HF 2300 (LSB 5533HH (3) 84)

HOUSE FILE 2300

BY  PETTENGILL, J. TAYLOR, and HALL

A BILL FOR

An Act relating to the state housing credit ceiling allocation and including effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 16.52, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  2A.  In the event the authority considers local government contributions as a factor in adopting and applying the allocation rules pursuant to subsection 2, the authority shall consider the value of a tax exemption provided by a city or county, or an agency, department, or similar subunit thereof, to be a local government contribution.
    Sec. 2.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 3.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2012.
EXPLANATION
   This bill applies to the low-income housing tax credit program administered through the Iowa finance authority pursuant to Code section 16.52.
   The Iowa finance authority is required to adopt rules and allocation procedures for the allocation of the federal low-income housing tax credits based on several factors listed in Code section 16.52. The Iowa finance authority incorporates the factors into a qualified allocation plan, which it then uses to analyze and score applications for the tax credit.
   Under the current qualified allocation plan, the Iowa finance authority considers local government contributions as one of its scoring factors relating to the location of the proposed housing project, but does not consider the value of a tax exemption provided by a city or county, or an agency, department, or similar subunit thereof, to be a local government contribution. The bill amends Code section 16.52 to provide that if the Iowa finance authority considers local government contributions in adopting and applying its allocation rules, it shall consider the value of a tax exemption provided by a city or county, or an agency, department, or similar subunit thereof, to be a local government contribution.
   The bill takes effect upon enactment and applies retroactively to January 1, 2012.