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PAG LIN 1 1 DIVISION I 1 2 Section 1. Section 358C.1, subsection 2, paragraphs c and 1 3 d, Code Supplement 1995, are amended to read as follows: 1 4 c. "Cost" of a public improvement includes the cost of 1 5 engineering, preliminary reports, property valuations, 1 6 estimates, plans, specifications, notices, legal services, 1 7 acquisition of land, consequential damages, easements, rights- 1 8 of-way, construction, repair, supervision, inspection, 1 9 testing, notices and publication, interest during construction 1 10 and for not more thansixtwelve months thereafter, and 1 11 printing and sale of bonds. 1 12 d. "District" means a real estate improvement district as 1 13 created in this chapter, in a county designated as a pilot1 14county under section 358C.2. A real estate improvement 1 15 district shall not be created after June 30, 2000. 1 16 Sec. 2. Section 358C.3, subsection 6, Code Supplement 1 17 1995, is amended to read as follows: 1 18 6. The petition shall propose the names of three or more 1 19 trustees who shall be owners of real estate in the proposed 1 20 district or the designees of owners of property in the 1 21 proposed district, to serve as a board of trustees until their 1 22 successors are elected and qualified if the district is 1 23 organized. The board of trustees shall only carry out those 1 24 purposes which are authorized in this chapter and listed in 1 25 the petition. Each person proposed as a trustee shall 1 26 disclose whether the person has any financial interest in any 1 27 business which is or may be a developer or contractor for 1 28 public improvements within the proposed real estate 1 29 improvement district and the extent of the person's land 1 30 ownership in the district, if any. 1 31 Sec. 3. Section 358C.4, subsection 2, paragraph i, Code 1 32 Supplement 1995, is amended to read as follows: 1 33 i.StreetClearing, stripping, grubbing, earthwork, 1 34 erosion control, lot grading, street grading, paving, 1 35 graveling, macadamizing, curbing, guttering, and surfacing 2 1 with oil and gravel or chloride. 2 2 Sec. 4. Section 358C.10, Code Supplement 1995, is amended 2 3 by adding the following new subsection: 2 4 NEW SUBSECTION. 4. A candidate to fill a vacancy or as a 2 5 successor trustee shall disclose prior to selection as a 2 6 trustee whether the person has any financial interest in any 2 7 business which is or may be a developer or contractor for 2 8 public improvements within the real estate improvement 2 9 district and the extent of the person's land ownership in the 2 10 district, if any. 2 11 Sec. 5. Section 358C.13, Code Supplement 1995, is amended 2 12 by adding the following new subsections: 2 13 NEW SUBSECTION. 1A. The board of trustees shall maintain 2 14 the official records of the district, which shall include 2 15 information regarding the service of any indebtedness of the 2 16 district, including special assessment bonds. The board shall 2 17 report annually on the progress of the district in retiring 2 18 indebtedness. 2 19 NEW SUBSECTION. 2A. The board of trustees shall provide 2 20 public notice prior to each meeting of the board. The notice 2 21 shall contain the agenda of the meeting which shall describe 2 22 the proposed actions to be taken by the board at the meeting. 2 23 NEW SUBSECTION. 6. The board of trustees shall not 2 24 prohibit or restrict the construction of manufactured homes in 2 25 a real estate improvement district. As used in this 2 26 subsection, "manufactured home" has the same meaning as under 2 27 section 435.1, subsection 2. 2 28 NEW SUBSECTION. 7. The board of trustees shall not enter 2 29 into a contract for public improvements or other services with 2 30 a board member or with any person owning more than twenty-five 2 31 percent of the land of a real estate improvement district 2 32 except as a result of competitive bidding. 2 33 Sec. 6. Section 358C.16, subsection 4, Code Supplement 2 34 1995, is amended to read as follows: 2 35 4. The proceeds of any bond issue made under this section 3 1 shall be used only for the cost of public improvements as 3 2 specified insectionsections 358C.1 and 358C.4. Proceeds 3 3 from the bond issue may also be used for the payment of 3 4 special assessment deficiencies. The bonds shall be payable 3 5 in not more than forty annual installments and with interest 3 6 at a rate not exceeding that permitted by chapter 74A, and 3 7 shall be made payable at the place and be of the form as the 3 8 board of trustees shall by resolution designate. A district 3 9 issuing bonds as authorized in this section is granted 3 10 authority to pledge the future avails of a tax levy to the 3 11 payment of the principal and interest of the bonds after the 3 12 same come due, and the power to impose and certify the levy is 3 13 granted to the trustees of real estate improvement districts 3 14 organized under this chapter. 3 15 Sec. 7. Section 358C.17, subsection 1, Code Supplement 3 16 1995, is amended to read as follows: 3 17 1. The board of trustees of a real estate improvement 3 18 district may provide for payment of all or any portion of the 3 19 costs of a public improvement as specified insectionsections 3 20 358C.1 and 358C.4, by assessing all, or any portion of, the 3 21 costs on adjacent property according to the benefits derived. 3 22 For the purposes of this chapter, the board of trustees may 3 23 define "adjacent property" as all that included within a 3 24 designated benefited district to be fixed by the board, which 3 25 may be all of the property located within the real estate 3 26 improvement district or any lesser portion of that property. 