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1 1 Section 1. NEW SECTION. 358C.1 LEGISLATIVE FINDINGS &endash;
1 2 PURPOSE.
1 3 The general assembly finds and declares as follows:
1 4 1. The economic health and development of Iowa communities
1 5 is tied to opportunities for jobs in and near those
1 6 communities and the availability of jobs is in part tied to
1 7 the availability of affordable, decent housing in those
1 8 communities.
1 9 2. A need exists for a program to assist developers and
1 10 communities in increasing the availability of housing in Iowa
1 11 communities.
1 12 3. A shortage of opportunities and means for developing
1 13 local housing exists. It is in the best interest of the state
1 14 and its citizens for infrastructure development which will
1 15 lower the costs of developing housing.
1 16 4. The expansion of local housing is dependent upon the
1 17 cost of providing the basic infrastructure necessary for a
1 18 housing development. Providing this infrastructure is a
1 19 public purpose for which the state may encourage the formation
1 20 of real estate improvement districts for the purpose of
1 21 providing water, sewer, roads, and other infrastructure.
1 22 As used in this chapter, unless the context otherwise
1 23 requires:
1 24 1. "Board" means the board of trustees of a real estate
1 25 improvement district.
1 26 2. "Construction" includes materials, labor, acts,
1 27 operations, and services necessary to complete a public
1 28 improvement.
1 29 3. "Cost" of a public improvement includes the cost of
1 30 engineering, preliminary reports, property valuations,
1 31 estimates, plans, specifications, notices, legal services,
1 32 acquisition of land, consequential damages, easements, rights-
1 33 of-way, construction, repair, supervision, inspection,
1 34 testing, notices and publication, interest during construction
1 35 and for not more than six months thereafter, and printing and
2 1 sale of bonds.
2 2 4. "District" means a real estate improvement district as
2 3 created in this chapter, in a county designated as a pilot
2 4 county under section 358C.2.
2 5 5. "Public improvement" includes the principal structures,
2 6 works, component parts, and accessories of the facilities or
2 7 systems specified in section 358C.4.
2 8 6. "Repair" includes materials, labor, acts, operations,
2 9 and services necessary for the reconstruction, reconstruction
2 10 by widening, or resurfacing of a public improvement.
2 11 Sec. 2. NEW SECTION. 358C.2 PILOT PROGRAM ESTABLISHED.
2 12 1. The establishment of real estate improvement districts
2 13 under this chapter shall be limited to six pilot counties,
2 14 which shall be determined by the director of the Iowa finance
2 15 authority so as to add to the diversity of the pilot program.
2 16 A real estate improvement district shall not be established in
2 17 a pilot county after two years from the effective date of this
2 18 Act.
2 19 Sec. 3. NEW SECTION. 358C.3 REAL ESTATE IMPROVEMENT
2 20 DISTRICT CREATED.
2 21 1. A majority of the owners having an interest in the real
2 22 property within the limits of a proposed district may file a
2 23 petition in the office of county auditor of the county in
2 24 which the proposed district or major part of the proposed
2 25 district is located, requesting that the question be submitted
2 26 to the registered voters of the proposed district of whether
2 27 the territory within the boundaries of the proposed district
2 28 shall be organized as a real estate improvement district as
2 29 provided in this chapter.
2 30 2. All of the owners having an interest in the real
2 31 property within the limits of a proposed district may file a
2 32 petition in the office of county auditor of the county in
2 33 which the proposed district or a major part of the proposed
2 34 district is located, requesting that the proposed district be
2 35 organized as a real estate improvement district as provided in
3 1 this chapter.
3 2 3. Only areas of contiguous territory may be incorporated
3 3 within a district. The petition shall be addressed to the
3 4 board of supervisors if all or part of the proposed district
3 5 includes territory located outside the boundaries of a city,
3 6 shall be submitted to the board of supervisors before it is
3 7 filed with the county auditor, and shall set forth the
3 8 following information:
3 9 a. The name of the district.
3 10 b. The district shall have perpetual existence.
3 11 c. The boundaries of the district.
3 12 d. The names and addresses of the owners of land in the
3 13 proposed district.
3 14 e. The description of the tracts of land situated in the
3 15 proposed district owned by those persons who may organize the
3 16 district.
3 17 f. The names and descriptions of the real estate owned by
3 18 the persons who do not join in the organization of the
3 19 district, but who will be benefited by the district.
3 20 g. A listing of one or more of the district improvements
3 21 specified in section 358C.4 which will be carried out by the
3 22 district.
3 23 h. The owners of real estate in the proposed district that
3 24 are unknown may also be set out in the petition as being
3 25 unknown.
3 26 i. That the establishment of the proposed district will be
3 27 conducive to the public health, comfort, convenience, and
3 28 welfare.
3 29 4. The petition shall also state that the owners of real
3 30 estate who are forming the proposed district are willing to
3 31 pay the taxes which may be levied against all of the property
3 32 in the proposed district and special assessments against the
3 33 real property benefited which may be assessed against them to
3 34 pay the costs necessary to carry out the purposes of the
3 35 district.
4 1 5. The petition shall also state that the owners of real
4 2 estate who are forming the proposed district waive any
4 3 objections to a subsequent annexation by a city.
