Senate Study Bill 1075 SENATE FILE BY (PROPOSED COMMITTEE ON REBUILD IOWA BILL BY CHAIRPERSON HOGG) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to disaster assistance by providing a jumpstart 2 housing assistance program, disaster aid individual assistance 3 grants, and community disaster grants, making appropriations, 4 and providing effective and retroactive applicability dates. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1877SC 83 7 tm/rj/5 PAG LIN 1 1 DIVISION I 1 2 JUMPSTART HOUSING ASSISTANCE 1 3 Section 1. NEW SECTION. 16.191 JUMPSTART HOUSING 1 4 ASSISTANCE PROGRAM. 1 5 1. The Iowa finance authority shall establish and 1 6 administer a jumpstart housing assistance program. Under the 1 7 program, the authority shall provide grants to local 1 8 government participants for purposes of distributing the 1 9 moneys to eligible residents for eligible purposes relating to 1 10 disaster=affected homes. 1 11 2. An eligible resident is a person residing in a 1 12 disaster=affected home who is the owner of record of a right, 1 13 title, or interest in the disaster=affected home and who 1 14 either has been approved by the federal emergency management 1 15 agency for housing assistance or has a family income equal to 1 16 or less than one hundred fifty percent of the county median 1 17 family income. 1 18 3. a. Eligible purposes include forgivable loans for down 1 19 payment assistance and housing repair or rehabilitation and 1 20 forgivable loans for interim mortgage assistance. An eligible 1 21 resident who receives a forgivable loan may also receive 1 22 energy efficiency assistance which shall be added to the 1 23 principal of the forgivable loan. Forgivable loans shall be 1 24 for a term of not more than ten years. 1 25 b. Forgivable loans awarded after the effective date of 1 26 this division of this Act shall be awarded pursuant to the 1 27 following priorities: 1 28 (1) First priority shall be given to eligible residents 1 29 who have not received any moneys under the jumpstart housing 1 30 assistance program prior to the effective date of this 1 31 division of this Act. 1 32 (2) Second priority shall be given to eligible residents 1 33 who have received less than twenty=four thousand nine hundred 1 34 ninety=nine dollars under the jumpstart housing assistance 1 35 program prior to the effective date of this division of this 2 1 Act. 2 2 (3) Third priority shall be given to eligible residents 2 3 who have received twenty=four thousand nine hundred 2 4 ninety=nine dollars under the jumpstart housing assistance 2 5 program prior to the effective date of this division of this 2 6 Act and who continue to have unmet needs for down payment 2 7 assistance, housing repair or rehabilitation, interim mortgage 2 8 assistance, or energy efficiency assistance. 2 9 4. Except as provided in subsection 3, paragraph "b", 2 10 subparagraph (3), an eligible resident who meets the county 2 11 median family income requirement shall not receive more than 2 12 twenty=four thousand nine hundred ninety=nine dollars under 2 13 the program. 2 14 5. A local government participant may retain a portion of 2 15 the grant moneys for administrative purposes as provided in a 2 16 grant agreement between the authority and the local government 2 17 participant. The moneys retained for administrative purposes 2 18 shall not exceed three percent of the moneys received by a 2 19 local government participant. 2 20 6. Any moneys paid to a local government participant by an 2 21 eligible resident shall be remitted to the authority for 2 22 deposit in the housing assistance fund created in section 2 23 16.40. 2 24 7. As determined by the authority, unused or unobligated 2 25 moneys in the jumpstart housing assistance program may be 2 26 reclaimed and reallocated by the authority to other local 2 27 government participants. 2 28 8. As used in this section, unless the context otherwise 2 29 requires: 2 30 a. "Disaster=affected home" means a dwelling that was 2 31 destroyed or damaged due to a natural disaster occurring after 2 32 May 24, 2008, and before August 14, 2008. 2 33 b. "Local government participant" means the cities of 2 34 Ames, Cedar Falls, Cedar Rapids, Council Bluffs, Davenport, 2 35 Des Moines, Dubuque, Iowa City, Waterloo, and West Des Moines; 3 1 a council of governments whose territory includes at least one 3 2 county that was declared a disaster area by the president of 3 3 the United States after May 24, 2008, and before August 14, 3 4 2008; and any county that is not part of any council of 3 5 governments and that was declared a disaster area by the 3 6 president of the United States after May 24, 2008, and before 3 7 August 14, 2008. 