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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. 1 7 Sec. 2. Section 358C.2, Code Supplement 1995, is repealed. 1 8 DIVISION II 1 9 Sec. 3. Section 331.384, subsection 1, paragraph a, Code 1 10 1995, is amended to read as follows: 1 11 a. Require the abatement of a nuisance, public or private, 1 12 in any reasonable manner, including providing for the 1 13 abatement by the acquisition of vacant housing which is found 1 14 to constitute or contribute to a public or private nuisance or 1 15 a danger to the safety, health, and welfare of the public. 1 16 Sec. 4. Section 364.12, subsection 3, paragraph a, Code 1 17 Supplement 1995, is amended to read as follows: 1 18 a. Require the abatement of a nuisance, public or private, 1 19 in any reasonable manner, including providing for the 1 20 abatement by the acquisition of vacant housing which is found 1 21 to constitute or contribute to a public or private nuisance or 1 22 a danger to the safety, health, and welfare of the public. 1 23 DIVISION III 1 24 Sec. 5. Section 403.2, subsection 3, Code 1995, is amended 1 25 to read as follows: 1 26 3. It is further found and declared that there exists in 1 27 this state the continuing need for programs to alleviate and 1 28 prevent conditions of unemployment and a shortage of housing; 1 29 and that it is accordingly necessary to assist and retain 1 30 local industries and commercial enterprises to strengthen and 1 31 revitalize the economy of this state and its municipalities; 1 32 that accordingly it is necessary to provide means and methods 1 33 for the encouragement and assistance of industrial and 1 34 commercial enterprises in locating, purchasing, constructing, 1 35 reconstructing, modernizing, improving, maintaining, 2 1 repairing, furnishing, equipping, and expanding in this state 2 2 and its municipalities, for the provision of public 2 3 improvements related to housing and residential development, 2 4 and for theprovisionconstruction of housingand residential2 5developmentfor low and moderate income families; that 2 6 accordingly it is necessary to authorize local governing 2 7 bodies to designate areas of a municipality as economic 2 8 development areas for commercial and industrial enterprises, 2 9 public improvements related to housing and residential 2 10 development, or construction of housing andresidential2 11developmentfor low and moderate income families; and that it 2 12 is also necessary to encourage the location and expansion of 2 13 commercial enterprises to more conveniently provide needed 2 14 services and facilities of the commercial enterprises to 2 15 municipalities and the residents of the municipalities. 2 16 Therefore, the powers granted in this chapter constitute the 2 17 performance of essential public purposes for this state and 2 18 its municipalities. 2 19 Sec. 6. Section 403.5, subsection 2, unnumbered paragraph 2 20 1, Code 1995, is amended to read as follows: 2 21 The municipality may itself prepare or cause to be prepared 2 22 an urban renewal plan; or any person or agency, public or 2 23 private, may submit such a plan to a municipality. Prior to 2 24 its approval of an urban renewal plan, the local governing 2 25 body shall submit such plan to the planning commission of the 2 26 municipality, if any, for review and recommendations as to its 2 27 conformity with the general plan for the development of the 2 28 municipality as a whole. The planning commission shall submit 2 29 its written recommendations with respect to the proposed urban 2 30 renewal plan to the local governing body within thirty days 2 31 after receipt of the plan for review. Upon receipt of the 2 32 recommendations of the planning commission or, if no 2 33 recommendations are received within the thirty days, then, 2 34 without such recommendations, the local governing body may 2 35 proceed with the hearing on the proposed urban renewalproject3 1 plan prescribed by subsection 3. 3 2 Sec. 7. Section 403.5, subsection 3, Code 1995, is amended 3 3 to read as follows: 3 4 3. The local governing body shall hold a public hearing on 3 5 an urban renewalprojectplan after public notice thereof by 3 6 publication in a newspaper having a general circulation in the 3 7 area of operation of the municipality. The notice shall 3 8 describe the time, date, place and purpose of the hearing, 3 9 shall generally identify the urban renewal area covered by the 3 10 plan, and shall outline the general scope of the urban renewal 3 11projectactivities under consideration. A copy of the notice 3 12 shall be sent by ordinary mail to each affected taxing entity. 