House File 1012 H-1248 Amend House File 1012 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 NATURAL HAZARD MITIGATION FINANCING PROGRAM 5 Section 1. NEW SECTION . 16.230 Definitions. 6 1. “Department” means the department of homeland security 7 and emergency management. 8 2. “Fund” means the natural hazard mitigation revolving loan 9 fund created in section 29D.4. 10 3. “Loan recipient” means the same as defined in section 11 29D.2. 12 4. “Program” means the natural hazard mitigation financing 13 program created in section 29D.3. 14 5. “Project” means the same as defined in section 29D.2. 15 Sec. 2. NEW SECTION . 16.231 Funds and accounts —— program 16 funds and accounts not part of state general fund. 17 1. The department, in consultation with the authority, 18 may establish and maintain funds or accounts determined to 19 be necessary to carry out the purposes of chapter 29D and 20 shall provide for the funding, administration, investment, 21 restrictions, and disposition of the funds and accounts. 22 Any moneys appropriated to the department and the authority 23 for purposes of paying the costs and expenses associated 24 with the administration of the program shall be administered 25 as determined by the department in consultation with the 26 authority. 27 2. The funds or accounts held by the department or the 28 authority, or a trustee acting on behalf of the department or 29 the authority pursuant to a trust agreement related to the 30 program, shall not be considered part of the general fund of 31 the state, are not subject to appropriation for any other 32 purpose by the general assembly, and in determining a general 33 fund balance shall not be included in the general fund of the 34 state, but shall remain in the funds and accounts maintained 35 -1- HF 1012.1563 (1) 91 (amending this HF 1012 to CONFORM to SF 619) nls/ko 1/ 92 #1.

by the department or the authority, or a trustee pursuant to a 1 trust agreement. Funds and accounts held by the department or 2 the authority, or a trustee acting on behalf of the department 3 or the authority pursuant to a trust agreement related to the 4 program, are separate dedicated funds and accounts under the 5 administration and control of the department in consultation 6 with the authority. 7 Sec. 3. NEW SECTION . 16.232 Program funding —— bonds and 8 notes. 9 1. The authority shall cooperate with the department in the 10 creation, administration, and financing of the program. 11 2. The authority may issue bonds and notes for the purpose 12 of funding the fund and the state matching funds required 13 pursuant to the federal Robert T. Stafford Disaster Relief 14 and Emergency Assistance Act, Pub. L. No. 93-288, as amended, 15 42 U.S.C. §5121 et seq. The authority may enter into one or 16 more loan agreements or purchase agreements with one or more 17 bondholders or noteholders containing the terms and conditions 18 of the repayment of, and the security for, each bond or note. 19 The authority and each bondholder or noteholder, or a trustee 20 agent designated by the authority, may enter into an agreement 21 to provide for any of the following: 22 a. That the proceeds of the bond or note and the investments 23 of the proceeds may be received, held, and disbursed by the 24 authority or by a trustee or agent designated by the authority. 25 b. That the bondholder or noteholder, or a trustee or 26 agent designated by the authority, may collect, invest, and 27 apply the amount payable under the loan agreement or any other 28 instruments securing the debt obligations under the loan 29 agreement. 30 c. That the bondholder or noteholder may enforce the 31 remedies provided in the loan agreement or other instruments on 32 the bondholder’s or noteholder’s behalf without the appointment 33 or designation of a trustee. If there is a default in the 34 principal of, or interest on, the bond or note or in the 35 -2- HF 1012.1563 (1) 91 (amending this HF 1012 to CONFORM to SF 619) nls/ko 2/ 92

performance of any agreement contained in the loan agreement or 1 other instrument, the payment or performance may be enforced in 2 accordance with the loan agreement or other instrument. 3 d. Other terms and conditions as deemed necessary or 4 appropriate by the authority. 5 3. Chapter 16, except to the extent inconsistent with this 6 section, shall apply to bonds or notes issued, and powers 7 granted to the authority, under this section. Section 16.28, 8 subsection 4, shall not apply to this section. 9 4. All bonds or notes issued by the authority in connection 10 with the program are exempt from taxation by this state and the 11 interest on the bonds or notes is exempt from state income tax. 12 Sec. 4. NEW SECTION . 16.233 Security —— reserve funds —— 13 pledges —— nonliability. 14 1. The authority may provide in the resolution, trust 15 agreement, or other instrument authorizing the issuance of 16 bonds or notes pursuant to chapter 29D that the principal of, 17 premium, and interest on the bonds or notes are payable from 18 any of the following and may pledge the same to the authority’s 19 bonds or notes: 20 a. The income and receipts or other moneys derived from the 21 projects financed with the proceeds of the bonds or notes. 22 b. The income and receipts or other moneys derived from 23 designated projects whether or not the projects are financed in 24 whole or in part with the proceeds of the bonds or notes. 25 c. The amounts on deposit in the fund. 26 d. The amounts payable to the authority by loan recipients 27 pursuant to loan agreements with loan recipients. 28 e. Any other funds or accounts established by the authority 29 in connection with the program or the sale and issuance of the 30 authority’s bonds or notes. 31 2. The authority may establish reserve funds to secure 32 one or more issues of its bonds or notes. The authority may 33 deposit in a reserve fund established under this subsection 34 the proceeds of the sale of the authority’s bonds or notes and 35 -3- HF 1012.1563 (1) 91 (amending this HF 1012 to CONFORM to SF 619) nls/ko 3/ 92