4 4 6. The petition shall propose the names of three or more
4 5 trustees who shall be owners of real estate in the proposed
4 6 district or the designees of owners of property in the
4 7 proposed district, to serve as a board of trustees until their
4 8 successors are elected and qualified if the district is
4 9 organized. The board of trustees shall only carry out those
4 10 purposes which are authorized in this chapter and listed in
4 11 the petition.
4 12 7. If the petition requests that the district be organized
4 13 without an election, the petition shall contain the signatures
4 14 of all known owners of property within the proposed district.
4 15 8. The petition shall be submitted to and approved by the
4 16 city council before it is filed with the county auditor as
4 17 provided in subsection 1. If a petition includes a proposed
4 18 district located solely within the boundaries of a city, the
4 19 petition is not subject to action by the board of supervisors
4 20 except for the purpose of selecting the initial trustees and
4 21 setting the election date to finally organize the district or
4 22 the date to organize the district if no election is required.
4 23 9. A proposed district shall be created only from parcels
4 24 of land within the boundaries of a city, on parcels of land,
4 25 all or the major part of which is within two miles of the
4 26 boundaries of a city, or on parcels of land from both
4 27 locations.
4 28 Sec. 4. NEW SECTION. 358C.4 PUBLIC IMPROVEMENTS
4 29 AUTHORIZED.
4 30 1. A district may acquire, construct, reconstruct,
4 31 install, maintain, and repair any of the public improvements
4 32 listed in subsection 2.
4 33 2. A public improvement includes the principal structures,
4 34 works, component parts, and accessories of any of the
4 35 following:
5 1 a. Underground gas, water, heating, sewer,
5 2 telecommunications, and electrical connections located in
5 3 streets for private property.
5 4 b. Sanitary, storm, and combined sewers.
5 5 c. Waterworks, water mains, and extensions.
5 6 d. Emergency warning systems.
5 7 e. Pedestrian underpasses or overpasses.
5 8 f. Drainage conduits, dikes, and levees for flood
5 9 protection.
5 10 g. Public waterways, docks, and wharfs.
5 11 h. Public parks, playgrounds, and recreational facilities.
5 12 i. Street grading, paving, graveling, macadamizing,
5 13 curbing, guttering, and surfacing with oil and gravel or
5 14 chloride.
5 15 j. Street lighting fixtures, connections, and facilities.
5 16 k. Sewage pumping stations.
5 17 l. Traffic control devices, fixtures, connections, and
5 18 facilities.
5 19 m. Public roads, streets, and alleys.
5 20 Sec. 5. NEW SECTION. 358C.5 DATE AND NOTICE OF HEARING.
5 21 1. The board of supervisors to which the petition is
5 22 addressed, at its next meeting, shall set the time and place
5 23 for a hearing on the petition. The board shall direct the
5 24 county auditor in whose office the petition is filed to cause
5 25 notice to be given to all persons whom it may concern, without
5 26 naming them, of the pendency and content of the petition, by
5 27 publication of a notice as provided in section 331.305. Proof
5 28 of giving the notice shall be made by affidavit of the
5 29 publisher and the proof shall be on file with the county
5 30 auditor at the time the hearing begins. The notice of hearing
5 31 shall be directed to all persons it may concern, and shall
5 32 state:
5 33 a. That a petition has been filed with the county auditor
5 34 of the county, naming it, for establishment of a proposed
5 35 district, and the name of the proposed district.
6 1 b. An intelligible description of the boundaries of the
6 2 territory to be embraced in the district.
6 3 c. The date, hour, and the place where the petition will
6 4 be brought for hearing before the board of supervisors of the
6 5 named county.
6 6 d. That the board of supervisors will fix and determine
6 7 the boundaries of the proposed district as described in the
6 8 petition or otherwise, and for that purpose may alter and
6 9 amend the petition. At the hearing all interested persons
6 10 shall have an opportunity to be heard on the location and
6 11 boundaries of the proposed district and to make suggestions
6 12 regarding the location and boundaries.
6 13 e. That, in the case of a petition under section 358C.3,
6 14 subsection 2, a property owner who was not known and who did
6 15 not sign the petition and who does not object to the proposed
6 16 district in writing prior to the hearing or in person at the
6 17 hearing shall waive all objections to the organization of the
6 18 proposed district.
6 19 2. For a district which does not include land within a
6 20 city, copy of the notice shall also be sent by mail to each
6 21 owner, without naming them, of each tract of land or lot
6 22 within the proposed district as shown by the transfer books of
6 23 the auditor's office. The mailings shall be to the last known
6 24 mailing address unless there is on file an affidavit of the
6 25 auditor or of a person designated by the board to make the
6 26 necessary investigation, stating that a mailing address is not
6 27 known and that diligent inquiry has been made to ascertain it.
6 28 The copy of notice shall be mailed no less than twenty days
6 29 before the day set for hearing and proof of service shall be
6 30 by affidavit of the auditor. The proofs of service required
6 31 by this subsection shall be on file at the time the hearing
6 32 begins.
6 33 3. In lieu of the mailing to the last known address a
6 34 person owning land affected by a proposed district may file
6 35 with the county auditor an instrument in writing designating
7 1 the address for the mailing. This designation when filed is
7 2 effective for five years and applies to all proceedings under
7 3 this chapter. The person making the designation may change
7 4 the address in the same manner as the original designation is
7 5 made.
