Text: HSB00312 Text: HSB00314 Text: HSB00300 - HSB00399 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 403.2, subsection 3, Code 2003, is 1 2 amended to read as follows: 1 3 3. It is further found and declared that there exists in 1 4 this state the continuing need for programs to alleviate and 1 5 prevent conditions of unemploymentand a shortage of housing; 1 6 and that it is accordingly necessary to assist and retain 1 7 local industries and commercial enterprises to strengthen and 1 8 revitalize the economy of this state and its municipalities; 1 9 that accordingly it is necessary to provide means and methods 1 10 for the encouragement and assistance of industrial and 1 11 commercial enterprises in locating, purchasing, constructing, 1 12 reconstructing, modernizing, improving, maintaining, 1 13 repairing, furnishing, equipping, and expanding in this state 1 14 and its municipalities,for the provision of public1 15improvements related to housing and residential development,1 16and for the construction of housing for low and moderate1 17income families; that accordingly it is necessary to authorize 1 18 local governing bodies to designate areas of a municipality as 1 19 economic development areas for commercial and industrial 1 20 enterprises, public improvements related to housing and1 21residential development, or construction of housing for low1 22and moderate income families; and that it is also necessary to 1 23 encourage the location and expansion of commercial enterprises 1 24 to more conveniently provide needed services and facilities of 1 25 the commercial enterprises to municipalities and the residents 1 26 of the municipalities. Therefore, the powers granted in this 1 27 chapter constitute the performance of essential public 1 28 purposes for this state and its municipalities. 1 29 Sec. 2. Section 403.5, Code 2003, is amended by adding the 1 30 following new subsection: 1 31 NEW SUBSECTION. 3A. Following the public hearing, an 1 32 affected taxing entity may adopt a resolution approving or 1 33 rejecting the proposed urban renewal plan. If an affected 1 34 taxing entity adopts a resolution rejecting the proposed urban 1 35 renewal plan, the municipality proposing the urban renewal 2 1 plan shall not proceed with the urban renewal plan and the 2 2 taxes levied on taxable property shall not be divided under 2 3 section 403.19. 2 4 Sec. 3. Section 403.5, subsection 4, unnumbered paragraph 2 5 1, Code 2003, is amended to read as follows: 2 6Following suchNo sooner than thirty days after the public 2 7 hearing, the local governing body may approve an urban renewal 2 8 plan if it finds that: 2 9 Sec. 4. Section 403.5, subsection 4, paragraph b, Code 2 10 2003, is amended to read as follows: 2 11 b. The urban renewal plan conforms to the general plan of 2 12 the municipality as a whole; provided, that if the urban 2 13 renewal area consists of an area of open land to be acquired 2 14 by the municipality, such area shall not be so acquired 2 15 except:2 16(1) If it is to be developed for residential uses, the2 17local governing body shall determine that a shortage of2 18housing of sound standards and design with decency, safety and2 19sanitation exists in the municipality; that the acquisition of2 20the area for residential uses is an integral part of and2 21essential to the program of the municipality; and that one or2 22more of the following conditions exist:2 23(a) That the need for housing accommodations has been or2 24will be increased as a result of the clearance of slums in2 25other areas, including other portions of the urban renewal2 26area.2 27(b) That conditions of blight in the municipality and the2 28shortage of decent, safe and sanitary housing cause or2 29contribute to an increase in and spread of disease and crime,2 30so as to constitute a menace to the public health, safety,2 31morals, or welfare.2 32(c) That the provision of public improvements related to2 33housing and residential development will encourage housing and2 34residential development which is necessary to encourage the2 35retention or relocation of industrial and commercial3 1enterprises in this state and its municipalities.3 2(d) The acquisition of the area is necessary to provide3 3for the construction of housing for low and moderate income3 4families.3 5(2) Ifif it is to be developed for nonresidential uses,3 6the. The local governing body shall determine that such 