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PAG LIN 1 1 DIVISION I 1 2 Section 1. Section 358C.1, subsection 2, paragraph d, Code 1 3 Supplement 1995, is amended to read as follows: 1 4 d. "District" means a real estate improvement district as 1 5 created in this chapter, in a county designated as a pilot1 6county under section 358C.2. A real estate improvement 1 7 district shall not be created after June 30, 2000. 1 8 Sec. 2. Section 358C.3, subsection 6, Code Supplement 1 9 1995, is amended to read as follows: 1 10 6. The petition shall propose the names of three or more 1 11 trustees who shall be owners of real estate in the proposed 1 12 district or the designees of owners of property in the 1 13 proposed district, to serve as a board of trustees until their 1 14 successors are elected and qualified if the district is 1 15 organized. The board of trustees shall only carry out those 1 16 purposes which are authorized in this chapter and listed in 1 17 the petition. Each person proposed as a trustee shall 1 18 disclose whether the person has any financial interest in any 1 19 business which is or may be a developer or contractor for 1 20 public improvements within the proposed real estate 1 21 improvement district and the extent of the person's land 1 22 ownership in the district, if any. 1 23 Sec. 3. Section 358C.10, Code Supplement 1995, is amended 1 24 by adding the following new subsection: 1 25 NEW SUBSECTION. 4. A candidate to fill a vacancy or as a 1 26 successor trustee shall disclose prior to selection as a 1 27 trustee whether the person has any financial interest in any 1 28 business which is or may be a developer or contractor for 1 29 public improvements within the real estate improvement 1 30 district and the extent of the person's land ownership in the 1 31 district, if any. 1 32 Sec. 4. Section 358C.13, Code Supplement 1995, is amended 1 33 by adding the following new subsections: 1 34 NEW SUBSECTION. 1A. The board of trustees shall maintain 1 35 the official records of the district, which shall include 2 1 information regarding the service of any indebtedness of the 2 2 district, including special assessment bonds. The board shall 2 3 report annually on the progress of the district in retiring 2 4 indebtedness. 2 5 NEW SUBSECTION. 2A. The board of trustees shall provide 2 6 public notice prior to each meeting of the board. The notice 2 7 shall contain the agenda of the meeting which shall describe 2 8 the proposed actions to be taken by the board at the meeting. 2 9 NEW SUBSECTION. 6. The board of trustees shall not 2 10 prohibit or restrict the construction of manufactured homes in 2 11 a real estate improvement district. As used in this 2 12 subsection, "manufactured home" has the same meaning as under 2 13 section 435.1, subsection 2. 2 14 NEW SUBSECTION. 7. The board of trustees shall not enter 2 15 into a contract for public improvements or other services with 2 16 a board member or with any person owning more than twenty-five 2 17 percent of the land of a real estate improvement district 2 18 except as a result of competitive bidding. 2 19 Sec. 5. Section 358C.17, Code Supplement 1995, is amended 2 20 by adding the following new subsection: 2 21 NEW SUBSECTION. 4. A special assessment under this 2 22 section shall be recorded in the county in which the district 2 23 is located for each lot in the district. 2 24 Sec. 6. NEW SECTION. 358C.24 DISCLOSURE OF SPECIAL 2 25 ASSESSMENT. 2 26 The seller of property in a real estate improvement 2 27 district or a person acting on behalf of a seller shall 2 28 disclose the amount of any special assessment under this 2 29 chapter against the property during negotiations for the sale 2 30 of the property. 2 31 Sec. 7. Section 543B.56, subsection 1, Code Supplement 2 32 1995, is amended by adding the following new paragraph: 2 33 NEW PARAGRAPH. e. Disclose the amount of any special 2 34 assessments, if any, against property in a real estate 2 35 improvement district established under chapter 358C. 3 1 Sec. 8. Section 358C.2, Code Supplement 1995, is repealed. 3 2 DIVISION II 3 3 Sec. 9. Section 403.2, subsection 3, Code 1995, is amended 3 4 to read as follows: 3 5 3. It is further found and declared that there exists in 3 6 this state the continuing need for programs to alleviate and 3 7 prevent conditions of unemployment and a shortage of housing; 3 8 and that it is accordingly necessary to assist and retain 3 9 local industries and commercial enterprises to strengthen and 3 10 revitalize the economy of this state and its municipalities; 3 11 that accordingly it is necessary to provide means and methods 3 12 for the encouragement and assistance of industrial and 3 13 commercial enterprises in locating, purchasing, constructing, 3 14 reconstructing, modernizing, improving, maintaining, 3 15 repairing, furnishing, equipping, and expanding in this state 3 16 and its municipalities, for the provision of public 3 17 improvements related to housing and residential development, 3 18 and for theprovisionconstruction of housingand residential3 19developmentfor low and moderate income families; that 3 20 accordingly it is necessary to authorize local governing 3 21 bodies to designate areas of a municipality as economic 3 22 development areas for commercial and industrial enterprises, 3 23 public improvements related to housing and residential 3 24 development, or construction of housingand residential3 25developmentfor low and moderate income families; and that it 3 26 is also necessary to encourage the location and expansion of 3 27 commercial enterprises to more conveniently provide needed 3 28 services and facilities of the commercial enterprises to 3 29 municipalities and the residents of the municipalities. 