Text: HSB00061                          Text: HSB00063
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House Study Bill 62

Bill Text

PAG LIN
  1  1    Section 1.  Section 16.40, Code 2003, is amended by
  1  2 striking the section and inserting in lieu thereof the
  1  3 following:
  1  4    16.40  HOUSING ASSISTANCE FUND.
  1  5    1.  A housing assistance fund is created within the
  1  6 authority.  The moneys in the fund shall be used by the
  1  7 authority to protect, preserve, create, and improve access to
  1  8 safe, decent, and affordable housing.  By rule adopted
  1  9 pursuant to chapter 17A, the authority shall establish
  1 10 programs utilizing the fund and provide the requirements for
  1 11 the proper administration of the programs.
  1 12    2.  Moneys in the fund, including moneys which are annually
  1 13 appropriated to the authority, may be allocated for any use
  1 14 authorized by this chapter unless otherwise specified.
  1 15    3.  The authority may use the moneys in the fund to provide
  1 16 financial assistance to a housing sponsor or an individual in
  1 17 the form of a loan, guarantee, grant, or interest subsidy, or
  1 18 by other means under the general powers of the authority.
  1 19    4.  Moneys in the fund may be used for, but are not limited
  1 20 to, the following purposes:
  1 21    a.  Home ownership programs including all of the following:
  1 22    (1)  Authority bond issues and loans to facilitate and
  1 23 ensure equal access across the state to funds for first-time
  1 24 homebuyers programs.
  1 25    (2)  Home ownership incentive programs not restricted to
  1 26 first-time homebuyers, including down payment and closing
  1 27 costs assistance.
  1 28    (3)  Programs for home maintenance and repair, new
  1 29 construction, acquisition, and rehabilitation.
  1 30    (4)  Support for home ownership education and counseling
  1 31 programs.
  1 32    b.  Rental programs, including rental subsidy,
  1 33 rehabilitation, preservation, new construction, and
  1 34 acquisition.
  1 35    c.  Programs that provide a continuum of housing services,
  2  1 including construction, operation, and maintenance of homeless
  2  2 shelters, domestic violence shelters, and transitional housing
  2  3 and supportive services to lower income and very low-income
  2  4 families.
  2  5    d.  Technical assistance programs that increase the
  2  6 capacity of for-profit and nonprofit housing entities.
  2  7    5.  Notwithstanding section 8.33, moneys in the housing
  2  8 assistance fund at the end of each fiscal year shall not
  2  9 revert to the general fund or any other fund but shall remain
  2 10 in the housing assistance fund for expenditure for subsequent
  2 11 fiscal years.  Notwithstanding section 12C.7, interest or
  2 12 earnings on moneys in the housing assistance fund or
  2 13 appropriated to the housing assistance fund shall be credited
  2 14 to the housing assistance fund.
  2 15    6.  The authority may establish, by rule adopted pursuant
  2 16 to chapter 17A, an annual administration fee to be charged to
  2 17 the housing assistance fund.  The annual fee shall not exceed
  2 18 four percent of the moneys, loans, or other assets held in the
  2 19 fund.
  2 20    7.  During each regular session of the general assembly,
  2 21 the authority shall present to the appropriate joint
  2 22 appropriations subcommittee a report concerning the total
  2 23 estimated resources to be available for expenditure under this
  2 24 section for the next fiscal year and the amount the authority
  2 25 proposes to allocate to each program created under this
  2 26 section.
  2 27    Sec. 2.  Section 16.91, subsection 1, Code 2003, is amended
  2 28 to read as follows:
  2 29    1.  The authority through the title guaranty division shall
  2 30 initiate and operate a program in which the division shall
  2 31 offer guaranties of real property titles in this state.  The
  2 32 terms, conditions and form of the guaranty contract shall be
  2 33 forms approved by the division board.  The division shall fix
  2 34 a charge for the guaranty in an amount sufficient to permit
  2 35 the program to operate on a self-sustaining basis, including
  3  1 payment of administrative costs and the maintenance of an
  3  2 adequate reserve against claims under the title guaranty
  3  3 program.  A title guaranty fund is created in the office of
  3  4 the treasurer of state.  Funds collected under this program
  3  5 shall be placed in the title guaranty fund and are available
  3  6 to pay all claims, necessary reserves and all administrative
  3  7 costs of the title guaranty program.  Moneys in the fund shall
  3  8 not revert to the general fund and interest on the moneys in
  3  9 the fund shall be transferred to the department of economic
  3 10 development for deposit in the local housing assistance
  3 11 program fund established in section 15.354 and shall not
  3 12 accrue to the general fund.  If the authority board in
  3 13 consultation with the division board determines that there are
  3 14 surplus funds in the title guaranty fund after providing for
  3 15 adequate reserves and operating expenses of the division, the
  3 16 surplus funds shall be transferred to the housing program
  3 17 assistance fund created pursuant to section 16.40.
