Text: HF00722 Text: HF00724 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 15.108, Code 1997, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 11. HOUSING DEVELOPMENT. a. To provide 1 4 assistance to local governments, housing organizations, 1 5 economic development groups, and other local entities to 1 6 increase the development of housing in the state and to 1 7 improve the quality of existing housing in order to maximize 1 8 the effects of other economic development efforts. 1 9 b. To carry out this responsibility, the department shall: 1 10 (1) Provide housing needs assessments. 1 11 (2) Provide a one-stop source, in coordination with other 1 12 agencies of the state, for housing development assistance. 1 13 (3) Establish programs which assist communities or local 1 14 entities in developing housing to meet a range of community 1 15 needs, including programs to assist homeless shelter 1 16 operations and programs to assist in the development of 1 17 housing to enhance economic development opportunities in the 1 18 community. 1 19 Sec. 2. NEW SECTION. 15.351 SHORT TITLE. 1 20 This part shall be known and may be cited as the "Local 1 21 Housing Assistance Program". 1 22 Sec. 3. NEW SECTION. 15.352 PURPOSE. 1 23 The purpose of this part is to assist communities on a 1 24 cooperative basis to address the housing development needs in 1 25 the communities in order to better position the communities 1 26 for economic development or to meet housing needs arising as a 1 27 result of other economic development efforts in the area. 1 28 Assistance may be either technical or financial and shall be 1 29 provided pursuant to rules established by the department in 1 30 accordance with the provisions of this part and be coordinated 1 31 with existing housing assessment and assistance programs when 1 32 feasible. 1 33 Sec. 4. NEW SECTION. 15.353 PROGRAM. 1 34 The department shall establish the local housing assistance 1 35 program in coordination with the Iowa finance authority to 2 1 effectuate the purposes of this part, subject to the following 2 2 provisions: 2 3 1. The department shall provide financial assistance on a 2 4 competitive basis for housing projects. Requests for 2 5 assistance for housing projects may be made by a city, county, 2 6 housing trust fund, local housing organization, recognized 2 7 neighborhood organization, economic development organization, 2 8 or other entity or by a local housing group on behalf of a 2 9 local entity. To be eligible to receive assistance, a housing 2 10 needs assessment must have been completed for the community in 2 11 which the project will be undertaken within the five years 2 12 prior to the date of the application. 2 13 2. The department shall also provide technical assistance 2 14 to local housing groups or entities. Technical assistance 2 15 provided under the program shall be coordinated with existing 2 16 departmental programs or resources and existing programs or 2 17 resources of the Iowa finance authority, to the extent 2 18 feasible. 2 19 3. A local housing group which applies to the department 2 20 on behalf of a local entity shall not directly administer a 2 21 project receiving financial assistance under the program. The 2 22 project shall be administered by the entity for which the 2 23 local housing group made the application. 2 24 4. In reviewing applications for financial assistance, the 2 25 department shall consider a variety of factors including, but 2 26 not limited to, the following: 2 27 a. Whether the project is consistent with the 2 28 recommendations of the housing needs assessment. 2 29 b. Whether the need for the project arose as a result of 2 30 economic development efforts or opportunities not reflected in 2 31 the housing needs assessment. When considering projects not 2 32 consistent with the housing needs assessment, the department 2 33 shall consider whether failure to fund the project will cause 2 34 the economic development activity necessitating the project to 2 35 fail. 3 1 c. Whether the local housing group or entity has adopted a 3 2 comprehensive housing plan for the community in which the 3 3 project will be undertaken. 3 4 d. The extent to which financial assistance under the 3 5 program will leverage local or private matching funds or 3 6 financial assistance or other state or federal financial 3 7 assistance. 3 8 5. As used in this part: 3 9 a. "Community" means a city or county, or an entity 3 10 established pursuant to chapter 28E. 3 11 b. "Local housing group" means an entity organized to 3 12 represent community housing development interest. 3 13 Sec. 5. Section 16.91, subsection 1, Code 1997, is amended 3 14 to read as follows: 3 15 1. The authority through the title guaranty division shall 3 16 initiate and operate a program in which the division shall 3 17 offer guaranties of real property titles in this state. The 3 18 terms, conditions and form of the guaranty contract shall be 3 19 forms approved by the division board. The division shall fix 3 20 a charge for the guaranty in an amount sufficient to permit 3 21 the program to operate on a self-sustaining basis, including 3 22 payment of administrative costs and the maintenance of an 3 23 adequate reserve against claims under the title guaranty 3 24 program. A title guaranty fund is created in the office of 3 25 the treasurer of state. Funds collected under this program 3 26 shall be placed in the title guaranty fund and are available 3 27 to pay all claims, necessary reserves and all administrative 3 28 costs of the title guaranty program. Moneys in the fund shall 3 29 not revert to the general fund and interest on the moneys in 3 30 the fund shall beretained as a part of the fundtransferred 3 31 to the department of economic development for the local 3 32 housing assistance program established in section 15.353 and 3 33 shall not accrue to the general fund. If the authority board 3 34 in consultation with the division board determines that there 3 35 are surplus funds in the title guaranty fund after providing 4 1 for adequate reserves and operating expenses of the division, 4 2 the surplus funds shall be transferred to the housing program 4 3 fund created pursuant to section 16.40. 