3 8 Sec. 2. APPROPRIATION. There is appropriated from the 3 9 Iowa economic emergency fund created in section 8.55 to the 3 10 Iowa finance authority for the fiscal year beginning July 1, 3 11 2008, and ending June 30, 2009, the following amount, or so 3 12 much thereof as is necessary, to be used for the purposes 3 13 designated: 3 14 For the jumpstart housing assistance program: 3 15 .................................................. $ 24,000,000 3 16 Notwithstanding section 8.33 and section 8.55, subsection 3 17 3, paragraph "a", moneys appropriated in this section that 3 18 remain unencumbered or unobligated at the close of the fiscal 3 19 year shall not revert but shall remain available for 3 20 expenditure for the purposes designated until the close of the 3 21 succeeding fiscal year. 3 22 Sec. 3. EMERGENCY RULES. The authority may adopt 3 23 emergency rules under section 17A.4, subsection 3, and section 3 24 17A.5, subsection 2, paragraph "b", to implement the 3 25 provisions of this division of this Act and the rules shall be 3 26 effective immediately upon filing unless a later date is 3 27 specified in the rules. Any rules adopted in accordance with 3 28 this section shall also be published as a notice of intended 3 29 action as provided in section 17A.4. 3 30 Sec. 4. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES. 3 31 This division of this Act, being deemed of immediate 3 32 importance, takes effect upon enactment and applies 3 33 retroactively to September 1, 2008, and is applicable on and 3 34 after that date. 3 35 DIVISION II 4 1 DISASTER AID INDIVIDUAL ASSISTANCE GRANTS 4 2 Sec. 5. DISASTER AID INDIVIDUAL ASSISTANCE GRANTS == 4 3 APPROPRIATION. 4 4 1. There is appropriated from the Iowa economic emergency 4 5 fund created in section 8.55 to the department of human 4 6 services for the fiscal year beginning July 1, 2008, and 4 7 ending June 30, 2009, the following amount, or so much thereof 4 8 as is necessary, to be used for the purposes designated: 4 9 For providing disaster aid individual assistance grants 4 10 pursuant to the requirements in this section: 4 11 .................................................. $ 10,000,000 4 12 2. The grant funds shall be administered by the department 4 13 of human services under the Iowa disaster aid individual 4 14 assistance grant program created under section 29C.20A. 4 15 Notwithstanding contrary provisions of section 29C.20A and 4 16 rules adopted to administer the program, a grant recipient 4 17 shall not receive more than two thousand five hundred dollars 4 18 per household, a grant recipient shall have an annual 4 19 household income that is less than three hundred percent of 4 20 the federal poverty level based on the number of people in the 4 21 recipient's household as defined by the most recently revised 4 22 poverty income guidelines published by the United States 4 23 department of health and human services, and a recipient's 4 24 eligible expenses may include mental health expenses. 4 25 3. Notwithstanding contrary provisions of section 29C.20A, 4 26 the department shall not be reimbursed using moneys 4 27 appropriated under this section for administrative costs 4 28 associated with administering the grants awarded from moneys 4 29 appropriated under this section. 4 30 4. Notwithstanding contrary provisions of section 29C.20A, 4 31 grants may be awarded to recipients located in an area for 4 32 which the president of the United States declared a disaster 4 33 to exist any time during 2008 or for which the governor 4 34 proclaimed a state of disaster emergency pursuant to section 4 35 29C.6. 5 1 5. Notwithstanding section 8.33 and section 8.55, 5 2 subsection 3, paragraph "a", moneys appropriated in this 5 3 section that remain unencumbered or unobligated at the close 5 4 of the fiscal year shall not revert but shall remain available 5 5 for expenditure for the purposes designated until the close of 5 6 the succeeding fiscal year. 5 7 Sec. 6. EFFECTIVE DATE. This division of the Act, being 5 8 deemed of immediate importance, takes effect upon enactment. 5 9 DIVISION III 5 10 COMMUNITY DISASTER GRANTS 5 11 Sec. 7. COMMUNITY DISASTER GRANTS == APPROPRIATION. 5 12 1. There is appropriated from the Iowa economic emergency 5 13 fund created in section 8.55 to the department of management 5 14 for the fiscal year beginning July 1, 2008, and ending June 5 15 30, 2009, the following amount, or so much thereof as is 5 16 necessary, to be used for the purposes designated: 5 17 For community disaster grants to cities and counties: 5 18 .................................................. $ 22,000,000 5 19 2. a. The department of management shall divide the 5 20 moneys appropriated under this section and award grants to 5 21 cities and counties based on their pro rata share of the total 5 22 statewide damage costs associated with natural disasters 5 23 occurring after May 24, 2008, and before August 14, 2008, as 5 24 calculated by the federal emergency management agency as of 5 25 January 1, 2009. 5 26 b. Moneys awarded under this section shall be used by the 5 27 recipient for any of the following purposes: 5 28 (1) Small business assistance. 5 29 (2) Nonprofit organization assistance. 5 30 (3) Assistance for the public purchase of land and 5 31 accompanying structures if financial assistance for such 5 32 purchases is not available from the federal emergency 5 33 management agency. 5 34 (4) Assistance for the replacement or rehabilitation of 5 35 housing. 6 1 (5) Assistance for the repair or replacement of public 6 2 infrastructure. 6 3 (6) Assistance for increased costs associated with the 6 4 revaluation and assessment of property due to a natural 6 5 disaster occurring in 2008. 6 6 3. The department of management and grant recipients shall 6 7 not use any moneys appropriated under this section for 6 8 purposes of reimbursement for administrative costs. 