3 30 Therefore, the powers granted in this chapter constitute the 3 31 performance of essential public purposes for this state and 3 32 its municipalities. 3 33 Sec. 10. Section 403.5, subsection 2, unnumbered paragraph 3 34 1, Code 1995, is amended to read as follows: 3 35 The municipality may itself prepare or cause to be prepared 4 1 an urban renewal plan; or any person or agency, public or 4 2 private, may submit such a plan to a municipality. Prior to 4 3 its approval of an urban renewal plan, the local governing 4 4 body shall submit such plan to the planning commission of the 4 5 municipality, if any, for review and recommendations as to its 4 6 conformity with the general plan for the development of the 4 7 municipality as a whole. The planning commission shall submit 4 8 its written recommendations with respect to the proposed urban 4 9 renewal plan to the local governing body within thirty days 4 10 after receipt of the plan for review. Upon receipt of the 4 11 recommendations of the planning commission or, if no 4 12 recommendations are received within the thirty days, then, 4 13 without such recommendations, the local governing body may 4 14 proceed with the hearing on the proposed urban renewalproject4 15 plan prescribed by subsection 3. 4 16 Sec. 11. Section 403.5, subsection 3, Code 1995, is 4 17 amended to read as follows: 4 18 3. The local governing body shall hold a public hearing on 4 19 an urban renewalprojectplan after public notice thereof by 4 20 publication in a newspaper having a general circulation in the 4 21 area of operation of the municipality. The notice shall 4 22 describe the time, date, place and purpose of the hearing, 4 23 shall generally identify the urban renewal area covered by the 4 24 plan, and shall outline the general scope of the urban renewal 4 25projectactivities under consideration. A copy of the notice 4 26 shall be sent by ordinary mail to each affected taxing entity. 4 27 Sec. 12. Section 403.5, subsection 4, paragraph b, 4 28 subparagraph (1), Code 1995, is amended to read as follows: 4 29 (1) If it is to be developed for residential uses, the 4 30 local governing body shall determine that a shortage of 4 31 housing of sound standards and design with decency, safety and 4 32 sanitation exists in the municipality; that the acquisition of 4 33 the area for residential uses is an integral part of and 4 34 essential to the program of the municipality; and that one or 4 35 more of the following conditions exist: 5 1 (a) That the need for housing accommodations has been or 5 2 will be increased as a result of the clearance of slums in 5 3 other areas, including other portions of the urban renewal 5 4 area.; that the5 5 (b) That conditions of blight in theareamunicipality and 5 6 the shortage of decent, safe and sanitary housing cause or 5 7 contribute to an increase in and spread of disease and crime, 5 8andso as to constitute a menace to the public health, safety, 5 9 morals, or welfare; and that the acquisition of the area for5 10residential uses is an integral part of and essential to the5 11program of the municipality. 5 12 (c) That the provision of public improvements related to 5 13 housing and residential development will encourage housing and 5 14 residential development which is necessary to encourage the 5 15 retention or relocation of industrial and commercial 5 16 enterprises in this state and its municipalities. 5 17 (d) The acquisition of the area is necessary to provide 5 18 for the construction of housing for low and moderate income 5 19 families. 5 20 Sec. 13. Section 403.6, Code 1995, is amended by adding 5 21 the following new unnumbered paragraph: 5 22 NEW UNNUMBERED PARAGRAPH. The provisions of this chapter 5 23 shall be liberally interpreted to achieve the purposes of this 5 24 chapter. 5 25 Sec. 14. Section 403.9, subsection 3, Code 1995, is 5 26 amended by adding the following new unnumbered paragraph: 5 27 NEW UNNUMBERED PARAGRAPH. Before the local governing body 5 28 may institute proceedings for the issuance of bonds under this 5 29 section, a notice of the proposed action, including a 5 30 statement of the amount and purposes of the bonds and the time 5 31 and place of the meeting at which the local governing body 5 32 proposes to take action for the issuance of the bonds, must be 5 33 published as provided in section 362.3. At the meeting, the 5 34 local governing body shall receive oral or written objections 5 35 from any resident or property owner of the municipality. 