House File 2428 - Introduced HOUSE FILE 2428 BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO HSB 618) A BILL FOR An Act providing for the reorganization of the Code provisions 1 relating to the Iowa finance authority, revising and 2 eliminating programs, including the beginning farm loan 3 program, providing for existing tax credits, providing 4 for the powers and duties of the authority, and including 5 effective date provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 5173HV (2) 85 da/rj
H.F. 2428 DIVISION I 1 REORGANIZATION OF THE IOWA FINANCE AUTHORITY 2 GENERAL PROVISIONS 3 Section 1. Section 16.1, subsection 1, paragraphs a, f, g, 4 i, o, aa, ak, and al, Code 2014, are amended by striking the 5 paragraphs. 6 Sec. 2. Section 16.1, subsection 1, paragraphs d, n, p, and 7 af, Code 2014, are amended to read as follows: 8 d. “Bond” means a bond issued by the authority pursuant to 9 sections 16.26 to 16.30 , this chapter and includes a note or 10 other instrument evidencing a debt authorized or referred to in 11 this chapter . 12 n. “Guiding principles” means the principles provided in 13 section 16.4 subchapter III which shall be considered for 14 amplification and interpretation of the goals of the authority. 15 p. (1) “Housing” means single family and multifamily 16 dwellings, and facilities incidental or appurtenant to the 17 dwellings, and includes group homes of fifteen beds or less 18 licensed as health care facilities or child foster care 19 facilities and modular or mobile homes which are permanently 20 affixed to a foundation and are assessed as realty. 21 (2) “Adequate housing” means housing which meets minimum 22 structural, heating, lighting, ventilation, sanitary, 23 occupancy, and maintenance standards compatible with applicable 24 building and housing codes, as determined under rules of the 25 authority. 26 af. “Programs” “Program” means any program administered 27 by the authority or any program in which the authority is 28 directed or authorized to participate pursuant to any statute, 29 executive order, or interagency agreement, or any other program 30 participation or administration of which the authority finds 31 useful and convenient to further the goals and purposes of the 32 authority. “Program” shall include but not be limited to all 33 of the following: 34 (1) The housing assistance payments program. 35 -1- LSB 5173HV (2) 85 da/rj 1/ 101
H.F. 2428 (2) The rent supplements program. 1 (3) The emergency housing fund program. 2 (4) The special housing assistance program. 3 (5) The single-family housing program. 4 (6) The multifamily housing program. 5 (7) The title guaranty program. 6 (8) The housing improvement fund program. 7 (9) The economic development loan program. 8 (10) The Iowa economic development bond bank program. 9 (11) The sewage treatment and drinking facilities financing 10 program. 11 (12) The Iowa tank assistance bond program. 12 (13) The residential treatment facilities program. 13 (14) The E-911 program. 14 (15) The community college dormitory program. 15 (16) The prison infrastructure program. 16 (17) The wastewater treatment financial assistance program. 17 (18) Any other program established by the authority which 18 the authority finds useful and convenient to further goals of 19 the authority and which is consistent with the legislative 20 findings. Such additional programs shall be administered in 21 accordance with the guiding principles of the authority after 22 such notice and hearing as is determined to be reasonable 23 by the authority under the circumstances. Such additional 24 programs shall be administered in accordance with rules, if 25 any, which the authority determines useful and convenient to 26 adopt pursuant to chapter 17A . 27 Sec. 3. Section 16.1, subsection 1, Code 2014, is amended by 28 adding the following new paragraphs: 29 NEW PARAGRAPH . 0a. “Adequate housing” means housing which 30 meets minimum structural, heating, lighting, ventilation, 31 sanitary, occupancy, and maintenance standards compatible with 32 applicable building and housing codes, as determined under 33 rules of the authority. 34 NEW PARAGRAPH . 0g. “Depreciable property” means personal 35 -2- LSB 5173HV (2) 85 da/rj 2/ 101
H.F. 2428 property for which an income tax deduction for depreciation is 1 allowable in computing federal income tax under the Internal 2 Revenue Code as defined in section 422.3. 3 NEW PARAGRAPH . 0p. “Historic properties” means landmarks, 4 landmark sites, or districts which are significant in the 5 history, architecture, archaeology, or culture of this state, 6 its communities, or the nation. 7 NEW PARAGRAPH . 0v. (1) “Lending institution” means 8 any bank, trust company, mortgage company, national banking 9 association, federal savings association, or life insurance 10 company; any state or federal governmental agency or 11 instrumentality; the federal land bank or any of its local 12 associations; or any other institution authorized to make loans 13 in this state. 14 (2) “Lending institution” includes a financial institution 15 as defined in section 496B.2, which lends moneys for farming 16 purposes as provided in subchapter VIII, or for industrial or 17 business purposes. 18 NEW PARAGRAPH . 0ac. “Net worth” means a person’s total 19 assets minus total liabilities as determined in accordance 20 with generally accepted accounting principles with appropriate 21 exceptions and exemptions reasonably related to an equitable 22 determination of a person’s net worth. Assets shall be valued 23 at fair market value. 24 NEW PARAGRAPH . 0aj. “Secured loan” means a financial 25 obligation secured by a chattel mortgage, security agreement, 26 or other instrument creating a lien on an interest in 27 depreciable property. 28 NEW PARAGRAPH . an. “Veteran” means the same as defined in 29 section 35.1. 30 Sec. 4. Section 16.1, subsection 2, Code 2014, is amended by 31 striking the subsection. 32 Sec. 5. Section 16.1A, Code 2014, is amended to read as 33 follows: 34 16.1A Creation —— administration of programs. 35 -3- LSB 5173HV (2) 85 da/rj 3/ 101
H.F. 2428 1. The Iowa finance authority is created, and constitutes 1 a public instrumentality and agency of the state exercising 2 public and essential governmental functions. 3 2. The authority shall undertake and administer all of the 4 following: 5 a. Programs established under this chapter to assist in 6 attainment of adequate housing for low- or moderate-income 7 families, elderly families, and families which include one or 8 more persons with disabilities, and to undertake the various 9 finance programs under this chapter . 10 b. Programs which assist qualified farmers or agricultural 11 producers, including beginning farmers, as provided in chapter 12 175 established by the authority which the authority finds 13 useful and convenient to further goals of the authority and 14 which is consistent with the legislative findings . Such 15 programs shall be administered in accordance with the guiding 16 principles of the authority after such notice and hearing as 17 is determined to be reasonable by the authority under the 18 circumstances. Such additional programs shall be administered 19 in accordance with rules, if any, which the authority 20 determines useful and convenient to adopt pursuant to chapter 21 17A. 22 3. The Iowa finance authority board of directors shall 23 have general control, supervision, and regulation of all 24 authority programs established under this chapter and chapter 25 175 described in this section . 26 4. The authority is charged with the broad administrative 27 authority to make, administer, interpret, construe, repeal, and 28 execute the rules, and to administer, interpret, construe, and 29 execute the laws of this state relating to such programs. 30 5. The board may, by resolution, delegate to the 31 agricultural development board, title guaranty division 32 board, executive director, or other authority employee such 33 of its powers, under such terms and conditions, as it deems 34 appropriate. 35 -4- LSB 5173HV (2) 85 da/rj 4/ 101
H.F. 2428 Sec. 6. Section 16.2, subsection 9, Code 2014, is amended by 1 striking the subsection. 2 Sec. 7. Section 16.2A, subsection 1, Code 2014, is amended 3 to read as follows: 4 1. A title guaranty division is created within the 5 authority. The powers of the division relating to the issuance 6 of title guaranties are vested in and shall be exercised by 7 a division board of five members appointed by the governor 8 subject to confirmation by the senate. The membership of 9 the board shall include an attorney, an abstractor, a real 10 estate broker, a representative of a mortgage lender lending 11 institution , and a representative of the housing development 12 industry. The executive director of the authority shall 13 appoint an attorney as director of the title guaranty division, 14 who shall serve as an ex officio member of the board. The 15 appointment of and compensation for the division director 16 are exempt from the merit system provisions of chapter 8A, 17 subchapter IV . 18 Sec. 8. NEW SECTION . 16.2B Agricultural development 19 division —— administration of programs. 20 1. An agricultural development division is created 21 within the authority. The agricultural development division 22 shall administer subchapter VIII , by providing assistance 23 to beginning farmers, agricultural producers, displaced 24 farmers, or other persons qualifying for such assistance under 25 subchapter VIII . 26 2. The agricultural development division shall be 27 administered in accordance with the policies of the 28 agricultural development board created in section 16.2C . 29 The executive director of the authority may organize the 30 agricultural development division and employ necessary 31 qualified personnel to administer subchapter VIII. 32 3. The agricultural development division shall, to 33 every extent practical, assist such persons to do all of the 34 following: 35 -5- LSB 5173HV (2) 85 da/rj 5/ 101