3 27 It is not a valid objection to a special assessment that the 3 28 improvement for which the assessment is levied is outside the 3 29 limits of the district, but a special assessment shall not be 3 30 made upon property situated outside of the district. Special 3 31 assessments pursuant to this section shall be in proportion to 3 32 the special benefits conferred upon the property, and not in 3 33 excess of the benefits. The value of a property is the 3 34 present fair market value of the property with the proposed 3 35 public improvements completed. Payment of installments of a 4 1 special assessment against property shall be made in the same 4 2 manner and under the same procedures as provided in chapter 4 3 384 for special assessments by cities. Notwithstanding the 4 4 provisions of section 384.62, the combined assessments against 4 5 any lot for public improvements included in the petition 4 6 creating the housing development district or as authorized in 4 7 section 358C.4 shall not exceed the valuation of that lot as 4 8 established by section 384.46. 4 9 Sec. 8. Section 358C.17, Code Supplement 1995, is amended 4 10 by adding the following new subsections: 4 11 NEW SUBSECTION. 4. A special assessment under this 4 12 section shall be recorded in the county in which the district 4 13 is located for each lot in the district. 4 14 NEW SUBSECTION. 5. Notwithstanding section 384.65, 4 15 subsection 5, a district shall have a lien on the benefited 4 16 property only in the amount of special assessment installments 4 17 that have come due but have not been paid. The district shall 4 18 not have a lien for the total amount of the special assessment 4 19 originally levied against the benefited property. A lien, 4 20 including, but not limited to, a lien for a mortgage for the 4 21 construction or the purchase of housing on property benefited 4 22 by improvements and against which a special assessment is 4 23 levied under this chapter, shall have precedence over a 4 24 special assessment which has been levied by the district but 4 25 is not due. A district's lien shall only be in the amount of 4 26 installments whose due dates have passed without payment, 4 27 along with all interest and penalties on the delinquent 4 28 installments. The district's lien for delinquent 4 29 installments, interest, and penalties shall have equal 4 30 precedence with ordinary taxes and shall not be divested by 4 31 judicial sale. Any remaining special assessment installments 4 32 that have not become due shall not be divested by judicial 4 33 sale and shall become a lien when the special assessment 4 34 installments become due. 4 35 Sec. 9. NEW SECTION. 358C.24 DISCLOSURE OF SPECIAL 5 1 ASSESSMENT. 5 2 A person interested in transferring real property located 5 3 in a district, or a broker or salesperson acting on behalf of 5 4 the person, shall disclose, in accordance with chapter 558A, 5 5 that the property is located in a real estate improvement 5 6 district and the amount of any special assessment under this 5 7 chapter against the property. 5 8 Sec. 10. NEW SECTION. 368.24 NOTIFICATION TO PUBLIC 5 9 UTILITIES. 5 10 Notwithstanding any other provision of law to the contrary, 5 11 any city that annexes territory shall provide written 5 12 notification consisting of a legal description and map of the 5 13 annexed territory, each street address within the annexed 5 14 area, where possible, a statement containing the effective 5 15 date of the annexation and a copy of the order, resolution, or 5 16 ordinance proclaiming the annexation to all public utilities 5 17 operating in the annexed area. If the notification of the 5 18 annexation is provided to a public utility less than sixty 5 19 days prior to the effective date of the annexation, the public 5 20 utility shall have sixty days from the date of notification to 5 21 adjust its tax and accounting records to reflect the 5 22 annexation for any tax purpose. 5 23 Sec. 11. Section 558A.4, subsection 1, Code 1995, is 5 24 amended to read as follows: 5 25 1. The disclosure statement shall include information 5 26 relating to the condition and important characteristics of the 5 27 property and structures located on the property, including 5 28 significant defects in the structural integrity of the 5 29 structure, as provided in rules which shall be adopted by the 5 30 real estate commission pursuant to section 543B.9. The 5 31 disclosure statement shall also include whether the property 5 32 is located in a real estate improvement district and the 5 33 amount of any special assessment against the property under 5 34 chapter 358C. The rules may require the disclosure to include 5 35 information relating to the property's zoning classification; 6 1 the condition of plumbing, heating, or electrical systems; or 6 2 the presence of pests. 6 3 Sec. 12. Section 358C.2, Code Supplement 1995, is 6 4 repealed. 6 5 DIVISION II 6 6 Sec. 13. Section 403.2, subsection 3, Code 1995, is 6 7 amended to read as follows: 6 8 3. It is further found and declared that there exists in 6 9 this state the continuing need for programs to alleviate and 6 10 prevent conditions of unemployment and a shortage of housing; 6 11 and that it is accordingly necessary to assist and retain 6 12 local industries and commercial enterprises to strengthen and 6 13 revitalize the economy of this state and its municipalities; 6 14 that accordingly it is necessary to provide means and methods 6 15 for the encouragement and assistance of industrial and 6 16 commercial enterprises in locating, purchasing, constructing, 6 17 reconstructing, modernizing, improving, maintaining, 6 18 repairing, furnishing, equipping, and expanding in this state 6 19 and its municipalities, for the provision of public 6 20 improvements related to housing and residential development, 6 21 and for theprovisionconstruction of housingand residential6 22developmentfor low and moderate income families; that 6 23 accordingly it is necessary to authorize local governing 6 24 bodies to designate areas of a municipality as economic 6 25 development areas for commercial and industrial enterprises, 6 26 public improvements related to housing and residential 6 27 development, or construction of housingand residential6 28developmentfor low and moderate income families; and that it 6 29 is also necessary to encourage the location and expansion of 6 30 commercial enterprises to more conveniently provide needed 6 31 services and facilities of the commercial enterprises to 6 32 municipalities and the residents of the municipalities. 