3 7 nonresidential uses are necessary and appropriate to 3 8 facilitate the proper growth and development of the community 3 9 in accordance with sound planning standards and local 3 10 community objectives. The acquisition may require the 3 11 exercise of governmental action, as provided in this chapter, 3 12 because of defective or unusual conditions of title, diversity 3 13 of ownership, tax delinquency, improper subdivisions, outmoded 3 14 street patterns, deterioration of site, economic disuse, 3 15 unsuitable topography or faulty lot layouts, or because of the 3 16 need for the correlation of the area with other areas of a 3 17 municipality by streets and modern traffic requirements, or 3 18 any combination of such factors or other conditions which 3 19 retard development of the area. 3 20 A municipality shall not condemn agricultural land included 3 21 within an economic development area unless the owner of the 3 22 agricultural land consents to condemnation or unless the 3 23 agricultural land is to be acquired for industry as that term 3 24 is defined in section 260E.2. This paragraph shall not apply 3 25 to land necessary or useful for the operation of a city 3 26 utility as defined in section 362.2, for the operation of a 3 27 city franchise conferred the authority to condemn private 3 28 property under section 364.2, or a combined utility system as 3 29 defined in section 384.80. 3 30 Sec. 5. Section 403.15, subsection 2, Code 2003, is 3 31 amended to read as follows: 3 32 2. If the urban renewal agency is authorized to transact 3 33 business and exercise powers pursuant to this chapter, the 3 34 mayor or chairperson of the board, as applicable, by and with 3 35 the advice and consent of the local governing body, shall 4 1 appoint four members of a board of commissioners of the urban 4 2 renewal agency, which board shall consist offiveseven 4 3 commissioners.In cities having a population of more than one4 4hundred thousand, the city council may establish, by4 5ordinance, the number of commissioners at not less than five.4 6 The affected taxing entities, other than the municipality that 4 7 has approved the urban renewal plan, shall appoint three 4 8 members of the board of commissioners of the urban renewal 4 9 agency. The term of office of each such commissioner shall be 4 10 one year. 4 11 Sec. 6. Section 403.17, subsection 10, Code 2003, is 4 12 amended to read as follows: 4 13 10. "Economic development area" means an area of a 4 14 municipality designated by the local governing body as 4 15 appropriate for commercial and industrial enterprises, public4 16improvements related to housing and residential development,4 17or construction of housing and residential development for low4 18and moderate income families, including single or multifamily4 19housing. If an urban renewal plan for an urban renewal area 4 20 is based upon a finding that the area is an economic 4 21 development area and that no part contains slum or blighted 4 22 conditions, then the division of revenue provided in section 4 23 403.19 and stated in the plan shall be limited to twenty years 4 24 from the calendar year following the calendar year in which 4 25 the municipality first certifies to the county auditor the 4 26 amount of any loans, advances, indebtedness, or bonds which 4 27 qualify for payment from the division of revenue provided in 4 28 section 403.19. Such designated area shall not include 4 29 agricultural land, including land which is part of a century 4 30 farm, unless the owner of the agricultural land or century 4 31 farm agrees to include the agricultural land or century farm 4 32 in the urban renewal area. For the purposes of this 4 33 subsection, "century farm" means a farm in which at least 4 34 forty acres of such farm have been held in continuous 4 35 ownership by the same family for one hundred years or more. 5 1 Sec. 7. Section 403.17, subsections 12 and 14, Code 2003, 5 2 are amended by striking the subsections. 