H.F. 2428 a. Acquire agricultural land, agricultural improvements, 1 or depreciable agricultural property, including as provided in 2 subchapter VIII. 3 b. Obtain agricultural assets transfer tax credits, 4 including by issuing tax credit certificates pursuant to 5 subchapter VIII, part 5. 6 c. Obtain financing for other capital requirements or 7 operating expenses. 8 4. The net earnings of the agricultural development 9 division, beyond that necessary for retirement of its notes, 10 bonds, or other obligations or to implement the public purposes 11 and programs authorized in subchapter VIII, shall not inure to 12 the benefit of any person other than the state. 13 5. a. At least two of the authority’s full-time equivalent 14 positions, as defined in section 8.36A , shall be entirely 15 dedicated to administering programs established pursuant to 16 subchapter VIII. One of those full-time equivalent positions 17 shall be dedicated to overseeing the administration of those 18 programs, and to the extent that the programs are affected, the 19 full-time equivalent position shall be provided the powers and 20 duties necessary to do all of the following: 21 (1) Participate in making managerial decisions. 22 (2) Provide for outreach and promotion. 23 (3) Improve delivery of services. 24 b. This subsection is repealed on July 1, 2015. 25 Sec. 9. NEW SECTION . 16.2C Agricultural development board. 26 1. The powers of the agricultural development division, 27 created within the Iowa finance authority under section 16.2B , 28 are vested in and shall be exercised by the agricultural 29 development board as provided in section 16.2B and this 30 section . 31 2. The agricultural development board is created to 32 exercise all powers and perform all duties necessary to 33 administer subchapter VIII according to policies established 34 by the Iowa finance authority. The authority shall establish 35 -6- LSB 5173HV (2) 85 da/rj 6/ 101
H.F. 2428 policies and practices for the division and oversee its 1 operations. The authority may review or approve decisions 2 affecting the division or administration of subchapter VIII, 3 including decisions of the agricultural development board. 4 3. The agricultural development board consists of five 5 members appointed by the governor subject to confirmation 6 by the senate. The executive director of the Iowa finance 7 authority or the executive director’s designee shall serve as 8 an ex officio, nonvoting member. 9 4. The appointed members of the agricultural development 10 board shall be appointed and retained in office as follows: 11 a. Not more than three members shall belong to the same 12 political party. 13 b. As far as possible, the governor shall include within 14 the membership persons who represent lending institutions 15 experienced in agricultural lending, real estate sales, 16 farmers, beginning farmers, average taxpayers, local 17 government, soil and water conservation district officials, 18 agricultural educators, and other persons specially interested 19 in family farm development. 20 c. Members shall serve for staggered terms of six years 21 beginning and ending as provided in section 69.19 . A person 22 appointed to fill a vacancy shall serve only for the unexpired 23 portion of the member’s term. A member is eligible for 24 reappointment. An appointed member may be removed from office 25 by the governor for misfeasance, malfeasance, willful neglect 26 of duty, or other just cause, after notice and hearing, unless 27 the notice and hearing is expressly waived in writing. 28 5. The agricultural development board shall conduct 29 business according to all of the following: 30 a. Three appointed members constitute a quorum and the 31 affirmative vote of a majority of the appointed members is 32 necessary for any substantive action taken by the board. A 33 majority of appointed members shall not include any member who 34 has a conflict of interest and a statement by a member that 35 -7- LSB 5173HV (2) 85 da/rj 7/ 101
H.F. 2428 the member has a conflict of interest is conclusive for this 1 purpose. A vacancy in the membership does not impair the right 2 of a quorum to exercise all rights and perform all duties of 3 the board. 4 b. Meetings of the board shall be held at the call of the 5 chairperson or whenever two appointed members so request. 6 c. The appointed members shall elect a chairperson and vice 7 chairperson annually, and other officers as they determine. 8 The executive director of the Iowa finance authority or the 9 executive director’s designee shall serve as secretary to the 10 board. 11 6. An appointed member of the agricultural development 12 board is entitled to receive a per diem as specified in section 13 7E.6 for each day spent in performance of duties as a member, 14 and shall be reimbursed for all actual and necessary expenses 15 incurred in the performance of duties as a member. 16 7. An appointed member of the agricultural development 17 board shall give bond as required for public officers in 18 chapter 64 . 19 Sec. 10. NEW SECTION . 16.2D Council on homelessness. 20 1. A council on homelessness is established consisting of 21 thirty-eight voting members. At least one voting member at all 22 times shall be a member of a minority group. 23 2. Members of the council shall consist of all of the 24 following: 25 a. Twenty-six members of the general public appointed to 26 two-year staggered terms by the governor in consultation with 27 the nominating committee under subsection 4 , paragraph “a” . 28 (1) Voting members from the general public may include 29 but are not limited to the following types of individuals 30 and representatives of the following programs: homeless or 31 formerly homeless individuals and their family members, youth 32 shelters, faith-based organizations, local homeless service 33 providers, emergency shelters, transitional housing providers, 34 family and domestic violence shelters, private business, local 35 -8- LSB 5173HV (2) 85 da/rj 8/ 101
H.F. 2428 government, and community-based organizations. 1 (2) Five of the twenty-six voting members selected from the 2 general public shall be individuals who are homeless, formerly 3 homeless, or family members of homeless or formerly homeless 4 individuals. 5 (3) One of the twenty-six members selected from the general 6 public shall be a representative of the Iowa state association 7 of counties. 8 (4) One of the twenty-six members selected from the general 9 public shall be a representative of the Iowa league of cities. 10 b. Twelve agency director members consisting of all of the 11 following: 12 (1) The director of the department of education or the 13 director’s designee. 14 (2) The director of the economic development authority or 15 the director’s designee. 16 (3) The director of human services or the director’s 17 designee. 18 (4) The attorney general or the attorney general’s 19 designee. 20 (5) The director of the department of human rights or the 21 director’s designee. 22 (6) The director of public health or the director’s 23 designee. 24 (7) The director of the department on aging or the 25 director’s designee. 26 (8) The director of the department of corrections or the 27 director’s designee. 28 (9) The director of the department of workforce development 29 or the director’s designee. 30 (10) The director of the department of public safety or the 31 director’s designee. 32 (11) The director of the department of veterans affairs or 33 the director’s designee. 34 (12) The executive director of the Iowa finance authority or 35 -9- LSB 5173HV (2) 85 da/rj 9/ 101
H.F. 2428 the executive director’s designee. 1 3. An agency director’s designee may vote on council matters 2 in the absence of the director. 3 4. a. A nominating committee initially comprised of all 4 twelve agency director members shall nominate persons to 5 the governor to fill the general public member positions. 6 Following appointment of all twenty-six general public members, 7 the composition of the nominating committee may be modified by 8 rule. 9 b. The council may establish other committees and 10 subcommittees comprised of members of the council. 11 5. A vacancy on the council shall be filled in the same 12 manner as the original appointment. A member appointed to fill 13 a vacancy created other than by expiration of a term shall be 14 appointed for the remainder of the unexpired term. 15 6. a. A majority of the members of the council constitutes 16 a quorum. Any action taken by the council must be adopted by 17 the affirmative vote of a majority of its membership. 18 b. The council shall elect a chairperson and vice 19 chairperson from the membership of the council. The 20 chairperson and vice chairperson shall each serve two-year 21 terms. The positions of chairperson and vice chairperson shall 22 not be held by members who are both either general public 23 members or agency directors. The position of chairperson shall 24 rotate between agency director members and general public 25 members. 26 c. The council shall meet at least six times per year. 27 Meetings of the council may be called by the chairperson or by 28 a majority of the members. 29 d. General public members shall be reimbursed by the Iowa 30 finance authority for actual and necessary expenses incurred 31 while engaged in their official duties. 32 7. The Iowa finance authority shall provide staff 33 assistance and administrative support to the council. 34 8. The duties of the council shall include but are not 35 -10- LSB 5173HV (2) 85 da/rj 10/ 101
H.F. 2428 limited to the following: 1 a. Develop a process for evaluating state policies, 2 programs, statutes, and rules to determine whether any state 3 policies, programs, statutes, or rules should be revised to 4 help prevent and alleviate homelessness. 5 b. Evaluate whether state agency resources could be more 6 efficiently coordinated with other state agencies to prevent 7 and alleviate homelessness. 8 c. Work to develop a coordinated and seamless service 9 delivery system to prevent and alleviate homelessness. 10 d. Use existing resources to identify and prioritize efforts 11 to prevent persons from becoming homeless and to eliminate 12 factors that keep people homeless. 13 e. Identify and use federal and other funding opportunities 14 to address and reduce homelessness within the state. 15 f. Work to identify causes and effects of homelessness and 16 increase awareness among policymakers and the general public. 17 g. Advise the governor’s office, the Iowa finance authority, 18 state agencies, and private organizations on strategies to 19 prevent and eliminate homelessness. 20 9. a. The council shall make annual recommendations to 21 the governor regarding matters which impact homelessness on or 22 before September 15. 23 b. The council shall prepare and file with the governor and 24 the general assembly on or before the first day of December in 25 each odd-numbered year, a report on homelessness in Iowa. 26 c. The council shall assist in the completion of the state’s 27 continuum of care application to the United States department 28 of housing and urban development. 29 10. a. The Iowa finance authority, in consultation with the 30 council, shall adopt rules pursuant to chapter 17A for carrying 31 out the duties of the council pursuant to this section . 32 b. The council shall establish internal rules of procedure 33 consistent with the provisions of this section . 34 c. Rules adopted or internal rules of procedure established 35 -11- LSB 5173HV (2) 85 da/rj 11/ 101
