Text: SSB00260 Text: SSB00262 Text: SSB00200 - SSB00299 Text: SSB 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-step source, in coordination with other 1 12 agencies of the state, for housing development assistance. 1 13 (3) Establish programs to assist in housing development, 1 14 including programs to assist homeless shelter operations. 1 15 Sec. 2. NEW SECTION. 15.351 REGIONAL HOUSING PROGRAM. 1 16 1. The department shall establish and administer a program 1 17 in coordination with the Iowa finance authority to provide 1 18 technical assistance and funding for projects which facilitate 1 19 housing development, including housing trust funds or programs 1 20 for the rehabilitation or construction of housing on a 1 21 regional basis by cities, counties, local housing or economic 1 22 development organizations, and recognized neighborhood 1 23 organizations. Funds for the program shall come from moneys 1 24 transferred in accordance with section 428A.8, moneys 1 25 appropriated from the general fund, if any, and moneys 1 26 received from other sources. 1 27 2. The department shall adopt rules pursuant to chapter 1 28 17A for the administration of the program. The rules shall 1 29 include at least the following: 1 30 a. That a regional housing council be established 1 31 consisting of the supervisors of the county and the mayor of 1 32 each city in the county, or their designees, and 1 33 representatives of local housing or economic development 1 34 organizations. A housing council may represent more than one 1 35 county and the cities within each county and may be an entity 2 1 formed under chapter 28E. 2 2 b. That the regional housing council complete a housing 2 3 needs assessment with the department prior to an entity within 2 4 the region covered by the council being eligible to 2 5 participate in the program. 2 6 c. That awards be limited to projects consistent with the 2 7 housing needs assessment and which have the prior approval of 2 8 the council. 2 9 d. Provisions for the prioritization of competing 2 10 proposals with projects to address housing needs created by 2 11 economic development activities in the region receiving 2 12 highest priority. 2 13 Sec. 3. Section 16.40, subsection 2, Code 1997, is amended 2 14 by striking the subsection. 2 15 Sec. 4. NEW SECTION. 16.41 HOME CONSTRUCTION PROGRAM – 2 16 FUND ESTABLISHED. 2 17 1. A revolving loan fund is created within the treasurer 2 18 of state's office. The moneys shall be used by the authority 2 19 as the sole source for revolving loans for the construction of 2 20 housing in counties with populations under twenty thousand in 2 21 accordance with this section. Loans under this section shall 2 22 not be an obligation of the state. 2 23 2. The authority shall administer the home construction 2 24 revolving loan program and shall adopt rules regarding the 2 25 provision of loans for the purposes of the program. The 2 26 authority shall contribute two million dollars of existing, 2 27 unobligated funds to the revolving loan fund. The authority 2 28 shall take appropriate steps to publicize the existence of the 2 29 program. 2 30 3. To be eligible for a revolving loan under the program, 2 31 an entity shall meet the following criteria: 2 32 a. The entity seeking the loan is a city, county, or local 2 33 nonprofit economic development organization which is seeking a 2 34 loan to finance the construction of speculative housing by a 2 35 contractor. 3 1 b. The property for which the loan is intended is located 3 2 in a county with a population of less than twenty thousand. 3 3 c. The city or county in which the housing is planned has 3 4 participated in a housing needs assessment with the department 3 5 of economic development and is planning to build housing in 3 6 accordance with the assessment. 3 7 4. An entity seeking a loan shall apply to the authority 3 8 on a form provided by the authority. 3 9 5. Loans under the program shall be only for the 3 10 construction of single-family, owner-occupied housing and not 3 11 multifamily housing. A loan shall become due and payable once 3 12 all houses are sold to owner-occupiers or eighteen months from 3 13 the date the loan is made, whichever first occurs. 3 14 6. The grant or denial of a loan under this section shall 3 15 not affect the eligibility of the entity seeking the loan for 3 16 other programs administered by the authority. 3 17 7. Loans shall only be used to finance the construction of 3 18 housing with a value of not more than one hundred fifty 3 19 percent of the median new home value in the city or county as 3 20 determined through the housing needs assessment. 