5 3 Sec. 8. Section 403.17, subsection 25, unnumbered 5 4 paragraph 1, Code 2003, is amended to read as follows: 5 5 "Urban renewal project" may include undertakings and 5 6 activities of a municipality in an urban renewal area for the 5 7 elimination and for the prevention of the development or 5 8 spread of slums and blight, may include the designation and 5 9 development of an economic development area in an urban 5 10 renewal area, and may involve slum clearance and redevelopment 5 11 in an urban renewal area, or rehabilitation or conservation in 5 12 an urban renewal area, or any combination or part thereof in 5 13 accordance with an urban renewal program. The designation and 5 14 development of an economic development area in an urban 5 15 renewal area shall not include an undertaking or activity that 5 16 would facilitate the relocation of a business from another 5 17 location within the state unless the relocation is within the 5 18 municipality that has designated the urban renewal area. The 5 19 undertakings and activities may include: 5 20 Sec. 9. Section 403.17, subsection 25, Code 2003, is 5 21 amended by adding the following new paragraphs: 5 22 NEW PARAGRAPH. i. If the area is designated as a slum or 5 23 blighted area, public improvements related to housing and 5 24 residential development for low-income and moderate-income 5 25 families or construction of housing and residential 5 26 development for low-income and moderate-income families, 5 27 including single or multifamily housing. 5 28 NEW PARAGRAPH. j. Expenditure of proceeds of bonds issued 5 29 before March 1, 2003, if the portion of taxes mentioned in 5 30 section 403.19, subsection 2, and the special fund into which 5 31 the proceeds will be paid are obligated or irrevocably pledged 5 32 in accordance with an ordinance adopted under section 403.19 5 33 before March 1, 2003, for public improvements related to 5 34 housing and residential development or construction of housing 5 35 and residential development for low-income and moderate-income 6 1 families. 6 2 Sec. 10. Section 403.19, subsection 1, paragraphs a and b, 6 3 Code 2003, are amended to read as follows: 6 4 a. Unless otherwise provided in this section, that portion 6 5 of the taxes which would be produced by the rate at which the 6 6 tax is levied each year by or for each of the taxing districts 6 7 upon the total sum of theassessedtaxable value of the 6 8taxableproperty in the urban renewal area, as shown on the 6 9 assessment roll as of January 1 of the calendar year preceding 6 10 the first calendar year in which the municipality certifies to 6 11 the county auditor the amount of loans, advances, 6 12 indebtedness, or bonds payable from the division of property 6 13 tax revenue, or on the assessment roll last equalized prior to 6 14 the date of initial adoption of the urban renewal plan if the 6 15 plan was adopted prior to July 1, 1972, shall be allocated to 6 16 and when collected be paid into the fund for the respective 6 17 taxing district as taxes by or for the taxing district into 6 18 which all other property taxes are paid. However, the 6 19 municipality may choose to divide that portion of the taxes 6 20 which would be produced by levying the municipality's portion 6 21 of the total tax rate levied by or for the municipality upon 6 22 the total sum of theassessedtaxable value of thetaxable6 23 property in the urban renewal area, as shown on the assessment 6 24 roll as of January 1 of the calendar year preceding the 6 25 effective date of the ordinance and if the municipality so 6 26 chooses, an affected taxing entity may allow a municipality to 6 27 divide that portion of the taxes which would be produced by 6 28 levying the affected taxing district's portion of the total 6 29 tax rate levied by or for the affected taxing entity upon the 6 30 total sum of theassessedtaxable value of thetaxable6 31 property in the urban renewal area, as shown on the assessment 6 32 roll as of January 1 of the calendar year preceding the 6 33 effective date of the ordinance. This choice to divide a 6 34 portion of the taxes shall not be construed to change the 6 35 effective date of the division of property tax revenue with 7 1 respect to an urban renewal plan in existence on July 1, 1994. 