3 13 Sec. 8. Section 403.5, subsection 4, paragraph b, 3 14 subparagraph (1), Code 1995, is amended to read as follows: 3 15 (1) If it is to be developed for residential uses, the 3 16 local governing body shall determine that a shortage of 3 17 housing of sound standards and design with decency, safety and 3 18 sanitation exists in the municipality; that the acquisition of 3 19 the area for residential uses is an integral part of and 3 20 essential to the program of the municipality; and that one or 3 21 more of the following conditions exist: 3 22 (a) That the need for housing accommodations has been or 3 23 will be increased as a result of the clearance of slums in 3 24 other areas, including other portions of the urban renewal 3 25 area.; that the3 26 (b) That conditions of blight in theareamunicipality and 3 27 the shortage of decent, safe and sanitary housing cause or 3 28 contribute to an increase in and spread of disease and crime, 3 29andso as to constitute a menace to the public health, safety, 3 30 morals, or welfare; and that the acquisition of the area for3 31residential uses is an integral part of and essential to the3 32program of the municipality. 3 33 (c) That the provision of public improvements related to 3 34 housing and residential development will encourage housing and 3 35 residential development which is necessary to encourage the 4 1 retention or relocation of industrial and commercial 4 2 enterprises in this state and its municipalities. 4 3 (d) The acquisition of the area is necessary to provide 4 4 for the construction of housing for low and moderate income 4 5 families. 4 6 Sec. 9. Section 403.6, Code 1995, is amended by adding the 4 7 following new unnumbered paragraph: 4 8 NEW UNNUMBERED PARAGRAPH. The provisions of this chapter 4 9 shall be liberally interpreted to achieve the purposes of this 4 10 chapter. 4 11 Sec. 10. Section 403.9, subsection 3, Code 1995, is 4 12 amended by adding the following new unnumbered paragraph: 4 13 NEW UNNUMBERED PARAGRAPH. Before the local governing body 4 14 may institute proceedings for the issuance of bonds under this 4 15 section, a notice of the proposed action, including a state- 4 16 ment of the amount and purposes of the bonds and the time and 4 17 place of the meeting at which the local governing body 4 18 proposes to take action for the issuance of the bonds, must be 4 19 published as provided in section 362.3. At the meeting, the 4 20 local governing body shall receive oral or written objections 4 21 from any resident or property owner of the municipality. 4 22 After all objections have been received and considered, the 4 23 local governing body, at that meeting or any subsequent 4 24 meeting, may take additional action for the issuance of the 4 25 bonds or abandon the proposal to issue the bonds. Any 4 26 resident or property owner of the municipality may appeal the 4 27 decision of the local governing body to take additional action 4 28 to the district court of the county in which any part of the 4 29 municipality is located, within fifteen days after the 4 30 additional action is taken. The additional action of the 4 31 local governing body is final and conclusive unless the court 4 32 finds that the municipality exceeded its authority. 4 33 Sec. 11. Section 403.9, subsection 4, Code 1995, is 4 34 amended to read as follows: 4 35 4. Such bonds may be sold at not less than ninety-eight 5 1 percent of par at public or private sale, or may be exchanged 5 2 for other bondson the basisat not less than ninety-eight 5 3 percent of par. 5 4 Sec. 12. Section 403.10, Code 1995, is amended to read as 5 5 follows: 5 6 403.10 BONDS AS LEGAL INVESTMENT. 5 7 All banks, trust companies, building and loan associations, 5 8 savings and loan associations, investment companies and other 5 9 persons carrying on an investment business; all insurance 5 10 companies, insurance associations, and other persons carrying 5 11 on an insurance business; and all executors, administrators, 5 12 curators, trustees, and other fiduciaries, may legally invest 5 13 any sinking funds, moneys, or other funds belonging to them or 5 14 within their control in any bonds or other obligations issued 5 15 by a municipality pursuant to this chapter, or those issued by 5 16 any urban renewal agency vested with urban renewal project 5 17 powers under section 403.14: Provided, that such bonds and5 18other obligations shall be secured by an agreement between the5 19issuer and the federal government, in which the issuer agrees5 20to borrow from the federal government and the federal5 21government agrees to lend to the issuer, prior to the maturity5 22of such bonds or other obligations, moneys in an amount which,5 23together with any other moneys irrevocably committed to the5 24payment of interest on such bonds or other obligations, will5 25suffice to pay the principal of such bonds or other5 26obligations with interest to maturity thereon, which moneys5 27under the terms of said agreement are required to be used for5 28the purpose of paying the principal of and the interest on5 29such bonds or other obligations at their maturity. Such bonds 5 30 and other obligations shall be authorized security for all 5 31 public deposits. It is the purpose of this section to 5 32 authorize any persons, political subdivisions and officers, 5 33 public or private, to use any funds owned or controlled by 5 34 them for the purchase of any such bonds or other obligations. 