other moneys which are made available from any other source. 1 3. It is the intention of the general assembly that a pledge 2 made in respect of bonds or notes shall be valid and binding 3 from the time the pledge is made, that the moneys or property 4 so pledged and received after the pledge by the authority 5 shall immediately be subject to the lien of the pledge without 6 physical delivery or further act, and that the lien of the 7 pledge shall be valid and binding as against all parties having 8 claims of any kind in tort, contract, or otherwise against 9 the authority whether or not the parties have notice of the 10 lien. Neither the resolution, trust agreement, nor any other 11 instrument by which a pledge is created needs to be recorded or 12 filed under the Iowa uniform commercial code, chapter 554, to 13 be valid, binding, or effective against the parties. 14 4. Neither the members of the authority nor persons 15 executing the bonds or notes are liable personally on the bonds 16 or notes or are subject to personal liability or accountability 17 by reason of the issuance of the bonds or notes. 18 5. The bonds or notes issued by the authority are not 19 an indebtedness or other liability of the state or of a 20 political subdivision of the state within the meaning of any 21 constitutional or statutory debt limitations but are special 22 obligations of the authority, and are payable solely from 23 the income and receipts or other funds or property of the 24 authority, and the amounts on deposit in the revolving loan 25 funds, and the amounts payable to the authority under the 26 authority’s loan agreements with loan recipients to the extent 27 that the amounts are designated in the resolution, trust 28 agreement, or other instrument of the authority authorizing the 29 issuance of the bonds or notes as being available as security 30 for such bonds or notes. The authority shall not pledge the 31 faith or credit of the state or of a political subdivision of 32 the state to the payment of any bonds or notes. The issuance 33 of any bonds or notes by the authority does not directly, 34 indirectly, or contingently obligate the state or a political 35 -4- HF 1012.1563 (1) 91 (amending this HF 1012 to CONFORM to SF 619) nls/ko 4/ 92

subdivision of the state to apply moneys from, or levy or 1 pledge any form of taxation to the payment of the bonds or 2 notes. 3 Sec. 5. NEW SECTION . 29D.1 Short title. 4 This chapter shall be known and may be cited as the “Natural 5 Hazard Mitigation Financing Program” . 6 Sec. 6. NEW SECTION . 29D.2 Definitions. 7 As used in this chapter, unless the context otherwise 8 requires: 9 1. “Authority” means the Iowa finance authority created in 10 section 16.1A. 11 2. “Cost” means all costs or indebtedness incurred by a loan 12 recipient and determined by the department as reasonable and 13 necessary for carrying out all work necessary or incidental to 14 the accomplishment of a project. 15 3. “Department” means the department of homeland security 16 and emergency management. 17 4. “Director” means the director of the department of 18 homeland security and emergency management. 19 5. “Eligible entity” means a person that is eligible under 20 the STORM Act to receive a loan under the program. 21 6. “Fund” means the natural hazard mitigation revolving loan 22 fund created in section 29D.4. 23 7. “Loan recipient” means an eligible entity that has 24 received a loan from the fund. 25 8. “Municipality” means a city, county, sanitary district, 26 state agency, or other governmental body or corporation, or any 27 combination of two or more governmental bodies or corporations 28 acting jointly, in connection with a project. 29 9. “Private entity” means a corporation, limited liability 30 company, trust, estate, partnership, association, or any 31 other legal entity or a legal representative, agent, officer, 32 employee, or assignee of such entity. “Private entity” does not 33 include any of the following: 34 a. An individual, municipality, or city utility as that term 35 -5- HF 1012.1563 (1) 91 (amending this HF 1012 to CONFORM to SF 619) nls/ko 5/ 92