7 6 4. In lieu of publication, personal service of the notice
7 7 may be made upon an owner of land in the proposed district in
7 8 the manner and for the time required for service of original
7 9 notices in the district court. Proof of the service shall be
7 10 on file with the auditor on the date of the hearing.
7 11 Sec. 6. NEW SECTION. 358C.6 HEARING OF PETITION AND
7 12 ORDER.
7 13 The board of supervisors to whom the petition is addressed
7 14 shall preside at the hearing provided for in section 358C.5
7 15 and shall continue the hearing in session, with adjournments
7 16 from day to day, if necessary, until completed, without being
7 17 required to give any further notice of the hearing. Proof of
7 18 the residences and qualifications of the petitioners as
7 19 registered voters shall be made by affidavit or otherwise as
7 20 the board may direct. The board may consider the boundaries
7 21 of a proposed district, whether the boundaries are described
7 22 in the petition or otherwise, and for that purpose may alter
7 23 and amend the petition and limit or change the boundaries of
7 24 the proposed district as stated in the petition. The board
7 25 shall adjust the boundaries of a proposed district as needed
7 26 to exclude land that has no reasonable likelihood of benefit
7 27 from inclusion in the proposed district. The boundaries of a
7 28 proposed district shall not be changed to incorporate property
7 29 not included in the original petition and published notice
7 30 until the owner of the property is given notice of inclusion
7 31 as on the original hearing. All persons in the proposed
7 32 district shall have an opportunity to be heard regarding the
7 33 location and boundaries of the proposed district and to make
7 34 suggestions regarding the location and boundaries, and the
7 35 board of supervisors, after hearing the statements, evidence,
8 1 and suggestions made and offered at the hearing, shall approve
8 2 or reject the petition. If the petition is approved, the
8 3 board shall enter an order fixing and determining the limits
8 4 and boundaries of the proposed district and whether or not all
8 5 present and future property owners within the district have
8 6 waived any objections to the annexation by a city if the
8 7 district has issued obligations or bonds for public
8 8 improvement and the city assumes those obligations, and, if
8 9 the petition was requested under section 358C.3, subsection 1,
8 10 directing that an election be held for the purpose of
8 11 submitting to the registered voters owning land within the
8 12 boundaries of the proposed district the question of
8 13 organization and establishment of the proposed district as
8 14 determined by the board of supervisors. The order shall fix a
8 15 date for the election not more than sixty days after the date
8 16 of the order. If the petition was requested under section
8 17 358C.3, subsection 2, the order shall fix a date for the
8 18 organization of the district.
8 19 Sec. 7. NEW SECTION. 358C.7 NOTICE OF ELECTION.
8 20 In its order for the election the board of supervisors
8 21 shall direct the county commissioner of elections of the
8 22 county in which the petition is filed to cause notice of the
8 23 election to be given at least thirty days before the date of
8 24 election by publication of the notice as provided in section
8 25 331.305. The notice shall state the time and place of holding
8 26 the election and the hours when the polls will open and close,
8 27 the purpose of the election, with the name of the proposed
8 28 district and a description of the boundaries of the proposed
8 29 district, and shall set forth briefly the limits of each
8 30 voting precinct and the location of the polling places. Proof
8 31 of publication shall be made in the manner provided in section
8 32 358C.5 and filed with the county auditor.
8 33 Sec. 8. NEW SECTION. 358C.8 ELECTION.
8 34 1. Each registered voter resident within the proposed
8 35 district shall have the right to cast a ballot at the election
9 1 and a person shall not vote in any precinct but that of the
9 2 person's residence. Ballots at the election shall be in
9 3 substantially the following form, to wit:
9 4 For Real Estate Improvement District
9 5 Against Real Estate Improvement District
9 6 2. The board of supervisors shall cause a statement of the
9 7 result of the election to be included in the records of the
9 8 county auditor. If a majority of the votes cast upon the
9 9 question of incorporation of the proposed district shall be in
9 10 favor of the proposed district, the proposed district shall be
9 11 deemed an organized real estate improvement district under
9 12 this chapter and established as conducive to the public
9 13 health, comfort, convenience, and welfare.
9 14 3. In the event the petition and order provide that any
9 15 present or future owner of property within the district waives
9 16 objection to annexation if the district has issued obligations
9 17 or bonds for a public improvement and the annexing city
9 18 assumes those obligations, the board of supervisors shall file
9 19 a certified declaration of that provision and a legal
9 20 description of all real estate in the district with the county
9 21 recorder in each county in which the district is located.
9 22 Sec. 9. NEW SECTION. 358C.9 EXPENSES AND COSTS OF
9 23 ELECTION.
9 24 The election held pursuant to this chapter shall be
9 25 conducted by the county commissioner of elections. All
9 26 expenses incurred in carrying out the preceding sections of
9 27 this chapter, and the costs of the election, as determined by
9 28 the county commissioner of elections, shall be paid by those
9 29 who will be benefited by the proposed district. If the
9 30 district is not established, the expenses and costs shall be
9 31 collected upon the bonds of the petitioners.
9 32 Sec. 10. NEW SECTION. 358C.10 SELECTION OF TRUSTEES &endash;
9 33 TERM OF OFFICE.
9 34 1. The board of supervisors or city council which had
9 35 jurisdiction of the proceedings for establishment of the
10 1 district, together with the board of supervisors of any other
10 2 county in which any part of the district is located, shall
10 3 appoint three trustees from among those persons listed in the
10 4 petition. The trustees shall serve an initial two-year term.