6 33 Therefore, the powers granted in this chapter constitute the 6 34 performance of essential public purposes for this state and 6 35 its municipalities. 7 1 Sec. 14. Section 403.5, subsection 2, unnumbered paragraph 7 2 1, Code 1995, is amended to read as follows: 7 3 The municipality may itself prepare or cause to be prepared 7 4 an urban renewal plan; or any person or agency, public or 7 5 private, may submit such a plan to a municipality. Prior to 7 6 its approval of an urban renewal plan, the local governing 7 7 body shall submit such plan to the planning commission of the 7 8 municipality, if any, for review and recommendations as to its 7 9 conformity with the general plan for the development of the 7 10 municipality as a whole. The planning commission shall submit 7 11 its written recommendations with respect to the proposed urban 7 12 renewal plan to the local governing body within thirty days 7 13 after receipt of the plan for review. Upon receipt of the 7 14 recommendations of the planning commission or, if no 7 15 recommendations are received within the thirty days, then, 7 16 without such recommendations, the local governing body may 7 17 proceed with the hearing on the proposed urban renewalproject7 18 plan prescribed by subsection 3. 7 19 Sec. 15. Section 403.5, subsection 3, Code 1995, is 7 20 amended to read as follows: 7 21 3. The local governing body shall hold a public hearing on 7 22 an urban renewalprojectplan after public notice thereof by 7 23 publication in a newspaper having a general circulation in the 7 24 area of operation of the municipality. The notice shall 7 25 describe the time, date, place and purpose of the hearing, 7 26 shall generally identify the urban renewal area covered by the 7 27 plan, and shall outline the general scope of the urban renewal 7 28projectactivities under consideration. A copy of the notice 7 29 shall be sent by ordinary mail to each affected taxing entity. 7 30 Sec. 16. Section 403.5, subsection 4, paragraph b, 7 31 subparagraph (1), Code 1995, is amended to read as follows: 7 32 (1) If it is to be developed for residential uses, the 7 33 local governing body shall determine that a shortage of 7 34 housing of sound standards and design with decency, safety and 7 35 sanitation exists in the municipality; that the acquisition of 8 1 the area for residential uses is an integral part of and 8 2 essential to the program of the municipality; and that one or 8 3 more of the following conditions exist: 8 4 (a) That the need for housing accommodations has been or 8 5 will be increased as a result of the clearance of slums in 8 6 other areas, including other portions of the urban renewal 8 7 area.; that the8 8 (b) That conditions of blight in theareamunicipality and 8 9 the shortage of decent, safe and sanitary housing cause or 8 10 contribute to an increase in and spread of disease and crime, 8 11andso as to constitute a menace to the public health, safety, 8 12 morals, or welfare; and that the acquisition of the area for8 13residential uses is an integral part of and essential to the8 14program of the municipality. 8 15 (c) That the provision of public improvements related to 8 16 housing and residential development will encourage housing and 8 17 residential development which is necessary to encourage the 8 18 retention or relocation of industrial and commercial 8 19 enterprises in this state and its municipalities. 8 20 (d) The acquisition of the area is necessary to provide 8 21 for the construction of housing for low and moderate income 8 22 families. 8 23 Sec. 17. Section 403.6, Code 1995, is amended by adding 8 24 the following new unnumbered paragraph: 8 25 NEW UNNUMBERED PARAGRAPH. The provisions of this chapter 8 26 shall be liberally interpreted to achieve the purposes of this 8 27 chapter. 8 28 Sec. 18. Section 403.9, subsection 3, Code 1995, is 8 29 amended by adding the following new unnumbered paragraph: 8 30 NEW UNNUMBERED PARAGRAPH. Before the local governing body 8 31 may institute proceedings for the issuance of bonds under this 8 32 section, a notice of the proposed action, including a 8 33 statement of the amount and purposes of the bonds and the time 8 34 and place of the meeting at which the local governing body 8 35 proposes to take action for the issuance of the bonds, must be 9 1 published as provided in section 362.3. At the meeting, the 9 2 local governing body shall receive oral or written objections 9 3 from any resident or property owner of the municipality. 9 4 After all objections have been received and considered, the 9 5 local governing body, at that meeting or any subsequent 9 6 meeting, may take additional action for the issuance of the 9 7 bonds or abandon the proposal to issue the bonds. Any 9 8 resident or property owner of the municipality may appeal the 9 9 decision of the local governing body to take additional action 9 10 to the district court of the county in which any part of the 9 11 municipality is located, within fifteen days after the 9 12 additional action is taken. The additional action of the 9 13 local governing body is final and conclusive unless the court 9 14 finds that the municipality exceeded its authority. 9 15 Sec. 19. Section 403.9, subsection 4, Code 1995, is 9 16 amended to read as follows: 9 17 4. Such bonds may be sold at not less than ninety-eight 9 18 percent of par at public or private sale, or may be exchanged 9 19 for other bondson the basisat not less than ninety-eight 9 20 percent of par. 9 21 Sec. 20. Section 403.10, Code 1995, is amended to read as 9 22 follows: 9 23 403.10 BONDS AS LEGAL INVESTMENT. 