is defined in section 362.2. 1 b. A public water supply system as defined in section 2 455B.171. 3 c. A qualified entity as defined in section 384.84, 4 subsection 2. 5 10. “Program” means the natural hazard mitigation financing 6 program created in section 29D.3. 7 11. a. “Project” means an activity or set of activities, 8 in accordance with the limitations set forth in the STORM Act, 9 that mitigate the impact of natural hazards, including but not 10 limited to: 11 (1) Drought and prolonged episodes of intense heat. 12 (2) Severe storms, including tornadoes, windstorms, and 13 severe winter storms. 14 (3) Wildfires. 15 (4) Earthquakes. 16 (5) Flooding. 17 (6) Shoreline erosion. 18 (7) High water levels. 19 (8) Storm surges. 20 b. “Project” may include but is not limited to any of the 21 following: 22 (1) The construction, repair, or replacement of a 23 nonfederal levee or other flood control structure, provided 24 that the administrator of the federal emergency management 25 agency, in consultation with the United States army corps of 26 engineers, if appropriate, requires an eligible entity to 27 determine that such levee or other flood control structure is 28 designed, constructed, and maintained in accordance with sound 29 engineering practices and standards equivalent to the purpose 30 for which such levee or structure is intended. 31 (2) Zoning and land use planning changes. 32 (3) Establishing and enforcing building codes. 33 12. “Safeguarding tomorrow through ongoing risk mitigation 34 Act” , or “STORM Act” , means the federal Robert T. Stafford 35 -6- HF 1012.1563 (1) 91 (amending this HF 1012 to CONFORM to SF 619) nls/ko 6/ 92

Disaster Relief and Emergency Assistance Act, Pub. L. No. 1 93-288, as amended, 42 U.S.C. §5121 et seq. 2 Sec. 7. NEW SECTION . 29D.3 Natural hazard mitigation 3 financing program. 4 1. The natural hazard mitigation financing program is 5 created for the purpose of making loans available to eligible 6 entities to finance all or part of the costs of a project. 7 2. The program shall be a joint and cooperative undertaking 8 of the department and the authority. The department and 9 the authority may enter into any agreements, documents, 10 instruments, certificates, data, or information as necessary 11 for the operation, administration, and financing of the program 12 consistent with this chapter, chapter 16, subchapter X, part 13 11, the STORM Act, the rules promulgated under chapter 17A by 14 the department in consultation with the authority, and any 15 other applicable federal or state laws. The authority and the 16 department may act to conform the program to the applicable 17 guidance and regulations adopted by the federal emergency 18 management agency. 19 Sec. 8. NEW SECTION . 29D.4 Natural hazard mitigation 20 revolving loan fund. 21 1. A natural hazard mitigation revolving loan fund is 22 created in the state treasury under the control of the 23 department in consultation with the authority. The revolving 24 loan fund is a separate dedicated fund under the administration 25 and control of the department in consultation with the 26 authority and shall be subject to section 16.31. Moneys 27 on deposit in the revolving loan fund shall be invested by 28 the treasurer of state in cooperation with the department, 29 in consultation with the authority, and the income from the 30 investments shall be credited to and deposited in the revolving 31 loan fund. 32 2. a. The fund shall consist of moneys appropriated by 33 the general assembly, moneys received by the fund through the 34 federal emergency management agency and the STORM Act, moneys 35 -7- HF 1012.1563 (1) 91 (amending this HF 1012 to CONFORM to SF 619) nls/ko 7/ 92

received as repayment of loan principal and interest from loans 1 paid for by the fund, and all other moneys received by the fund 2 from any other source. Notwithstanding section 8.33, moneys in 3 the fund that remain unencumbered or unobligated at the close 4 of the fiscal year shall not revert but shall remain available 5 for expenditure for the purposes designated. Notwithstanding 6 section 12C.7, subsection 2, interest or earnings on moneys in 7 the fund shall be credited to the fund. 8 b. Moneys in the fund are appropriated to the department to 9 provide loans to eligible entities pursuant to section 29D.9, 10 and for administration of the program as permitted under the 11 STORM Act. Moneys in the fund shall not be used to provide a 12 loan to a private entity for the acquisition of real property. 13 Moneys in the fund shall not be considered part of the general 14 fund of the state subject to appropriation for any other 15 purpose by the general assembly, and in determining a general 16 fund balance, shall not be included in the general fund of 17 the state subject to section 16.31, insofar as section 16.31 18 complies with the STORM Act. 19 Sec. 9. NEW SECTION . 29D.5 Director —— powers and duties. 20 The director shall do all of the following: 21 1. Process and review each intended use plan application 22 to determine if the intended use plan application meets the 23 eligibility requirements promulgated by the department by rule, 24 and approve or deny the application. 25 2. Process and review all documents relating to the 26 planning, design, construction, and operation of each project. 27 3. Prepare and process, in coordination with the authority, 28 documents relating to the administration of the program. 29 4. Prepare an annual budget for administration of the 30 program. 31 5. Receive program fees as determined in conjunction with 32 the authority. 33 6. Perform other acts and assume other duties and 34 responsibilities necessary for the administration of the 35 -8- HF 1012.1563 (1) 91 (amending this HF 1012 to CONFORM to SF 619) nls/ko 8/ 92