10 5 2. Vacancies in the office of trustee of a district shall
10 6 be filled by the remaining members of the board for the period
10 7 until a successor is chosen in the manner prescribed by this
10 8 section or by section 69.12, whichever is applicable.
10 9 3. Successors to trustees shall be elected at a special
10 10 meeting of the board of trustees called for that purpose.
10 11 Upon its own motion, the board of trustees may, or upon
10 12 petition of landowners owning more than fifty percent of the
10 13 total land in the district, shall, call a special meeting of
10 14 the residents of the district to elect successors to trustees
10 15 of the board. Notice of the meeting shall be given at least
10 16 ten days before the date of the meeting by publication of the
10 17 notice in a newspaper of general circulation in the district.
10 18 The notice shall state the date, times, and location of the
10 19 meeting and that the meeting is called for the purpose of
10 20 electing one or more trustees to the board.
10 21 Sec. 11. NEW SECTION. 358C.11 TRUSTEE'S BOND.
10 22 Each trustee, before entering upon the duties of office,
10 23 shall execute a bond payable to the district, with security to
10 24 be approved by the board of supervisors which had jurisdiction
10 25 of the petition for establishment of the district, in such
10 26 form and amount as the board of supervisors may determine,
10 27 which bond shall be filed with the county auditor of the
10 28 county.
10 29 Sec. 12. NEW SECTION. 358C.12 REAL ESTATE IMPROVEMENT
10 30 DISTRICT TO BE A BODY CORPORATE &endash; EMINENT DOMAIN.
10 31 1. Each district organized under this chapter shall be a
10 32 body corporate and politic, with the name and style under
10 33 which it was organized, and by that name and style may sue and
10 34 be sued, contract and be contracted with, acquire and hold
10 35 real and personal property necessary for corporate purposes,
11 1 adopt a corporate seal and alter the same at pleasure, and
11 2 exercise all the powers conferred in this chapter.
11 3 2. All courts of this state shall take judicial notice of
11 4 the existence of real estate improvement districts organized
11 5 under this chapter.
11 6 3. A district shall not own or hold land in excess of ten
11 7 acres unless the land is actually used for a public purpose
11 8 within three years of its acquisition. A district which owns
11 9 or holds land in excess of ten acres for more than three years
11 10 without devoting it to a public purpose as provided in this
11 11 chapter shall divest itself of the land by public auction to
11 12 the highest bidder.
11 13 4. A district may acquire by purchase, condemnation, or
11 14 gift, real or personal property, right-of-way, and easement
11 15 within or without its corporate limits necessary for its
11 16 corporate purposes specified in section 358C.4.
11 17 5. If the board of trustees of the district decide to make
11 18 a public improvement pursuant to this chapter which requires
11 19 that private property be taken or damaged, the board may
11 20 exercise the power of eminent domain. The procedure to
11 21 condemn property shall be exercised in the manner provided in
11 22 chapter 6B.
11 23 6. A district shall comply with all city building and use
11 24 codes for owner-occupied residential housing and shall comply
11 25 with all city design and construction standards for the public
11 26 improvements authorized in section 358C.4.
11 27 7. A district shall not incorporate as a city if all or
11 28 the major part of the district is within two miles of the
11 29 boundaries of a city at the time the district is approved.
11 30 8. The provisions of chapters 21 and 22 applicable to
11 31 cities, counties, and school districts apply to the district.
11 32 The records of the district are subject to audit pursuant to
11 33 section 11.6.
11 34 Sec. 13. NEW SECTION. 358C.13 BOARD OF TRUSTEES &endash;
11 35 POWERS &endash; PROHIBITED ACTIONS.
12 1 1. The board of trustees is the corporate authority of the
12 2 district and shall manage and control the affairs and property
12 3 of the district. A majority of the board of trustees shall
12 4 constitute a quorum, but a smaller number may adjourn from day
12 5 to day. The board of trustees shall elect a president, a
12 6 clerk, and a treasurer from its membership.
12 7 2. The board of trustees may adopt the necessary
12 8 ordinances, resolutions, and regulations for the proper
12 9 management and conduct of the business of the board of
12 10 trustees and the corporation and for carrying out the purposes
12 11 for which the district is formed, including for the
12 12 negotiation of short-term loans and the issuance of warrants.
12 13 3. If the board of trustees wishes to expand its authority
12 14 to carry out public improvements in addition to the public
12 15 improvements listed in the board's original petition as
12 16 provided in section 358C.4, the board shall submit a petition
12 17 to the board of supervisors specifying the additional public
12 18 improvements to be included within the authority of the
12 19 district and requesting that the board of supervisors order an
12 20 election as provided in section 358C.7 to approve or
12 21 disapprove the amendment. If the petition includes public
12 22 improvements as specified in section 358C.4, the board of
12 23 supervisors shall order the election to be conducted as
12 24 otherwise provided in this chapter. If the amendment is
12 25 approved, the original petition is amended to include the
12 26 additional public improvements.
12 27 4. The board of trustees of a district shall not purchase
12 28 and resell electric service or establish and operate a
12 29 gasworks or electric light and power plant and system.
12 30 5. The board of trustees shall not require or grant a
12 31 franchise under section 364.2, to any person pursuant to
12 32 subsection 4.
12 33 Sec. 14. NEW SECTION. 358C.14 TAXES &endash; POWER TO LEVY &endash;
12 34 TAX SALES.