4 4 Sec. 6. Section 103A.10, subsection 4, paragraph a, Code 4 5 1997, is amended by striking the paragraph. 4 6 Sec. 7. Section 404.1, Code 1997, is amended by adding the 4 7 following new subsection: 4 8 NEW SUBSECTION. 5. An area designated as appropriate for 4 9 public improvements related to housing and residential 4 10 development, or construction of housing and residential 4 11 development, including single or multifamily housing. 4 12 Sec. 8. NEW SECTION. 404.3A RESIDENTIAL DEVELOPMENT AREA 4 13 EXEMPTION. 4 14 Notwithstanding section 404.3, all qualified real estate 4 15 assessed as residential property in an area designated under 4 16 section 404.1, subsection 5, is eligible to receive an 4 17 exemption from taxation on the first seventy-five thousand 4 18 dollars of actual value added by the improvements. The 4 19 exemption is for a period of five years. 4 20 Sec. 9. Section 428A.8, Code 1997, is amended to read as 4 21 follows: 4 22 428A.8 REMITTANCE TO STATE TREASURER – PORTION RETAINED 4 23 IN COUNTY. 4 24 1. On or before the tenth day of each month the county 4 25 recorder shall determine and pay to the treasurer of state 4 26 eighty-two and three-fourths percent of the receipts from the 4 27 real estate transfer tax collected during the preceding month 4 28 and the treasurer of state shall depositninety-five percent4 29of the receipts in the general fund of the state and transfer4 30five percent of the receipts to the Iowa finance authority for4 31deposit in the housing improvement fund created in section4 3216.100.the receipts as follows: 4 33 a. For the fiscal year beginning July 1, 1998, and ending 4 34 June 30, 1999, eighty-seven and one-half percent of the 4 35 receipts shall be deposited in the general fund of the state 5 1 and twelve and one-half percent of the receipts shall be 5 2 transferred to the department of economic development to be 5 3 used only for the purposes of the regional housing program 5 4 established in section 15.351. 5 5 b. For the fiscal year beginning July 1, 1999, and ending 5 6 June 30, 2000, seventy-five percent of the receipts shall be 5 7 deposited in the general fund of the state and twenty-five 5 8 percent of the receipts shall be transferred to the department 5 9 of economic development to be used only for the purposes of 5 10 the regional housing program established in section 15.351. 5 11 c. For the fiscal year beginning July 1, 2000, and ending 5 12 June 30, 2001, sixty-two and one-half percent of the receipts 5 13 shall be deposited in the general fund of the state and 5 14 thirty-seven and one-half percent of the receipts shall be 5 15 transferred to the department of economic development to be 5 16 used only for the purposes of the regional housing program 5 17 established in section 15.351. 5 18 d. For the fiscal year beginning July 1, 2001, and ending 5 19 June 30, 2002, fifty percent of the receipts shall be 5 20 deposited in the general fund of the state and fifty percent 5 21 of the receipts shall be transferred to the department of 5 22 economic development to be used only for the purposes of the 5 23 regional housing program established in section 15.351. 5 24 e. For the fiscal year beginning July 1, 2002, and ending 5 25 June 30, 2003, thirty-seven and one-half percent of the 5 26 receipts shall be deposited in the general fund of the state 5 27 and sixty-two and one-half percent of the receipts shall be 5 28 transferred to the department of economic development to be 5 29 used only for the purposes of the regional housing program 5 30 established in section 15.351. 5 31 f. For the fiscal year beginning July 1, 2003, and ending 5 32 June 30, 2004, twenty-five percent of the receipts shall be 5 33 deposited in the general fund of the state and seventy-five 5 34 percent of the receipts shall be transferred to the department 5 35 of economic development to be used only for the purposes of 6 1 the regional housing program established in section 15.351. 6 2 g. For the fiscal year beginning July 1, 2004, and ending 6 3 June 30, 2005, twelve and one-half percent of the receipts 6 4 shall be deposited in the general fund of the state and 6 5 eighty-seven and one-half percent of the receipts shall be 6 6 transferred to the department of economic development to be 6 7 used only for the purposes of the regional housing program 6 8 established in section 15.351. 6 9 h. For the fiscal year beginning July 1, 2005, and each 6 10 subsequent fiscal year, one hundred percent of the receipts 6 11 shall be transferred to the department of economic development 6 12 to be used only for the purposes of the regional housing 6 13 program established in section 15.351. 6 14 2. The county recorder shall deposit the remaining 6 15 seventeen and one-fourth percent of the receipts in the county 6 16 general fund. 6 17 3. The county recorder shall keep records and make reports 6 18 with respect to the real estate transfer tax as the director 6 19 of revenue and finance prescribes. 