CHAPTER 24
BLUFFLANDS PROTECTION PROGRAM AND REVOLVING LOAN FUND
571—24.1(161A) Definitions. For the purpose of this rule:
“Fund” means the bluffland protection revolving fund established in Iowa Code section 161A.80A.
“State-owned lands” means lands in which the state holds the fee title through acquisition and lands in which the state holds title by virtue of its sovereignty, including the beds of the Mississippi River and Missouri River.
[ARC 7901C, IAB 5/1/24, effective 6/5/24]
571—24.2(161A) Types of acquisitions. Acquisition must be fee simple and title to lands purchased must be free of encumbrances, unless approved by the director on the recommendation of the attorney general. Loan applicants shall submit an abstract of title to lands to be purchased with loans from the fund for examination by the attorney general prior to issuance of any loan.
[ARC 7901C, IAB 5/1/24, effective 6/5/24]
571—24.3(161A) Application for loans. Conservation organizations shall apply for loans on forms available on the department’s website.
[ARC 7901C, IAB 5/1/24, effective 6/5/24]
571—24.4(161A) Approval of loan applications. The director shall appoint a committee to review and evaluate loan applications. The committee shall make appropriate recommendations to the director.
[ARC 7901C, IAB 5/1/24, effective 6/5/24]
571—24.5(161A) Interest and other terms of loan agreements. Loans shall be for a maximum term of five years with payment due at the end of the loan term. At the end of the loan term, an appropriate conservation easement approved by the department shall be in effect unless the fee title is conveyed to a public entity in trust to be held for conservation purposes. Simple interest at an annual rate of 4 percent shall accrue on the principal amount of the loan and shall be payable with the principal at the end of the loan term. However, interest shall be waived for the period commencing with the effective date of an approved conservation easement. All interest shall be waived if the fee title is conveyed to a public entity in trust for conservation purposes. The loan agreement and documents establishing security for the loan shall be in a form approved by the department and the attorney general. The applicant shall execute and deliver a first mortgage in favor of the state of Iowa acting through the department of natural resources or provide equivalent security to secure the principal and interest due on the loan. The mortgage shall contain provisions for foreclosure in accordance with Iowa Code chapter 654.
[ARC 7901C, IAB 5/1/24, effective 6/5/24]
571—24.6(161A) Eligible expenditures with loan funds. Loan funds shall be limited to the following: land purchase, usual and customary incidental costs (not including personnel, staff time, and administrative overhead), land appraisal fees and land survey fees.
[ARC 7901C, IAB 5/1/24, effective 6/5/24]
571—24.7(161A) Custody and management of land during loan term. Loan recipients must hold title to blufflands acquired throughout the term of the loan. Where practicable, lands purchased with loan funds shall be available for public use under terms and conditions stated in the loan agreement. If the bluffland is sold before the end of the loan term, it must first be offered to a governmental entity. If no governmental entity agrees to purchase the land, it may be sold to a private buyer provided title is first encumbered by a conservation easement granted to the conservation organization or the state of Iowa or its political subdivisions. The easements shall ensure that the natural, scenic or cultural resources of the bluffland are permanently protected. If the bluffland is sold before the end of the loan term, the loan balance shall become due immediately at the time of sale. A loan recipient may enter into agreements, at any time, with governmental entities for the care, management and public use of lands purchased with loan funds.
[ARC 7901C, IAB 5/1/24, effective 6/5/24]
571—24.8(161A) Loans not to exceed appraised value. Loans from the fund shall not exceed the appraised value of the land to be acquired plus approved incidental expenses listed in rule 571—24.6(161A).
[ARC 7901C, IAB 5/1/24, effective 6/5/24]
These rules are intended to implement Iowa Code sections 161A.80A and 161A.80B.
[Filed emergency 8/20/99 after Notice 6/30/99—published 9/8/99, effective 8/20/99]
[Filed ARC 7901C (Notice ARC 7256C, IAB 12/27/23), IAB 5/1/24, effective 6/5/24]