12 35 1. The board of trustees of a real estate improvement
13 1 district shall have the power by ordinance to levy annually
13 2 for the purpose of paying the administrative costs of the
13 3 district, or for the payment of deficiencies in special
13 4 assessments, or for both, a tax upon property within the
13 5 territorial limits of the district not exceeding fifty-four
13 6 cents per thousand dollars of the adjusted taxable valuation
13 7 of the property within the district for the preceding fiscal
13 8 year.
13 9 2. All taxes thus levied by the board shall be certified
13 10 by the clerk on or before March 1 to the county auditor of
13 11 each county in which any of the property included within the
13 12 territorial limits of the district is located, and shall be
13 13 placed upon the tax list for the current fiscal year by the
13 14 auditor. The county treasurer of more than one county shall
13 15 collect all taxes so levied in the same manner as other taxes,
13 16 and when delinquent the taxes shall draw the same interest.
13 17 All taxes levied and collected shall be paid over by the
13 18 officer collecting the taxes to the treasurer of the district.
13 19 3. Sales for delinquent taxes owing to the district shall
13 20 be made at the same time and in the same manner as the sales
13 21 are made for other taxes, and all provisions of the law of
13 22 this state relating to the sale of property for delinquent
13 23 taxes shall be applicable, so far as may be, to the sales.
13 24 Sec. 15. NEW SECTION. 358C.15 RENTALS AND CHARGES.
13 25 1. A board of trustees may by ordinance establish
13 26 equitable rates, charges, or rentals for the utilities and
13 27 services furnished by the district to be paid to the district
13 28 by every person, firm, or corporation whose premises are
13 29 served by a connection to the utilities and services directly
13 30 or indirectly. The rates, charges, or rentals, as near as may
13 31 be in the judgment of the board of trustees, shall be
13 32 equitable and in proportion to the services rendered and the
13 33 cost of the services, and taking into consideration in the
13 34 case of the premises the quantity of sewage or water produced
13 35 or used and the concentration, strength, and pollution
14 1 qualities of the sewage. The board of trustees may change the
14 2 rates, charges, or rentals as it may deem advisable, and by
14 3 ordinance may provide for collection. The board may contract
14 4 with any municipality within the district, whereby the
14 5 municipality may collect or assist in collecting any of the
14 6 rates, charges, or rentals, whether in conjunction with water
14 7 rentals or otherwise, and the municipality may undertake the
14 8 collection and render the service. The rates, charges, or
14 9 rentals, if not paid when due, shall constitute a lien upon
14 10 the real property served by a connection. The lien shall have
14 11 equal precedence with ordinary taxes, may be certified to the
14 12 county treasurer and collected in the same manner as taxes,
14 13 and is not divested by a judicial sale.
14 14 2. Sewer rentals, charges, or rates may supplant or
14 15 replace, in whole or in part, any monetary levy of taxes which
14 16 may be, or have been, authorized by the board of trustees for
14 17 any of the following purposes:
14 18 a. To meet interest and principal payments on bonds
14 19 legally authorized for the financing of sanitary utilities in
14 20 any manner.
14 21 b. To pay costs of the construction, maintenance, or
14 22 repair of the facilities or utilities, including payments to
14 23 be made under any contract between municipalities for either
14 24 the joint use of water or sewage facilities, or for the use by
14 25 one municipality of all or a part of the water or sewer system
14 26 of another municipality.
14 27 Sec. 16. NEW SECTION. 358C.16 DEBT LIMIT &endash; BORROWING &endash;
14 28 BONDS &endash; PURPOSES.
14 29 1. A district may borrow money for its corporate purposes,
14 30 but shall not become indebted in any manner or for any purpose
14 31 to an amount in the aggregate exceeding its constitutional
14 32 debt limit of five percent on the value of the taxable
14 33 property within the district, to be ascertained by the last
14 34 state and county tax lists previous to the incurring of the
14 35 indebtedness. Indebtedness within this constitutional limit
15 1 shall not include the indebtedness of any other municipal
15 2 corporation located wholly or partly within the boundaries of
15 3 the district, special assessment bonds or obligations
15 4 authorized under section 358C.17.
15 5 2. Subject only to this debt limitation, a district shall
15 6 have the same powers to issue bonds, including both general
15 7 obligation and revenue bonds, including the power to enter
15 8 into short-term loans and issue warrants, which cities have
15 9 under the laws of this state. In the application of the laws
15 10 to this chapter, the words used in the laws referring to
15 11 municipal corporations or to cities shall be held to include
15 12 real estate improvement districts organized under this
15 13 chapter; the words "council" or "city council" shall be held
15 14 to include the board of trustees of a district; the words
15 15 "mayor" and "clerk" shall be held to include the president and
15 16 clerk of a board of trustees; and like construction shall be
15 17 given to any other words in the laws where required to permit
15 18 the exercise of the powers by real estate improvement
15 19 districts.
15 20 3. All bonds issued shall be signed by the president of
15 21 the board of trustees and attested by the clerk, with the seal
15 22 of the district, if any, affixed, and interest coupons
15 23 attached to the bonds shall be attested by the signature of
15 24 the clerk.