6 20 Sec. 10. Section 543B.46, subsection 1, Code 1997, is 6 21 amended to read as follows: 6 22 1. Each real estate broker shall maintain a common trust 6 23 account in a bank, a savings and loan association, savings 6 24 bank, or credit union for the deposit of all down payments, 6 25 earnest money deposits, or other trust funds received by the 6 26 broker or the broker's salespersons on behalf of the broker's 6 27 principal, except that a broker acting as a salesperson shall 6 28 deposit these funds in the common trust account of the broker 6 29 for whom the broker acts as salesperson. The account shall be 6 30 an interest-bearing account. The interest on the account 6 31 shall be transferred quarterly to the treasurer of state and 6 32deposited in the title guaranty fund and used for public6 33purposes and the benefit of the public pursuant to section6 3416.91 unless there is a written agreement between the buyer6 35and seller to the contrary. The broker shall not benefit from7 1interest received on funds of others in the broker's7 2possessiontransferred to the department of economic 7 3 development for the local housing assistance program 7 4 established in section 15.353. 7 5 EXPLANATION 7 6 This bill does the following: 7 7 1. Adds housing development to the primary 7 8 responsibilities of the department of economic development. 7 9 The bill requires the department to provide housing needs 7 10 assessments, provide a one-stop source for housing development 7 11 assistance in coordination with other state agencies, and 7 12 establish programs to assist communities in developing housing 7 13 to meet a range of community needs. 7 14 2. Establishes the local housing assistance program in the 7 15 department of economic development. The purpose of the 7 16 program is to provide financial and technical assistance to 7 17 cities, counties, local housing entities, or local economic 7 18 development organizations to meet housing development needs 7 19 arising from economic development efforts. Financial 7 20 assistance under the program is to be awarded on a competitive 7 21 basis to cities, counties, housing trust funds, other local 7 22 housing organizations, or local economic development 7 23 organizations. To be eligible to receive assistance the 7 24 community in which the project will be undertaken must have 7 25 had a housing needs assessment completed within the five years 7 26 prior to the application for assistance. In reviewing 7 27 applications for financial assistance, the department shall 7 28 consider whether the proposed project is consistent with the 7 29 community's housing needs assessment, whether the project is 7 30 necessitated by other economic development efforts, whether 7 31 economic development efforts by the community would fail if a 7 32 project necessitated by those efforts, but not consistent with 7 33 the housing needs assessment, is not funded, whether the 7 34 community has adopted a comprehensive housing plan, and 7 35 whether there will be a local match to the financial 8 1 assistance. 8 2 3. Provides that interest on moneys in the title guarantee 8 3 fund of the Iowa finance authority and in real estate brokers 8 4 common trust accounts shall be transferred to the department 8 5 of economic development for the local housing assistance 8 6 program. 8 7 4. Authorizes cities and counties to provide a property 8 8 tax exemption for the first $75,000 of value of improvements 8 9 added to residential property in an area designated by the 8 10 city or county as appropriate for public improvements related 8 11 to housing and residential development, or construction of 8 12 housing and residential development, including single or 8 13 multifamily housing. 8 14 5. Provides that the proceeds from the real estate 8 15 transfer tax under Code section 428A.8 currently being 8 16 deposited with the Iowa finance authority shall be transferred 8 17 to the department of economic development for the fiscal year 8 18 beginning July 1, 1998. For the fiscal year beginning July 1, 8 19 1998, the proceeds from the tax shall be deposited as follows: 8 20 a. For the fiscal year beginning July 1, 1998, 87.5 8 21 percent of the proceeds shall continue to be deposited in the 8 22 general fund of the state and 12.5 percent shall be 8 23 transferred to the department. 8 24 b. For the fiscal year beginning July 1, 1999, 75 percent 8 25 of the proceeds shall continue to be deposited in the general 8 26 fund of the state and 25 percent shall be transferred to the 8 27 department. 8 28 c. For the fiscal year beginning July 1, 2000, 62.5 8 29 percent of the proceeds shall continue to be deposited in the 8 30 general fund of the state and 37.5 percent shall be 8 31 transferred to the department. 8 32 d. For the fiscal year beginning July 1, 2001, 50 percent 8 33 of the proceeds shall continue to be deposited in the general 8 34 fund of the state and 50 percent shall be transferred to the 8 35 department. 9 1 e. For the fiscal year beginning July 1, 2002, 37.5 9 2 percent of the proceeds shall continue to be deposited in the 9 3 general fund of the state and 62.5 percent shall be 9 4 transferred to the department. 9 5 f. For the fiscal year beginning July 1, 2003, 25 percent 9 6 of the proceeds shall continue to be deposited in the general 9 7 fund of the state and 75 percent shall be transferred to the 9 8 department. 9 9 g. For the fiscal year beginning July 1, 2004, 12.5 9 10 percent of the proceeds shall continue to be deposited in the 9 11 general fund of the state and 87.5 percent shall be 9 12 transferred to the department. 9 13 h. For the fiscal year beginning July 1, 2005, and each 9 14 subsequent year, 100 percent of the tax proceeds currently 9 15 going to the general fund shall be transferred to the 9 16 department. 9 17 The counties would continue to retain 17.25 percent of the 9 18 gross real estate transfer tax receipts. 9 19 LSB 2377HV 77 9 20 mk/jj/8
Text: HF00722 Text: HF00724 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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