsection 2, 6 interest or earnings on moneys in the fund or appropriated to 7 the fund shall be credited to the fund. 8 3. The authority shall allocate moneys available in the 9 manufactured housing program fund to financial institutions 10 or other lenders to be used as set forth in subsection 1. 11 The authority may provide funding to financial institutions 12 or other lenders in the form of loans, linked deposits, 13 guarantees, reserve funds, or any other prudent financial 14 instruments. 15 4. The authority shall adopt rules pursuant to chapter 17A 16 necessary to implement and administer this section, including 17 but not limited to eligibility requirements for financial 18 institutions or other lenders to receive funding through the 19 manufactured housing program fund. 20 5. For purposes of this section, “financial institutions” 21 means the same as defined in section 12C.1, “lender” means 22 a lender as defined in section 537.1301 that is licensed 23 by the banking division of the department of commerce, and 24 “manufactured home” or “manufactured housing” means the same as 25 the definition of manufactured home in section 435.1. 26 Sec. 2. Section 16.54, subsection 2, Code 2018, is amended 27 to read as follows: 28 2. The home ownership assistance program is established to 29 continue the program implemented pursuant to 2005 Iowa Acts, 30 ch. 161, §1, as amended by 2005 Iowa Acts, ch. 115, §37, and 31 continued in accordance with 2006 Iowa Acts, ch. 1167, §3 and 32 4, and other appropriations, to provide financial assistance to 33 eligible members of the armed forces of the United States to 34 be used for purchasing primary residences , including but not 35 -2- LSB 6238XC (1) 87 ec/rj 2/ 4

S.F. _____ limited to manufactured homes on leased land, in the state of 1 Iowa. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 This bill concerns manufactured homes. 6 New Code section 16.45 creates the manufactured housing 7 program fund within the Iowa finance authority to further the 8 goal of providing affordable housing to Iowans. The moneys 9 in the fund are annually appropriated to the authority for 10 the purpose of providing funding to financial institutions or 11 other lenders to finance the purchase by an individual of a 12 manufactured home that is in compliance with all applicable 13 laws, rules, and standards that are applicable to manufactured 14 homes and manufactured housing. The bill further provides 15 that the fund is designed exclusively for manufactured homes 16 on leased land. 17 The bill authorizes the authority to transfer for deposit 18 in the new fund for any fiscal year any unobligated and 19 unencumbered moneys from the senior living revolving loan 20 program fund, home and community-based services revolving loan 21 program fund, transitional housing revolving loan program 22 fund, and community housing and services for persons with 23 disabilities revolving loan program fund from the prior fiscal 24 year. However, the bill provides that the maximum amount of 25 moneys that may be so transferred for any fiscal year shall not 26 exceed the lesser of $1 million or an amount equal to the total 27 amount of any unobligated and unencumbered moneys in the funds 28 available for transfer from the previous fiscal year reduced 29 by $1 million. 30 The authority is required to allocate the moneys in the fund 31 to financial institutions or other lenders to meet the purposes 32 set forth in the bill and may provide funding in the form of 33 loans, linked deposits, guarantees, reserve funds, or any other 34 prudent financial instruments. 35 -3- LSB 6238XC (1) 87 ec/rj 3/ 4

S.F. _____ The authority is required to adopt rules that include but 1 are not limited to eligibility requirements for financial 2 institutions or other lenders to receive funding, and any 3 other rules that are necessary to implement and administer the 4 provisions of the bill. 5 For purposes of the bill, “financial institution” means 6 as defined in Code section 12C.1, “lender” means a lender 7 as defined in Code section 537.1301 that is licensed by 8 the banking division of the department of commerce, and 9 “manufactured home” or “manufactured housing” means a 10 factory-built structure constructed under authority of 42 11 U.S.C. §5403, that is required by federal law to display a 12 seal from the United States department of housing and urban 13 development, and was constructed on or after June 15, 1976. 14 Code section 16.54, establishing the home ownership 15 assistance program for military members, is amended to provide 16 that primary residences, for purposes of this program, includes 17 manufactured homes on leased land. 18 -4- LSB 6238XC (1) 87 ec/rj 4/ 4