5 35 Nothing contained in this section with regard to legal 6 1 investments shall be construed as relieving any person of any 6 2 duty of exercising reasonable care in selecting securities. 6 3 Sec. 13. Section 403.17, subsection 9, Code 1995, is 6 4 amended to read as follows: 6 5 9. "Economic development area" means an area of a 6 6 municipality designated by the local governing body as 6 7 appropriate for commercial and industrial enterprises, public 6 8 improvements related to housing and residential development, 6 9 or construction of housing and residential development for low 6 10 and moderate income families, including single or multifamily 6 11 housing. If an urban renewal plan for an urban renewal area 6 12 is based upon a finding that the area is an economic 6 13 development area and that no part contains slum or blighted 6 14 conditions, then the division of revenue provided in section 6 15 403.19 and stated in the plan shall be limited to twenty years 6 16 from the calendar year following the calendar year in which 6 17 the city first certifies to the county auditor the amount of 6 18 any loans, advances, indebtedness, or bonds which qualify for 6 19 payment from the division of revenue provided in section 6 20 403.19. Such area designated before July 1, 1994, shall not 6 21 include land which is part of a century farm. 6 22 Sec. 14. Section 403.19, subsection 2, Code 1995, is 6 23 amended to read as follows: 6 24 2. That portion of the taxes each year in excess of such 6 25 amount shall be allocated to and when collected be paid into a 6 26 special fund of the municipality to pay the principal of and 6 27 interest on loans, moneys advanced to, or indebtedness, 6 28 whether funded, refunded, assumed, or otherwise, including 6 29 bonds issued under the authority of section 403.9, subsection 6 30 1, incurred by the municipality to finance or refinance, in 6 31 whole or in part, an urban renewal project within the area, 6 32 and to provide assistance for low and moderate income family 6 33 housing as provided in section 403.22, except that taxes for 6 34 the payment of bonds and interest of each taxing district must 6 35 be collected against all taxable property within the taxing 7 1 district without limitation by the provisions of this 7 2 subsection. Unless and until the total assessed valuation of 7 3 the taxable property in an urban renewal area exceeds the 7 4 total assessed value of the taxable property in such area as 7 5 shown by the last equalized assessment roll referred to in 7 6 subsection 1, all of the taxes levied and collected upon the 7 7 taxable property in the urban renewal area shall be paid into 7 8 the funds for the respective taxing districts as taxes by or 7 9 for the taxing districts in the same manner as all other 7 10 property taxes. When such loans, advances, indebtedness, and 7 11 bonds, if any, and interest thereon, have been paid, all 7 12 moneys thereafter received from taxes upon the taxable 7 13 property in such urban renewal area shall be paid into the 7 14 funds for the respective taxing districts in the same manner 7 15 as taxes on all other property. 7 16 Sec. 15. NEW SECTION. 403.22 FINANCING PUBLIC 7 17 IMPROVEMENTS RELATED TO LOW INCOME HOUSING AND RESIDENTIAL 7 18 DEVELOPMENT. 7 19 1. With respect to any urban renewal area established upon 7 20 the determination that the area is an economic development 7 21 area, a division of revenue as provided in section 403.19 7 22 shall not be allowed for the purpose of providing or aiding in 7 23 the provision of public improvements related to housing and 7 24 residential development, unless the municipality assures that 7 25 the project will include assistance for low and moderate 7 26 income family housing. The amount to be provided for low and 7 27 moderate income family housing for such projects shall be 7 28 either equal to or greater than the percentage of the original 7 29 project cost that is equal to the percentage of low and 7 30 moderate income residents for the county in which the urban 7 31 renewal area is located as determined by the United States 7 32 department of housing and urban development using section 8 7 33 guidelines or such other amount as set out in a plan adopted 7 34 by the municipality and approved by the Iowa department of 7 35 economic development. 