program and compliance with the STORM Act. 1 Sec. 10. NEW SECTION . 29D.6 Intended use plans —— 2 capitalization grants —— accounting. 3 1. For the fiscal year beginning July 1, 2025, and each 4 fiscal year thereafter, the department may prepare and deliver 5 intended use plans to, and enter into capitalization grant 6 agreements with, the administrator of the federal emergency 7 management agency under the terms and conditions set forth 8 in the STORM Act and federal regulations adopted pursuant to 9 the STORM Act, and may accept capitalization grants for the 10 fund in accordance with payment schedules established by the 11 administrator. All payments from the administrator shall be 12 deposited into the fund. 13 2. The department, in consultation with the authority, 14 shall establish fiscal controls and accounting procedures 15 during appropriate accounting periods for payments received for 16 deposit into, and disbursements made from, the fund, and to 17 fund balances at the beginning and end of an accounting period. 18 Sec. 11. NEW SECTION . 29D.7 Authority —— loan application 19 review and approval. 20 1. The department and the authority shall review each 21 loan application to determine if the applicant is an eligible 22 entity and qualifies for a loan pursuant to eligibility 23 requirements established by rule promulgated by the department 24 and the authority, and in accordance with the intended use plan 25 applications approved by the director under section 29D.6. 26 2. The authority, in cooperation with the department, shall 27 determine the interest rate and repayment terms for each loan 28 made under the program and the authority shall enter into a 29 loan agreement with each loan recipient in compliance with 30 the Clean Water Act as defined in section 455B.291, the Safe 31 Drinking Water Act as defined in section 455B.291, the STORM 32 Act, and any other applicable state or federal law. 33 3. The authority may charge loan recipients fees and assess 34 costs as deemed necessary by the authority for the continued 35 -9- HF 1012.1563 (1) 91 (amending this HF 1012 to CONFORM to SF 619) nls/ko 9/ 92

operation of the program. Fees and costs collected pursuant 1 to this subsection shall be deposited in the fund described in 2 section 29D.4. 3 Sec. 12. NEW SECTION . 29D.8 Loans to eligible entities. 4 1. Moneys deposited in the fund shall be used for the 5 primary purpose of making loans to eligible entities to finance 6 eligible costs of projects in accordance with the intended 7 use plans prepared and delivered to the administrator of the 8 federal emergency management system by the department under 9 section 29D.6. The loan recipients and the purpose and amount 10 of the loans shall be determined by the director, in compliance 11 with the STORM Act and other applicable federal law, and any 12 resolution, agreement, indenture, or other document of the 13 authority, and rules adopted by the authority relating to any 14 bonds, notes, or other obligations issued for the program which 15 may be applicable to the loan. 16 2. Notwithstanding any provision of this chapter to the 17 contrary, moneys received under the federal American Recovery 18 and Reinvestment Act of 2009, Pub. L. No. 111-5, and deposited 19 in the fund may be used in any manner permitted or required by 20 applicable federal law. 21 Sec. 13. NEW SECTION . 29D.9 Rules. 22 The department, in consultation with the authority, shall 23 adopt rules pursuant to chapter 17A to administer this chapter. 24 Sec. 14. Section 422.7, subsection 2, Code 2025, is amended 25 by adding the following new paragraph: 26 NEW PARAGRAPH . u. Natural hazard mitigation financing 27 program bonds pursuant to section 16.232, subsection 4. 28 Sec. 15. CODE EDITOR DIRECTIVE. The Code editor shall 29 designate sections 16.230 through 16.233, as enacted in this 30 division of this Act, as part 11 of chapter 16, subchapter X, 31 entitled “Natural Hazard Mitigation Financing Program”. 32 DIVISION II 33 DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM 34 Sec. 16. Section 16.57B, subsection 1, paragraph a, Code 35 -10- HF 1012.1563 (1) 91 (amending this HF 1012 to CONFORM to SF 619) nls/ko 10/ 92