9 24 All banks, trust companies, building and loan associations, 9 25 savings and loan associations, investment companies and other 9 26 persons carrying on an investment business; all insurance 9 27 companies, insurance associations, and other persons carrying 9 28 on an insurance business; and all executors, administrators, 9 29 curators, trustees, and other fiduciaries, may legally invest 9 30 any sinking funds, moneys, or other funds belonging to them or 9 31 within their control in any bonds or other obligations issued 9 32 by a municipality pursuant to this chapter, or those issued by 9 33 any urban renewal agency vested with urban renewal project 9 34 powers under section 403.14: Provided, that such bonds and9 35other obligations shall be secured by an agreement between the10 1issuer and the federal government, in which the issuer agrees10 2to borrow from the federal government and the federal10 3government agrees to lend to the issuer, prior to the maturity10 4of such bonds or other obligations, moneys in an amount which,10 5together with any other moneys irrevocably committed to the10 6payment of interest on such bonds or other obligations, will10 7suffice to pay the principal of such bonds or other10 8obligations with interest to maturity thereon, which moneys10 9under the terms of said agreement are required to be used for10 10the purpose of paying the principal of and the interest on10 11such bonds or other obligations at their maturity. Such bonds 10 12 and other obligations shall be authorized security for all 10 13 public deposits. It is the purpose of this section to 10 14 authorize any persons, political subdivisions and officers, 10 15 public or private, to use any funds owned or controlled by 10 16 them for the purchase of any such bonds or other obligations. 10 17 Nothing contained in this section with regard to legal 10 18 investments shall be construed as relieving any person of any 10 19 duty of exercising reasonable care in selecting securities. 10 20 Sec. 21. Section 403.17, subsection 9, Code 1995, is 10 21 amended to read as follows: 10 22 9. "Economic development area" means an area of a 10 23 municipality designated by the local governing body as 10 24 appropriate for commercial and industrial enterprises, public 10 25 improvements related to housing and residential development, 10 26 or construction of housing and residential development for low 10 27 and moderate income families, including single or multifamily 10 28 housing. If an urban renewal plan for an urban renewal area 10 29 is based upon a finding that the area is an economic 10 30 development area and that no part contains slum or blighted 10 31 conditions, then the division of revenue provided in section 10 32 403.19 and stated in the plan shall be limited to twenty years 10 33 from the calendar year following the calendar year in which 10 34 the city first certifies to the county auditor the amount of 10 35 any loans, advances, indebtedness, or bonds which qualify for 11 1 payment from the division of revenue provided in section 11 2 403.19. Such area designated before July 1, 1994, shall not 11 3 include land which is part of a century farm. 11 4 Sec. 22. Section 403.19, subsection 2, Code 1995, is 11 5 amended to read as follows: 11 6 2. That portion of the taxes each year in excess of such 11 7 amount shall be allocated to and when collected be paid into a 11 8 special fund of the municipality to pay the principal of and 11 9 interest on loans, moneys advanced to, or indebtedness, 11 10 whether funded, refunded, assumed, or otherwise, including 11 11 bonds issued under the authority of section 403.9, subsection 11 12 1, incurred by the municipality to finance or refinance, in 11 13 whole or in part, an urban renewal project within the area, 11 14 and to provide assistance for low and moderate income family 11 15 housing as provided in section 403.22, except that taxes for 11 16 the payment of bonds and interest of each taxing district must 11 17 be collected against all taxable property within the taxing 11 18 district without limitation by the provisions of this 11 19 subsection. Unless and until the total assessed valuation of 11 20 the taxable property in an urban renewal area exceeds the 11 21 total assessed value of the taxable property in such area as 11 22 shown by the last equalized assessment roll referred to in 11 23 subsection 1, all of the taxes levied and collected upon the 11 24 taxable property in the urban renewal area shall be paid into 11 25 the funds for the respective taxing districts as taxes by or 11 26 for the taxing districts in the same manner as all other 11 27 property taxes. When such loans, advances, indebtedness, and 11 28 bonds, if any, and interest thereon, have been paid, all 11 29 moneys thereafter received from taxes upon the taxable 11 30 property in such urban renewal area shall be paid into the 11 31 funds for the respective taxing districts in the same manner 11 32 as taxes on all other property. 11 33 Sec. 23. Section 403.19, subsection 7, Code 1995, is 11 34 amended by striking the subsection. 11 35 Sec. 24. NEW SECTION. 403.22 FINANCING PUBLIC 12 1 IMPROVEMENTS RELATED TO LOW INCOME HOUSING AND RESIDENTIAL 12 2 DEVELOPMENT. 