H.F. 2428 pursuant to paragraph “a” or “b” shall be consistent with the 1 requirements of the federal McKinney-Vento Homeless Assistance 2 Act, 42 U.S.C. §11301 et seq. 3 11. The council shall comply with the requirements of 4 chapters 21 and 22 . The Iowa finance authority shall be the 5 official repository of council records. 6 Sec. 11. NEW SECTION . 16.2E Legislative findings —— 7 general. 8 The general assembly finds and declares all of the 9 following: 10 1. The establishment of the authority is in all respects 11 for the benefit of the people of the state of Iowa, for the 12 improvement of their health and welfare, and for the promotion 13 of the economy, which are public purposes. 14 2. The authority will be performing an essential 15 governmental function in the exercise of the powers and duties 16 conferred upon it by this chapter. 17 3. All of the purposes stated in this section are public 18 purposes and uses for which public moneys may be borrowed, 19 expended, advanced, loaned, or granted. 20 Sec. 12. Section 16.3, subsections 1, 2, 14, 15, 16, 17, and 21 18, Code 2014, are amended by striking the subsections. 22 Sec. 13. Section 16.4, subsection 7, Code 2014, is amended 23 to read as follows: 24 7. The authority shall encourage the protection, 25 restoration and rehabilitation of historic properties, and 26 the preservation of other properties of special value for 27 architectural or esthetic reasons. As used in this subsection , 28 “historic properties” means landmarks, landmark sites, or 29 districts which are significant in the history, architecture, 30 archaeology, or culture of this state, its communities, or the 31 nation. 32 Sec. 14. NEW SECTION . 16.4A Legislative findings —— 33 agricultural development. 34 The general assembly finds and declares all of the 35 -12- LSB 5173HV (2) 85 da/rj 12/ 101
H.F. 2428 following: 1 1. There exists a serious problem in this state regarding 2 the ability of nonestablished farmers to acquire agricultural 3 land and agricultural improvements and depreciable agricultural 4 property in order to enter farming. 5 2. This barrier to entry into farming is conducive to 6 consolidation of acreage of agricultural land with fewer 7 individuals resulting in a grave threat to the traditional 8 family farm. 9 3. These conditions result in a loss in population, 10 unemployment, and a movement of persons from rural communities 11 to urban areas accompanied by added costs to communities for 12 creation of new public facilities and services. 13 4. One major cause of this condition has been recurrent 14 shortages of funds in private channels and the high interest 15 cost of borrowing. 16 5. These shortages and costs have made the sale and 17 purchase of agricultural land to beginning farmers a virtual 18 impossibility in many parts of the state. 19 6. The ordinary operations of private enterprise have not in 20 the past corrected these conditions. 21 7. A stable supply of adequate funds for agricultural 22 financing is required to encourage beginning farmers in 23 an orderly and sustained manner and to reduce the problems 24 described in this section . 25 8. Article IX, 2nd subarticle, section 3, of the 26 Constitution of the State of Iowa requires that, “The 27 General Assembly shall encourage, by all suitable means, the 28 promotion of intellectual, scientific, moral, and agricultural 29 improvement,” and agricultural improvement and the public good 30 are served by a policy of facilitating access to capital by 31 beginning farmers unable to obtain capital elsewhere in order 32 to preserve, encourage, and protect the family farm which has 33 been the economic, political, and social backbone of rural 34 Iowa. 35 -13- LSB 5173HV (2) 85 da/rj 13/ 101
H.F. 2428 9. It is necessary to create a program to encourage 1 ownership of farms by beginning farmers by providing purchase 2 money loans to beginning farmers who are not able to obtain 3 adequate capital elsewhere to provide such funds and to lower 4 costs through the use of public financing. 5 10. All of the purposes stated in this section are public 6 purposes and uses for which public moneys may be borrowed, 7 expended, advanced, loaned, or granted. 8 11. There exists a serious problem in this state regarding 9 the ability of farmers to obtain affordable operating loans for 10 reasonable and necessary expenses and cash flow requirements 11 of farming. 12 12. Farming is one of the principal pursuits of the 13 inhabitants of this state. Many other industries and pursuits, 14 in turn, are wholly dependent upon farming. 15 13. The inability of farmers to obtain affordable operating 16 loans is conducive to a general decline of the economy in this 17 state. 18 14. A serious problem continues to exist in this state 19 regarding the ability of agricultural producers to obtain, 20 retain, restructure, or service loans or other financing on 21 a reasonable and affordable basis for operating expenses, 22 cash flow requirements, and capital asset acquisition or 23 maintenance. 24 15. Because the Iowa economy is dependent upon the 25 production and marketing of agricultural produce, the inability 26 of agricultural producers to obtain, retain, restructure, 27 or service loans or other financing on a reasonable and 28 an affordable basis for operating expenses, cash flow 29 requirements, or capital asset acquisition or maintenance 30 contributes to a general decline of the state’s economy. 31 Sec. 15. NEW SECTION . 16.4B Guiding principles —— 32 agricultural development. 33 In the performance of its duties, implementation of its 34 powers, and selection of specific programs and projects to 35 -14- LSB 5173HV (2) 85 da/rj 14/ 101
H.F. 2428 receive its assistance under subchapter VIII, the authority 1 shall be guided by the following principles: 2 1. The authority shall not become an owner of real or 3 depreciable property, except on a temporary basis where 4 necessary in order to implement its programs, to protect its 5 investments by means of foreclosure or other means, or to 6 facilitate transfer of real or depreciable property for the use 7 of beginning farmers. 8 2. The authority shall exercise diligence and care in 9 selection of projects to receive its assistance and shall apply 10 customary and acceptable business and lending standards in 11 selection and subsequent implementation of the projects. The 12 authority may delegate primary responsibility for determination 13 and implementation of the projects to any federal governmental 14 agency which assumes any obligation to repay the loan, either 15 directly or by insurance or guaranty. 16 3. The authority shall establish a beginning farmer 17 loan program to aid beginning farmers in the acquisition of 18 agricultural land and improvements and depreciable agricultural 19 property. 20 4. The authority shall develop programs for providing 21 financial assistance to agricultural producers in this state. 22 Sec. 16. NEW SECTION . 16.4C Legislative findings —— title 23 guaranty. 24 The general assembly finds and declares that the abstract 25 attorney’s title opinion system promotes land title stability 26 for determining the marketability of land titles and is a 27 public purpose. A public purpose will be served by providing, 28 as an adjunct to the abstract attorney’s title opinion system, 29 a low-cost mechanism to provide for additional guaranties 30 of real property titles in Iowa. The title guaranties will 31 facilitate mortgage lenders’ participation in the secondary 32 market and add to the integrity of the land-title transfer 33 system in the state. 34 Sec. 17. NEW SECTION . 16.4D Legislative findings —— 35 -15- LSB 5173HV (2) 85 da/rj 15/ 101
H.F. 2428 economic development. 1 The general assembly finds and declares all of the 2 following: 3 1. Economic development and expansion of business, 4 industry, and farming in the state is dependent upon the 5 availability of financing of the development and expansion at 6 affordable interest rates. 7 2. The pooling of private financing enhances the 8 marketability of the obligations involved and increases access 9 to other state, regional, and national credit markets. 10 3. The creation of an economic development program as 11 provided in section 16.102 will make the pooling of private 12 financing available to small businesses, farmers, agricultural 13 landowners and operators, and commercial, industrial, and other 14 business enterprises at favorable interest rates with reduced 15 marketing costs. 16 Sec. 18. Section 16.5, subsection 1, paragraph p, Code 2014, 17 is amended to read as follows: 18 p. Through the Iowa title guaranty division, make and issue 19 title guaranties on Iowa real property in a form acceptable 20 to the secondary market, to fix and collect the charges for 21 the guaranties and to procure reinsurance against any loss in 22 connection with the guaranties. 23 Sec. 19. Section 16.5C, subsections 6 and 8, Code 2014, are 24 amended to read as follows: 25 6. Renegotiate a mortgage loan or loan to a mortgage lender 26 lending institution in default; waive a default or consent to 27 the modification of the terms of a mortgage loan or a loan to a 28 mortgage lender lending institution ; forgive or forbear all or 29 part of a mortgage loan or a loan to a mortgage lender lending 30 institution ; and commence, prosecute, and enforce a judgment 31 in any action, including but not limited to a foreclosure 32 action, to protect or enforce any right conferred upon the 33 authority by law, mortgage loan agreement, contract, or other 34 agreement, and in connection with any such action, bid for and 35 -16- LSB 5173HV (2) 85 da/rj 16/ 101