2025, is amended to read as follows: 1 a. “Disaster-affected home” means a primary residence 2 that is destroyed or damaged due to a natural disaster that 3 occurs on or after June 16, 2021, and the primary residence 4 is located in a county that is the subject of a state of 5 disaster emergency proclamation by the governor that authorizes 6 disaster recovery housing assistance. The state of disaster 7 emergency proclamation shall specify if disaster recovery 8 housing assistance is available to homeowners, renters, or both 9 homeowners and renters. 10 Sec. 17. Section 16.57B, subsection 1, Code 2025, is amended 11 by adding the following new paragraph: 12 NEW PARAGRAPH . 0b. “Financial assistance” means assistance 13 provided only from the funds, rights, and assets legally 14 available to the authority pursuant to this chapter and 15 includes but is not limited to assistance in the form of 16 grants, loans, and forgivable loans. 17 Sec. 18. Section 16.57B, subsection 2, paragraph a, 18 subparagraph (1), Code 2025, is amended to read as follows: 19 (1) A disaster recovery housing assistance fund is created 20 within the authority. The moneys in the fund shall be used by 21 the authority for the development and operation of a forgivable 22 loan and grant program for to award financial assistance to 23 homeowners and renters with disaster-affected homes, and for 24 the eviction prevention program pursuant to section 16.57C . 25 Sec. 19. Section 16.57B, subsection 2, paragraph c, Code 26 2025, is amended to read as follows: 27 c. The authority shall not use more than five percent of the 28 moneys in deposited into the fund on July 1 of a fiscal year 29 under paragraph “b” for purposes of administrative costs and 30 other program support during the fiscal year . 31 Sec. 20. Section 16.57B, subsection 3, paragraph a, Code 32 2025, is amended to read as follows: 33 a. The authority shall establish and administer a disaster 34 recovery housing assistance program and shall use moneys in the 35 -11- HF 1012.1563 (1) 91 (amending this HF 1012 to CONFORM to SF 619) nls/ko 11/ 92

fund to award forgivable loans financial assistance to eligible 1 homeowners and grants to eligible renters of disaster-affected 2 homes. Moneys in the fund may be expended following a state 3 of disaster emergency proclamation by the governor pursuant 4 to section 29C.6 that authorizes disaster recovery housing 5 assistance. The governor, by state of disaster emergency 6 proclamation, shall specify if disaster recovery housing 7 assistance is available to homeowners, renters, or both 8 homeowners and renters. 9 Sec. 21. Section 16.57B, subsections 4, 5, 6, and 7, Code 10 2025, are amended to read as follows: 11 4. Registration required . To be considered for a forgivable 12 loan or grant under the program, a A homeowner or renter must 13 may register for the disaster case advocacy program established 14 pursuant to section 29C.20B . The disaster case manager may 15 refer the homeowner or renter to the appropriate local program 16 administrator. 17 5. Homeowners. 18 a. To be eligible for a forgivable loan financial assistance 19 under the program, all of the following requirements shall 20 apply: 21 (1) The homeowner’s disaster-affected home must have 22 sustained damage greater than the damage that is covered by the 23 homeowner’s property and casualty insurance policy insuring the 24 home plus any other state or federal disaster-related financial 25 assistance that the homeowner is eligible to receive. 26 (2) A local official must either deem the disaster-affected 27 home suitable for rehabilitation or damaged beyond reasonable 28 repair. 29 (3) The disaster-affected home is not eligible for buyout by 30 the county or city where the disaster-affected home is located, 31 or the disaster-affected home is eligible for a buyout by the 32 county or city where the disaster-affected home is located, 33 but the homeowner is requesting a forgivable loan financial 34 assistance for the repair or rehabilitation of the homeowner’s 35 -12- HF 1012.1563 (1) 91 (amending this HF 1012 to CONFORM to SF 619) nls/ko 12/ 92

