House Study Bill 83



                                       SENATE/HOUSE FILE       
                                       BY  (PROPOSED IOWA FINANCE
                                            AUTHORITY BILL)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act allowing the Iowa finance authority to issue qualified
  2    residential rental project bonds under the private activity
  3    bond allocation Act.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1228DP 81
  6 tm/pj/5

PAG LIN



  1  1    Section 1.  Section 7C.3, Code 2005, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  8A.  "Qualified residential rental project
  1  4 bond" means a qualified residential rental project bond as
  1  5 defined in section 142(d) of the Internal Revenue Code.
  1  6    Sec. 2.  Section 7C.4A, subsection 1, Code 2005, is amended
  1  7 to read as follows:
  1  8    1.  Thirty percent of the state ceiling shall be allocated
  1  9 solely to the Iowa finance authority for any of the following
  1 10 purposes:
  1 11    a.  Issuing qualified mortgage bonds.
  1 12    b.  Reallocating the amount, or any portion thereof, to
  1 13 another qualified political subdivision for the purpose of
  1 14 issuing qualified mortgage bonds; or.
  1 15    c.  Exchanging the allocation, or any portion thereof, for
  1 16 the authority to issue mortgage credit certificates by
  1 17 election under section 25(c) of the Internal Revenue Code.
  1 18    d.  Issuing qualified residential rental project bonds.
  1 19    However, at any time during the calendar year the executive
  1 20 director of the Iowa finance authority may determine that a
  1 21 lesser amount need be allocated to the Iowa finance authority
  1 22 and on that date this lesser amount shall be the amount
  1 23 allocated to the authority and the excess shall be allocated
  1 24 under subsection 7.
  1 25                           EXPLANATION
  1 26    This bill relates to the issuance of qualified residential
  1 27 rental project bonds.  Under the private activity bond
  1 28 allocation Act, 30 percent of the volume cap allocated to
  1 29 certain private activity bonds under the Internal Revenue
  1 30 Code, known as the state ceiling, is allocated to the Iowa
  1 31 finance authority for three specified purposes.  The bill adds
  1 32 the issuance of qualified residential rental project bonds as
  1 33 a fourth specified purpose.
  1 34 LSB 1228DP 81
  1 35 tm/pj/5