3 21 Sec. 5. Section 16.91, subsection 1, Code 1997, is amended 3 22 to read as follows: 3 23 1. The authority through the title guaranty division shall 3 24 initiate and operate a program in which the division shall 3 25 offer guaranties of real property titles in this state. The 3 26 terms, conditions and form of the guaranty contract shall be 3 27 forms approved by the division board. The division shall fix 3 28 a charge for the guaranty in an amount sufficient to permit 3 29 the program to operate on a self-sustaining basis, including 3 30 payment of administrative costs and the maintenance of an 3 31 adequate reserve against claims under the title guaranty 3 32 program. A title guaranty fund is created in the office of 3 33 the treasurer of state. Funds collected under this program 3 34 shall be placed in the title guaranty fund and are available 3 35 to pay all claims, necessary reserves and all administrative 4 1 costs of the title guaranty program. Moneys in the fund shall 4 2 not revert to the general fund and interest on the moneys in 4 3 the fund shall beretained as a part of the fundtransferred 4 4 to the department of economic development for the regional 4 5 housing program established in section 15.351 and shall not 4 6 accrue to the general fund. If the authority board in 4 7 consultation with the division board determines that there are 4 8 surplus funds in the title guaranty fund after providing for 4 9 adequate reserves and operating expenses of the division, the 4 10 surplus funds shall be transferred to the housing program fund 4 11 created pursuant to section 16.40. 4 12 Sec. 6. Section 16.100, subsection 2, paragraph a, Code 4 13 1997, is amended by striking the paragraph. 4 14 Sec. 7. Section 403.22, subsection 1, Code 1997, is 4 15 amended to read as follows: 4 16 1. With respect to any urban renewal area established upon 4 17 the determination that the area is an economic development 4 18 area, a division of revenue as provided in section 403.19 4 19 shall not be allowed for the purpose of providing or aiding in 4 20 the provision of public improvements related to housing and 4 21 residential development, unless the municipality assures that 4 22 the project will include assistance for low and moderate 4 23 income family housing. For a municipality with a population 4 24 over fifteen thousand, the amount to be provided for low and 4 25 moderate income family housing for such projects shall be 4 26 either equal to or greater than the percentage of the original 4 27 project cost that is equal to the percentage of low and 4 28 moderate income residents for the county in which the urban 4 29 renewal area is located as determined by the United States 4 30 department of housing and urban development using section 8 4 31 guidelines or by providing such other amount as set out in a 4 32 plan adopted by the municipalityand approved by the Iowa4 33department of economic development if the municipality can4 34show that it cannot undertake the project if it has to meet4 35the low and moderate income assistance requirements. However, 5 1 the amount provided for low and moderate income family housing 5 2 for such projects shall not be less than an amount equal to 5 3 ten percent of the original project cost. 5 4 For a municipality with a population of fifteen thousand or 5 5 less, the amount to be provided for low and moderate income 5 6 family housing shall be the same as for a municipality of over 5 7 fifteen thousand in population, except that a municipality of 5 8 fifteen thousand or less in population is not subject to the 5 9 requirement to provide not less than an amount equal to ten 5 10 percent of the original project cost for low and moderate 5 11 income family housing. 5 12 For a municipality with a population of five thousand or 5 13 less, the municipality need not provide any low and moderate 5 14 income family housing assistance. 5 15 Sec. 8. Section 404.1, Code 1997, is amended by adding the 5 16 following new subsection: 5 17 NEW SUBSECTION. 5. An area designated as appropriate for 5 18 public improvements related to housing and residential 5 19 development, or construction of housing and residential 5 20 development, including single or multifamily housing. 5 21 Sec. 9. NEW SECTION. 404.3A RESIDENTIAL DEVELOPMENT AREA 5 22 EXEMPTION. 5 23 Notwithstanding section 404.3, all qualified real estate 5 24 assessed as residential property in an area designated under 5 25 section 404.1, subsection 5, is eligible to receive an 5 26 exemption from taxation on the first seventy-five thousand 5 27 dollars of actual value added by the improvements. The 5 28 exemption is for a period of five years. 5 29 Sec. 10. Section 428A.8, Code 1997, is amended to read as 5 30 follows: 5 31 428A.8 REMITTANCE TO STATE TREASURER – PORTION RETAINED 5 32 IN COUNTY. 5 33 1. On or before the tenth day of each month the county 5 34 recorder shall determine and pay to the treasurer of state 5 35 eighty-two and three-fourths percent of the receipts from the 6 1 real estate transfer tax collected during the preceding month 6 2 and the treasurer of state shall depositninety-five percent6 3of the receipts in the general fund of the state and transfer6 4five percent of the receipts to the Iowa finance authority for6 5deposit in the housing improvement fund created in section6 616.100.the receipts as follows: 6 7 a. For the fiscal year beginning July 1, 1998, and ending 6 8 June 30, 1999, eighty-seven and one-half percent of the 6 9 receipts shall be deposited in the general fund of the state 6 10 and twelve and one-half percent of the receipts shall be 6 11 transferred to the department of economic development to be 6 12 used only for the purposes of the regional housing program 6 13 established in section 15.351. 