disaster-affected home in lieu of a buyout. 1 (4) Assistance Financial assistance under the program must 2 not duplicate benefits provided by any local, state, or federal 3 disaster recovery assistance program. 4 b. If a homeowner is referred to the authority or to a 5 local program administrator by the disaster case manager of 6 the homeowner, the The authority may award a forgivable loan 7 financial assistance to the eligible homeowner for any of the 8 following purposes: 9 (1) Repair or rehabilitation of the disaster-affected home. 10 The disaster-affected home to be repaired or rehabilitated 11 shall not be located in a one-hundred-year floodplain. 12 (2) (a) Down payment assistance on the purchase of 13 replacement housing, and the cost of reasonable repairs to be 14 performed on the replacement housing to render the replacement 15 housing decent, safe, sanitary, and in good repair. 16 (b) Replacement housing shall not be located in a 17 one-hundred-year floodplain. 18 (c) For purposes of this subparagraph, “decent, safe, 19 sanitary, and in good repair” means the same as described in 24 20 C.F.R. §5.703. 21 c. The authority shall determine the interest rate for the 22 any financial assistance awarded in the form of a loan or a 23 forgivable loan. 24 d. If a homeowner who has been awarded a loan or a 25 forgivable loan sells a disaster-affected home or replacement 26 housing for which the homeowner received the loan or forgivable 27 loan prior to the end of the loan term, the remaining principal 28 on the loan or forgivable loan shall be due and payable 29 pursuant to rules adopted by the authority. 30 6. Renters. 31 a. To be eligible for a grant financial assistance under the 32 program, all of the following requirements shall apply: 33 (1) A local program administrator either deems 34 the disaster-affected home of the renter suitable for 35 -13- HF 1012.1563 (1) 91 (amending this HF 1012 to CONFORM to SF 619) nls/ko 13/ 92

rehabilitation but unsuitable for current short-term 1 habitation, or the disaster-affected home is damaged beyond 2 reasonable repair. 3 (2) Assistance Financial assistance under the program must 4 not duplicate benefits provided by any local, state, or federal 5 disaster recovery assistance program. 6 b. If a renter is referred to the authority or to a 7 local program administrator by the disaster case manager of 8 the renter, the The authority may award a grant financial 9 assistance to the eligible renter to provide short-term 10 financial assistance for the payment of rent for replacement 11 housing. 12 7. Report. On or before January 31 of each year, or as part 13 of the annual report under section 16.7 , the authority shall 14 submit a report to the general assembly that identifies all of 15 the following for the calendar year immediately preceding the 16 year of the report: 17 a. The date of each state of disaster emergency proclamation 18 by the governor that authorized disaster recovery housing 19 assistance under this section , and if disaster recovery housing 20 assistance was made available to homeowners, renters, or both 21 homeowners and renters . 22 b. The total number of forgivable loans and grants financial 23 assistance awards awarded. 24 c. The total number of forgivable loans financial assistance 25 awards , and the amount of each loan financial assistance award 26 awarded for repair or rehabilitation. 27 d. The total number of forgivable loans financial assistance 28 awards , and the amount of each loan financial assistance 29 award , awarded for down payment assistance on the purchase of 30 replacement housing and the cost of reasonable repairs to be 31 performed on the replacement housing to render the replacement 32 housing decent, safe, sanitary, and in good repair. 33 e. The total number of grants, and the amount of each grant, 34 awarded for rental assistance. 35 -14- HF 1012.1563 (1) 91 (amending this HF 1012 to CONFORM to SF 619) nls/ko 14/ 92

f. The total number of loans, forgivable loans , and grants 1 awarded in each county in which at least one homeowner or 2 renter has been awarded a loan, forgivable loan , or grant. 3 g. Each local program administrator involved in the 4 administration of the program. 5 h. The total amount of loan and forgivable loan principal 6 repaid. 7 Sec. 22. Section 16.57D, subsections 1 and 2, Code 2025, are 8 amended to read as follows: 9 1. Establish the maximum loan, forgivable loan , and grant 10 amounts awarded under the program. 11 2. Establish the terms of any loan or forgivable loan 12 provided under the program. 13 DIVISION III 14 DISASTER RECOVERY NEW HOUSING PROGRAM 15 Sec. 23. Section 422.7, Code 2025, is amended by adding the 16 following new subsection: 17 NEW SUBSECTION . 45. a. Subtract, to the extent included, 18 the amount of any qualifying state disaster recovery new 19 housing grant issued to an individual or business by the 20 economic development authority. 21 b. For purposes of this subsection, “qualifying state 22 disaster recovery new housing grant” means an award of a state 23 disaster recovery new housing grant that was applied for 24 between August 20, 2024, and December 31, 2024, and approved 25 and issued by the economic development authority. 26 c. This subsection is repealed January 1, 2028. 27 Sec. 24. Section 422.35, Code 2025, is amended by adding the 28 following new subsection: 29 NEW SUBSECTION . 14. a. Subtract, to the extent included, 30 the amount of any qualifying state disaster recovery new 31 housing grant issued to a business by the economic development 32 authority. 33 b. For purposes of this subsection, “qualifying state 34 disaster recovery new housing grant” means an award of a state 35 -15- HF 1012.1563 (1) 91 (amending this HF 1012 to CONFORM to SF 619) nls/ko 15/ 92