6 9 4. By January 1, 2010, each grant recipient under this 6 10 section shall submit a written report to the department of 6 11 management specifying the allocation and uses of moneys 6 12 received pursuant to this section. By January 8, 2010, the 6 13 department of management shall forward copies of all reports 6 14 received to the governor and the general assembly. 6 15 5. Notwithstanding section 8.33 and section 8.55, 6 16 subsection 3, paragraph "a", moneys appropriated in this 6 17 section that remain unencumbered or unobligated at the close 6 18 of the fiscal year shall not revert but shall remain available 6 19 for expenditure for the purposes designated until the close of 6 20 the succeeding fiscal year. 6 21 Sec. 8. EFFECTIVE DATE. This division of the Act, being 6 22 deemed of immediate importance, takes effect upon enactment. 6 23 EXPLANATION 6 24 This bill relates to disaster assistance by providing a 6 25 jumpstart housing assistance program, disaster aid individual 6 26 assistance grants, and community disaster grants, and making 6 27 appropriations. 6 28 DIVISION I. This division of the bill requires the Iowa 6 29 finance authority to establish and administer a jumpstart 6 30 housing assistance program to provide grants to local 6 31 government participants for purposes of distributing the 6 32 moneys to eligible residents for eligible purposes which 6 33 relate to disaster=affected homes. An eligible resident is a 6 34 person residing in a disaster=affected home who is the owner 6 35 of record of a right, title, or interest in the 7 1 disaster=affected home and who either has been approved by the 7 2 federal emergency management agency for housing assistance or 7 3 meets certain income requirements. A disaster=affected home 7 4 is a dwelling that was destroyed or damaged due to a natural 7 5 disaster occurring after May 24, 2008, and before August 14, 7 6 2008. Eligible purposes include forgivable loans for down 7 7 payment assistance and housing repair or rehabilitation and 7 8 forgivable loans for interim mortgage assistance. The bill 7 9 prioritizes eligible residents for the receipt of forgivable 7 10 loans. 7 11 The division appropriates from the Iowa economic emergency 7 12 fund to the Iowa finance authority for FY 2008=2009 $24 7 13 million for the jumpstart housing assistance program. 7 14 The division allows the authority to adopt emergency rules 7 15 to implement the division's provisions. 7 16 The division takes effect upon enactment and applies 7 17 retroactively to September 1, 2008. 7 18 DIVISION II. This division of the bill appropriates from 7 19 the Iowa economic emergency fund to the department of human 7 20 services for FY 2008=2009 $10 million for providing disaster 7 21 aid individual assistance grants. The grant funds shall be 7 22 administered by the department of human services under the 7 23 Iowa disaster aid individual assistance grant program. The 7 24 division provides that notwithstanding contrary provisions of 7 25 Code section 29C.20A and rules adopted to administer the 7 26 program, a grant recipient shall not receive more than $2,500 7 27 per household, shall have an annual household income that is 7 28 less than 300 percent of the federal poverty level, and 7 29 eligible expenses may include mental health expenses. The 7 30 division provides that, notwithstanding contrary provisions of 7 31 Code section 29C.20A, the department shall not be reimbursed 7 32 for administrative costs using the moneys appropriated. The 7 33 division provides that, notwithstanding contrary provisions of 7 34 Code section 29C.20A, grants may be awarded to recipients 7 35 located in an area for which the president of the United 8 1 States declared a disaster to exist any time during 2008 or 8 2 for which the governor proclaimed a state of disaster 8 3 emergency. 8 4 The division takes effect upon enactment. 8 5 DIVISION III. This division of the bill appropriates from 8 6 the Iowa economic emergency fund to the department of 8 7 management for FY 2008=2009 $22 million for community disaster 8 8 grants to cities and counties. The division requires the 8 9 department of management to divide the appropriated moneys and 8 10 award grants to cities and counties based on their pro rata 8 11 share of the total statewide damage costs associated with 8 12 natural disasters occurring after May 24, 2008, and before 8 13 August 14, 2008, as calculated by the federal emergency 8 14 management agency as of January 1, 2009. The division 8 15 requires moneys awarded to be used by the recipient for small 8 16 business assistance, nonprofit organization assistance, 8 17 assistance for the public purchase of land and accompanying 8 18 structures if financial assistance for such purchases is not 8 19 available from the federal emergency management agency, 8 20 assistance for the replacement or rehabilitation of housing, 8 21 assistance for the repair or replacement of public 8 22 infrastructure, and assistance for increased costs associated 8 23 with the revaluation and reassessment of property due to a 8 24 natural disaster occurring in 2008. The division prohibits 8 25 the use of appropriated moneys for administrative costs and 8 26 provides reporting requirements. 8 27 The division takes effect upon enactment. 8 28 LSB 1877SC 83 8 29 tm/rj/5