H.F. 2428 purchase the property or acquire or take possession of it, 1 complete, administer, and pay the principal of and interest on 2 any obligations incurred in connection with the property, and 3 dispose of and otherwise deal with the property in a manner as 4 the authority deems advisable to protect its interests. 5 8. Purchase, and make advance commitments to purchase, 6 residential mortgage loans from mortgage lenders lending 7 institutions at prices and upon terms and conditions it 8 determines consistent with its goals and legislative findings. 9 However, the total purchase price for all residential 10 mortgage loans which the authority commits to purchase from 11 a mortgage lender lending institution at any one time shall 12 not exceed the total of the unpaid principal balances of the 13 residential mortgage loans purchased. Mortgage lenders Lending 14 institutions are authorized to sell residential mortgage loans 15 to the authority in accordance with this section and the rules 16 of the authority. The authority may charge a mortgage lender 17 lending institution a commitment fee or other fees as set by 18 rule as a condition for the authority purchasing residential 19 mortgage loans. 20 Sec. 20. NEW SECTION . 16.5D Specific powers and duties —— 21 agricultural development. 22 The authority has all of the general and specific powers 23 needed to carry out its purposes and duties as provided in 24 this subchapter, and to exercise its specific powers under 25 subchapter VIII. 26 Sec. 21. Section 16.7, Code 2014, is amended to read as 27 follows: 28 16.7 Annual report. 29 1. The authority shall submit to the governor and to the 30 general assembly, not later than January 15 each year , a an 31 annual report. 32 2. A complete report shall include at least three parts 33 which include all of the following: 34 a. A general description of the authority setting forth: 35 -17- LSB 5173HV (2) 85 da/rj 17/ 101
H.F. 2428 a. (1) Its operations and accomplishments. 1 b. (2) Its receipts and expenditures during the fiscal 2 year, in accordance with the classifications it establishes for 3 its operating and capital accounts. 4 c. (3) Its assets and liabilities at the end of its fiscal 5 year and the status of reserve, special , and other funds. 6 d. (4) A schedule of its bonds and notes outstanding at 7 the end of its fiscal year, together with a statement of the 8 amounts redeemed and issued during its fiscal year. 9 e. (5) A statement of its proposed and projected 10 activities. 11 f. (6) Recommendations to the general assembly, as it deems 12 necessary. 13 g. An analysis of current housing needs in the state. 14 2. The annual report shall identify performance 15 (7) Performance goals of the authority, and clearly 16 indicate indicating the extent of progress during the reporting 17 period, in attaining the goals. 18 b. A summary of housing programs administered under this 19 chapter. The summary shall include an analysis of current 20 housing needs in this state. Where possible, results shall be 21 expressed in terms of housing units. 22 c. A summary of agricultural development programs 23 administered under subchapter VIII. Where possible, findings 24 and results shall be expressed in terms of number of loans, tax 25 credits, participating qualified beginning farmers, and acres 26 of agricultural land, including by county. 27 Sec. 22. Section 16.9, Code 2014, is amended to read as 28 follows: 29 16.9 Nondiscrimination and affirmative action. 30 1. In administering housing programs under this chapter, 31 all of the following shall apply: 32 a. Housing financed or otherwise assisted by the authority, 33 directly or indirectly, shall be open to all persons regardless 34 of race, creed, color, sex, national origin, age, physical or 35 -18- LSB 5173HV (2) 85 da/rj 18/ 101
H.F. 2428 mental impairment, or religion except that preference may be 1 given to elderly families, families which include one or more 2 persons with disabilities, lower income families, or very low 3 income families. 4 2. b. The authority shall promote marketing plans to make 5 housing available to all persons without discrimination. 6 3. c. The authority shall require adoption and submission 7 of an affirmative action program for employment by all 8 contractors and subcontractors of housing financed or otherwise 9 assisted by the authority. 10 4. d. The authority shall require all mortgage lenders who 11 lending institutions which participate in programs financed 12 or otherwise assisted by it the authority to agree that they 13 will not designate certain areas as unsuitable for the making 14 of mortgage loans because of the prevailing income, racial, 15 ethnic, or other characteristics of the inhabitants of the 16 area. This subsection paragraph is intended to prohibit all 17 mortgage lenders who lending institutions which participate in 18 authority programs from engaging in the practice commonly known 19 as “redlining” redlining . 20 5. e. The authority may require mortgage lenders who 21 lending institutions which participate in programs financed or 22 otherwise assisted by the authority to take affirmative action 23 to make mortgage loans in areas with a higher than average 24 concentration of lower income families or members of racial or 25 ethnic minorities. 26 2. In administering agricultural development programs under 27 subchapter VIII, all of the following apply: 28 a. The opportunity to acquire agricultural land and 29 agricultural improvements and depreciable agricultural property 30 financed or otherwise assisted by the authority, directly or 31 indirectly, shall be open to all persons regardless of race, 32 creed, color, sex, national origin, age, physical or mental 33 impairment, or religion. 34 b. The authority shall promote marketing plans for its 35 -19- LSB 5173HV (2) 85 da/rj 19/ 101
H.F. 2428 programs under subchapter VIII. 1 Sec. 23. NEW SECTION . 16.11 Assistance by state officers, 2 agencies, and departments. 3 State officers and state departments and agencies may render 4 services to the authority within their respective functions as 5 requested by the authority. 6 Sec. 24. NEW SECTION . 16.13 Conflicts of interest. 7 1. a. If a member or employee of the authority other than 8 the executive director of the authority has an interest, either 9 direct or indirect, in a contract to which the authority is, 10 or is to be, a party, or in a mortgage lender requesting a loan 11 from, or offering to sell mortgage loans to, the authority, 12 the interest shall be disclosed to the authority in writing 13 and shall be set forth in the minutes of the authority. The 14 member or employee having the interest shall not participate 15 in any action of the authority with respect to that contract 16 or mortgage lender. 17 b. A violation of a provision of this subsection is 18 misconduct in office under section 721.2. However, a 19 resolution of the authority is not invalid because of a vote 20 cast by a member in violation of this subsection unless the 21 vote was decisive in the passage of the resolution. 22 c. For the purposes of this subsection, “action of the 23 authority with respect to that contract or mortgage lender” 24 means only an action directly affecting a separate contract or 25 mortgage lender, and does not include an action which benefits 26 the general public or which affects all or a substantial 27 portion of the contracts or mortgage lenders included in a 28 program of the authority. 29 2. Nothing in this section shall be deemed to limit the 30 right of a member, officer, or employee of the authority to 31 acquire an interest in bonds or notes of the authority or to 32 limit the right of a member, officer, or employee other than 33 the executive director to have an interest in a financial 34 institution, including a lending institution, in which the 35 -20- LSB 5173HV (2) 85 da/rj 20/ 101
H.F. 2428 funds of the authority are, or are to be, deposited or which 1 is, or is to be, acting as trustee or paying agent under a trust 2 indenture to which the authority is a party. 3 3. The executive director shall not have an interest in 4 a financial institution, including a lending institution, in 5 which the funds of the authority are, or are to be, deposited 6 or which is, or is to be, acting as trustee or paying agent 7 under a trust indenture to which the authority is a party. The 8 executive director shall not receive, in addition to fixed 9 salary or compensation, any money or valuable thing, either 10 directly or indirectly, or through any substantial interest 11 in any other corporation or business unit, for negotiating, 12 procuring, recommending, or aiding in any purchase or sale 13 of property, or loan, made by the authority, nor shall the 14 executive director be pecuniarily interested, either as 15 principal, coprincipal, agent, or beneficiary, either directly 16 or indirectly, or through any substantial interest in any other 17 corporation or business unit, in any such purchase, sale, or 18 loan. 19 Sec. 25. NEW SECTION . 16.16 Liability. 20 1. A member of the authority, or a person acting on behalf 21 of the authority while acting within the scope of the member’s 22 or person’s agency or employment, is not subject to personal 23 liability resulting from carrying out the powers and duties in 24 this chapter. 25 2. The United States and the secretary of agriculture of 26 the United States are not subject to liability by virtue of the 27 transfer of the assets to the authority under this chapter. 28 3. The treasurer of state shall not be subject to personal 29 liability resulting from carrying out the powers and duties 30 of the authority or the treasurer of state, as applicable, in 31 subchapter X, part 15. 32 Sec. 26. NEW SECTION . 16.17 Further definitions. 33 The authority may establish by rule further definitions 34 applicable to this chapter, and clarification of the 35 -21- LSB 5173HV (2) 85 da/rj 21/ 101
H.F. 2428 definitions in this chapter, as it deems convenient and 1 necessary to carry out the public purposes of this chapter 2 including all the following: 3 1. Any rules necessary to assure eligibility for funds 4 available under federal housing laws, or to assure compliance 5 with federal tax laws relating to the issuance of tax exempt 6 bonds pursuant to the Internal Revenue Code or relating to the 7 allowance of low-income credits under Internal Revenue Code 8 §42. 9 2. Any rule as necessary to assure eligibility for funds, 10 insurance, or guaranties available under federal laws and to 11 carry out the public purposes of subchapter VIII. 12 Sec. 27. NEW SECTION . 16.18 Inconsistent provisions. 13 This chapter takes precedence over any conflicting 14 provisions contained in section 535.8, subsection 2, with 15 respect to the use or enforcement of a due-on-sale or similar 16 clause in a mortgage loan agreement, and takes precedence over 17 any conflicting provisions contained in laws enacted after 18 July 1, 1981, with respect to the use or enforcement of a 19 due-on-sale or similar clause in a mortgage loan agreement 20 unless those laws expressly provide that they take precedence 21 over this chapter. 22 Sec. 28. NEW SECTION . 16.19 Liberal interpretation. 23 This chapter, being necessary for the welfare of this state 24 and its inhabitants, shall be liberally construed to effect its 25 purposes. 26 Sec. 29. NEW SECTION . 16.22 Application of funds from sales 27 of obligations. 28 All moneys received by or on behalf of the authority, whether 29 as proceeds from the sale of obligations or as revenues, are 30 trust funds to be held and applied solely for the purposes 31 specified in the appropriation, bond resolution, or other 32 document authorizing receipt of the moneys by the authority. 33 A person with which the moneys are deposited shall act as 34 trustee of the moneys and shall hold and apply the moneys for 35 -22- LSB 5173HV (2) 85 da/rj 22/ 101
