Text: HF02547 Text: HF02549 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 7C.3, Code 2001, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 8A. "Qualified multifamily bond" means a 1 4 qualified residential rental project bond as defined in 1 5 section 142(d) of the Internal Revenue Code. 1 6 Sec. 2. Section 7C.4A, subsections 2, 3, 4, 5, 6, and 7, 1 7 Code 2001, are amended to read as follows: 1 8 2. Twelve percent of the state ceiling shall be allocated 1 9 to bonds issued to carry out programs established under 1 10 chapters 260C, 260E, and 260F. However, at any time during 1 11 the calendar year the director of the Iowa department of 1 12 economic development may determine that a lesser amount need 1 13 be allocated and on that date this lesser amount shall be the 1 14 amount allocated for those programs and the excess shall be 1 15 allocated under subsection75. 1 16 3. Sixteen percent of the state ceiling shall be allocated 1 17 to qualified student loan bonds. However, at any time during 1 18 the calendar year the governor's designee, with the approval 1 19 of the Iowa student loan liquidity corporation, may determine 1 20 that a lesser amount need be allocated to qualified student 1 21 loan bonds and on that date the lesser amount shall be the 1 22 amount allocated for those bonds and the excess shall be 1 23 allocatedunder subsection 7on an equitable basis based on 1 24 demand under subsections 5 and 7. 1 25 4. Twenty-one percent of the state ceiling shall be 1 26 allocated to qualified small issue bonds issued for first-time 1 27 farmers. However, at any time during the calendar year the 1 28 governor's designee, with the approval of the Iowa 1 29 agricultural development authority, may determine that a 1 30 lesser amount need be allocated to qualified small issue bonds 1 31 for first-time farmers and on that date this lesser amount 1 32 shall be the amount allocated for those bonds and the excess 1 33 shall be allocatedunder subsection 7on an equitable basis 1 34 based on demand under subsections 5 and 7. 1 35 5. Eighteen percent of the state ceiling shall be 2 1 allocated to bonds issued by political subdivisions to finance 2 2 a qualified industry or industries for the manufacturing, 2 3 processing, or assembly of agricultural or manufactured 2 4 products even though the processed products may require 2 5 further treatment before delivery to the ultimate consumer. 2 6 The state ceiling in this subsection shall be allocated in 2 7 accordance with rules adopted by the department of economic 2 8 development providing priority criteria for bonds for certain 2 9 projects for which a priority allocation would be in the best 2 10 interests of the state, in accordance with goals, objectives, 2 11 and principles established by the department of economic 2 12 development. However, in order to maximize the full use of 2 13 the state ceiling under this subsection and subsection 7, at 2 14 any time after October 1 of each year the director of the 2 15 department of economic development may determine that a lesser 2 16 amount needs to be allocated under this subsection and on that 2 17 date the determined lesser amount shall be the amount 2 18 allocated with the excess being allocated under subsection 7. 2 19 6. During the period of January 1 throughJune 30March 1, 2 20 three percent of the state ceiling shall be reserved for 2 21 private activity bonds issued by political subdivisions, the 2 22 proceeds of which are used by the issuing political 2 23 subdivisions to finance projects owned and used by the 2 24 political subdivisions which require an allocation under 2 25 section 146 of the Internal Revenue Code. The state ceiling 2 26 in this subsection shall be allocated on the basis of the 2 27 chronological order of receipt by the governor's designee of 2 28 the applications described in section 7C.6 with respect to a 2 29 definitive issue of bonds, as determined by the day, hour, and 2 30 minute time-stamped on the application immediately upon 2 31 receipt by the governor's designee. Applications may be filed 2 32 at any time before or after January 1 of the foregoing period. 2 33 7. a. The amount of the state ceiling which is not 2 34 otherwise allocated under subsections 1 through 5, and after 2 35June 30March 1, the amount of the state ceiling reserved 3 1 under subsection 6 and not allocated, shall be allocated to 3 2 all bonds requiring an allocation under section 146 of the 3 3 Internal Revenue Codewithout priority for any type of bond3 4over another, except as otherwise provided in sections 7C.53 5and 7C.11including, without limitation, qualified multifamily 3 6 bonds, in accordance with rules and criteria adopted pursuant 3 7 to chapter 17A by the governor's designee. In addition to the 3 8 requirements of chapter 17A, rules and criteria adopted by the 3 9 governor's designee shall not apply to an allocation of the 3 10 state ceiling for a calendar year under this subsection unless 3 11 the rules and criteria have been in effect at least ninety 3 12 days prior to the beginning of the calendar year. Included in 3 13 the rules and criteria for the allocation of multifamily bonds 3 14 shall be a priority for the acquisition and rehabilitation of 3 15 existing housing stock and for aid to communities experiencing 3 16 minimal housing development. 3 17 b. For each applicant that is denied a portion of the 3 18 state ceiling allocation under this subsection, the governor's 3 19 designee shall publicly announce and communicate to the 3 20 applicant the ratings and points awarded to the applicant and 3 21 the rationale for denying the application. 3 22 c. An applicant shall conduct a housing needs assessment. 3 23b.8. The population of the state shall be determined in 3 24 accordance with the Internal Revenue Code. 3 25 Sec. 3. Section 7C.7, Code 2001, is amended to read as 3 26 follows: 3 27 7C.7 CERTIFICATION OF ALLOCATION. 