7 2 b. For the purpose of allocating taxes levied by or for 7 3 any taxing district which did not include the territory in an 7 4 urban renewal area on the effective date of the ordinance or 7 5 initial adoption of the plan, but to which the territory has 7 6 been annexed or otherwise included after the effective date, 7 7 the assessment roll applicable to property in the annexed 7 8 territory as of January 1 of the calendar year preceding the 7 9 effective date of the ordinance, which amends the plan to 7 10 include the annexed area, shall be used in determining the 7 11assessedtaxable valuation of thetaxableproperty in the 7 12 annexed area. 7 13 Sec. 11. Section 403.19, subsection 2, Code 2003, is 7 14 amended to read as follows: 7 15 2. That portion of the taxes each year in excess of such 7 16 amount shall be allocated to and when collected be paid into a 7 17 special fund of the municipality to pay the principal of and 7 18 interest on loans, moneys advanced to, or indebtedness, 7 19 whether funded, refunded, assumed, or otherwise, including 7 20 bonds issued under the authority of section 403.9, subsection 7 21 1, incurred by the municipality to finance or refinance, in 7 22 whole or in part, an urban renewal project within the area, 7 23and to provide assistance for low and moderate income family7 24housing as provided in section 403.22,except that taxes for 7 25 the regular and voter-approved physical plant and equipment 7 26 levy of a school district imposed pursuant to section 298.2, 7 27andtaxes for the payment of bonds and interest of each taxing 7 28 district, and for fiscal years beginning on or after July 1, 7 29 2007, the foundation property tax imposed pursuant to section 7 30 257.3, subsection 1, must be collected against all taxable 7 31 property within the taxing district without limitation by the 7 32 provisions of this subsection. However, all or a portion of 7 33 the taxes for the physical plant and equipment levy shall be 7 34 paid by the school district to the municipality if the auditor 7 35 certifies to the school district by July 1 the amount of such 8 1 levy that is necessary to pay the principal and interest on 8 2 bonds issued by the municipality to finance an urban renewal 8 3 project, which bonds were issued before July 1, 2001. 8 4 Indebtedness incurred to refund bonds issued prior to July 1, 8 5 2001, shall not be included in the certification. Such school 8 6 district shall pay over the amount certified by November 1 and 8 7 May 1 of the fiscal year following certification to the school 8 8 district. Unless and until the totalassessedtaxable 8 9 valuation of thetaxableproperty in an urban renewal area 8 10 exceeds the totalassessedtaxable value of thetaxable8 11 property in such area as shown by the last equalized 8 12 assessment roll referred to in subsection 1, all of the taxes 8 13 levied and collected upon the taxable property in the urban 8 14 renewal area shall be paid into the funds for the respective 8 15 taxing districts as taxes by or for the taxing districts in 8 16 the same manner as all other property taxes. When such loans, 8 17 advances, indebtedness, and bonds, if any, and interest 8 18 thereon, have been paid, all moneys thereafter received from 8 19 taxes upon the taxable property in such urban renewal area 8 20 shall be paid into the funds for the respective taxing 8 21 districts in the same manner as taxes on all other property. 8 22 Sec. 12. Section 403.19, subsection 3, Code 2003, is 8 23 amended to read as follows: 8 24 3. a.TheExcept as provided in paragraphs "b" and "c", 8 25 the portion of taxes mentioned in subsection 2 and the special 8 26 fund into which they shall be paid, may be irrevocably pledged 8 27 by a municipality for the payment of the principal and 8 28 interest on loans, advances, bonds issued under the authority 8 29 of section 403.9, subsection 1, or indebtedness incurred by a 8 30 municipality to finance or refinance, in whole or in part, the 8 31 urban renewal project within the area. 8 32 b. No portion of taxes mentioned in subsection 2 or the 8 33 special fund into which they shall be paid may be irrevocably 8 34 pledged under this subsection on or after March 1, 2003, under 8 35 an ordinance adopted pursuant to this section before March 1, 9 1 2003, for an urban renewal project in an economic development 9 2 area. 9 3 c. For ordinances adopted pursuant to this section on or 9 4 after March 1, 2003, a municipality shall notify all affected 9 5 taxing entities of its intent to irrevocably pledge the 9 6 portion of taxes mentioned in subsection 2 and the special 9 7 fund into which they shall be paid for any loans, moneys 9 8 advanced to, or indebtedness, whether funded, refunded, 9 9 assumed, or other otherwise, including bonds issued under the 9 10 authority of section 403.9, subsection 1, to finance or 9 11 refinance, in whole or in part, an urban renewal project in an 9 12 economic development area. Each affected taxing entity shall 9 13 adopt a resolution within sixty days of adoption of the 9 14 ordinance approving or rejecting the proposed pledge. The 9 15 resolution shall be filed with the county auditor within five 9 16 days of adoption. The municipality shall not irrevocably 9 17 pledge for the payment of the principal and interest on loans, 9 18 advances, bonds issued under the authority of section 403.9, 9 19 subsection 1, or indebtedness incurred by a municipality to 9 20 finance or refinance, in whole or in part, the urban renewal 9 21 project within the area until the county auditor has received 9 22 resolutions from all affected taxing entities approving the 9 23 proposed pledge. 