6 14 b. For the fiscal year beginning July 1, 1999, and ending 6 15 June 30, 2000, seventy-five percent of the receipts shall be 6 16 deposited in the general fund of the state and twenty-five 6 17 percent of the receipts shall be transferred to the department 6 18 of economic development to be used only for the purposes of 6 19 the regional housing program established in section 15.351. 6 20 c. For the fiscal year beginning July 1, 2000, and ending 6 21 June 30, 2001, sixty-two and one-half percent of the receipts 6 22 shall be deposited in the general fund of the state and 6 23 thirty-seven and one-half percent of the receipts shall be 6 24 transferred to the department of economic development to be 6 25 used only for the purposes of the regional housing program 6 26 established in section 15.351. 6 27 d. For the fiscal year beginning July 1, 2001, and ending 6 28 June 30, 2002, fifty percent of the receipts shall be 6 29 deposited in the general fund of the state and fifty percent 6 30 of the receipts shall be transferred to the department of 6 31 economic development to be used only for the purposes of the 6 32 regional housing program established in section 15.351. 6 33 e. For the fiscal year beginning July 1, 2002, and ending 6 34 June 30, 2003, thirty-seven and one-half percent of the 6 35 receipts shall be deposited in the general fund of the state 7 1 and sixty-two and one-half percent of the receipts shall be 7 2 transferred to the department of economic development to be 7 3 used only for the purposes of the regional housing program 7 4 established in section 15.351. 7 5 f. For the fiscal year beginning July 1, 2003, and ending 7 6 June 30, 2004, twenty-five percent of the receipts shall be 7 7 deposited in the general fund of the state and seventy-five 7 8 percent of the receipts shall be transferred to the department 7 9 of economic development to be used only for the purposes of 7 10 the regional housing program established in section 15.351. 7 11 g. For the fiscal year beginning July 1, 2004, and ending 7 12 June 30, 2005, twelve and one-half percent of the receipts 7 13 shall be deposited in the general fund of the state and 7 14 eighty-seven and one-half percent of the receipts shall be 7 15 transferred to the department of economic development to be 7 16 used only for the purposes of the regional housing program 7 17 established in section 15.351. 7 18 h. For the fiscal year beginning July 1, 2005, and each 7 19 subsequent fiscal year, one hundred percent of the receipts 7 20 shall be transferred to the department of economic development 7 21 to be used only for the purposes of the regional housing 7 22 program established in section 15.351. 7 23 2. The county recorder shall deposit the remaining 7 24 seventeen and one-fourth percent of the receipts in the county 7 25 general fund. 7 26 3. The county recorder shall keep records and make reports 7 27 with respect to the real estate transfer tax as the director 7 28 of revenue and finance prescribes. 7 29 Sec. 11. Section 543B.46, subsection 1, Code 1997, is 7 30 amended to read as follows: 7 31 1. Each real estate broker shall maintain a common trust 7 32 account in a bank, a savings and loan association, savings 7 33 bank, or credit union for the deposit of all down payments, 7 34 earnest money deposits, or other trust funds received by the 7 35 broker or the broker's salespersons on behalf of the broker's 8 1 principal, except that a broker acting as a salesperson shall 8 2 deposit these funds in the common trust account of the broker 8 3 for whom the broker acts as salesperson. The account shall be 8 4 an interest-bearing account. The interest on the account 8 5 shall be transferred quarterly to the treasurer of state and 8 6deposited in the title guaranty fund and used for public8 7purposes and the benefit of the public pursuant to section8 816.91 unless there is a written agreement between the buyer8 9and seller to the contrary. The broker shall not benefit from8 10interest received on funds of others in the broker's8 11possessiontransferred to the department of economic 8 12 development for the regional housing program established in 8 13 section 15.351. 8 14 EXPLANATION 8 15 This bill provides the following: 8 16 1. The department of economic development is required to 8 17 establish a regional housing project program in coordination 8 18 with the Iowa finance authority to provide technical and 8 19 financial assistance to communities or local groups for 8 20 housing projects which facilitate housing development, 8 21 construction, or rehabilitation. The program shall require 8 22 that a regional housing council be established, consisting of 8 23 the supervisors of the county, the mayor of each city, and 8 24 representatives of local housing or economic development 8 25 groups. The council may cover more than one county under an 8 26 agreement pursuant to Code chapter 28E. To receive financial 8 27 assistance under the program, a housing needs assessment must 8 28 be completed for the region, the proposal must be consistent 8 29 with the housing needs assessment, and the proposal must be 8 30 approved by the council. 