15 25 4. The proceeds of any bond issue made under this section
15 26 shall be used only for the public improvements specified in
15 27 section 358C.4. Proceeds from the bond issue may also be used
15 28 for the payment of special assessment deficiencies. The bonds
15 29 shall be payable in not more than forty annual installments
15 30 and with interest at a rate not exceeding that permitted by
15 31 chapter 74A, and shall be made payable at the place and be of
15 32 the form as the board of trustees shall by resolution
15 33 designate. A district issuing bonds as authorized in this
15 34 section is granted authority to pledge the future avails of a
15 35 tax levy to the payment of the principal and interest of the
16 1 bonds after the same come due, and the power to impose and
16 2 certify the levy is granted to the trustees of real estate
16 3 improvement districts organized under this chapter.
16 4 Sec. 17. NEW SECTION. 358C.17 SPECIAL ASSESSMENTS.
16 5 1. The board of trustees of a real estate improvement
16 6 district may provide for payment of all or any portion of the
16 7 costs of a public improvement specified in section 358C.4, by
16 8 assessing all, or any portion of the costs, on adjacent
16 9 property according to the benefits derived. For the purposes
16 10 of this chapter, the board of trustees may define "adjacent
16 11 property" as all that included within a designated benefited
16 12 district to be fixed by the board, which may be all of the
16 13 property located within the real estate improvement district
16 14 or any lesser portion of that property. It is not a valid
16 15 objection to a special assessment that the improvement for
16 16 which the assessment is levied is outside the limits of the
16 17 district, but a special assessment shall not be made upon
16 18 property situated outside of the district. Special
16 19 assessments pursuant to this section shall be in proportion to
16 20 the special benefits conferred upon the property, and not in
16 21 excess of the benefits. The value of a property is the
16 22 present fair market value of the property with the proposed
16 23 public improvements completed. Payment of installments of a
16 24 special assessment against property shall be made in the same
16 25 manner and under the same procedures as provided in chapter
16 26 384 for special assessments by cities. Notwithstanding the
16 27 provisions of section 384.62, the combined assessments against
16 28 any lot for public improvements included in the petition
16 29 creating the housing development district or as authorized in
16 30 section 358C.4, shall not exceed the valuation of that lot as
16 31 established by section 384.46.
16 32 2. The assessments may be made to extend over a period not
16 33 to exceed fifteen years, payable in as nearly equal annual
16 34 installments as practicable. A majority vote of the board of
16 35 trustees is requisite and sufficient for any action required
17 1 by the board of trustees under this section.
17 2 3. Subject to the limitations otherwise stated in this
17 3 section, a district organized under this chapter has all of
17 4 the powers to specially assess the costs of improvements
17 5 described in this section, including the power to issue
17 6 special assessment bonds, warrants, project notes, or other
17 7 forms of interim financing obligations, which cities have
17 8 under the laws of this state.
17 9 Sec. 18. NEW SECTION. 358C.18 ADDITIONAL TERRITORY.
17 10 1. The district may be enlarged and additional territory
17 11 annexed to the district by either of the following methods:
17 12 a. By petitions signed by the owners of all the property
17 13 to be annexed to the district. If a petition requesting
17 14 annexation is presented to the trustees and approved by the
17 15 trustees the change in the boundaries to include the
17 16 additional area shall be certified by the clerk of the
17 17 district to the county auditor in which the greater portion of
17 18 the district is located and thereafter the district shall
17 19 include the area thus annexed.
17 20 b. By a petition filed with the clerk of the district,
17 21 signed by persons owning not less than fifty percent of the
17 22 area to be annexed, but not signed by persons owning all the
17 23 area requested to be annexed. On the filing of the petition,
17 24 the trustees of the district shall fix a time and place for a
17 25 hearing on the petition and give notice of the hearing, as
17 26 provided in section 331.305, and by certified mail to the
17 27 record owners of all persons owning land within the territory
17 28 sought to be annexed, not less than ten days prior to the date
17 29 of the hearing, if the address of the owners is known or can
17 30 be ascertained by reasonable diligence by the trustees. At
17 31 the hearing, any person owning property within the area
17 32 proposed to be annexed or any person owning property or
17 33 residing within the district may appear and be heard. If,
17 34 after the hearing, the board of trustees determines that
17 35 annexation of the additional area will be conducive to the
18 1 public health, convenience, and welfare and will not be an
18 2 undue burden on the district, the board of trustees may, by
18 3 resolution, annex the additional area and fix the boundary
18 4 which shall not include more than the area requested in the
18 5 petition. A copy of the resolution shall be filed with the
18 6 county auditor of the county in which the largest portion of
18 7 the district is located and thereafter the area included by
18 8 the resolution shall be a part of the district.
18 9 2. All property, from and after it is annexed to the
18 10 district, shall be subject to all taxes and other burdens
18 11 levied by the district, regardless of when the obligation for
18 12 which the taxes or assessments are levied was incurred.
18 13 Sec. 19. NEW SECTION. 358C.19 ANNEXATION BY A CITY.