H.F. 2428 the purposes specified in this chapter subject to limitations 1 specified in this chapter and in the bond resolution 2 authorizing the issuance of the obligations. 3 Sec. 30. Section 16.26, subsection 4, paragraph a, Code 4 2014, is amended to read as follows: 5 a. State the date and series of the issue, be consecutively 6 numbered, and state on their face that they are payable both 7 as to principal and interest solely out of the assets of the 8 authority and do not constitute an indebtedness of this state 9 or any political subdivision of this state other than the 10 authority within the meaning of any constitutional or statutory 11 debt limit. 12 Sec. 31. Section 16.26, subsections 5 and 6, Code 2014, are 13 amended to read as follows: 14 5. The authority may issue its bonds for the purpose of 15 refunding any bonds or notes of the authority then outstanding, 16 including the payment of any redemption premiums thereon and 17 any interest accrued or to accrue to the date of redemption 18 of the outstanding bonds or notes. Until the proceeds 19 of bonds issued for the purpose of refunding outstanding 20 bonds or notes are applied to the purchase or retirement of 21 outstanding bonds or notes or the redemption of outstanding 22 bonds or notes, the proceeds may be placed in escrow and be 23 invested and reinvested in accordance with the provisions of 24 this chapter . The interest, income, and profits earned or 25 realized on an investment may also be applied to the payment 26 of the outstanding bonds or notes to be refunded by purchase, 27 retirement, or redemption. After the terms of the escrow have 28 been fully satisfied and carried out, any balance of proceeds 29 and interest earned or realized on the investments may be 30 returned to the authority for use by it in any lawful manner. 31 All refunding bonds shall be issued and secured and subject to 32 the provisions of this chapter in the same manner and to the 33 same extent as other bonds issued pursuant to this chapter . 34 6. The authority may issue negotiable bond anticipation 35 -23- LSB 5173HV (2) 85 da/rj 23/ 101
H.F. 2428 notes and may renew them from time to time but the maximum 1 maturity of the notes, including renewals, shall not exceed 2 ten years from the date of issue of the original notes. Notes 3 Bond anticipation notes are payable from any available moneys 4 of the authority not otherwise pledged, or from the proceeds 5 of the sale of bonds of the authority in anticipation of 6 which the bond anticipation notes were issued. Notes Bond 7 anticipation notes may be issued for any corporate purpose 8 of the authority. Notes Bond anticipation notes shall be 9 issued in the same manner as bonds , and bond anticipation 10 notes , and the resolution authorizing them may contain any 11 provisions, conditions, or limitations, not inconsistent 12 with the provisions of this subsection , which the bonds or 13 a bond resolution of the authority may contain. Notes Bond 14 anticipation notes may be sold at public or private sale. In 15 case of default on its bond anticipation notes or violation 16 of any obligations of the authority to the noteholders, the 17 noteholders shall have all the remedies provided in this 18 chapter for bondholders. Notes Bond anticipation notes shall 19 be as fully negotiable as bonds of the authority. 20 Sec. 32. Section 16.26, subsection 7, Code 2014, is amended 21 by striking the subsection and inserting in lieu thereof the 22 following: 23 7. It is the intention of the general assembly that a pledge 24 made in respect of bonds or notes shall be valid and binding 25 from the time the pledge is made, that the money or property 26 so pledged and received after the pledge by the authority 27 shall immediately be subject to the lien of the pledge without 28 physical delivery or further act, and that the lien of the 29 pledge shall be valid and binding as against all parties having 30 claims of any kind in tort, contract, or otherwise against 31 the authority whether or not the parties have notice of the 32 lien. Neither the resolution, trust agreement, nor any other 33 instrument by which a pledge is created needs to be recorded or 34 filed under the Iowa uniform commercial code, chapter 554, to 35 -24- LSB 5173HV (2) 85 da/rj 24/ 101
H.F. 2428 be valid, binding, or effective against the parties. 1 Sec. 33. Section 16.26, Code 2014, is amended by adding the 2 following new subsection: 3 NEW SUBSECTION . 10. It is the intention of the general 4 assembly that a pledge made in respect of bonds or notes shall 5 be valid and binding from the time the pledge is made, that 6 the money or property so pledged and received after the pledge 7 by the authority shall immediately be subject to the lien of 8 the pledge without physical delivery or further act, and that 9 the lien of the pledge shall be valid and binding as against 10 all parties having claims of any kind in tort, contract, or 11 otherwise against the authority whether or not the parties have 12 notice of the lien. Neither the resolution, trust agreement, 13 nor any other instrument by which a pledge is created needs to 14 be recorded or filed under the Iowa uniform commercial code, 15 chapter 554 , to be valid, binding, or effective against the 16 parties. 17 Sec. 34. Section 16.27, Code 2014, is amended by adding the 18 following new subsections: 19 NEW SUBSECTION . 3A. To assure the continued operation 20 and solvency of the authority for the carrying out of its 21 corporate purposes, provision is made in subsection 1 for the 22 accumulation in each bond reserve fund of an amount equal to 23 the bond reserve fund requirement for the fund. In order 24 further to assure maintenance of the bond reserve funds, the 25 chairperson of the authority shall, on or before July 1 of each 26 calendar year, make and deliver to the governor a certificate 27 stating the sum, if any, required to restore each bond reserve 28 fund to its bond reserve fund requirement. Within thirty days 29 after the beginning of the session of the general assembly 30 next following the delivery of the certificate, the governor 31 may submit to both houses printed copies of a budget including 32 any sum required to restore each bond reserve fund to its bond 33 reserve fund requirement. Sums appropriated by the general 34 assembly and paid to the authority under this section shall be 35 -25- LSB 5173HV (2) 85 da/rj 25/ 101
H.F. 2428 deposited by the authority in the applicable bond reserve fund. 1 NEW SUBSECTION . 3B. Amounts paid over to the authority 2 by the state pursuant to the provisions of this section shall 3 constitute and be accounted for as advances by the state to 4 the authority and, subject to the rights of the holders of any 5 bonds or notes of the authority, shall be repaid to the state 6 without interest from all available operating revenues of the 7 authority in excess of amounts required for the payment of 8 bonds, notes, or obligations of the authority, the bond reserve 9 fund, and operating expenses. 10 NEW SUBSECTION . 3C. In the event that the principal amount 11 of any bonds or notes deposited in a bond reserve fund is 12 withdrawn for payment of principal or interest thereby reducing 13 the amount of that fund to less than the bond reserve fund 14 requirement, the authority shall immediately notify the general 15 assembly of this event and shall take steps to restore the 16 fund to its bond reserve fund requirement from any amounts 17 available, other than principal of a bond issue, which are not 18 pledged to the payment of other bonds or notes. 19 Sec. 35. NEW SECTION . 16.27A Powers relating to loans. 20 Subject to any agreement with bondholders or noteholders, 21 the authority may renegotiate a mortgage or secured loan or 22 a loan to a lending institution in default, waive a default 23 or consent to the modification of the terms of a mortgage or 24 secured loan or a loan to a lending institution, forgive or 25 forbear all or part of a mortgage or secured loan or a loan to 26 a lending institution, and commence, prosecute, and enforce 27 a judgment in any action, including but not limited to a 28 foreclosure action, to protect or enforce any right conferred 29 upon it by law, mortgage or secured loan agreement, contract 30 or other agreement, and in connection with any action, bid for 31 and purchase the property or acquire or take possession of it, 32 complete, administer, pay the principal of and interest on 33 any obligations incurred in connection with the property, and 34 dispose of and otherwise deal with the property in a manner the 35 -26- LSB 5173HV (2) 85 da/rj 26/ 101
H.F. 2428 authority deems advisable to protect its interests. 1 Sec. 36. NEW SECTION . 16.29 Agreement of the state. 2 The state pledges and agrees with the holders of any bonds or 3 notes that the state will not limit or alter the rights vested 4 in the authority to fulfill the terms of agreements made with 5 the holders or in any way to impair the rights and remedies of 6 the holders until the bonds or notes together with the interest 7 on them, plus interest on unpaid installments of interest, 8 and all costs and expenses in connection with an action by or 9 on behalf of the holders are fully met and discharged. The 10 authority may include this pledge and agreement of the state in 11 any agreement with the holders of bonds or notes. 12 Sec. 37. NEW SECTION . 16.32 Surplus moneys —— loan and 13 grant fund. 14 1. Moneys declared by the authority to be surplus moneys 15 which are not required to service bonds and notes issued by the 16 authority, to pay administrative expenses of the authority, 17 or to accumulate necessary operating or loss reserves, shall 18 be used by the authority to provide grants, loans, subsidies, 19 and services or assistance through programs authorized in this 20 chapter. 21 2. The authority may establish a loan and grant fund which 22 may be comprised of the proceeds of appropriations, grants, 23 contributions, surplus moneys transferred as provided in this 24 section, and repayment of authority loans made from such fund. 25 Sec. 38. NEW SECTION . 16.34A Special definition. 26 As used in this subchapter, unless the context otherwise 27 requires, “state housing credit ceiling” means the state 28 housing credit ceiling as defined in Internal Revenue Code 29 §42(h)(3)(C). 30 Sec. 39. NEW SECTION . 16.35 State housing credit ceiling 31 allocation. 32 1. The authority is designated the housing credit agency 33 for the allowance of low-income housing credits under the state 34 housing credit ceiling. 35 -27- LSB 5173HV (2) 85 da/rj 27/ 101
