House File 626 S-5073 Amend House File 626, as passed by the House, as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. Section 403.22, subsection 1, unnumbered 4 paragraph 1, Code 2022, is amended to read as follows: 5 With respect to any urban renewal area established upon 6 the determination that the area is an economic development 7 area, unless exempted under section 403.22A, subsection 6, a 8 division of revenue as provided in section 403.19 shall not be 9 allowed for the purpose of providing or aiding in the provision 10 of public improvements related to housing and residential 11 development, unless the municipality assures that the project 12 will include assistance for low and moderate income family 13 housing. 14 Sec. 2. Section 403.22, subsection 2, Code 2022, is amended 15 by adding the following new paragraph: 16 NEW PARAGRAPH . e. For urban renewal areas established 17 before July 1, 2022, rebates provided under section 403.22A. 18 Sec. 3. NEW SECTION . 403.22A Federal targeted area —— 19 rebate agreements. 20 1. For purposes of this section, unless the context 21 otherwise requires: 22 a. “Actual value added by the improvements” means the actual 23 value added by improvements made to the qualified real estate 24 as of the first assessment year for which the rebate was 25 received. 26 b. “Federal targeted area” means an area that has previously 27 been identified by the home owners’ loan corporation or similar 28 entity as less desirable, declining, hazardous, or risky 29 for mortgage lending in accordance with or as the result of 30 implementation of the National Housing Act, Pub. L. No. 73-479, 31 48 Stat. 1246, the United States Housing Act of 1937, Pub. L. 32 No. 75-412, 50 Stat. 888, or a subsequent enactment of Congress 33 or successor provision of law prior to enactment of Tit. VIII 34 of the Civil Rights Act of 1968, commonly referred to as the 35 -1- HF 626.3785 (4) 89 md/jh 1/ 4 #1.

Fair Housing Act of 1968. 1 c. “Improvements” means rehabilitation and additions to 2 existing structures as well as new construction on vacant land 3 or on land with existing structures. However, new construction 4 on land assessed as agricultural property shall not qualify as 5 “improvements” for purposes of this section. 6 d. “Qualified real estate” means real property, other than 7 land, which is located in that portion of an urban renewal area 8 that is a federal targeted area and to which improvements have 9 been added during the time the area was designated by ordinance 10 under subsection 2 that have increased the actual value by at 11 least the percentage specified in the ordinance adopted by the 12 municipality under subsection 2, or if no percent is specified, 13 then by at least thirty percent. “Qualified real estate” also 14 means land upon which no structure existed at the start of the 15 new construction that is located in that portion of an urban 16 renewal area that is a federal targeted area and upon which 17 new construction has been added during the time the area was 18 so designated. 19 2. A municipality may, by ordinance, designate an urban 20 renewal area as being eligible for the municipality to 21 authorize property tax rebates under this section to eligible 22 property owners within the portion of an urban renewal area 23 that is a federal targeted area. 24 3. Following the designation under subsection 2, the 25 municipality may enter into agreements to provide property 26 tax rebates using moneys from the special fund of the 27 municipality referred to in section 403,19, subsection 2, 28 to owners of qualified real estate that is owner-occupied 29 residential property containing two or fewer dwelling units. 30 The rebate amount each year shall not exceed an amount equal 31 to the actual value added by the improvements while the owner 32 owned the property, not to exceed fifty thousand dollars, 33 multiplied by the assessment limitation percentage under 34 section 441.21, subsection 4, divided by one thousand dollars, 35 -2- HF 626.3785 (4) 89 md/jh 2/ 4

and then multiplied by the consolidated levy rate or average 1 consolidated levy rate per one thousand dollars of taxable 2 value applicable to the property. 3 4. The rebate provided under an agreement shall be allowed 4 for a period not to exceed fifteen consecutive years. Rebates 5 under this section shall be allowed for the authorized period 6 as long as the qualified real estate is legally or equitably 7 owned by the owner who added the improvements to the property 8 or the owner’s spouse and is occupied by the owner or the 9 owner’s spouse. If the military service or medical care 10 conditions of section 425.11, subsection 1, paragraph “d” , 11 subparagraph (1), subparagraph divisions (a) and (b), relating 12 to homesteads apply to the qualified real estate, such real 13 estate shall be considered owner occupied. 14 5. If the owner of qualified real estate that receives a 15 rebate under this section sells the qualified real estate or 16 no longer occupies the qualified real estate, the agreement 17 shall be void for the remaining years of the agreement and if 18 the sale or move occurs within five years of the date of the 19 agreement, the owner shall be required to repay all rebate 20 amounts received under the agreement. 21 6. An urban renewal area established on or after July 1, 22 2022, upon the determination that the area is an economic 23 development area and which contains in whole or in part 24 a federal targeted area, is exempt from the requirements 25 of section 403.22, so long as the ordinance adopted under 26 subsection 2 remains in effect. > 27 2. Title page, by striking lines 1 through 5 and inserting 28 < An Act relating to urban renewal areas by authorizing 29 municipalities to provide property tax rebates for certain 30 owner-occupied residential property located in areas previously 31 subjected to lending discrimination. > 32 -3- HF 626.3785 (4) 89 md/jh 3/ 4