6 1 After all objections have been received and considered, the 6 2 local governing body, at that meeting or any subsequent 6 3 meeting, may take additional action for the issuance of the 6 4 bonds or abandon the proposal to issue the bonds. Any 6 5 resident or property owner of the municipality may appeal the 6 6 decision of the local governing body to take additional action 6 7 to the district court of the county in which any part of the 6 8 municipality is located, within fifteen days after the 6 9 additional action is taken. The additional action of the 6 10 local governing body is final and conclusive unless the court 6 11 finds that the municipality exceeded its authority. 6 12 Sec. 15. Section 403.9, subsection 4, Code 1995, is 6 13 amended to read as follows: 6 14 4. Such bonds may be sold at not less than ninety-eight 6 15 percent of par at public or private sale, or may be exchanged 6 16 for other bondson the basisat not less than ninety-eight 6 17 percent of par. 6 18 Sec. 16. Section 403.10, Code 1995, is amended to read as 6 19 follows: 6 20 403.10 BONDS AS LEGAL INVESTMENT. 6 21 All banks, trust companies, building and loan associations, 6 22 savings and loan associations, investment companies and other 6 23 persons carrying on an investment business; all insurance 6 24 companies, insurance associations, and other persons carrying 6 25 on an insurance business; and all executors, administrators, 6 26 curators, trustees, and other fiduciaries, may legally invest 6 27 any sinking funds, moneys, or other funds belonging to them or 6 28 within their control in any bonds or other obligations issued 6 29 by a municipality pursuant to this chapter, or those issued by 6 30 any urban renewal agency vested with urban renewal project 6 31 powers under section 403.14: Provided, that such bonds and6 32other obligations shall be secured by an agreement between the6 33issuer and the federal government, in which the issuer agrees6 34to borrow from the federal government and the federal6 35government agrees to lend to the issuer, prior to the maturity7 1of such bonds or other obligations, moneys in an amount which,7 2together with any other moneys irrevocably committed to the7 3payment of interest on such bonds or other obligations, will7 4suffice to pay the principal of such bonds or other7 5obligations with interest to maturity thereon, which moneys7 6under the terms of said agreement are required to be used for7 7the purpose of paying the principal of and the interest on7 8such bonds or other obligations at their maturity. Such bonds 7 9 and other obligations shall be authorized security for all 7 10 public deposits. It is the purpose of this section to 7 11 authorize any persons, political subdivisions and officers, 7 12 public or private, to use any funds owned or controlled by 7 13 them for the purchase of any such bonds or other obligations. 7 14 Nothing contained in this section with regard to legal 7 15 investments shall be construed as relieving any person of any 7 16 duty of exercising reasonable care in selecting securities. 7 17 Sec. 17. Section 403.17, subsection 9, Code 1995, is 7 18 amended to read as follows: 7 19 9. "Economic development area" means an area of a 7 20 municipality designated by the local governing body as 7 21 appropriate for commercial and industrial enterprises, public 7 22 improvements related to housing and residential development, 7 23 or construction of housing and residential development for low 7 24 and moderate income families, including single or multifamily 7 25 housing. If an urban renewal plan for an urban renewal area 7 26 is based upon a finding that the area is an economic 7 27 development area and that no part contains slum or blighted 7 28 conditions, then the division of revenue provided in section 7 29 403.19 and stated in the plan shall be limited to twenty years 7 30 from the calendar year following the calendar year in which 7 31 the city first certifies to the county auditor the amount of 7 32 any loans, advances, indebtedness, or bonds which qualify for 7 33 payment from the division of revenue provided in section 7 34 403.19. Such area designated before July 1, 1994, shall not 7 35 include land which is part of a century farm. 8 1 Sec. 18. Section 403.19, subsection 2, Code 1995, is 8 2 amended to read as follows: 8 3 2. That portion of the taxes each year in excess of such 8 4 amount shall be allocated to and when collected be paid into a 8 5 special fund of the municipality to pay the principal of and 8 6 interest on loans, moneys advanced to, or indebtedness, 8 7 whether funded, refunded, assumed, or otherwise, including 8 8 bonds issued under the authority of section 403.9, subsection 8 9 1, incurred by the municipality to finance or refinance, in 8 10 whole or in part, an urban renewal project within the