12 3 1. With respect to any urban renewal area established upon 12 4 the determination that the area is an economic development 12 5 area, a division of revenue as provided in section 403.19 12 6 shall not be allowed for the purpose of providing or aiding in 12 7 the provision of public improvements related to housing and 12 8 residential development, unless the municipality assures that 12 9 the project will include assistance for low and moderate 12 10 income family housing. For a municipality with a population 12 11 over fifteen thousand, the amount to be provided for low and 12 12 moderate income family housing for such projects shall be 12 13 either equal to or greater than the percentage of the original 12 14 project cost that is equal to the percentage of low and 12 15 moderate income residents for the county in which the urban 12 16 renewal area is located as determined by the United States 12 17 department of housing and urban development using section 8 12 18 guidelines or by providing such other amount as set out in a 12 19 plan adopted by the municipality and approved by the Iowa 12 20 department of economic development if the municipality can 12 21 show that it cannot undertake the project if it has to meet 12 22 the low and moderate income assistance requirements. However, 12 23 the amount provided for low and moderate income family housing 12 24 for such projects shall not be less than an amount equal to 12 25 ten percent of the original project cost. 12 26 For a municipality with a population of fifteen thousand or 12 27 less, the amount to be provided for low and moderate income 12 28 family housing shall be the same as for a municipality of over 12 29 fifteen thousand in population, except that a municipality of 12 30 fifteen thousand or less in population is not subject to the 12 31 requirement to provide not less than an amount equal to ten 12 32 percent of the original project cost for low and moderate 12 33 income family housing. 12 34 2. The assistance to low and moderate income housing may 12 35 be in, but is not limited to, any of the following forms: 13 1 a. Lots for low and moderate income housing within or 13 2 outside the urban renewal area. 13 3 b. Construction of low and moderate income housing within 13 4 or outside the urban renewal area. 13 5 c. Grants, credits or other direct assistance to low and 13 6 moderate income families living within or outside the urban 13 7 renewal area, but within the area of operation of the 13 8 municipality. 13 9 d. Payments to a low and moderate income housing fund 13 10 established by the municipality to be expended for one or more 13 11 of the above purposes, including matching funds for any state 13 12 or federal moneys used for such purposes. 13 13 3. Sources for low and moderate income family housing 13 14 assistance may include the following: 13 15 a. Proceeds from loans, advances, bonds or indebtedness 13 16 incurred. 13 17 b. Annual distributions from the division of revenues 13 18 pursuant to section 403.19 related to the urban renewal area. 13 19 c. Lump sum or periodic direct payments from developers or 13 20 other private parties under an agreement for development or 13 21 redevelopment between the municipality and a developer. 13 22 d. Any other sources which are legally available for this 13 23 purpose. 13 24 4. The assistance to low and moderate income family 13 25 housing may be expended outside the boundaries of the urban 13 26 renewal area. 13 27 5. Except for a municipality with a population under 13 28 fifteen thousand, the division of the revenue under section 13 29 403.19 for each project under this section shall be limited to 13 30 tax collections for ten fiscal years beginning with the second 13 31 fiscal year after the year in which the municipality first 13 32 certifies to the county auditor the amount of any loans, 13 33 advances, indebtedness, or bonds which qualify for payment 13 34 from the division of the revenue in connection with the 13 35 project. A municipality with a population under fifteen 14 1 thousand may, with the approval of the governing bodies of all 14 2 other affected taxing districts, extend the division of 14 3 revenue under section 403.19 for up to five years if necessary 14 4 to adequately fund the project. The portion of the urban 14 5 renewal area which is involved in a project under this section 14 6 shall not be subject to any subsequent division of revenue 14 7 under section 403.19. 14 8 6. A municipality shall not prohibit or restrict the 14 9 construction of manufactured homes in any project for which 14 10 public improvements were finalized under this section. As 14 11 used in this subsection, "manufactured home" means the same as 14 12 under section 435.1, subsection 2. 14 13 DIVISION III 14 14 Sec. 25. Section 331.384, subsection 1, paragraph c, Code 14 15 1995, is amended to read as follows: 14 16 c. Require the removal, repair, or dismantling ofaan 14 17 abandoned or dangerous building or structure. 14 18 Sec. 26. NEW SECTION. 364.12A CONDEMNATION OF 14 19 RESIDENTIAL BUILDINGS – PUBLIC PURPOSE. 14 20 For the purposes of section 6A.4, subsection 6, a city may 14 21 condemn a residential building found to be a public nuisance 14 22 and take title to the property for the public purpose of 14 23 disposing of the property under section 364.7 by conveying the 14 24 property to a private individual for rehabilitation or for 14 25 demolition and construction of housing. 14 26 Sec. 27. Section 657A.1, subsections 1, 3, and 4, Code 14 27 1995, are amended to read as follows: 14 28 1. "Abandoned" or "abandonment" means that a building has 14 29 remained vacant and has been in violation of the housing code 14 30 of the city in which the property is located or the housing 14 31 code applicable in the county in which the property is located 14 32 if outside the limits of a city for a period of six 14 33 consecutive months. 14 34 3. "Building" means a building or structure located in a 14 35 city or outside the limits of a city in a county, which is 15 1 used or intended to be used for residential purposes, and 15 2 includes a building or structure in which some floors may be 15 3 used for retail stores, shops, salesrooms, markets, or similar 15 4 commercial uses, or for offices, banks, civic administration 15 5 activities, professional services, or similar business or 15 6 civic uses, and other floors are used, designed, or intended 15 7 to be used for residential purposes. 