9 24 Sec. 13. Section 403.19, Code 2003, is amended by adding 9 25 the following new subsections: 9 26 NEW SUBSECTION. 9. Taxes levied on taxable property in an 9 27 urban renewal area shall not be divided under this section if 9 28 the area for which taxes are proposed to be divided plus the 9 29 total area in the county for which taxes are divided would 9 30 exceed an amount equal to one percent of the total acres in 9 31 the county. 9 32 NEW SUBSECTION. 10. When all loans, advances, 9 33 indebtedness, and bonds, if any, and interest thereon, have 9 34 been paid, revenues from taxes levied on taxable property in 9 35 an urban renewal area shall not be divided pursuant to this 10 1 section and shall not be deposited in a special fund under 10 2 subsection 2, and the urban renewal area shall be dissolved. 10 3 NEW SUBSECTION. 11. The duration of a written agreement 10 4 to suspend, abate, exempt, rebate, refund, or reimburse 10 5 property taxes, or to provide a grant for property taxes paid, 10 6 shall not exceed three years and is not subject to renewal. 10 7 Effective for the fiscal year beginning July 1, 2005, and for 10 8 all subsequent fiscal years, property tax revenues divided 10 9 pursuant to this section and paid into the special fund in 10 10 subsection 2 shall not be used by a municipality to suspend, 10 11 abate, exempt, rebate, refund, or reimburse property taxes, or 10 12 provide a grant for property taxes paid, in an urban renewal 10 13 area if the property taxes are imposed against retail 10 14 property. For the purposes of this subsection, "retail 10 15 property" means property that is assessed as commercial 10 16 property for property tax purposes and which sells goods or 10 17 services to the general public. 10 18 NEW SUBSECTION. 12. A municipality that has adopted or 10 19 approved an ordinance pursuant to this section after March 1, 10 20 2003, but before the effective date of this Act shall not 10 21 divide tax revenues pursuant to this section for the fiscal 10 22 year beginning July 1, 2003, shall not issue bonds pursuant to 10 23 its authority in section 403.9, shall not enter into an 10 24 obligation or agreement for loans, advances, or other 10 25 indebtedness for an urban renewal project, and shall not 10 26 irrevocably pledge that portion of taxes mentioned in 10 27 subsection 2 pursuant to subsection 3, on or after the 10 28 effective date of this Act. If a municipality has acted in 10 29 violation of this section, it shall remedy the violation by 10 30 taking immediate action to pay the bonds in full, meet the 10 31 obligations or agreements, and repeal the ordinance approving 10 32 the division of taxes pursuant to this section. 10 33 Sec. 14. NEW SECTION. 403.24 PENALTIES. 10 34 If a municipality violates a provision of this chapter when 10 35 approving or implementing an urban renewal plan or urban 11 1 renewal project, the municipality shall not for a period of 11 2 ten years after the violation divide revenues from taxes on 11 3 taxable property pursuant to section 403.19 in an urban 11 4 renewal area adopted or amended after the violation. In 11 5 addition, the municipality shall not be eligible for economic 11 6 development appropriations, loans, or grants from the state or 11 7 any agency or instrumentality, corporate or otherwise, of this 11 8 state including appropriations, loans, or grants available 11 9 under chapters 15, 15E, and 15F. 11 10 Sec. 15. Sections 403.20 and 403.22, Code 2003, are 11 11 repealed. 11 12 Sec. 16. EFFECTIVE AND APPLICABILITY DATE. This Act, 11 13 being deemed of immediate importance, takes effect upon 11 14 enactment and applies retroactively to the assessment year 11 15 beginning January 1, 2003, for urban renewal areas and urban 11 16 renewal projects established before, on, or after the 11 17 effective date. 11 18 EXPLANATION 11 19 This bill makes changes to the law on urban renewal. 