area, 8 11 and to provide assistance for low and moderate income family 8 12 housing as provided in section 403.22, except that taxes for 8 13 the payment of bonds and interest of each taxing district must 8 14 be collected against all taxable property within the taxing 8 15 district without limitation by the provisions of this 8 16 subsection. Unless and until the total assessed valuation of 8 17 the taxable property in an urban renewal area exceeds the 8 18 total assessed value of the taxable property in such area as 8 19 shown by the last equalized assessment roll referred to in 8 20 subsection 1, all of the taxes levied and collected upon the 8 21 taxable property in the urban renewal area shall be paid into 8 22 the funds for the respective taxing districts as taxes by or 8 23 for the taxing districts in the same manner as all other 8 24 property taxes. When such loans, advances, indebtedness, and 8 25 bonds, if any, and interest thereon, have been paid, all 8 26 moneys thereafter received from taxes upon the taxable 8 27 property in such urban renewal area shall be paid into the 8 28 funds for the respective taxing districts in the same manner 8 29 as taxes on all other property. 8 30 Sec. 19. NEW SECTION. 403.22 FINANCING PUBLIC 8 31 IMPROVEMENTS RELATED TO LOW INCOME HOUSING AND RESIDENTIAL 8 32 DEVELOPMENT. 8 33 1. With respect to any urban renewal area established upon 8 34 the determination that the area is an economic development 8 35 area, a division of revenue as provided in section 403.19 9 1 shall not be allowed for the purpose of providing or aiding in 9 2 the provision of public improvements related to housing and 9 3 residential development, unless the municipality assures that 9 4 the project will include assistance for low and moderate 9 5 income family housing. For a municipality with a population 9 6 of over fifteen thousand, the amount to be provided for low 9 7 and moderate income family housing for such projects shall be 9 8 either equal to or greater than the percentage of the original 9 9 project cost that is equal to the percentage of low and 9 10 moderate income residents for the county in which the urban 9 11 renewal area is located as determined by the United States 9 12 department of housing and urban development using section 8 9 13 guidelines or such other amount as set out in a plan adopted 9 14 by the municipality and approved by the Iowa department of 9 15 economic development if the municipality can show that it 9 16 cannot undertake the project if it has to meet the low and 9 17 moderate income assistance requirements. However, the amount 9 18 provided for low and moderate income family housing for such 9 19 projects shall not be less than an amount equal to ten percent 9 20 of the original project cost. 9 21 For a municipality with a population of fifteen thousand or 9 22 less, the amount to be provided for low and moderate income 9 23 family housing shall be the same as for a municipality of over 9 24 fifteen thousand in population, except that a municipality of 9 25 fifteen thousand or less in population is not subject to the 9 26 requirement to provide not less than an amount equal to ten 9 27 percent of the original project cost for low and moderate 9 28 income family housing. 9 29 2. The assistance to low and moderate income housing may 9 30 be in, but is not limited to, any of the following forms: 9 31 a. Lots for low and moderate income housing within or 9 32 outside the urban renewal area. 9 33 b. Construction of low and moderate income housing within 9 34 or outside the urban renewal area. 9 35 c. Grants, credits or other direct assistance to low and 10 1 moderate income families living within or outside the urban 10 2 renewal area, but within the area of operation of the 10 3 municipality. 10 4 d. Payments to a low and moderate income housing fund 10 5 established by the municipality to be expended for one or more 10 6 of the above purposes, including matching funds for any state 10 7 or federal moneys used for such purposes. 10 8 3. Sources for low and moderate income family housing 10 9 assistance may include the following: 10 10 a. Proceeds from loans, advances, bonds or indebtedness 10 11 incurred. 10 12 b. Annual distributions from the division of revenues 10 13 pursuant to section 403.19 related to the urban renewal area. 10 14 c. Lump sum or periodic direct payments from developers or 10 15 other private parties under an agreement for development or 10 16 redevelopment between the municipality and a developer. 10 17 d. Any other sources which are legally available for this 10 18 purpose. 10 19 4. The assistance to low and moderate income family 10 20 housing may be expended outside the boundaries of the urban 10 21 renewal area. 10 22 5. The division of the revenue under section 403.19 for 10 23 each project under this section shall be limited to tax 10 24 collections for ten fiscal years beginning with the second 10 25 fiscal year after the year in which the municipality first 10 26 certifies to the county auditor the amount of any loans, 10 27 advances, indebtedness, or bonds which qualify for payment 10 28 from the division of the revenue in connection with the 10 29 project. The portion of the urban renewal area which is 10 30 involved in a project under this section shall not be subject 10 31 to any subsequent division of revenue under section 403.19. 