15 8 4. "Interested person" means an owner, mortgagee, 15 9 lienholder, or other person that possesses an interest of 15 10 record or an interest otherwise provable in property that 15 11 becomes subject to the jurisdiction of the court pursuant to 15 12 this chapter, the city in which the property is located, the 15 13 county in which the property is located if the property is 15 14 located outside the limits of a city, and an applicant for the 15 15 appointment as receiver pursuant to this chapter. 15 16 Sec. 28. Section 657A.2, subsections 1 and 2, Code 1995, 15 17 are amended to read as follows: 15 18 1. A petition for abatement under this chapter may be 15 19 filed in the district court of the county in which the 15 20 property is located, by the city in which the property is 15 21 located, by the county if the property is located outside the 15 22 limits of a city, a neighboring landowner, or a duly organized 15 23 nonprofit corporation which has as one of its goals the 15 24 improvement of housing conditions in the county or city in 15 25 which the property in question is located. Service on the 15 26 owner shall be by personal service or by certified mail, or if 15 27 service cannot be made by either method, by posting the notice 15 28 in a conspicuous place on the building and by publication. 15 29 2. If a petition filed pursuant to this chapter alleges 15 30 that a building is abandoned or is in a dangerous or unsafe 15 31 condition, the city, county, if the property is located 15 32 outside the limits of a city, neighboring landowner, or 15 33 nonprofit corporation may apply for an injunction requiring 15 34 the owner of the building to correct the condition or to 15 35 eliminate the condition or violation. The court shall conduct 16 1 a hearing at least twenty days after written notice of the 16 2 application for an injunction and of the date and time of the 16 3 hearing is served upon the owner of the building. Notice of 16 4 the hearing shall be served in the manner provided in 16 5 subsection 1. 16 6 Sec. 29. Section 657A.4, Code 1995, is amended to read as 16 7 follows: 16 8 657A.4 APPOINTMENT OF RECEIVER. 16 9 After conducting a hearing pursuant to section 657A.3, the 16 10 court may appoint a receiver to take possession and control of 16 11 the property in question. A person shall not be appointed as 16 12 a receiver unless the person has first provided the court with 16 13 a viable financial and construction plan for the 16 14 rehabilitation of the property in question and has 16 15 demonstrated the capacity and expertise to perform the 16 16 required work in a satisfactory manner. The appointed 16 17 receiver may be a financial institution that possesses an 16 18 interest of record in the property, a nonprofit corporation 16 19 that is duly organized and exists for the primary purpose of 16 20 improving housing conditions in the county or city in which 16 21 the property in question is located, or any person deemed 16 22 qualified by the court. No part of the net earnings of a 16 23 nonprofit corporation serving as a receiver under this section 16 24 shall benefit a private shareholder or individual. Membership 16 25 on the board of trustees of a nonprofit corporation does not 16 26 constitute the holding of a public office or employment and is 16 27 not an interest, either direct or indirect, in a contract or 16 28 expenditure of money by a city or county. No member of a 16 29 board of trustees of a nonprofit corporation appointed as 16 30 receiver is disqualified from holding public office or 16 31 employment, nor is a member required to forfeit public office 16 32 or employment by reason of the membership on the board of 16 33 trustees. 16 34 DIVISION IV 16 35 Sec. 30. Section 331.361, Code 1995, is amended by adding 17 1 the following new subsection: 17 2 NEW SUBSECTION. 2A. An interest in real property which is 17 3 assessed for taxation as residential or commercial multifamily 17 4 property may be disposed of through a public request for 17 5 proposal process. A proposal submitted pursuant to this 17 6 section shall state the housing use planned by the person 17 7 submitting the proposal. The board shall publish the 17 8 proposals in a notice of the time and place of a public 17 9 hearing on the proposals, in accordance with section 331.305. 17 10 After the public hearing, the board may choose by resolution 17 11 from among the proposals submitted or may reject all proposals 17 12 and submit a new request for proposals. 17 13 Sec. 31. NEW SECTION. 446.19A PURCHASE BY COUNTY OR CITY 17 14 FOR LOW OR MODERATE INCOME HOUSING. 17 15 Notwithstanding section 446.18, a city or county may 17 16 purchase abandoned property assessed as residential or 17 17 commercial multifamily housing which did not sell at an annual 17 18 tax sale under section 446.7 for the total amount due. Money 17 19 shall not be paid by the county or other tax-levying or tax- 17 20 certifying body for the purchase, but each of the tax-levying 17 21 and tax-certifying bodies having any interest in the taxes 17 22 shall be charged with the total amount due the tax-levying or 17 23 tax-certifying body as its just share of the purchase price. 17 24 Prior to the purchase the city or county shall file with the 17 25 county treasurer a verified statement that a parcel to be 17 26 purchased is abandoned and deteriorating in condition or is, 17 27 or is likely to become, a public nuisance, and that the parcel 17 28 is suitable for use for low or moderate income housing 17 29 following rehabilitation. 17 30 The city or county may sell the certificate of purchase. 17 31 Preference shall be given to purchasers who are low or 17 32 moderate income families or organizations which assist low and 17 33 moderate income families to obtain housing. For the purpose 17 34 of this section, "low or moderate income families" has the 17 35 same meaning as in section 403.17. All persons who purchase 18 1 certificates under this section shall demonstrate the intent 18 2 to rehabilitate the property for habitation if the property is 18 3 not redeemed. In the alternative, the county may, if title to 18 4 the property has vested in the county under section 447.9, 18 5 dispose of the property in accordance with section 331.361. 