House
File
2423
-
Introduced
HOUSE
FILE
2423
BY
COMMITTEE
ON
REBUILD
IOWA
AND
DISASTER
RECOVERY
(SUCCESSOR
TO
HF
2160)
A
BILL
FOR
An
Act
relating
to
loan
forgiveness
under
the
residential
1
landlord
business
support
program
and
including
effective
2
date
and
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5855HV
(2)
83
tm/sc
H.F.
2423
Section
1.
RENTAL
REHABILITATION.
Upon
approval
by
the
1
United
States
department
of
housing
and
urban
development,
2
forgivable
loans
made
by
the
department
of
economic
development
3
from
community
development
block
grant
supplemental
disaster
4
recovery
funds
pursuant
to
rental
rehabilitation
guidelines
for
5
small
and
large
projects
shall
be
forgivable
over
a
five-year
6
period.
One-fifth
of
the
total
principal
amount
loaned
shall
7
be
forgiven
following
each
full
year
the
recipient
owns
the
8
property
for
which
the
loan
was
made,
beginning
on
the
date
of
9
the
final
disbursement
of
the
forgivable
loan
proceeds.
To
10
each
financial
award
recipient
receiving
assistance
prior
to
11
the
effective
date
of
this
Act,
the
department
of
economic
12
development
shall
offer
to
renegotiate
the
terms
of
the
13
financial
assistance
award
contract
in
accordance
with
this
14
Act.
15
Sec.
2.
EFFECTIVE
UPON
ENACTMENT
AND
APPLICABILITY.
This
16
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
17
enactment
and
applies,
upon
approval
by
the
United
States
18
department
of
housing
and
urban
development,
to
contracts
19
entered
into
before,
on,
and
after
the
effective
date
of
this
20
Act.
21
EXPLANATION
22
This
bill
relates
to
loan
forgiveness
for
loans
using
23
community
development
block
grant
supplemental
disaster
24
recovery
moneys
for
certain
rental
rehabilitation
projects.
25
The
bill
provides
that,
upon
approval
by
the
United
States
26
department
of
housing
and
urban
development,
forgivable
loans
27
made
by
the
department
of
economic
development
from
community
28
development
block
grant
supplemental
disaster
recovery
moneys
29
pursuant
to
rental
rehabilitation
guidelines
for
small
and
30
large
projects
shall
be
forgivable
over
a
five-year
period.
31
The
bill
provides
that,
to
each
financial
award
recipient
32
receiving
assistance
prior
to
the
effective
date
of
the
33
bill,
the
department
of
economic
development
shall
offer
34
to
renegotiate
the
terms
of
the
financial
assistance
award
35
-1-
LSB
5855HV
(2)
83
tm/sc
1/
2
H.F.
2423
contract
in
accordance
with
the
bill.
1
The
bill
takes
effect
upon
enactment
and
applies,
upon
2
approval
by
the
United
States
department
of
housing
and
urban
3
development,
to
contracts
entered
into
before,
on,
and
after
4
the
effective
date
of
the
bill.
5
-2-
LSB
5855HV
(2)
83
tm/sc
2/
2