Senate File 2136 - Enrolled PAG LIN 1 1 SENATE FILE 2136 1 2 1 3 AN ACT 1 4 RELATING TO REAL ESTATE BROKER TRUST ACCOUNTS AND ABOLISHING 1 5 THE LOCAL HOUSING ASSISTANCE PROGRAM. 1 6 1 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 8 1 9 Section 1. Section 16.10, subsection 1, Code Supplement 1 10 2007, is amended to read as follows: 1 11 1. Moneys declared by the authority to be surplus moneys 1 12 which are not required to service bonds and notes issued by 1 13 the authority, to pay administrative expenses of the 1 14 authority, or to accumulate necessary operating or loss 1 15 reserves, shall be used by the authority to provide grants, 1 16 subsidies, and services to lower income families and very low 1 17 income families through the programs authorized in this 1 18 chapter and consistent with legislative findings and guiding 1 19 principles.In addition, the authority may use such surplus 1 20 moneys to provide assistance to the local housing assistance 1 21 program established in sections 15.351 through 15.354 for 1 22 purposes of providing assistance to low and moderate income 1 23 families. Surplus moneys shall not be used for infrastructure 1 24 or administration purposes under the local housing assistance 1 25 program.1 26 Sec. 2. Section 16.91, subsection 1, Code Supplement 2007, 1 27 is amended to read as follows: 1 28 1. The authority through the title guaranty division shall 1 29 initiate and operate a program in which the division shall 1 30 offer guaranties of real property titles in this state. The 1 31 terms, conditions and form of the guaranty contract shall be 1 32 forms approved by the division board. The division shall fix 1 33 a charge for the guaranty in an amount sufficient to permit 1 34 the program to operate on a self=sustaining basis, including 1 35 payment of administrative costs and the maintenance of an 2 1 adequate reserve against claims under the title guaranty 2 2 program. A title guaranty fund is created in the office of 2 3 the treasurer of state. Funds collected under this program 2 4 shall be placed in the title guaranty fund and are available 2 5 to pay all claims, necessary reserves and all administrative 2 6 costs of the title guaranty program. Moneys in the fund shall 2 7 not revert to the general fund and interest on the moneys in 2 8 the fund shall betransferred to the department of economic 2 9 development for deposit in the local housing assistance 2 10 program fund established in section 15.354deposited in the 2 11 housing trust fund established in section 16.181 and shall not 2 12 accrue to the general fund. If the authority board in 2 13 consultation with the division board determines that there are 2 14 surplus funds in the title guaranty fund after providing for 2 15 adequate reserves and operating expenses of the division, the 2 16 surplus funds shall be transferred to the housing assistance 2 17 fund created pursuant to section 16.40. 2 18 Sec. 3. Section 543B.46, subsection 1, Code Supplement 2 19 2007, is amended to read as follows: 2 20 1. Each real estate broker shall maintain a common trust 2 21 account in a bank, a savings and loan association, savings 2 22 bank, or credit union for the deposit of all down payments, 2 23 earnest money deposits, or other trust funds received by the 2 24 broker or the broker's salespersons on behalf of the broker's 2 25 principal, except that a broker acting as a salesperson shall 2 26 deposit these funds in the common trust account of the broker 2 27 for whom the broker acts as salesperson. The account shall be 2 28 an interest=bearing account. The interest on the account 2 29 shall be transferred quarterly to the treasurer of state and 2 30 transferred to thedepartment of economic developmentIowa 2 31 finance authority for deposit in thelocalhousingassistance 2 32 programtrust fund established in section15.35416.181 unless 2 33 there is a written agreement between the buyer and seller to 2 34 the contrary. The broker shall not benefit from interest 2 35 received on funds of others in the broker's possession. 3 1 Sec. 4. Sections 15.351 through 15.354, Code 2007, are 3 2 repealed. 3 3 Sec. 5. TRANSFER OF FUNDS. Any unobligated funds in or 3 4 received for deposit in the local housing assistance program 3 5 fund, created in section 15.354, shall be transferred to the 3 6 Iowa finance authority for deposit in the housing trust fund 3 7 established in section 16.181. 3 8 3 9 3 10 3 11 JOHN P. KIBBIE 3 12 President of the Senate 3 13 3 14 3 15 3 16 PATRICK J. MURPHY 3 17 Speaker of the House 3 18 3 19 I hereby certify that this bill originated in the Senate and 3 20 is known as Senate File 2136, Eighty=second General Assembly. 3 21 3 22 3 23 3 24 MICHAEL E. MARSHALL 3 25 Secretary of the Senate 3 26 Approved , 2008 3 27 3 28 3 29 3 30 CHESTER J. CULVER 3 31 Governor