H.F. 2428 2. The authority shall adopt rules and allocation 1 procedures which will ensure the maximum use of available tax 2 credits in order to encourage development of low-income housing 3 in the state. The authority shall consider the following 4 factors in the adoption and application of the allocation 5 rules: 6 a. Timeliness of the application. 7 b. Location of the proposed housing project. 8 c. Relative need in the proposed area for low-income 9 housing. 10 d. Availability of low-income housing in the proposed area. 11 e. Economic feasibility of the proposed project. 12 f. Ability of the applicant to proceed to completion of the 13 project in the calendar year for which the credit is sought. 14 3. a. The authority shall adopt rules specifying the 15 application procedure and the allowance of low-income housing 16 credits under the state housing credit ceiling. 17 b. The authority shall not allow more than ninety percent of 18 the low-income housing credits under the state housing credit 19 ceiling to projects other than qualified low-income housing 20 projects as defined in Internal Revenue Code §42(h)(5)(B). 21 Sec. 40. NEW SECTION . 16.36 Participation in federal 22 housing assistance payments program. 23 The authority shall participate in the housing assistance 24 payments program under section 8 of the United States Housing 25 Act of 1937, as amended by §201 of the Housing and Community 26 Development Act of 1974, Pub. L. No. 93-383, codified at 42 27 U.S.C. §1437 et seq. 28 Sec. 41. NEW SECTION . 16.38 Loans to lending institutions. 29 1. The authority may make, and contract to make, loans to 30 lending institutions on terms and conditions as the authority 31 determines which are reasonably related to protecting the 32 security of the authority’s investment and to implementing the 33 purposes of this chapter , and subject to this section , and 34 all lending institutions are authorized to borrow from the 35 -28- LSB 5173HV (2) 85 da/rj 28/ 101
H.F. 2428 authority in accordance with the provisions of this section and 1 the rules of the authority. 2 2. The authority shall require as a condition of each 3 loan to a lending institution that the lending institution, 4 within a reasonable period after receipt of the loan proceeds 5 as the authority prescribes by rule, shall have entered into 6 written commitments to make, and, within a reasonable period 7 thereafter as the authority prescribes by rule, shall have 8 disbursed the loan proceeds in new mortgage loans to low or 9 moderate income families in an aggregate principal amount equal 10 to the amount of the loan. New mortgage loans shall have terms 11 and conditions as the authority prescribes by rules which 12 are reasonably related to implementing the purposes of this 13 chapter . 14 3. The authority shall require the submission to the 15 authority by each lending institution to which the authority 16 has made a loan, of evidence satisfactory to the authority of 17 the making of new mortgage loans to low or moderate income 18 families as required by this section , and in that connection 19 may, through its members, employees, or agents, inspect the 20 books and records of a lending institution. 21 4. Compliance by a lending institution with the terms of 22 its agreement with the authority with respect to the making 23 of new mortgage loans to low or moderate income families may 24 be enforced by decree of any district court of this state. 25 The authority may require as a condition of a loan to a 26 national banking association or a federally chartered savings 27 and loan association, the consent of the association to the 28 jurisdiction of courts of this state over any such proceeding. 29 The authority may also require, as a condition of a loan to 30 a lending institution, agreement by the lending institution 31 to the payment of penalties to the authority for violation by 32 the lending institution of its agreement with the authority, 33 and the penalties shall be recoverable at the suit of the 34 authority. 35 -29- LSB 5173HV (2) 85 da/rj 29/ 101
H.F. 2428 5. The authority shall require that each lending 1 institution receiving a loan pursuant to this section 2 shall issue and deliver to the authority an evidence of its 3 indebtedness to the authority which shall constitute a general 4 obligation of the lending institution and shall bear a date, 5 mature at a time, be subject to prepayment, and contain other 6 provisions consistent with this section and reasonably related 7 to protecting the security of the authority’s investment, as 8 the authority determines. 9 6. Notwithstanding any other provision of this section to 10 the contrary, the interest rate and other terms of loans to 11 lending institutions made from the proceeds of an issue of 12 bonds or notes of the authority shall be at least sufficient 13 to assure the payment of the bonds or notes and the interest on 14 them as they become due. 15 7. The authority shall require that loans to lending 16 institutions are additionally secured as to payment of both 17 principal and interest by a pledge of and lien upon collateral 18 security by special escrow funds or other forms of guaranty and 19 in such amounts and forms as the authority shall by resolution 20 determine to be necessary to assure the payment of the loans 21 and the interest thereon as they become due. Collateral 22 security shall consist of direct obligations of, or obligations 23 guaranteed by, the United States or one of its agencies, 24 obligations satisfactory to the authority which are issued by 25 other federal agencies, direct obligations of or obligations 26 guaranteed by a state or a political subdivision of a state, or 27 investment quality obligations approved by the authority. 28 8. The authority may require that collateral for loans 29 be deposited with a bank, trust company, or other financial 30 institution acceptable to the authority located in this state 31 and designated by the authority as custodian. In the absence 32 of such a requirement, each lending institution shall enter 33 into an agreement with the authority containing provisions 34 as the authority deems necessary to adequately identify and 35 -30- LSB 5173HV (2) 85 da/rj 30/ 101
H.F. 2428 maintain the collateral, service the collateral, and require 1 the lending institution to hold the collateral as an agent 2 for the authority and be accountable to the authority as the 3 trustee of an express trust for the application and disposition 4 of the collateral and the income from it. The authority may 5 also establish additional requirements as the authority deems 6 necessary with respect to the pledging, assigning, setting 7 aside, or holding of collateral and the making of substitutions 8 for it or additions to it and the disposition of income and 9 receipts from it. 10 9. The authority may require as a condition of loans to 11 lending institutions, any representations and warranties the 12 authority determines are necessary to secure the loans and 13 carry out the purposes of this section . 14 10. If a provision of this section is inconsistent with a 15 provision of law of this state governing lending institutions, 16 the provision of this section controls for the purposes of this 17 section . 18 Sec. 42. NEW SECTION . 16.39 Purchase of mortgage loans. 19 1. The authority may purchase, and make advance commitments 20 to purchase, mortgage loans from lending institutions at prices 21 and upon terms and conditions as the authority determines 22 subject to this section . However, the total purchase price 23 for all mortgage loans which the authority commits to purchase 24 from a lending institution at any one time shall not exceed 25 the total of the unpaid principal balances of the mortgage 26 loans purchased. Lending institutions are authorized to 27 sell mortgage loans to the authority in accordance with the 28 provisions of this section and the rules of the authority. 29 2. The authority shall require as a condition of purchase 30 of mortgage loans from lending institutions that the lending 31 institutions, within a reasonable period after receipt of the 32 purchase price as the authority prescribes by rule, shall enter 33 into written commitments to loan and, within a reasonable 34 period thereafter as the authority prescribes by rule, shall 35 -31- LSB 5173HV (2) 85 da/rj 31/ 101
H.F. 2428 loan an amount equal to the entire purchase price of the 1 mortgage loans, on new mortgage loans to low or moderate 2 income families or certify that mortgage loans purchased are 3 mortgage loans made to low or moderate income families. New 4 mortgage loans to be made by lending institutions shall have 5 terms and conditions as the authority prescribes by rule. The 6 authority may make a commitment to purchase mortgage loans 7 from lending institutions in advance of the time such loans 8 are made by lending institutions. The authority shall require 9 as a condition of such commitment that lending institutions 10 certify in writing that all mortgage loans represented by the 11 commitment will be made to low or moderate income families, and 12 that other authority specifications will be complied with. 13 3. The authority shall require the submission to the 14 authority by each lending institution from which the authority 15 has purchased mortgages, of evidence satisfactory to the 16 authority of the making of new mortgage loans to low or 17 moderate income families as required by this section and in 18 that connection may, through its members, employees, or agents, 19 inspect the books and records of a lending institution. 20 4. Compliance by a lending institution with the terms of 21 its agreement with the authority with respect to the making of 22 new mortgage loans to low or moderate income families may be 23 enforced by decree of any district court of this state. The 24 authority may require as a condition of purchase of mortgage 25 loans from any national banking association or federally 26 chartered savings and loan association, the consent of the 27 association to the jurisdiction of courts of this state over 28 any such proceeding. The authority may also require as a 29 condition of the authority’s purchase of mortgage loans from 30 a lending institution, agreement by the lending institution 31 to the payment of penalties to the authority for violation by 32 the lending institution of its agreement with the authority, 33 and the penalties shall be recoverable at the suit of the 34 authority. 35 -32- LSB 5173HV (2) 85 da/rj 32/ 101