10 32 DIVISION III 10 33 Sec. 20. Section 331.384, subsection 1, paragraph c, Code 10 34 1995, is amended to read as follows: 10 35 c. Require the removal, repair, or dismantling ofaan 11 1 abandoned or dangerous building or structure. 11 2 Sec. 21. NEW SECTION. 364.12A CONDEMNATION OF 11 3 RESIDENTIAL BUILDINGS – PUBLIC PURPOSE. 11 4 For the purposes of section 6A.4, subsection 6, a city may 11 5 condemn a residential building found to be a public nuisance 11 6 and take title to the property for the public purpose of 11 7 disposing of the property under section 364.7 by conveying the 11 8 property to a private individual for rehabilitation or for 11 9 demolition and construction of housing. 11 10 Sec. 22. Section 657A.1, subsections 1, 3, and 4, Code 11 11 1995, are amended to read as follows: 11 12 1. "Abandoned" or "abandonment" means that a building has 11 13 remained vacant and has been in violation of the housing code 11 14 of the city in which the property is located or the housing 11 15 code applicable in the county in which the property is located 11 16 if outside the limits of a city for a period of six 11 17 consecutive months. 11 18 3. "Building" means a building or structure located in a 11 19 city or outside the limits of a city in a county, which is 11 20 used or intended to be used for residential purposes, and 11 21 includes a building or structure in which some floors may be 11 22 used for retail stores, shops, salesrooms, markets, or similar 11 23 commercial uses, or for offices, banks, civic administration 11 24 activities, professional services, or similar business or 11 25 civic uses, and other floors are used, designed, or intended 11 26 to be used for residential purposes. 11 27 4. "Interested person" means an owner, mortgagee, 11 28 lienholder, or other person that possesses an interest of 11 29 record or an interest otherwise provable in property that 11 30 becomes subject to the jurisdiction of the court pursuant to 11 31 this chapter, the city in which the property is located, the 11 32 county in which the property is located if the property is 11 33 located outside the limits of a city, and an applicant for the 11 34 appointment as receiver pursuant to this chapter. 11 35 Sec. 23. Section 657A.2, subsections 1 and 2, Code 1995, 12 1 are amended to read as follows: 12 2 1. A petition for abatement under this chapter may be 12 3 filed in the district court of the county in which the 12 4 property is located, by the city in which the property is 12 5 located, by the county if the property is located outside the 12 6 limits of a city, a neighboring landowner, or a duly organized 12 7 nonprofit corporation which has as one of its goals the 12 8 improvement of housing conditions in the county or city in 12 9 which the property in question is located. Service on the 12 10 owner shall be by personal service or by certified mail, or if 12 11 service cannot be made by either method, by posting the notice 12 12 in a conspicuous place on the building and by publication. 12 13 2. If a petition filed pursuant to this chapter alleges 12 14 that a building is abandoned or is in a dangerous or unsafe 12 15 condition, the city, county, if the property is located 12 16 outside the limits of a city, neighboring landowner, or 12 17 nonprofit corporation may apply for an injunction requiring 12 18 the owner of the building to correct the condition or to 12 19 eliminate the condition or violation. The court shall conduct 12 20 a hearing at least twenty days after written notice of the 12 21 application for an injunction and of the date and time of the 12 22 hearing is served upon the owner of the building. Notice of 12 23 the hearing shall be served in the manner provided in 12 24 subsection 1. 12 25 Sec. 24. Section 657A.4, Code 1995, is amended to read as 12 26 follows: 12 27 657A.4 APPOINTMENT OF RECEIVER. 12 28 After conducting a hearing pursuant to section 657A.3, the 12 29 court may appoint a receiver to take possession and control of 12 30 the property in question. A person shall not be appointed as 12 31 a receiver unless the person has first provided the court with 12 32 a viable financial and construction plan for the 12 33 rehabilitation of the property in question and has 12 34 demonstrated the capacity and expertise to perform the 12 35 required work in a satisfactory manner. The appointed 13 1 receiver may be a financial institution that possesses an 13 2 interest of record in the property, a nonprofit corporation 13 3 that is duly organized and exists for the primary purpose of 13 4 improving housing conditions in the county or city in which 13 5 the property in question is located, or any person deemed 13 6 qualified by the court. No part of the net earnings of a 13 7 nonprofit corporation serving as a receiver under this section 13 8 shall benefit a private shareholder or individual. Membership 13 9 on the board of trustees of a nonprofit corporation does not 13 10 constitute the holding of a public office or employment and is 13 11 not an interest, either direct or indirect, in a contract or 13 12 expenditure of money by a city or county. No member of a 13 13 board of trustees of a nonprofit corporation appointed as 13 14 receiver is disqualified from holding public office or 13 15 employment, nor is a member required to forfeit public office 13 16 or employment by reason of the membership on the board of 13 17 trustees. 