disaster recovery new housing grant that was applied for 1 between August 20, 2024, and December 31, 2024, and approved 2 and issued by the economic development authority. 3 c. This subsection is repealed January 1, 2028. 4 Sec. 25. EFFECTIVE DATE. This division of this Act, being 5 deemed of immediate importance, takes effect upon enactment. 6 Sec. 26. RETROACTIVE APPLICABILITY. This division of this 7 Act applies retroactively to tax years beginning on or after 8 January 1, 2024. 9 DIVISION IV 10 POST-LOSS ASSIGNMENT OF BENEFITS —— RESIDENTIAL CONTRACTOR 11 Sec. 27. Section 507B.4, subsection 3, Code 2025, is amended 12 by adding the following new paragraph: 13 NEW PARAGRAPH . v. Post-loss assignment of benefits. Any 14 violation of section 515.137A by a residential contractor. 15 Sec. 28. Section 515.137A, subsection 2, Code 2025, is 16 amended by adding the following new paragraphs: 17 NEW PARAGRAPH . 0b. “Catastrophic disaster” includes a major 18 disaster declaration by the president of the United States or a 19 state of disaster emergency proclamation by the governor. 20 NEW PARAGRAPH . 00b. “Consumer advocate” means a consumer 21 advocate appointed pursuant to section 505.8, subsection 6, 22 paragraph “b” , subparagraph (1). 23 NEW PARAGRAPH . 000b. “Post-loss assignment” means any 24 instrument by which post-loss benefits, rights, or duties of 25 a named insured under a residential property and casualty 26 insurance policy are assigned or transferred to a residential 27 contractor. The post-loss assignment must only assign the 28 insurance proceeds a named insured is entitled to receive 29 from the named insured’s insurer for the repair, replacement 30 construction, or reconstruction of the named insured’s 31 property. 32 Sec. 29. Section 515.137A, subsections 3, 4, and 5, Code 33 2025, are amended by striking the subsections and inserting in 34 lieu thereof the following: 35 -16- HF 1012.1563 (1) 91 (amending this HF 1012 to CONFORM to SF 619) nls/ko 16/ 92

3. A residential contractor shall be prohibited from all of 1 the following under a post-loss assignment by a named insured 2 to the residential contractor: 3 a. Rebating or offering to rebate any portion of the named 4 insured’s insurance deductible as an inducement for the named 5 insured to purchase a good or service. 6 b. Imposing an administrative fee on the named insured 7 for canceling the post-loss assignment, or imposing a fee to 8 process the insurance check or to interact with the named 9 insured’s mortgage company. 10 c. Acting as a public adjuster without being licensed under 11 chapter 522C. 12 d. Receiving payments from the named insured’s insurer 13 that are unrelated to the repair, replacement construction, 14 or reconstruction work on the covered insured’s property, 15 including but not limited to all of the following: 16 (1) Additional living expenses. 17 (2) Loss of use. 18 (3) Loss of business income. 19 4. a. A post-loss assignment must include all of the 20 following: 21 (1) An itemized description of the work to be performed. 22 (2) An itemized description of the materials, labor, and 23 fees for the work to be performed. 24 (3) A total itemized amount to be paid for the work to be 25 performed. 26 (4) A statement that the residential contractor has made 27 no assurances that the claimed loss will be fully covered by 28 the named insured’s insurance contract and shall include the 29 following notice in capitalized fourteen point type: 30 YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE UNDER 31 YOUR INSURANCE POLICY. PLEASE READ AND UNDERSTAND THIS 32 DOCUMENT BEFORE SIGNING. 33 THE ITEMIZED DESCRIPTION OF THE WORK TO BE DONE SHOWN IN THIS 34 ASSIGNMENT FORM HAS NOT BEEN AGREED TO BY THE INSURER. THE 35 -17- HF 1012.1563 (1) 91 (amending this HF 1012 to CONFORM to SF 619) nls/ko 17/ 92