3 28 Upon the receipt of a completed application pursuant to 3 29 section 7C.6, the governor's designee shall, subject to the 3 30 priority criteria relating to allocation of the state ceiling 3 31 referred to in section 7C.4A, subsections 5 and 7, promptly 3 32 certify to the political subdivision the amount of the state 3 33 ceiling allocated to the bonds for the purpose or project with 3 34 respect to which the application was submitted. The 3 35 allocation shall remain valid forthirtysixty days from the 4 1 date the allocation was certified, subject to the following 4 2 conditions: 4 3 1. If the bonds are issued and delivered for the purpose 4 4 or project withinthe thirty-day period or the forty-five day4 5extension periodtime periods provided insubsection 2this 4 6 section, the political subdivision or its representative shall 4 7 within ten days following the issuance and delivery of the 4 8 bonds or not later than June 30 of that year, if the bonds 4 9 were issued and delivered on or before that date, file with 4 10 the governor's designee, in the form or manner the governor's 4 11 designee may prescribe, a notification of the date of issuance 4 12 and the delivery of the bonds, and the actual principal amount 4 13 of bonds issued and delivered. The filing of the notification 4 14 shall be done by actual delivery or by posting in a United 4 15 States post office depository with correct first class postage 4 16 paid. If the actual principal amount of bonds issued and 4 17 delivered is less than the amount of the allocation, the 4 18 amount of the allocation is automatically reduced to the 4 19 actual principal amount of the bonds issued and delivered. 4 20 2. If the political subdivision does not reasonably expect 4 21 to issue and deliver the bonds within thethirty-daysixty-day 4 22 periodand evidence of an executed, valid and binding4 23agreement to purchase the bonds is obtained from an entity4 24with the legal ability to purchase and this agreement is filed4 25with the governor's designee,and the political subdivision 4 26 files a certification with the governor's designee, based on 4 27 information furnished by the sponsor of the project for which 4 28 the bonds are to be issued, that it reasonably expects to 4 29 issue and deliver the bonds within the next sixty days 4 30 thereafter, then thethirty-daysixty-day allocation period is 4 31 automatically extended for an additionalforty-fivesixty 4 32 days.The allocation period shall not be extended beyond that4 33additional forty-five days.4 34 3. The allocation is no longer valid unless the bonds are 4 35 issued and delivered prior to December 24 or in the case of 5 1 bonds described in section 7C.11 are issued and delivered 5 2 prior to December 31 of the calendar year in which the 5 3 allocation is certified, except as provided in section 7C.8. 5 4 Sec. 4. Section 7C.5, Code 2001, is repealed. 5 5 Sec. 5. 2000 Iowa Acts, chapter 1166, section 8, is 5 6 repealed. 5 7 EXPLANATION 5 8 This bill amends the private activity bond allocation Act 5 9 in Code chapter 7C which allows for the allocation of the 5 10 state ceiling for bonds which are subject to section 146 of 5 11 the Internal Revenue Code and may be issued by all political 5 12 subdivisions. 5 13 The bill adds qualified multifamily bonds as an additional 5 14 purpose for which the Iowa finance authority may use its 5 15 allocation of the state ceiling. 5 16 The bill provides that excess state ceiling allocation for 5 17 job training programs shall be allocated for bonds issued by 5 18 political subdivisions to finance a qualified industry. The 5 19 bill provides that excess state ceiling allocation for 5 20 qualified student loan bonds and first-time farmer bonds shall 5 21 be allocated on an equitable basis based on demand for bonds 5 22 issued by political subdivisions to finance a qualified 5 23 industry and bonds issued for qualified multifamily housing. 5 24 The bill provides a procedure for allowing the director of 5 25 the department of economic development to release a portion of 5 26 the state ceiling allocation for bonds issued by political 5 27 subdivisions to finance a qualified industry for the 5 28 manufacturing, processing, or assembly of agricultural or 5 29 manufactured products. The bill provides for a priority 5 30 criteria method for allocating the state ceiling for these 5 31 bonds. 5 32 The bill changes the time period and specifies an 5 33 application and allocation method for the portion of the state 5 34 ceiling reserved for private activity bonds issued by 5 35 political subdivisions, the proceeds of which are used by the 6 1 issuing political subdivision for qualified projects owned and 6 2 directly used by the political subdivision. 6 3 The bill provides for the allocation method for the amount 6 4 of state ceiling which is not otherwise allocated. The bill 6 5 provides that the person, department, or authority designated 6 6 by the governor to administer the private activity bond 6 7 allocation Act shall adopt rules and criteria for the 6 8 allocation of multifamily bonds which include a priority for 6 9 the acquisition and rehabilitation of existing housing stock 6 10 and for aid to communities experiencing minimal housing 6 11 development. The bill provides that, for each applicant that 6 12 is denied a portion of the state ceiling which is not 6 13 otherwise allocated, the governor's designee shall publicly 6 14 announce and communicate to the applicant the ratings and 6 15 points awarded to the applicant and the rationale for denying 6 16 the application. The bill also provides that each applicant 6 17 shall conduct a housing needs assessment. 6 18 The bill amends the time periods for which allocations 6 19 remain valid and certified. 6 20 The bill repeals Code section 7C.5 relating to a 6 21 chronological method of allocating the state ceiling for 6 22 certain types of bonds. 6 23 The bill repeals a section of 2000 Iowa Acts, chapter 1166, 6 24 which provides that for the calendar year beginning January 1, 6 25 2001, applications for allocation of the state ceiling shall 6 26 not be approved prior to March 1. 6 27 LSB 7039HV 79 6 28 tm/cls/14.1
Text: HF02547 Text: HF02549 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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