13 18 DIVISION IV 13 19 Sec. 25. NEW SECTION. 446.19A PURCHASE BY COUNTY OR CITY 13 20 FOR LOW OR MODERATE INCOME HOUSING. 13 21 Notwithstanding section 446.18, a city or county may 13 22 purchase abandoned property assessed as residential or 13 23 commercial multifamily housing which did not sell at an annual 13 24 tax sale under section 446.7 for the total amount due. Money 13 25 shall not be paid by the county or other tax-levying or tax- 13 26 certifying body for the purchase, but each of the tax-levying 13 27 and tax-certifying bodies having any interest in the taxes 13 28 shall be charged with the total amount due the tax-levying or 13 29 tax-certifying body as its just share of the purchase price. 13 30 Prior to the purchase the city or county shall file with the 13 31 county treasurer a verified statement that a parcel to be 13 32 purchased is abandoned and deteriorating in condition or is, 13 33 or is likely to become, a public nuisance, and that the parcel 13 34 is suitable for use for low or moderate income housing 13 35 following rehabilitation. 14 1 The city or county may sell the certificate of purchase. 14 2 Preference shall be given to purchasers who are low or 14 3 moderate income families or organizations which assist low and 14 4 moderate income families to obtain housing. For the purpose 14 5 of this section, "low or moderate income families" has the 14 6 same meaning as in section 403.17. All persons who purchase 14 7 certificates under this section shall demonstrate the intent 14 8 to rehabilitate the property for habitation if the property is 14 9 not redeemed. 14 10 Sec. 26. Section 447.9, unnumbered paragraph 1, Code 14 11 Supplement 1995, is amended to read as follows: 14 12 After one year and nine months from the date of sale,or14 13 after nine months from the date of a sale made under section 14 14 446.18, 446.38 or 446.39, or following the date of a sale made 14 15 under section 446.19A of abandoned property assessed for 14 16 taxation as residential property or as multifamily commercial 14 17 property, the holder of the certificate of purchase may cause 14 18 to be served upon the person in possession of the parcel, and 14 19 also upon the person in whose name the parcel is taxed, in the 14 20 manner provided for the service of original notices in R.C.P. 14 21 56.1, if the person resides in Iowa, or otherwise as provided 14 22 in section 446.9, subsection 1, a notice signed by the 14 23 certificate holder or the certificate holder's agent or 14 24 attorney, stating the date of sale, the description of the 14 25 parcel sold, the name of the purchaser, and that the right of 14 26 redemption will expire and a deed for the parcel be made 14 27 unless redemption is made within ninety days from the 14 28 completed service of the notice. The ninety-day redemption 14 29 period begins as provided in section 447.12. When the notice 14 30 is given by a county as a holder of a certificate of purchase 14 31 the notice shall be signed by the county treasurer or the 14 32 county attorney, and when given by a city, it shall be signed 14 33 by the city officer designated by resolution of the council. 14 34 When the notice is given by the Iowa finance authority or a 14 35 city or county agency holding the parcel as part of an Iowa 15 1 homesteading project, it shall be signed on behalf of the 15 2 agency or authority by one of its officers, as authorized in 15 3 rules of the agency or authority. 15 4 DIVISION V 15 5 Sec. 27. Section 16.100, Code 1995, is amended by adding 15 6 the following new subsection: 15 7 NEW SUBSECTION. 1A. The authority shall use moneys 15 8 received from the real estate transfer tax under section 15 9 428A.8 to supplement expenditures for programs under this 15 10 section which promote housing development and ownership. 15 11 Sec. 28. Section 428A.8, unnumbered paragraph 1, Code 15 12 1995, is amended to read as follows: 15 13 On or before the tenth day of each month the county 15 14 recorder shall determine and pay to the treasurer of state 15 15eighty-two and three-fourthsforty percent of the receipts 15 16 from the real estate transfer tax collected during the 15 17 preceding month and the treasurer of state shalldeposit15 18ninety-five percent of the receipts in the general fund of the15 19state andtransferfive percent ofthe receipts to the Iowa 15 20 finance authority for deposit in the housing improvement fund 15 21 created in section 16.100. 