H.F. 2428 5. The authority may require as a condition of purchase of 1 a mortgage loan from a lending institution that the lending 2 institution represent and warrant to the authority that: 3 a. The unpaid principal balance of the mortgage loan and 4 the interest rate on it have been accurately stated to the 5 authority. 6 b. The amount of the unpaid principal balance is justly due 7 and owing. 8 c. The lending institution has no notice of the existence of 9 any counterclaim, offset, or defense asserted by the mortgagor 10 or the mortgagor’s successor in interest. 11 d. The mortgage loan is evidenced by a bond or promissory 12 note and a mortgage which has been properly recorded with the 13 appropriate public official. 14 e. The mortgage constitutes a valid first lien on the 15 real property described to the authority subject only to real 16 property taxes not yet due, installments of assessments not 17 yet due, and easements and restrictions of record which do not 18 adversely affect, to a material degree, the use or value of the 19 real property or improvements on it. 20 f. The mortgagor is not now in default in the payment of 21 any installment of principal or interest, escrow funds, or real 22 property taxes, or otherwise in the performance of obligations 23 under the mortgage documents and has not to the knowledge of 24 the lending institution been in default in the performance of 25 any obligation under the mortgage for a period of longer than 26 sixty days during the life of the mortgage. 27 g. The improvements to the mortgaged real property are 28 covered by a valid and subsisting policy of insurance issued 29 by a company authorized to issue such policies in this state 30 and providing fire and extended coverage in amounts as the 31 authority prescribes by rule. 32 h. The mortgage loan meets the prevailing investment quality 33 standards for mortgage loans in this state. 34 6. A lending institution is liable to the authority for 35 -33- LSB 5173HV (2) 85 da/rj 33/ 101
H.F. 2428 damages suffered by the authority by reason of the untruth 1 of a representation or the breach of a warranty and, in the 2 event that a representation proves to be untrue when made or 3 in the event of a breach of warranty, the lending institution 4 shall, at the option of the authority, repurchase the mortgage 5 loan for the original purchase price adjusted for amounts 6 subsequently paid on it, as the authority determines. 7 7. The authority shall require the recording of an 8 assignment of a mortgage loan purchased by the authority from 9 a lending institution and shall not be required to notify 10 the mortgagor of the authority’s purchase of the mortgage 11 loan. The authority shall not be required to inspect or take 12 possession of the mortgage documents if the mortgage lender 13 from which the mortgage loan is purchased by the authority 14 enters into a contract to service the mortgage loan and account 15 to the authority for it. 16 8. If a provision of this section is inconsistent with 17 another provision of law of this state governing lending 18 institutions, the provision of this section controls for the 19 purposes of this section . 20 Sec. 43. Section 16.40, subsection 3, Code 2014, is amended 21 to read as follows: 22 3. The authority may use moneys in the fund to provide 23 financial assistance to a housing sponsor or an individual in 24 the form of a loan, loan guarantee guaranty , grant, or interest 25 subsidy, or by other means under the general powers of the 26 authority. 27 Sec. 44. NEW SECTION . 16.43 Housing improvement fund 28 program. 29 1. A housing improvement fund is created within the 30 authority. The moneys in the housing improvement fund are 31 annually appropriated to the authority which shall allocate 32 the available funds among and within the programs authorized 33 by this section . Notwithstanding section 8.33 , unencumbered 34 or unobligated moneys remaining in the fund on June 30 of 35 -34- LSB 5173HV (2) 85 da/rj 34/ 101
H.F. 2428 any fiscal year shall not revert to any other fund but shall 1 be available for expenditure for subsequent fiscal years. 2 Notwithstanding section 12C.7 , interest or earnings on moneys 3 in the fund or appropriated to the fund shall be credited to 4 the fund. The authority may expend up to four percent of 5 the moneys appropriated for the programs in this section for 6 administrative costs of the authority for those programs. 7 The authority may provide financial assistance to a housing 8 sponsor or an individual in the form of loans, guaranties, 9 grants, interest subsidies, or by other means for the programs 10 authorized by this section . 11 2. By rule, the authority shall establish the following 12 financial assistance programs and provide the requirements for 13 their proper administration: 14 a. A home maintenance and repair program providing repair 15 services to families which include persons who are elderly or 16 persons with disabilities and which qualify as lower income or 17 very low income families. 18 b. A rental rehabilitation program for the construction 19 or rehabilitation of single or multifamily rental properties 20 leased to lower income or very low income families. 21 c. (1) A home ownership incentive program to help lower 22 income and very low income families achieve single family home 23 ownership. Funds provided under this program shall not be 24 restricted to first-time home buyers but shall be limited to 25 mortgages under fifty-five thousand dollars, except in those 26 areas of the state where the median price of homes exceeds the 27 state average. The assistance provided shall include at least 28 one of the following kinds of assistance: 29 (a) Closing costs assistance. 30 (b) Down payment assistance. 31 (c) Home maintenance and repair assistance. 32 (d) Loan processing assistance through a loan endorser 33 review contractor who acts on behalf of the authority in 34 assisting lenders in processing loans that will qualify for 35 -35- LSB 5173HV (2) 85 da/rj 35/ 101
H.F. 2428 government insurance or guaranty or for financing under the 1 authority’s mortgage revenue bond program. 2 (e) Mortgage insurance program. 3 (2) Five percent of the moneys expended under this program 4 shall be used to finance the purchase or acquisition, in 5 communities with a population of less than ten thousand, of 6 manufactured homes as defined in 42 U.S.C. §5403. Moneys 7 available for this purpose which are unencumbered or 8 unobligated at the end of the fiscal year shall revert to the 9 housing improvement fund for reallocation for the next fiscal 10 year. 11 (3) Not more than fifty percent of the assistance provided 12 under this program shall be provided under subparagraph (1), 13 subparagraph divisions (d) and (e). So long as at least one 14 of the kinds of assistance described in subparagraph (1), 15 subparagraph divisions (a) through (e) is provided, additional 16 assistance not described in subparagraph (1), subparagraph 17 divisions (a) through (e) may also be provided. 18 3. The authority shall coordinate the programs authorized 19 by this section with the other programs under the jurisdiction 20 of the authority. 21 4. Each application for financial assistance shall 22 be rated based on local, housing sponsor, and recipient 23 financial commitment, proposals for leveraging other financial 24 assistance, experience with the recipient group involved, 25 consideration for the housing project in the context of overall 26 community needs, including vacancy rate of rental property 27 and ratio of subsidized rental housing to nonsubsidized 28 housing, ability to provide a counseling support system to 29 the recipients, and a demonstrated capability by the housing 30 sponsor to provide follow-up monitoring of recipients to 31 determine if identifiable results have been achieved. 32 5. For the purposes of this section , “housing sponsor” is 33 a for-profit entity, nonprofit corporation, local government, 34 or a joint venture involving a for-profit entity, nonprofit 35 -36- LSB 5173HV (2) 85 da/rj 36/ 101
H.F. 2428 corporation, or local government. 1 6. None of the funds provided to a housing sponsor under 2 this section shall be used for the costs of administration. 3 7. During each regular session of the general assembly, 4 the authority shall present, to the appropriate appropriations 5 subcommittee, a report concerning the total estimated resources 6 to be available for expenditure under this section for the next 7 fiscal year and the amount the authority proposes to allocate 8 to each program under this section . 9 8. A homelessness advisory committee is created consisting 10 of the executive director or the executive director’s designee, 11 the directors or their designees from the departments of human 12 services and human rights, the economic development authority, 13 the director of the department on aging or the director’s 14 designee, and at least three individuals from the private 15 sector to be selected by the executive director. The advisory 16 committee shall advise the authority in coordinating programs 17 that provide for the homeless. 18 9. Notwithstanding any provision to the contrary, 19 all assets held in the housing improvement fund shall be 20 transferred to the housing trust fund created in section 16.45 . 21 Any moneys or assets received for deposit in the housing 22 improvement fund shall be transferred to the housing trust 23 fund. 24 Sec. 45. NEW SECTION . 16.45 Housing trust fund. 25 1. a. A housing trust fund is created within the 26 authority. The moneys in the housing trust fund are annually 27 appropriated to the authority to be used for the development 28 and preservation of affordable housing for low-income people 29 in the state and for the Iowa mortgage help initiative. 30 Payment of interest, recaptures of awards, or other repayments 31 to the housing trust fund shall be deposited in the fund. 32 Notwithstanding section 12C.7 , interest or earnings on moneys 33 in the housing trust fund or appropriated to the fund shall 34 be credited to the fund. Notwithstanding section 8.33 , 35 -37- LSB 5173HV (2) 85 da/rj 37/ 101