11 20 The bill prohibits the use of urban renewal and tax 11 21 increment financing for the provision of public improvements 11 22 related to housing and residential development and for the 11 23 construction of housing for low-income and moderate-income 11 24 families in areas designated as economic development areas. 11 25 The bill provides that an ordinance adopted before March 1, 11 26 2003, authorizing a division of incremental revenues, may use 11 27 incremental revenues obligated or pledged for public 11 28 improvements for housing and residential development for those 11 29 purposes. 11 30 The bill provides that three members of the seven-member 11 31 board of commissioners of an urban renewal agency shall be 11 32 appointed by the affected taxing entities. 11 33 The bill provides that incremental revenues collected 11 34 pursuant to an ordinance adopted before March 1, 2003, may 11 35 not, after that date, be used for an urban renewal project 12 1 that had not begun by March 1, 2003, in an economic 12 2 development area. If an ordinance authorizing a division of 12 3 incremental revenues to fund a project in an economic 12 4 development area is adopted after March 1, 2003, within 60 12 5 days of adoption of the ordinance, each affected taxing entity 12 6 shall adopt a resolution approving or rejecting the pledge of 12 7 revenues to a project in an economic development area. The 12 8 municipality may not incur debt for such a project until the 12 9 county auditor has received approval resolutions from all the 12 10 affected taxing entities. 12 11 The bill provides that taxes levied in an urban renewal 12 12 area cannot be divided for urban renewal purposes if the area 12 13 for which taxes are proposed to be divided plus the total area 12 14 in the county for which taxes are divided would exceed an 12 15 amount equal to 1 percent of the total acres in the county. 12 16 The bill provides that when all loans, advances, bonds, and 12 17 other indebtedness incurred for urban renewal purposes have 12 18 been paid, taxes shall no longer be divided and the urban 12 19 renewal area shall be dissolved. 12 20 The bill provides that effective for the fiscal year 12 21 beginning July 1, 2005, a municipality shall not use 12 22 incremental revenues to suspend, abate, exempt, rebate, 12 23 refund, or reimburse property taxes, or provide a grant for 12 24 property taxes paid, in an urban renewal area if the taxes are 12 25 imposed against retail property. The bill also provides that 12 26 the duration of any such written agreement shall not exceed 12 27 three years and is not subject to renewal. 12 28 The bill provides that a municipality that has adopted an 12 29 ordinance after March 1, 2003, but before July 1, 2003, shall 12 30 not divide incremental revenues and shall not issue bonds 12 31 payable with the revenues or incur other obligations or 12 32 indebtedness payable from the revenues for the fiscal year 12 33 beginning July 1, 2003. If a municipality violates this 12 34 provision, the municipality must immediately pay the bonds in 12 35 full and meet the obligations or agreements and repeal the 13 1 ordinance authorizing the division of revenues. 13 2 The bill strikes the provision that requires that the 13 3 amount of the assessment limitation (i.e., rollback) for an 13 4 entire urban renewal area be subtracted from the base 13 5 valuation only. 13 6 The bill provides that if a municipality violates a 13 7 provision of Code chapter 403, the urban renewal law, when 13 8 approving or implementing an urban renewal plan or urban 13 9 renewal project, the municipality will not be allowed to 13 10 divide incremental revenues for a period of 10 years after the 13 11 violation. The bill also provides that the municipality shall 13 12 not be eligible for certain state appropriations, loans, or 13 13 grants. 13 14 The bill takes effect upon enactment and applies 13 15 retroactively to the assessment year beginning January 1, 13 16 2003, for urban renewal areas and urban renewal projects 13 17 established before, on, or after that date. 13 18 LSB 3464YC 80 13 19 sc/cf/24
Text: HSB00312 Text: HSB00314 Text: HSB00300 - HSB00399 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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