  3 18    Sec. 3.  Section 16.100, Code 2003, is amended to read as
  3 19 follows:
  3 20    16.100  HOUSING IMPROVEMENT FUND PROGRAM HOMELESSNESS
  3 21 ADVISORY COMMITTEE.
  3 22    1.  A housing improvement fund is created within the
  3 23 authority.  The moneys in the housing improvement fund are
  3 24 annually appropriated to the authority which shall allocate
  3 25 the available funds among and within the programs authorized
  3 26 by this section.  Notwithstanding section 8.33, unencumbered
  3 27 or unobligated moneys remaining in the fund on June 30 of any
  3 28 fiscal year shall not revert to any other fund but shall be
  3 29 available for expenditure for subsequent fiscal years.
  3 30 Notwithstanding section 12C.7, interest or earnings on moneys
  3 31 in the fund or appropriated to the fund shall be credited to
  3 32 the fund.  The authority may expend up to four percent of the
  3 33 moneys appropriated for the programs in this section for
  3 34 administrative costs of the authority for those programs.  The
  3 35 authority may provide financial assistance to a housing
  4  1 sponsor or an individual in the form of loans, guarantees,
  4  2 grants, interest subsidies, or by other means for the programs
  4  3 authorized by this section.
  4  4    2.  By rule, the authority shall establish the following
  4  5 financial assistance programs and provide the requirements for
  4  6 their proper administration:
  4  7    a.  A home maintenance and repair program providing repair
  4  8 services to families which include persons who are elderly or
  4  9 persons with disabilities and which qualify as lower income or
  4 10 very low income families.
  4 11    b.  A rental rehabilitation program for the construction or
  4 12 rehabilitation of single or multifamily rental properties
  4 13 leased to lower income or very low income families.
  4 14    c.  A home ownership incentive program to help lower income
  4 15 and very low income families achieve single family home
  4 16 ownership.  Funds provided under this program shall not be
  4 17 restricted to first-time home buyers but shall be limited to
  4 18 mortgages under fifty-five thousand dollars, except in those
  4 19 areas of the state where the median price of homes exceeds the
  4 20 state average.  The assistance provided shall include at least
  4 21 one of the following kinds of assistance:
  4 22    (1)  Closing costs assistance.
  4 23    (2)  Down payment assistance.
  4 24    (3)  Home maintenance and repair assistance.
  4 25    (4)  Loan processing assistance through a loan endorser
  4 26 review contractor who acts on behalf of the authority in
  4 27 assisting lenders in processing loans that will qualify for
  4 28 government insurance or guarantee or for financing under the
  4 29 authority's mortgage revenue bond program.
  4 30    (5)  Mortgage insurance program.
  4 31    Five percent of the moneys expended under this program
  4 32 shall be used to finance the purchase or acquisition, in
  4 33 communities with a population of less than ten thousand, of
  4 34 manufactured homes as defined in 42 U.S.C. } 5403.  Moneys
  4 35 available for this purpose which are unencumbered or
  5  1 unobligated at the end of the fiscal year shall revert to the
  5  2 housing improvement fund for reallocation for the next fiscal
  5  3 year.
  5  4    Not more than fifty percent of the assistance provided
  5  5 under this program shall be provided under subparagraphs (4)
  5  6 and (5).  So long as at least one of the kinds of assistance
  5  7 described in subparagraphs (1) through (5) is provided,
  5  8 additional assistance not described in subparagraphs (1)
  5  9 through (5) may also be provided.
  5 10    3.  The authority shall coordinate the programs authorized
  5 11 by this section with the other programs under the jurisdiction
  5 12 of the authority.