18 14 When a city or real estate improvement district proposes
18 15 that the district be annexed by the city, either wholly or
18 16 partially, an owner of property in the district shall not
18 17 object to the annexation if a city annexes all the territory
18 18 within the boundaries of a real estate improvement district,
18 19 the district shall merge with the city and the city shall
18 20 succeed to all the property and property rights of every kind,
18 21 contracts, and obligations, held by or belonging to the
18 22 district, and the city shall be liable for and recognize,
18 23 assume, and carry out all valid contracts and obligations of
18 24 the district. The city may assume and provide for the payment
18 25 of the obligations of any bonds of the district by issuing
18 26 general obligation, special assessment, or revenue refunding
18 27 bonds which may be sold at public or private sale or exchanged
18 28 for outstanding bonds. General obligation bonds of the city
18 29 may be issued to refund special assessment and revenue
18 30 obligations if the governing body of the city determines that
18 31 it is in the best interest of the city. The refunding of
18 32 these obligations shall constitute an essential corporate
18 33 purpose under section 384.24. All taxes, assessments, claims,
18 34 and demands of every kind due or owing to the district shall
18 35 be paid to and collected by the city. Any special assessments
19 1 which the district was authorized to levy, assess, relevy, or
19 2 reassess, but which were not levied, assessed, relevied, or
19 3 reassessed, at the time of the merger, for improvements made
19 4 by the district or in the process of construction or
19 5 contracted for may be levied, assessed, relevied, or
19 6 reassessed by the annexing city to the same extent as the
19 7 district may have levied or assessed but for the merger.
19 8 However, this section does not authorize the annexing city to
19 9 revoke any resolution, order, or finding made by the district
19 10 in regard to special benefits or increase any assessments made
19 11 by the district, but the city shall be bound by all findings
19 12 or orders and assessments to the same extent as the district
19 13 would be bound. Also, a district shall not levy any special
19 14 assessments after the effective date of the annexation.
19 15 Sec. 20. NEW SECTION. 358C.20 EFFECTIVE DATE OF MERGER.
19 16 The merger shall be effective thirty days after the
19 17 effective date of the ordinance annexing the territory within
19 18 the district. However, if the validity of the ordinance
19 19 annexing the territory is challenged by a court proceeding,
19 20 the effective date of the merger shall be thirty days after
19 21 the final determination of the validity of the ordinance. The
19 22 trustees of a district shall continue in possession and
19 23 conduct the affairs of the district until the effective date
19 24 of the merger, but shall not during the period levy any
19 25 special assessments after the effective date of annexation.
19 26 Sec. 21. NEW SECTION. 358C.21 DISSOLUTION OF DISTRICT.
19 27 When a majority of the board of trustees of a district
19 28 desire that the district be wholly dissolved, the trustees
19 29 shall first propose a resolution declaring the advisability of
19 30 the dissolution and setting out the terms and conditions of
19 31 the dissolution, and also setting out the time and place when
19 32 the board of trustees shall meet to consider the adoption of
19 33 the resolution. Notice of the time and place when the
19 34 resolution shall be set for consideration shall be published
19 35 as provided in section 331.305, which publication shall
20 1 contain the entire wording of the proposed resolution. If any
20 2 part of the district lies within the area of the jurisdiction
20 3 of a city, then the trustees shall mail a copy of the proposed
20 4 resolution to the city on the date of first publication of the
20 5 resolution. At the hearing the owners of property within the
20 6 district, or a city if any part of the district lies within
20 7 the city, may appear and make objections to the proposed
20 8 resolution. If the owners representing a majority of the area
20 9 of real estate within the district fail to sign and present to
20 10 the board, on or prior to the hearing date, a written petition
20 11 opposing the resolution, a majority of the board of trustees
20 12 may pass the resolution and adopt the proposed dissolution.
20 13 However, the resolution shall not be adopted if the district
20 14 is obligated on any outstanding bonds, warrants, or other
20 15 debts or obligations unless the holders of the bonds,
20 16 warrants, or other debts or obligations all sign written
20 17 consents to the dissolution prior to the adoption of the
20 18 resolution of dissolution. If the petition opposing the
20 19 resolution is signed by property owners representing a
20 20 majority of the area of real estate within the district and
20 21 presented to the board of trustees on or prior to the hearing
20 22 date, the board of trustees shall not adopt the resolution.
20 23 After the board of trustees has adopted the resolution of
20 24 dissolution, the clerk of the district shall prepare and file
20 25 a certified copy of the resolution of dissolution in the
20 26 office of the county auditor where the original petition was
20 27 filed. A district shall dissolve within ninety days following
20 28 the merger of a district with a city.
20 29 Sec. 22. NEW SECTION. 358C.22 DETACHMENT OF LAND.
20 30 1. When a majority of the board of trustees of a district
20 31 desires that any property within the district be detached from
20 32 the district, the trustees shall first propose a resolution
20 33 declaring the advisability of the detachment and setting out
20 34 the terms and conditions of the detachment and also setting
20 35 out the time and place when the board of trustees will meet to
21 1 consider the adoption of the resolution. Notice of the time
21 2 and place when the resolution is set for consideration shall
21 3 be published as provided in section 331.305, which publication
21 4 shall contain the entire wording of the proposed resolution.