8 1 2. The assistance to low and moderate income housing may 8 2 be in, but is not limited to, any of the following forms: 8 3 a. Lots for low and moderate income housing within or 8 4 outside the urban renewal area. 8 5 b. Construction of low and moderate income housing within 8 6 or outside the urban renewal area. 8 7 c. Grants, credits, or other direct assistance to low and 8 8 moderate income families living within or outside the urban 8 9 renewal area, but within the area of operation of the 8 10 municipality. 8 11 d. Payments to a low and moderate income housing fund 8 12 established by the municipality to be expended for one or more 8 13 of the above purposes, including matching funds for any state 8 14 or federal moneys used for such purposes. 8 15 3. Sources for low and moderate income family housing 8 16 assistance may include the following: 8 17 a. Proceeds from loans, advances, bonds, or indebtedness 8 18 incurred. 8 19 b. Annual distributions from the division of revenues 8 20 pursuant to section 403.19 related to the urban renewal area. 8 21 c. Lump sum or periodic direct payments from developers or 8 22 other private parties under an agreement for development or 8 23 redevelopment between the municipality and a developer. 8 24 d. Any other sources which are legally available for this 8 25 purpose. 8 26 4. The assistance to low and moderate income family 8 27 housing may be expended outside the boundaries of the urban 8 28 renewal area. 8 29 5. The division of the revenue under section 403.19 for 8 30 each project under this section shall be limited to tax 8 31 collections for ten fiscal years beginning with the second 8 32 fiscal year after the municipality first certifies to the 8 33 county auditor the amount of any loans, advances, 8 34 indebtedness, or bonds which qualify for payment from the 8 35 division of the revenue in connection with the project under 9 1 this section. 9 2 DIVISION IV 9 3 Sec. 16. Section 446.39, Code 1995, is amended to read as 9 4 follows: 9 5 446.39 IOWA FINANCE AUTHORITY STATEMENT. 9 6 A city or county, a city or county agency, regarding an 9 7 Iowa homesteading project under section 16.14 and as 9 8 authorized by the Iowa finance authority, or the Iowa finance 9 9 authority may file with the county treasurer a verified 9 10 statement that a parcel to be sold at tax sale is abandoned 9 11 and deteriorating in condition, is inhabited but is not safe 9 12 for human habitation, or is, or is likely to become, a public 9 13 nuisance, and that the parcel is suitable for use and is to be 9 14 used in an Iowa homesteading project under section 16.14 or in 9 15 a local housing program to alleviate problems with slums and 9 16 blighted areas, to provide for rehabilitation of deteriorating 9 17 housing, or to provide the opportunity to rehabilitate housing 9 18 for low and moderate income families. Other information may 9 19 be included. Upon proper filing of the statement, and if the 9 20 parcel is offered at a tax sale and no bid is received, or if 9 21 the bid received is less than the total amount due, or if the 9 22 parcel is to be transferred to the county under section 9 23 446.38, the city, county, city or county agency, or Iowa 9 24 finance authority may bid for the parcel for use in an Iowa 9 25 homesteading project under section 16.14 or under a local 9 26 housing program to alleviate problems with slums and blighted 9 27 areas, to provide for rehabilitation of deteriorating housing, 9 28 or to provide the opportunity to rehabilitate housing for low 9 29 and moderate income families, bidding a sum equal to the total 9 30 amount due. Each of the tax-levying and tax-certifying bodies 9 31 having an interest in the taxes for which the parcel is sold 9 32 shall be charged with its proportionate share of the purchase 9 33 price. 9 34 Sec. 17. EFFECTIVE DATE. This Act, being deemed of 9 35 immediate importance, takes effect upon enactment. 10 1 EXPLANATION 10 2 This bill does the following: 10 3 1. Division I. Sections 1 and 2 repeal the pilot program 10 4 which limits the establishment of real estate improvement 10 5 districts to six counties, thus allowing the statewide 10 6 establishment of real estate improvement districts. 10 7 2. Division II. Sections 3 and 4 provide explicitly that 10 8 cities and counties may acquire vacant housing to abate a 10 9 public or private nuisance or danger to public health, safety, 10 10 or welfare. 