HSB 666 (LSB 6118HC (4) 83)

HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON ECONOMIC GROWTH BILL BY CHAIRPERSON THOMAS)

A BILL FOR

An Act relating to the Iowa finance authority by modifying certain duties and programs of the authority and establishing a workforce housing assistance grant fund administered by the authority.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 16.100A, subsection 6, paragraph d, Code Supplement 2009, is amended to read as follows:
   d.  General public members shall be reimbursed by the Iowa finance authority for actual and necessary expenses incurred while engaged in their official duties. Expense payments shall be made from appropriations made for purposes of this section.
    Sec. 2.  Section 16.181, subsection 1, paragraph a, Code Supplement 2009, is amended to read as follows:
   a.  A housing trust fund is created within the authority. The moneys in the housing trust fund are annually appropriated to the authority to be used for the development and preservation of affordable housing for low-income people in the state and for the Iowa mortgage help initiative. Payment of interest, recaptures of awards, or other repayments to the housing trust fund shall be deposited in the fund. Notwithstanding section 12C.7, interest or earnings on moneys in the housing trust fund or appropriated to the fund shall be credited to the fund. Notwithstanding section 8.33, unencumbered and unobligated moneys remaining in the fund at the close of each fiscal year shall not revert but shall remain available for expenditure for the same purposes in the succeeding fiscal year.
    Sec. 3.  NEW SECTION.  16.188  Workforce housing assistance grant fund.
   1.  A workforce housing assistance grant fund is created under the authority of the Iowa finance authority. The fund shall consist of appropriations made to the fund. The fund shall be separate from the general fund of the state and the balance in the fund shall not be considered part of the balance of the general fund of the state. However, the fund shall be considered a special account for the purposes of section 8.53, relating to generally accepted accounting principles.
   2.  Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund. 
   3.  a.  Moneys in the fund in a fiscal year may be used for grants for projects that create workforce housing or for projects that include adaptive reuse of buildings for workforce housing. For purposes of this section, “workforce housing” means housing that is affordable for a household whose income does not exceed one hundred twenty percent of the median income for the area.
   b.  Priority shall be given to the following types of projects:
   (1)  Projects that are eligible for historic preservation and cultural and entertainment district tax credits under section 404A.1.
   (2)  Projects for the construction of new single-family dwellings that incorporate one or more energy-efficient measures. The authority shall by rule identify the types of energy-efficient measures that will qualify a project for priority under this subparagraph.
   (3)  Projects that utilize new markets tax credits, established under the federal Community Renewal Tax Relief Act of 2000, Pub. L. No. 106-554, 114 Stat. 2763A, and undertaken by a qualified community development entity, as defined in the federal Act.
   (4)  Projects that are located in an area where other state funding has been used to support the creation of new jobs.
   4.  Annually, on or before January 15 of each year, the authority shall report to the legislative services agency and the department of management the status of all projects that received moneys from the workforce housing assistance grant fund. The report shall include a description of each project, the progress of work completed, the total estimated cost of each project, a list of all revenue sources being used to fund each project, the amount of funds expended, the amount of funds obligated, and the date each project was completed or an estimated completion date of each project, where applicable.
   5.  Payment of moneys from appropriations from the fund shall be made in a manner that does not adversely affect the tax exempt status of any outstanding bonds issued by the treasurer of state pursuant to section 12.87.
   6.  The authority shall adopt rules pursuant to chapter 17A to administer this section.
EXPLANATION
   This bill modifies certain funding duties and programs of the Iowa finance authority and establishes a workforce housing assistance grant fund.
   The bill strikes a provision that requires expense payments for general public members of the council on homelessness to be made from state general fund appropriations. The bill specifies that such expenses must be reimbursed by the Iowa finance authority.
   The bill also amends Code section 16.181 by authorizing the Iowa finance authority to use moneys in the housing trust fund for the Iowa mortgage help initiative. The Iowa mortgage help initiative is a program that provides foreclosure prevention assistance and counseling and includes the Iowa mortgage help hotline.
   The bill creates a new workforce housing assistance grant fund under the Iowa finance authority for purposes of providing financial assistance to certain workforce housing projects, as defined in the bill. The bill identifies types of projects for which priority must be given. The fund consists of the moneys appropriated to it by the general assembly and is separate and distinct from the general fund of the state. Interest and earnings on moneys in the fund are credited to the fund.