8 31 2. A home construction program is established, including a 8 32 revolving loan fund for the program, and the Iowa finance 8 33 authority is required to use $2 million of unobligated, 8 34 existing funds for the loan fund. 8 35 The home construction program is created to provide loan 9 1 guarantees to cities, counties, or nonprofit economic 9 2 development groups seeking to build speculative single-family 9 3 housing in counties with populations of less than 20,000. The 9 4 program is to be administered by the Iowa finance authority. 9 5 If a loan is provided, the loan must be paid in full when 9 6 the house is sold or after 18 months, whichever occurs first. 9 7 The grant or denial of a loan under the program does not 9 8 affect the person's eligibility for other Iowa finance 9 9 authority programs. 9 10 3. Interest on moneys in the title guarantee fund under 9 11 Code section 16.91 and on real estate brokers common trust 9 12 accounts under Code section 543B.46 shall be transferred to 9 13 the department of economic development for housing programs. 9 14 4. Code section 403.22 is amended to remove the 9 15 requirement that the department of economic development 9 16 approve the plan of a municipality with a population over 9 17 15,000 to provide low and moderate income housing assistance, 9 18 as part of a housing development project funded through tax 9 19 increment financing, that is less than the percent of the 9 20 original project cost that is equal to the percentage of low 9 21 and moderate income residents in the county in which the 9 22 housing project is located. The municipality must still 9 23 provide at least 10 percent of the original project cost for 9 24 low and moderate income family housing. 9 25 Code section 403.22 is also amended to waive the 9 26 requirement that municipalities with populations of 5,000 and 9 27 under provide low and moderate income housing assistance as 9 28 part of a housing project funded through tax increment 9 29 financing. 9 30 5. The proceeds from the real estate transfer tax under 9 31 Code section 428A.8 currently being deposited with the Iowa 9 32 finance authority shall be transferred to the department of 9 33 economic development for the fiscal year beginning July 1, 9 34 1997. For the fiscal year beginning July 1, 1998, the 9 35 proceeds from the tax shall be deposited as follows: 10 1 a. For the fiscal year beginning July 1, 1998, 87.5 10 2 percent of the proceeds shall continue to be deposited in the 10 3 general fund of the state and 12.5 percent shall be 10 4 transferred to the department. 10 5 b. For the fiscal year beginning July 1, 1999, 75 percent 10 6 of the proceeds shall continue to be deposited in the general 10 7 fund of the state and 25 percent shall be transferred to the 10 8 department. 10 9 c. For the fiscal year beginning July 1, 2000, 62.5 10 10 percent of the proceeds shall continue to be deposited in the 10 11 general fund of the state and 37.5 percent shall be 10 12 transferred to the department. 10 13 d. For the fiscal year beginning July 1, 2001, 50 percent 10 14 of the proceeds shall continue to be deposited in the general 10 15 fund of the state and 50 percent shall be transferred to the 10 16 department. 10 17 e. For the fiscal year beginning July 1, 2002, 37.5 10 18 percent of the proceeds shall continue to be deposited in the 10 19 general fund of the state and 62.5 percent shall be 10 20 transferred to the department. 10 21 f. For the fiscal year beginning July 1, 2003, 25 percent 10 22 of the proceeds shall continue to be deposited in the general 10 23 fund of the state and 75 percent shall be transferred to the 10 24 department. 10 25 g. For the fiscal year beginning July 1, 2004, 12.5 10 26 percent of the proceeds shall continue to be deposited in the 10 27 general fund of the state and 87.5 percent shall be 10 28 transferred to the department. 10 29 h. For the fiscal year beginning July 1, 2005, and each 10 30 subsequent year, 100 percent of the tax proceeds currently 10 31 going to the general fund shall be transferred to the 10 32 department. 10 33 The counties would continue to retain 17.25 percent of the 10 34 gross real estate transfer tax receipts. 10 35 6. Cities and counties are authorized to provide a 11 1 property tax exemption for the first $75,000 of value of 11 2 residential property which is in an area designated as 11 3 appropriate for public improvements related to housing and 11 4 residential development, or construction of housing and 11 5 residential development, including single or multifamily 11 6 housing. 11 7 LSB 2747SC 77 11 8 mk/jj/8
Text: SSB00260 Text: SSB00262 Text: SSB00200 - SSB00299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
Iowa General Assembly
Search: Senate Bills and Amendments (77th General Assembly)
© 1997 Cornell College and League of Women Voters of Iowa
Comments about this site or page? webmaster@legis.iowa.gov. Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Wed Apr 2 03:42:56 CST 1997
URL: /DOCS/GA/77GA/Legislation/SSB/00200/SSB00261/970401.html
jhf