18 6 Sec. 32. Section 569.8, subsection 1, Code 1995, is 18 7 amended to read as follows: 18 8 1. Disposition by a county of a parcel acquired by tax 18 9 deed shall comply with section 331.361, subsection 2 or 2A. 18 10 DIVISION V 18 11 Sec. 33. Section 16.100, Code 1995, is amended by adding 18 12 the following new subsection: 18 13 NEW SUBSECTION. 1A. a. Moneys transferred to the housing 18 14 improvement fund pursuant to section 428A.8, subsection 1, 18 15 paragraph "a", for the purposes of this paragraph, shall be 18 16 distributed, on a per capita basis according to the 1990 18 17 federal census, to each county. 18 18 b. In order to receive moneys under this subsection, a 18 19 county shall be a member of a housing council. The housing 18 20 council shall consist of the supervisors of the county and the 18 21 mayor of each city in the county, or their designees. A 18 22 housing council may represent more than one county and the 18 23 cities within each county and may be an entity formed under 18 24 chapter 28E or an entity under chapter 28H. 18 25 c. The function of the housing council shall be to 18 26 coordinate housing programs in the county including having 18 27 housing needs assessments completed if not already done, 18 28 developing or coordinating a housing plan approved by the 18 29 department of economic development, encouraging the formation 18 30 of partnerships with other governmental entities and public- 18 31 private partnerships regarding housing, and recommending 18 32 funding for projects under the housing plan from moneys 18 33 received under this subsection. 18 34 d. Moneys received under this subsection shall only be 18 35 used for housing programs which facilitate housing 19 1 development, including housing trust funds or programs for the 19 2 rehabilitation or construction of housing. The cost of the 19 3 housing needs assessment may be paid from moneys received 19 4 under this subsection. Moneys not obligated for a project 19 5 recommended by the housing council within one year of transfer 19 6 shall revert to the housing improvement fund. 19 7 e. Counties receiving moneys under this subsection shall 19 8 track the use of the funds by project, program, or activity 19 9 and shall provide a report to the department of economic 19 10 development and the Iowa finance authority regarding the use 19 11 of the funds by December 15 of each year. 19 12 f. Moneys provided under this subsection shall not be used 19 13 to supplant funding for housing programs provided by a city or 19 14 county. 19 15 g. The authority shall adopt rules to administer this 19 16 subsection. 19 17 Sec. 34. Section 428A.8, Code 1995, is amended to read as 19 18 follows: 19 19 428A.8 REMITTANCE TO STATE TREASURER – PORTION RETAINED 19 20 IN COUNTY. 19 21 1. On or before the tenth day of each month the county 19 22 recorder shall determine and pay to the treasurer of state 19 23 eighty-two and three-fourths percent of the receipts from the 19 24 real estate transfer tax collected during the preceding month 19 25 and the treasurer of state shall depositninety-fivethe 19 26 receipts as follows: 19 27 a. Two-thirdspercentof the receiptsin the general fund19 28of the state and transfer five percent of the receiptsshall 19 29 be transferred to the Iowa finance authority for deposit in 19 30 the housing improvement fund created in section 16.100. Of 19 31 the moneys transferred under this paragraph, sixty percent 19 32 shall be used in accordance with section 16.100, subsection 19 33 1A, and forty percent shall be used for the other purposes of 19 34 the housing improvement fund. 19 35 b. One-third of the receipts shall be deposited in the 20 1 general fund of the state. 20 2 2. The county recorder shall deposit the remaining 20 3 seventeen and one-fourth percent of the receipts in the county 20 4 general fund. 20 5 3. The county recorder shall keep records and make reports 20 6 with respect to the real estate transfer tax as the director 20 7 of revenue and finance prescribes. 20 8 DIVISION VI 20 9 Sec. 35. Section 331.441, subsection 2, paragraph b, 20 10 subparagraph (10), Code Supplement 1995, is amended to read as 20 11 follows: 20 12 (10) The establishment or funding of programs to provide 20 13 for or assist in providing for the acquisition, restoration, 20 14 or demolition of housing, as part of a municipal housing 20 15 project under chapter 403 or otherwise, or for other purposes 20 16 as may be authorized under chapter 403A. 20 17 Sec. 36. Section 384.24, subsection 3, paragraph u, Code 20 18 1995, is amended to read as follows: 20 19 u. The establishment or funding of programs to provide for 20 20 or assist in providing for the acquisition, restoration, or 20 21 demolition of housing, as part of a municipal housing project 20 22 under chapter 403 or otherwise, or for other purposes as may 20 23 be authorized under chapter 403A. 20 24 DIVISION VII 20 25 Sec. 37. NEW SECTION. 404A.1 HOUSING DEVELOPMENT – TAX 20 26 STATUS – LIMITATION. 20 27 1. The board of supervisors of a county with a population 20 28 of less than twenty thousand may adopt an ordinance providing 20 29 that property acquired and subdivided for development of 20 30 housing shall continue to be assessed for taxation in the 20 31 manner that it was prior to the acquisition for housing. Each 20 32 lot shall continue to be taxed in the manner it was prior to 20 33 its acquisition for housing until the lot is sold for 20 34 construction or occupancy of housing or five years from the 20 35 date of subdivision, whichever is shorter. Upon the sale or 21 1 the expiration of the five-year period, the property shall be 21 2 assessed for taxation as residential or commercial multifamily 21 3 property, whichever is applicable. 