10 11 3. Division III (sections 5 through 15). Section 5 adds 10 12 to the declaration of policy regarding urban renewal that a 10 13 need exists for programs to alleviate and prevent a shortage 10 14 of housing and that programs which provide for public 10 15 improvements related to housing and residential development 10 16 and the construction of housing are essential public purposes 10 17 for the state and its municipalities. 10 18 4. Sections 6 and 7 provide that public hearings are to be 10 19 held on a proposed urban renewal plan, rather than on each 10 20 urban renewal project undertaken in accordance with the plan. 10 21 5. Section 8 requires the municipality to make a finding 10 22 that acquisition of land for residential uses is essential to 10 23 the municipality's urban renewal plan. Section 8 also 10 24 requires the municipality to find that one of four conditions 10 25 exist including that the provision of public improvements 10 26 related to housing and residential development will encourage 10 27 residential development and the retention or relocation of 10 28 industrial or commercial enterprises or that the area to be 10 29 acquired under the plan is necessary to provide for the 10 30 construction of low and moderate income housing. 10 31 6. Section 9 provides that the provisions of chapter 403 10 32 are to be liberally construed by the courts. 10 33 7. Section 10 provides that in the case of housing, prior 10 34 to the issuance of bonds to help fund infrastructure deemed 10 35 necessary to encourage residential housing, the local 11 1 governing body must issue a notice of proposed action, 11 2 identify the place of the meeting at which action will be 11 3 taken, and publish the same. It allows for oral or written 11 4 objections at the meeting from any resident or property owner 11 5 of the municipality. It provides the local governing body may 11 6 then take action or abandon the proposal to issue any bonds. 11 7 It provides for an appeal period. 11 8 8. Section 11 provides that bonds may be sold or exchanged 11 9 at 98 percent of par value or higher. 11 10 9. Section 12 removes the requirement that bonds and other 11 11 obligations under chapter 403 be secured by an agreement 11 12 between the issuer of the bonds and the federal government 11 13 obligating the issuer to borrow from the federal government if 11 14 necessary to pay off the bonds or obligations. 11 15 10. Section 13 adds public improvements related to housing 11 16 development to the definition of economic development area and 11 17 makes construction of low and moderate income housing an 11 18 alternative use (along with commercial and industrial 11 19 enterprise and public improvements for housing) for an 11 20 economic development area. The division of revenue under tax 11 21 increment financing based upon a finding that the area is an 11 22 economic development area is limited to 20 years. 11 23 11. Sections 14 and 15 add low and moderate income housing 11 24 assistance to the uses which revenue from tax increment 11 25 financing may be used and set out the manner in which 11 26 assistance for public improvements related to housing and 11 27 residential development, both low and moderate income and 11 28 otherwise, may be provided. 11 29 Tax increment financing for housing or residential 11 30 development is not allowed unless the municipality assures 11 31 that the project will include assistance for low and moderate 11 32 income family housing in an amount either based on the 11 33 percentage of low and moderate income persons in the county or 11 34 in some other amount as determined by the municipality and 11 35 agreed to by the department of economic development. 12 1 Assistance for low and moderate income housing may take many 12 2 forms, including lots for low and moderate income housing 12 3 within or outside the urban renewal area or payments to a low 12 4 and moderate income housing fund established by the 12 5 municipality. Funding sources may include revenue from tax 12 6 increment financing or any other legal source. Tax increment 12 7 financing for housing projects is limited in duration to 10 12 8 years. 12 9 12. Division IV. Section 16 provides that cities and 12 10 counties may dispose of property through the tax sale process 12 11 in conjunction with the Iowa finance authority for use in the 12 12 Iowa homesteading program under the Iowa finance authority or 12 13 for use in a local housing program designed to eliminate slum 12 14 and blight, rehabilitate deteriorating housing, or provide low 12 15 and moderate income housing. 12 16 This bill takes effect upon enactment. 12 17 LSB 3682XL 76 12 18 mk/jw/5.1
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