Senate File 2115
SENATE FILE
BY TINSMAN
(COMPANION TO LSB 5614HH
BY WINCKLER)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to local government authority to encourage
2 development and rehabilitation of certain real property and
3 including effective date and applicability date provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 5614SS 80
6 sc/sh/8
PAG LIN
1 1 Section 1. Section 404.3, subsection 2, Code 2003, is
1 2 amended to read as follows:
1 3 2. All qualified real estate is eligible to receive a
1 4 partial exemption from taxation on the actual value added by
1 5 the improvements. The exemption is for a period of ten
1 6 fifteen years. The amount of the partial exemption is equal
1 7 to a percent of the actual value added by the improvements,
1 8 determined as follows:
1 9 a. For the first year, eighty percent.
1 10 b. For the second year, seventy seventy=five percent.
1 11 c. For the third year, sixty seventy percent.
1 12 d. For the fourth year, fifty sixty=five percent.
1 13 e. For the fifth year, forty sixty percent.
1 14 f. For the sixth year, forty fifty=five percent.
1 15 g. For the seventh year, thirty fifty percent.
1 16 h. For the eighth year, thirty forty=five percent.
1 17 i. For the ninth year, twenty forty percent.
1 18 j. For the tenth year, twenty thirty=five percent.
1 19 k. For the eleventh year, thirty percent.
1 20 l. For the twelfth year, twenty=five percent.
1 21 m. For the thirteenth year, twenty percent.
1 22 n. For the fourteenth year, twenty percent.
1 23 o. For the fifteenth year, twenty percent.
1 24 Sec. 2. Section 404.3, subsection 3, Code 2003, is amended
1 25 to read as follows:
1 26 3. All qualified real estate is eligible to receive a one
1 27 hundred percent exemption from taxation on the actual value
1 28 added by the improvements. The exemption is for a period of
1 29 three five years.
1 30 Sec. 3. Section 446.19A, subsection 2, Code 2003, is
1 31 amended to read as follows:
1 32 2. On the day of the regular tax sale or any continuance
1 33 or adjournment of the tax sale, the county or a city may bid
1 34 for abandoned property assessed as residential property or as
1 35 commercial multifamily housing property a sum equal to the
2 1 total amount due. Money shall not be paid by the county or
2 2 city for the purchase, but each of the tax=levying and tax=
2 3 certifying bodies having any interest in the taxes shall be
2 4 charged with the total amount due the tax=levying or tax=
2 5 certifying body as its just share of the purchase price.
2 6 Prior to the purchase, the county or city shall file with the
2 7 county treasurer a verified statement that a parcel to be
2 8 purchased is abandoned and deteriorating in condition or is,
2 9 or is likely to become, a public nuisance, and that the parcel
2 10 is suitable for use for low or moderate income as housing
2 11 following rehabilitation.
2 12 Sec. 4. Section 446.19A, subsection 4, paragraph a, Code
2 13 2003, is amended to read as follows:
2 14 a. The city or county may assign the tax sale certificate
2 15 obtained pursuant to this section. Preference shall be given
2 16 to purchasers who are low or moderate income families or
2 17 organizations which assist low or moderate income families to
2 18 obtain housing. Persons who purchase certificates from the
2 19 city or county under this subsection are liable for the total
2 20 amount due the certificate holder pursuant to section 447.1.
2 21 Sec. 5. Section 446.19A, subsection 5, Code 2003, is
2 22 amended to read as follows:
2 23 5. For the purposes of this section, "abandoned" means the
2 24 same as in section 657A.1. For the purposes of this section,
2 25 "low or moderate income families" has the same meaning as in
2 26 section 403.17.
2 27 Sec. 6. Section 447.9, subsection 1, Code 2003, is amended
2 28 to read as follows:
2 29 1. After one year and nine months from the date of sale,
2 30 or after nine months from the date of a sale made under
2 31 section 446.18, 446.19A, or 446.39, or after three months from
2 32 the date of a sale made under section 446.19A, the holder of
2 33 the certificate of purchase may cause to be served upon the
2 34 person in possession of the parcel, and also upon the person
2 35 in whose name the parcel is taxed, a notice signed by the
3 1 certificate holder or the certificate holder's agent or
3 2 attorney, stating the date of sale, the description of the
3 3 parcel sold, the name of the purchaser, and that the right of
3 4 redemption will expire and a deed for the parcel be made
3 5 unless redemption is made within ninety days from the
3 6 completed service of the notice. The notice shall be served
3 7 by both regular mail and certified mail to the person's last
3 8 known address and such service is deemed completed when the
3 9 notice by certified mail is deposited in the mail and
3 10 postmarked for delivery. The ninety=day redemption period
3 11 begins as provided in section 447.12. When the notice is
3 12 given by a county as a holder of a certificate of purchase the
3 13 notice shall be signed by the county treasurer or the county
3 14 attorney, and when given by a city, it shall be signed by the
3 15 city officer designated by resolution of the council. When
3 16 the notice is given by the Iowa finance authority or a city or
3 17 county agency holding the parcel as part of an Iowa
3 18 homesteading project, it shall be signed on behalf of the
3 19 agency or authority by one of its officers, as authorized in
3 20 rules of the agency or authority.
3 21 Sec. 7. Section 657A.2, subsection 6, Code 2003, is
3 22 amended by striking the subsection.