INSURER HAS THE RIGHT TO PAY ONLY FOR THE COST TO REPAIR OR 1 REPLACE DAMAGED PROPERTY CAUSED BY A COVERED PERIL. POST-LOSS 2 ASSIGNMENTS ARE SUBJECT TO THE AUTHORITY OF THE IOWA INSURANCE 3 DIVISION. YOU MAY FILE A COMPLAINT WITH THE DIVISION ON THE 4 DIVISION’S INTERNET SITE AT IID.IOWA.GOV OR CALL THE DIVISION 5 AT (877) 955-1212. 6 (5) In capitalized fourteen point type and located in the 7 immediate proximity of the space reserved in the assignment for 8 the signature of the named insured, the following notice: 9 YOU MAY CANCEL THIS POST-LOSS ASSIGNMENT FOR ANY REASON 10 WITHOUT PENALTY WITHIN FIVE (5) BUSINESS DAYS FROM THE LATER OF 11 THE DATE THE POST-LOSS ASSIGNMENT IS FULLY EXECUTED OR THE DATE 12 ON WHICH YOU RECEIVE A COPY OF THE FULLY EXECUTED POST-LOSS 13 ASSIGNMENT. IF MAILED, THE CANCELLATION MUST BE POSTMARKED 14 BEFORE THE FIVE (5) BUSINESS DAY DEADLINE. 15 YOU MUST CANCEL THE POST-LOSS ASSIGNMENT IN WRITING AND 16 THE CANCELLATION MUST BE DELIVERED TO (name and address 17 of residential contractor as provided by the residential 18 contractor). IF THE ASSIGNEE HAS NOT BEGUN SUBSTANTIALLY 19 PERFORMING WORK ON THE PROPERTY, YOU MAY CANCEL THIS POST-LOSS 20 ASSIGNMENT WITHOUT PENALTY AFTER AT LEAST THIRTY (30) CALENDAR 21 DAYS AFTER THE DATE WORK ON THE PROPERTY IS SCHEDULED TO 22 COMMENCE, OR AFTER AT LEAST THIRTY (30) CALENDAR DAYS AFTER 23 THE POST-LOSS ASSIGNMENT IS FULLY EXECUTED IF THE POST-LOSS 24 ASSIGNMENT DOES NOT CONTAIN A COMMENCEMENT DATE. 25 IF YOU CANCEL THIS POST-LOSS ASSIGNMENT, THE RESIDENTIAL 26 CONTRACTOR HAS UP TO TEN (10) BUSINESS DAYS TO RETURN TO YOU 27 ALL PAYMENTS OR DEPOSITS YOU HAVE MADE. 28 (6) A provision that requires the assignee to indemnify and 29 hold harmless the assignor from liabilities, damages, losses, 30 and costs, including but not limited to attorney fees related 31 to the loss claim. 32 b. A post-loss assignment shall not impair the interest of 33 a mortgagee listed on the declarations page of the property and 34 casualty insurance policy that is the subject of the post-loss 35 -18- HF 1012.1563 (1) 91 (amending this HF 1012 to CONFORM to SF 619) nls/ko 18/ 92

assignment. All mortgagees shall be named as a co-payee for 1 the payment of benefits under a property and casualty insurance 2 policy covering residential real estate. 3 c. A post-loss assignment shall only authorize a residential 4 contractor to be named as a co-payee, along with the named 5 insured and all mortgagees, for the payment of benefits under 6 a property and casualty insurance policy covering residential 7 real estate. 8 d. A post-loss assignment shall not prevent or inhibit 9 an insurer from communicating with the named insured or a 10 mortgagee listed on the declarations page of the property and 11 casualty insurance policy that is the subject of the post-loss 12 assignment. 13 e. An electronic copy of the fully executed post-loss 14 assignment shall be provided to the insurer of the residential 15 real estate, the named insured, and all mortgagees of the 16 damaged residential real estate within five business days after 17 execution of the post-loss assignment. A paper copy shall be 18 provided to the insurer, a named insured, and any mortgagee of 19 the damaged residential real estate within five business days 20 of a request by the insurer, the named insured, or a mortgagee. 21 f. A residential contractor named in a post-loss assignment 22 must cooperate with the insurer of the damaged residential 23 real estate in a claim investigation by providing documents 24 and records requested by the insurer and complying with each 25 post-loss duty included in the named insured’s insurance 26 policy. 27 5. a. A named insured shall have the right to cancel a 28 post-loss assignment without penalty or fee under all of the 29 following circumstances: 30 (1) For any reason within five business days from the 31 date on which the named insured receives a copy of the fully 32 executed post-loss agreement. 33 (2) The assignee has not substantially performed work on 34 the property that is the subject of the post-loss assignment at 35 -19- HF 1012.1563 (1) 91 (amending this HF 1012 to CONFORM to SF 619) nls/ko 19/ 92