21 4 2. The board of supervisors of a county with a population 21 5 of twenty thousand or more may adopt an ordinance providing 21 6 that property acquired and subdivided for development of 21 7 housing shall continue to be assessed for taxation in the 21 8 manner that it was prior to the acquisition for housing. Each 21 9 lot shall continue to be taxed in the manner it was prior to 21 10 its acquisition for housing until the lot is sold for 21 11 construction or occupancy of housing or three years from the 21 12 date of subdivision, whichever is shorter. Upon the sale or 21 13 the expiration of the three-year period, the property shall be 21 14 assessed for taxation as residential or commercial multifamily 21 15 property, whichever is applicable. 21 16 DIVISION VIII 21 17 Sec. 38. Section 404.2, subsection 2, paragraph f, 21 18 unnumbered paragraph 1, Code 1995, is amended to read as 21 19 follows: 21 20 A statement specifying whether the revitalization is 21 21 applicable to none, some, or all of the property assessed as 21 22 residential, agricultural, commercial or industrial property 21 23 within the designated area or a combination thereof and 21 24 whether the revitalization is for rehabilitation and additions 21 25 to existing buildings or new construction or both. If 21 26 revitalization is made applicable only to some property within 21 27 an assessment classification, the definition of that subset of 21 28 eligible property must be by uniform criteria which further 21 29 some planning objective identified in the plan. The city 21 30 shall state how long it is estimated that the area shall 21 31 remain a designated revitalization area which time shall be 21 32 longer than one year from the date of designation and shall 21 33 state any plan by the city to issue revenue bonds for 21 34 revitalization projects within the area. For a county, a 21 35 revitalization area shall include only property which will be 22 1 used as industrial propertyonly, commercial property, 22 2 commercial property consisting of three or more separate 22 3 living quarters with at least seventy-five percent of the 22 4 space used for residential purposes, or residential property. 22 5 However, a county shall not provide a tax exemption under this 22 6 chapter to commercial property, commercial property consisting 22 7 of three or more separate living quarters with at least 22 8 seventy-five percent of the space used for residential 22 9 purposes, or residential property which is located within the 22 10 limits of a city. 22 11 Sec. 39. Section 404.2, subsection 6, Code 1995, is 22 12 amended to read as follows: 22 13 6. The city or county has adopted the proposed or amended 22 14 plan for the revitalization area after the requisite number of 22 15 hearings. The city or county may subsequently amend this plan 22 16 after a hearing. Notice of the hearing shall be published as 22 17 provided in section 362.3 or 331.305, except that at least 22 18 seven days' notice must be given and the public hearing shall 22 19 not be held earlier than the next regularly scheduled city 22 20 council or board of supervisors meeting following the 22 21 published notice. A city which has adopted a plan for a 22 22 revitalization area which covers all property within the city 22 23 limits may amend that plan at any time, pursuant to this 22 24 section, to include property which has been or will be annexed 22 25 to the city. The provisions of the original plan shall be 22 26 applicable to the property which is annexed and the property 22 27 shall be considered to have been part of the revitalization 22 28 area as of the effective date of its annexation to the city. 22 29 Sec. 40. Section 404.5, Code 1995, is amended by adding 22 30 the following new unnumbered paragraph: 22 31 NEW UNNUMBERED PARAGRAPH. For the purposes of this 22 32 section, the actual value of the property upon which the value 22 33 of improvements in the form of rehabilitation or additions to 22 34 existing structures shall be determined shall be the lower of 22 35 either the amount listed on the assessment rolls in the 23 1 assessment year in which such improvements are first begun or 23 2 the price paid by the owner if the improvements in the form of 23 3 rehabilitation or additions to existing structures were begun 23 4 within one year of the date the property was purchased and the 23 5 sale was a fair and reasonable exchange between a willing 23 6 buyer and a willing seller, neither being under any compulsion 23 7 to buy or sell and each being familiar with all the facts 23 8 relating to the particular property. 23 9 Sec. 41. APPLICABILITY. This amendment in this division 23 10 to section 404.5 applies to tax exemptions granted under 23 11 chapter 404 for improvements to real property first begun on 23 12 or after January 1, 1995. 23 13 DIVISION IX 23 14 Sec. 42. APPROPRIATION. There is appropriated from the 23 15 general fund of the state to the Iowa finance authority for 23 16 the fiscal year beginning July 1, 1995, and ending June 30, 23 17 1996, the following amount, or so much thereof as is 23 18 necessary, to be used for the purpose designated: 23 19 For assisting counties and cities in forming or organizing 23 20 housing councils: 23 21 .................................................. $ 1,000,000 23 22 Notwithstanding section 8.33, moneys remaining unobligated 23 23 or unexpended shall not revert but shall remain available to 23 24 the Iowa finance authority for the purposes of this section 23 25 for the fiscal year beginning July 1, 1996, and ending June 23 26 30, 1997. Funds remaining unobligated on June 30, 1997, shall 23 27 be transferred to the housing improvement fund created in 23 28 section 16.100. 23 29 DIVISION X 23 30 Sec. 43. EFFECTIVE DATES. Divisions I, II, VIII, and IX 23 31 of this Act, being deemed of immediate importance, take effect 23 32 upon enactment. Division V of this Act takes effect July 1, 23 33 1997. 23 34 SF 2464 23 35 mk/cc/26
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