3 23 Sec. 8. NEW SECTION. 657A.10A PETITION BY CITY FOR TITLE
3 24 TO ABANDONED PROPERTY.
3 25 1. In lieu of the procedures in sections 657A.2 through
3 26 657A.10, a city in which an abandoned building is located may
3 27 petition the court to enter judgment awarding title to the
3 28 abandoned property to the city. If more than one abandoned
3 29 building is located on a parcel of real estate, the city may
3 30 combine the actions into one petition. The owner of the
3 31 building and grounds, mortgagees of record, lienholders of
3 32 record, or other known persons who hold an interest in the
3 33 property shall be named as respondents on the petition.
3 34 The petition shall be filed in the district court of the
3 35 county in which the property is located. Service on the owner
4 1 and any other named respondents shall be by certified mail and
4 2 by posting the notice in a conspicuous place on the building.
4 3 The action shall be in equity.
4 4 2. Not sooner than sixty days after the filing of the
4 5 petition, the city may request a hearing on the petition.
4 6 3. In determining whether a property has been abandoned,
4 7 the court shall consider the following for each building that
4 8 is located on the property and named in the petition and the
4 9 building grounds:
4 10 a. Whether any property taxes or special assessments on
4 11 the property were delinquent at the time the petition was
4 12 filed.
4 13 b. Whether any utilities are currently being provided to
4 14 the property.
4 15 c. Whether the building is unoccupied by the owner or
4 16 lessees or licensees of the owner.
4 17 d. Whether the building meets the city's housing code for
4 18 being fit for human habitation, occupancy, or use.
4 19 e. Whether the building is exposed to the elements such
4 20 that deterioration of the building is occurring.
4 21 f. Whether the building is boarded up.
4 22 g. Past efforts to rehabilitate the building and grounds.
4 23 h. The presence of vermin, accumulation of debris, and
4 24 uncut vegetation.
4 25 i. The effort expended by the petitioning city to maintain
4 26 the building and grounds.
4 27 j. Past and current compliance with orders of the local
4 28 housing official.
4 29 k. Any other evidence the court deems relevant.
4 30 4. In lieu of the considerations in subsection 3, if the
4 31 city can establish to the court's satisfaction that all
4 32 parties with an interest in the property have received proper
4 33 notice and either consented to the entry of an order awarding
4 34 title to the property to the city or did not make a good faith
4 35 effort to comply with the order of the local housing official
5 1 within sixty days after the filing of the petition, the court
5 2 shall enter judgment against the respondents granting the city
5 3 title to the property.
5 4 5. If the court determines that the property has been
5 5 abandoned or that subsection 4 applies, the court shall enter
5 6 judgment awarding title to the city. The title awarded to the
5 7 city shall be free and clear of any claims, liens, or
5 8 encumbrances held by the respondents.
5 9 Sec. 9. IMMEDIATE EFFECTIVE DATE. This Act, being deemed
5 10 of immediate importance, takes effect upon enactment.
5 11 Sec. 10. APPLICABILITY DATE.
5 12 1. The sections of this Act amending section 404.3 apply
5 13 to urban revitalization property tax exemptions allowed on or
5 14 after the effective date of this Act.
5 15 2. The sections of this Act amending sections 446.19A and
5 16 447.9 apply to delinquent property taxes sold at a tax sale
5 17 held on or after the effective date of this Act.
5 18 EXPLANATION
5 19 This bill relates to a local government's authority to
5 20 encourage development and rehabilitation of certain real
5 21 property.
5 22 The bill extends the 10=year partial exemption to a 15=year
5 23 partial exemption for property receiving an urban
5 24 revitalization property tax exemption. The bill also extends
5 25 from three years to five years the full exemption for such
5 26 property. This portion of the bill applies to urban
5 27 revitalization property tax exemptions allowed on or after the
5 28 effective date of the bill.
5 29 The bill amends the Code section which allows a city to
5 30 purchase delinquent property taxes on residential property for
5 31 use as low or moderate income housing to allow the property to
5 32 be used for any type of housing. This portion of the bill
5 33 applies to delinquent property tax sales held on or after the
5 34 effective date of the bill.
5 35 The bill shortens the redemption period from nine months to
6 1 three months for redemption of delinquent property taxes sold
6 2 to a city for use as housing. By operation of law, the
6 3 shortened redemption period applies to delinquent property
6 4 taxes sold on or after the effective date of the bill.
6 5 The bill amends Code chapter 657A, relating to abatement by
6 6 rehabilitation of abandoned or unsafe buildings, to provide an
6 7 alternative to the current process whereby a city or county
6 8 may petition the court for appointment of a receiver to
6 9 rehabilitate abandoned buildings which are used or intended to
6 10 be used primarily for residential purposes. The bill allows a
6 11 city, in lieu of the current process, to petition the court to
6 12 award title to the property to the city if the court
6 13 determines that the property is abandoned or if the owner or
6 14 persons with an interest in the property agree to an award of
6 15 title to the city, or if the city can show that the owner or
6 16 persons with an interest in the property did not make a good
6 17 faith effort to comply with local housing official orders
6 18 within 60 days after the filing of the petition for title.
6 19 The bill also strikes a provision which requires that a
6 20 city with a population of less than 100,000 which files a
6 21 petition for abatement must include the allegation that a
6 22 building is abandoned and is in a dangerous or unsafe
6 23 condition.
6 24 The bill takes effect upon enactment.
6 25 LSB 5614SS 80
6 26 sc/sh/8