15 22 DIVISION VI 15 23 Sec. 29. EFFECTIVE DATES. Divisions I and II of this Act, 15 24 being deemed of immediate importance, take effect upon 15 25 enactment. Division V of this Act takes effect July 1, 1997. 15 26 EXPLANATION 15 27 Division I. Sections 1 and 8 repeal the pilot program 15 28 which limits the establishment of real estate improvement 15 29 districts to six counties, thus allowing the statewide 15 30 establishment of real estate improvement districts. Section 1 15 31 also provides that real estate improvement districts cannot be 15 32 created after June 30, 2000. 15 33 Sections 2 and 3 provide that a person proposed to be a 15 34 trustee, successor trustee, or to fill a vacancy on the board 15 35 of trustees must disclose, prior to selection as a trustee, 16 1 any financial interest the person has in a developer or 16 2 contractor who may receive a contract for public improvements 16 3 or other services in the district. A person proposed as a 16 4 trustee, successor trustee, or to fill a vacancy on the board 16 5 of trustees must also disclose the amount of land the person 16 6 owns in the district. 16 7 Section 4 requires real estate improvement districts to 16 8 allow the building of manufactured homes by prohibiting 16 9 actions by the board of trustees of the district to prohibit 16 10 or restrict the construction of manufactured homes. 16 11 Section 4 also requires the board of trustees to maintain 16 12 the official records of the district, including information 16 13 regarding the debt service of the district and to make an 16 14 annual report of the progress made by the district in retiring 16 15 the debt. 16 16 In addition, section 4 requires meeting notices to be made 16 17 public and to state the actions which will be taken by the 16 18 board at the meeting. Finally, that section prohibits the 16 19 board from entering into a contract for public improvements or 16 20 other development services with a person owning more than 25 16 21 percent of the land in the district without competitive 16 22 bidding. 16 23 Section 5 requires the existence of a special assessment to 16 24 be recorded, regarding each lot, in the county in which the 16 25 real estate improvement district is located. 16 26 Section 6 requires the seller of property in a real estate 16 27 improvement district or a person acting on the seller's behalf 16 28 to disclose the amount of a special assessment during sale 16 29 negotiations. 16 30 Section 7 provides that real estate brokers must disclose 16 31 the existence of a special assessment against property in a 16 32 district to a potential buyer. 16 33 Division I takes effect upon enactment. 16 34 Division II makes the following changes to chapter 403 16 35 regarding urban renewal: 17 1 Section 9 adds to the declaration of policy regarding urban 17 2 renewal that a need exists for programs to alleviate and 17 3 prevent a shortage of housing and that programs which provide 17 4 for public improvements related to housing and residential 17 5 development and the construction of housing are essential 17 6 public purposes for the state and its municipalities. 17 7 Sections 10 and 11 provide that public hearings are to be 17 8 held on a proposed urban renewal plan, rather than on each 17 9 urban renewal project undertaken in accordance with the plan. 17 10 Section 12 requires the municipality to make a finding that 17 11 acquisition of land for residential uses is essential to the 17 12 municipality's urban renewal plan. Section 11 also requires 17 13 the municipality to find that one of four conditions exist 17 14 including that the provision of public improvements related to 17 15 housing and residential development will encourage residential 17 16 development and the retention or relocation of industrial or 17 17 commercial enterprises or that the area to be acquired under 17 18 the plan is necessary to provide for the construction of low 17 19 and moderate income housing. 17 20 Section 14 requires a public notice and hearing before 17 21 bonds may be issued for urban renewal and provides a 15 day 17 22 window, following the decision of the municipality to take 17 23 additional action to issue the bonds, for a resident or 17 24 property owner to appeal the additional action to the district 17 25 court. The additional action is final and conclusive unless 17 26 the court finds that the municipality exceeded its authority. 17 27 Section 15 provides that bonds may be sold or exchanged at 17 28 98 percent of par value or higher. 17 29 Section 16 removes the requirement that bonds and other 17 30 obligations under chapter 403 be secured by an agreement 17 31 between the issuer of the bonds and the federal government 17 32 obligating the issuer to borrow from the federal government if 17 33 necessary to pay off the bonds or obligations. 