21 5 If any part of the district lies within a city, then the
21 6 trustees shall mail a copy of the proposed resolution to the
21 7 city on the date of first publication of the resolution. At
21 8 the hearing the owners of property within the district, or any
21 9 city, may appear and make objections to the proposed
21 10 resolution. If the owners representing a majority of the area
21 11 of real estate within the district fail to sign and present to
21 12 the board of trustees, on or prior to the hearing date, a
21 13 written petition opposing the resolution, a majority of the
21 14 board of trustees may pass the resolution and adopt the
21 15 proposed detachment, except that the resolution shall not be
21 16 adopted if the district is indebted on any outstanding bonds
21 17 or warrants of the district unless the holders of the bonds
21 18 and warrants all sign written consents to the detachment prior
21 19 to the adoption of the resolution of detachment. If the
21 20 petition opposing the resolution is signed by property owners
21 21 representing a majority of the area of real estate within the
21 22 district and presented to the board of trustees on or prior to
21 23 the hearing date, the board of trustees shall not adopt the
21 24 resolution. After the board of trustees has adopted the
21 25 resolution of detachment, the clerk of the district shall
21 26 prepare and file a certified copy of the resolution of
21 27 detachment in the office of the county auditor where the
21 28 original petition was filed, and the area detached shall
21 29 become excluded and detached from the boundaries of the
21 30 district.
21 31 2. The owner of a discrete tract of land which is part of
21 32 a district but which is not connected to the main area of the
21 33 district may petition the board of trustees of the district to
21 34 have the property detached from the district. Following
21 35 receipt of the petition, the board of trustees shall propose a
22 1 resolution declaring the advisability of the detachment and
22 2 setting out the terms and conditions of the detachment and
22 3 setting out the time and place when the board of trustees will
22 4 meet to consider the adoption of the resolution. Notice of
22 5 the time and place for the consideration shall be published as
22 6 provided in subsection 1. If any part of the district lies in
22 7 whole or in part within a city, the board of trustees shall
22 8 mail a copy of the proposed resolution to the municipality
22 9 within five days after the date of first publication of the
22 10 resolution. At the hearing for consideration of the
22 11 resolution, the board of trustees shall determine if the tract
22 12 of land proposed for detachment has all of the following
22 13 characteristics:
22 14 a. Has an area of twenty-five acres or more.
22 15 b. Is undeveloped and predominantly devoted to
22 16 agricultural uses.
22 17 c. Has no improvements or obligations placed upon it by
22 18 the district and receives no current services from the
22 19 district.
22 20 3. If the board of trustees by majority vote determines
22 21 that the tract in question meets all of the conditions
22 22 provided in subsection 2, paragraphs "a" through "c", the
22 23 resolution shall be adopted, except that the resolution shall
22 24 not be adopted if the district is indebted on any outstanding
22 25 bonds or warrants of the district unless the holders of the
22 26 bonds and warrants all sign written consents to the
22 27 detachment. After the board of trustees has adopted the
22 28 resolution of detachment, the clerk of the district shall
22 29 prepare and file a certified copy of the resolution of
22 30 detachment in the office of the county auditor where the
22 31 original petition was filed and the area detached shall become
22 32 excluded and detached from the boundaries of the district.
22 33 Sec. 23. NEW SECTION. 358C.23 CHAPTER LIBERALLY
22 34 CONSTRUED.
22 35 The provisions of this chapter shall be liberally construed
23 1 to facilitate the development of land for housing.
23 2 Sec. 24. HOUSING SUMMIT. The Iowa league of cities and
23 3 the Iowa state association of counties are requested to
23 4 convene a housing summit to examine housing development in
23 5 Iowa. It is requested that the summit examine the use of tax
23 6 increment financing, the desirability of establishing a local
23 7 housing development bond program in the Iowa finance
23 8 authority, the effect of recissions of federal funds on Iowa's
23 9 ability to increase its stock of housing, and existing
23 10 programs which have been successful in promoting the expansion
23 11 of housing in Iowa. It is requested that participants in the
23 12 summit include the Iowa chapter of the American planning
23 13 association, home developers and builders, economic
23 14 development experts, and others with experience in housing
23 15 development or financing. A report containing the
23 16 recommendations of the summit is requested to be provided to
23 17 the studies committee of the legislative council not later
23 18 than September 1, 1995.
23 19 Sec. 25. LEGISLATIVE STUDY. The legislative council is
23 20 requested to establish a study committee to receive the report
23 21 and recommendations of the housing summit requested to be
23 22 convened under this Act and to determine whether changes
23 23 should be made to Iowa's laws regarding housing development.
23 24 The committee shall present its recommendations, if any, to
23 25 the legislative council not later than November 15, 1995.
23 26 Membership on the committee is requested to be the following:
23 27 1. Eight members from the senate and house of
23 28 representatives, two members appointed by the majority leader
23 29 of the senate, two members appointed by the minority leader of
23 30 the senate, two members appointed by the speaker of the house
23 31 of representatives, and two members appointed by the minority
23 32 leader of the house of representatives.
23 33 2. Eight nonvoting private members appointed by the
23 34 legislative council as follows:
23 35 a. The director of the department of economic development
24 1 and the director of the Iowa finance authority, or their
24 2 designees.
24 3 b. A representative of the Iowa league of cities.
24 4 c. A representative of the Iowa state association of
24 5 counties.
24 6 d. A representative of an organization representing home
24 7 builders.
24 8 e. A person with experience in municipal bonding and
24 9 knowledgeable about the legal requirements for issuing bonds.
24 10 f. A person representing an organization which advocates
24 11 for low and moderate income persons regarding housing.
24 12 g. A person with experience in financing the development
24 13 and purchase of housing.
24 14 h. A representative of the Iowa association of regional
24 15 councils.
24 16 i. A representative of an organization representing real
24 17 estate brokers.
24 18 HF 577
24 19 mk/pk/25
Text: HF00576 Text: HF00578 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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