  5 13    4.  Each application for financial assistance shall be
  5 14 rated based on local, housing sponsor, and recipient financial
  5 15 commitment, proposals for leveraging other financial
  5 16 assistance, experience with the recipient group involved,
  5 17 consideration for the housing project in the context of
  5 18 overall community needs, including vacancy rate of rental
  5 19 property and ratio of subsidized rental housing to
  5 20 nonsubsidized housing, ability to provide a counseling support
  5 21 system to the recipients, and a demonstrated capability by the
  5 22 housing sponsor to provide follow-up monitoring of recipients
  5 23 to determine if identifiable results have been achieved.
  5 24    5.  For the purposes of this section, "housing sponsor" is
  5 25 a for-profit entity, nonprofit corporation, local government,
  5 26 or a joint venture involving a for-profit entity, nonprofit
  5 27 corporation or local government.
  5 28    6.  None of the funds provided to a housing sponsor under
  5 29 this section shall be used for the costs of administration.
  5 30    7.  During each regular session of the general assembly,
  5 31 the authority shall present, to the appropriate appropriations
  5 32 subcommittee, a report concerning the total estimated
  5 33 resources to be available for expenditure under this section
  5 34 for the next fiscal year and the amount the authority proposes
  5 35 to allocate to each program under this section.
  6  1    8.  A homelessness advisory committee is created consisting
  6  2 of the executive director or the executive director's
  6  3 designee, the directors or their designees from the
  6  4 departments of economic development, elder affairs, human
  6  5 services, and human rights, and at least three individuals
  6  6 from the private sector to be selected by the executive
  6  7 director.  The advisory committee shall advise the authority
  6  8 in coordinating programs that provide for the homeless.
  6  9    Sec. 4.  INITIAL MONEYS AND ASSETS FOR THE HOUSING
  6 10 ASSISTANCE FUND.  Upon the creation of the housing assistance
  6 11 fund, all of the following moneys and assets shall be
  6 12 transferred to and held in the housing assistance fund:
  6 13    1.  Assets of the authority held under the housing
  6 14 improvement fund created in section 16.100, Code Supplement
  6 15 2001.
  6 16    2.  Assets of the authority held under the housing program
  6 17 fund created in section 16.40, Code 2001.
  6 18    3.  Assets of the former Iowa housing corporation held by
  6 19 the authority.  
  6 20                              EXPLANATION
  6 21    This bill strikes the housing program fund and replaces it
  6 22 with a housing assistance fund created within the Iowa finance
  6 23 authority.  The bill provides that the moneys shall be used by
  6 24 the authority to protect, preserve, create, and improve access
  6 25 to safe, decent, and affordable housing and that the authority
  6 26 shall establish programs utilizing the fund.  The bill
  6 27 provides that the authority may use the moneys in the fund to
  6 28 provide financial assistance to housing sponsors or
  6 29 individuals in the form of loans, guarantees, grants, or
  6 30 interest subsidies, or by other means under the general powers
  6 31 of the authority.  The bill provides that moneys in the fund
  6 32 may be used for, but are not limited to, home ownership
  6 33 programs, rental programs, programs which provide a continuum
  6 34 of housing services, and technical assistance programs.  The
  6 35 bill provides that the authority may establish an annual
  7  1 administration fee to be charged to the housing assistance
  7  2 fund and that the annual fee shall not exceed 4 percent of the
  7  3 moneys, loans, or other assets held in the fund.  The bill
  7  4 provides that during each regular session of the general
  7  5 assembly, the authority shall present to the appropriate joint
  7  6 appropriations subcommittee a report concerning the total
  7  7 estimated resources to be available for expenditure for the
  7  8 next fiscal year and the amount the authority proposes to
  7  9 allocate to each program created.  The bill specifically
  7 10 identifies moneys and assets to be transferred to and held in
  7 11 the housing assistance fund upon the creation of the fund.
  7 12    The bill also strikes the housing improvement fund program
  7 13 in Code section 16.100, with the exception of the homelessness
  7 14 advisory committee.  
  7 15 LSB 1240DP 80
  7 16 tm/sh/8
     

Text: HSB00061                          Text: HSB00063
Text: HSB00000 - HSB00099               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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