17 34 Section 17 adds public improvements related to housing 17 35 development to the definition of economic development area and 18 1 makes construction of low and moderate income housing an 18 2 alternative use (along with commercial and industrial 18 3 enterprises and public improvements for housing) for an 18 4 economic development area. The division of revenue under tax 18 5 increment financing based upon a finding that the area is an 18 6 economic development area is limited to 20 years. 18 7 Sections 18 and 19 add low and moderate income housing 18 8 assistance to the uses for which revenue from tax increment 18 9 financing may be used and set out the manner in which 18 10 assistance for public improvements related to housing and 18 11 residential development, both low and moderate income and 18 12 otherwise, may be provided. 18 13 Section 19 also provides that property in an urban renewal 18 14 area upon which public improvements related to housing and 18 15 residential development are being placed as part of a project 18 16 financed by tax increment financing can only be used for tax 18 17 increment financing once. 18 18 Tax increment financing for housing or residential 18 19 development is not allowed unless the municipality assures 18 20 that the project will include assistance for low and moderate 18 21 income family housing in an amount either based on the 18 22 percentage of low and moderate income persons in the county or 18 23 in some other amount as determined by the municipality and 18 24 agreed to by the department of economic development. A 18 25 municipality of over 15,000 in population must provide low- 18 26 income and moderate-income housing assistance of at least 10 18 27 percent of the total project cost. A municipality of 15,000 18 28 in population or under is not subject to the 10 percent 18 29 limitation. The municipality shall, however, provide some 18 30 amount of low-income and moderate-income assistance. 18 31 Assistance for low and moderate income housing may take 18 32 many forms, including lots for low and moderate income housing 18 33 within or outside the urban renewal area or payments to a low 18 34 and moderate income housing fund established by the 18 35 municipality. Funding sources may include revenue from tax 19 1 increment financing or any other legal source. Tax increment 19 2 financing for housing projects is limited in duration to ten 19 3 years. 19 4 Division II takes effect upon enactment. 19 5 Division III provides that counties may utilize the 19 6 abatement procedure regarding property which is abandoned or 19 7 deemed to constitute a public nuisance currently only 19 8 available to cities, neighboring landowners, and nonprofit 19 9 housing corporations. The county may file a petition for 19 10 abatement if the property is located outside the limits of a 19 11 city and is either abandoned and in violation of the housing 19 12 code applicable to the county or is deemed a public nuisance. 19 13 Division III also provides that a city may condemn a 19 14 residential building under its power of eminent domain and 19 15 dispose of the property to a private person for rehabilitation 19 16 or demolition and new construction of housing. The city is 19 17 required to follow the procedures of section 364.7, including 19 18 a public hearing and adoption of an ordinance authorizing the 19 19 conveyance. 19 20 Division IV provides that cities or counties may purchase 19 21 abandoned single or multifamily housing which is tax 19 22 delinquent and which did not sell at the annual tax sale. The 19 23 city or county may retain the tax sale certificate or sell it. 19 24 If sold, preference in the sale must go to low or moderate 19 25 income families or organizations which provide housing 19 26 assistance for low or moderate income families. The holder of 19 27 the certificate may immediately send notice that the right to 19 28 redeem the property shall expire in 90 days. 19 29 Only property which is assessed for tax purposes as 19 30 residential property or as multifamily commercial housing is 19 31 eligible for purchase by a city or county in this manner and 19 32 for the shortened redemption period. 19 33 Division V. Sections 27 and 28 direct 40 percent of the 19 34 proceeds of the real estate transfer tax to the Iowa finance 19 35 authority for use to supplement programs which promote housing 20 1 development and ownership. Section 28 provides that 40 20 2 percent of the proceeds from the real estate transfer tax paid 20 3 to the treasurer of state shall be transferred to the housing 20 4 improvement fund in the Iowa finance authority. Currently, 20 5 only 5 percent of the proceeds from the transfer tax are 20 6 deposited in the housing improvement fund. The county in 20 7 which the tax was collected shall keep 60 percent of the 20 8 proceeds. 20 9 Division V takes effect July 1, 1997. 20 10 LSB 3872HV 76 20 11 mk/jw/5
Text: HF02465 Text: HF02467 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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