H.F. 2428 unencumbered and unobligated moneys remaining in the fund 1 at the close of each fiscal year shall not revert but shall 2 remain available for expenditure for the same purposes in the 3 succeeding fiscal year. 4 b. Assets in the housing trust fund shall consist of all of 5 the following: 6 (1) Any moneys received by the authority from the national 7 housing trust fund created pursuant to the federal Housing and 8 Economic Recovery Act of 2008, Pub. L. No. 110-289. 9 (2) Any assets transferred by the authority for deposit in 10 the housing trust fund. 11 (3) Any other moneys appropriated by the general assembly 12 and any other moneys available to and obtained or accepted by 13 the authority for placement in the housing trust fund. 14 c. The authority shall create the following programs within 15 the housing trust fund: 16 (1) Local housing trust fund program. At least sixty 17 percent of available moneys in the housing trust fund shall be 18 allocated for the local housing trust fund program. 19 (2) Project-based housing program. Moneys remaining in 20 the housing trust fund after the allocation in subparagraph 21 (1) shall be used to make awards to project-based housing 22 programs located in areas where a local housing trust fund does 23 not exist or for a project-based housing program that is not 24 eligible for funding through a local housing trust fund. 25 2. a. In order to be eligible to apply for funding from 26 the local housing trust fund program, a local housing trust 27 fund must be approved by the authority and have all of the 28 following: 29 (1) A local governing board recognized by the city, county, 30 council of governments, or regional officials as the board 31 responsible for coordinating local housing programs. 32 (2) A housing assistance plan approved by the authority. 33 (3) Sufficient administrative capacity in regard to housing 34 programs. 35 -38- LSB 5173HV (2) 85 da/rj 38/ 101
H.F. 2428 (4) A local match requirement approved by the authority. 1 b. An award from the local housing trust fund program shall 2 not exceed ten percent of the balance in the program at the 3 beginning of the fiscal year plus ten percent of any deposits 4 made during the fiscal year. 5 c. By December 31 of each year, a local housing trust fund 6 receiving moneys from the local housing trust fund program 7 shall submit a report to the authority itemizing expenditures 8 of the awarded moneys. 9 Sec. 46. NEW SECTION . 16.45A Housing trust fund —— 10 appropriations. 11 There is appropriated from the rebuild Iowa infrastructure 12 fund to the Iowa finance authority for deposit in the housing 13 trust fund created in section 16.45 , for the fiscal year 14 beginning July 1, 2014, and for each succeeding fiscal year, 15 the sum of three million dollars. 16 Sec. 47. NEW SECTION . 16.46 Senior living revolving loan 17 program fund. 18 1. A senior living revolving loan program fund is created 19 within the authority. The moneys in the senior living 20 revolving loan program fund shall be used by the authority for 21 the development and operation of a revolving loan program to 22 provide financing to construct affordable assisted living and 23 service-enriched affordable housing for seniors and persons 24 with disabilities, including through new construction or 25 acquisition and rehabilitation. 26 2. Moneys transferred by the authority for deposit in the 27 senior living revolving loan program fund, moneys appropriated 28 to the senior living revolving loan program, and any other 29 moneys available to and obtained or accepted by the authority 30 for placement in the senior living revolving loan program fund 31 shall be deposited in the fund. Additionally, payment of 32 interest, recaptures of awards, and other repayments to the 33 senior living revolving loan program fund shall be deposited 34 in the fund. Notwithstanding section 12C.7, subsection 35 -39- LSB 5173HV (2) 85 da/rj 39/ 101
H.F. 2428 2 , interest or earnings on moneys in the senior living 1 revolving loan program fund shall be credited to the fund. 2 Notwithstanding section 8.33 , moneys that remain unencumbered 3 or unobligated at the end of the fiscal year shall not 4 revert but shall remain available for the same purpose in the 5 succeeding fiscal year. 6 3. The authority shall annually allocate moneys available 7 in the senior living revolving loan program fund for the 8 development of affordable assisted living and service-enriched 9 affordable housing for seniors and persons with disabilities. 10 The authority shall develop a joint application process for 11 the allocation of federal low-income housing tax credits and 12 funds available under this section . Moneys allocated to 13 such developments may be in the form of loans, grants, or a 14 combination of loans and grants. 15 Sec. 48. NEW SECTION . 16.47 Home and community-based 16 services revolving loan program fund. 17 1. A home and community-based services revolving loan 18 program fund is created within the authority to further the 19 goals specified in section 231.3 , adult day services, respite 20 services, congregate meals, health and wellness, health 21 screening, and nutritional assessments. The moneys in the home 22 and community-based services revolving loan program fund shall 23 be used by the authority for the development and operation 24 of a revolving loan program to develop and expand facilities 25 and infrastructure that provide adult day services, respite 26 services, congregate meals, and programming space for health 27 and wellness, health screening, and nutritional assessments 28 that address the needs of persons with low incomes. 29 2. Moneys transferred by the authority for deposit in the 30 home and community-based services revolving loan program fund, 31 moneys appropriated to the home and community-based services 32 revolving loan program, and any other moneys available to 33 and obtained or accepted by the authority for placement in 34 the home and community-based services revolving loan program 35 -40- LSB 5173HV (2) 85 da/rj 40/ 101
H.F. 2428 fund shall be deposited in the fund. Additionally, payment of 1 interest, recaptures of awards, and other repayments to the 2 home and community-based services revolving loan program fund 3 shall be deposited in the fund. Notwithstanding section 12C.7, 4 subsection 2 , interest or earnings on moneys in the home and 5 community-based services revolving loan program fund shall be 6 credited to the fund. Notwithstanding section 8.33 , moneys 7 that remain unencumbered or unobligated at the end of the 8 fiscal year shall not revert but shall remain available for the 9 same purpose in the succeeding fiscal year. 10 3. The authority, in cooperation with the department on 11 aging, shall annually allocate moneys available in the home 12 and community-based services revolving loan program fund to 13 develop and expand facilities and infrastructure that provide 14 adult day services, respite services, congregate meals, and 15 programming space for health and wellness, health screening, 16 and nutritional assessments that address the needs of persons 17 with low incomes. 18 Sec. 49. NEW SECTION . 16.48 Transitional housing revolving 19 loan program fund. 20 1. A transitional housing revolving loan program fund is 21 created within the authority to further the availability of 22 affordable housing for parents that are reuniting with their 23 children while completing or participating in substance abuse 24 treatment. The moneys in the fund are annually appropriated 25 to the authority to be used for the development and operation 26 of a revolving loan program to provide financing to construct 27 affordable transitional housing, including through new 28 construction or acquisition and rehabilitation of existing 29 housing. The housing provided shall be geographically located 30 in close proximity to licensed substance abuse treatment 31 programs. Preference in funding shall be given to projects 32 that reunite mothers with the mothers’ children. 33 2. Moneys transferred by the authority for deposit in 34 the transitional housing revolving loan program fund, moneys 35 -41- LSB 5173HV (2) 85 da/rj 41/ 101
H.F. 2428 appropriated to the transitional housing revolving loan 1 program, and any other moneys available to and obtained or 2 accepted by the authority for placement in the fund shall be 3 deposited in the fund. Additionally, payment of interest, 4 recaptures of awards, and other repayments to the transitional 5 housing revolving loan program fund shall be credited to the 6 fund. Notwithstanding section 12C.7, subsection 2 , interest or 7 earnings on moneys in the transitional housing revolving loan 8 program fund shall be credited to the fund. Notwithstanding 9 section 8.33 , moneys that remain unencumbered or unobligated at 10 the close of the fiscal year shall not revert but shall remain 11 available for the same purpose in the succeeding fiscal year. 12 3. The authority shall annually allocate moneys available 13 in the transitional housing revolving loan program fund for 14 the development of affordable transitional housing for parents 15 that are reuniting with the parents’ children while completing 16 or participating in substance abuse treatment. The authority 17 shall develop a joint application process for the allocation of 18 federal low-income housing tax credits and the funds available 19 under this section . Moneys allocated to such projects may be 20 in the form of loans, grants, or a combination of loans and 21 grants. 22 Sec. 50. NEW SECTION . 16.49 Community housing and services 23 for persons with disabilities revolving loan program fund. 24 1. A community housing and services for persons with 25 disabilities revolving loan program fund is created within the 26 authority to further the availability of affordable housing and 27 supportive services for Medicaid waiver-eligible individuals 28 with behaviors that provide significant barriers to accessing 29 traditional rental and supportive services opportunities. The 30 moneys in the fund are annually appropriated to the authority 31 to be used for the development and operation of a revolving 32 loan program to provide financing to construct affordable 33 permanent supportive housing or develop infrastructure in 34 which to provide supportive services, including through new 35 -42- LSB 5173HV (2) 85 da/rj 42/ 101
H.F. 2428 construction, acquisition and rehabilitation of existing 1 housing or infrastructure, or conversion or adaptive reuse. 2 2. Moneys transferred by the authority for deposit in the 3 community housing and services for persons with disabilities 4 revolving loan program fund, moneys appropriated to the 5 community housing and services for persons with disabilities 6 revolving loan program, and any other moneys available to and 7 obtained or accepted by the authority for placement in the 8 fund shall be credited to the fund. Additionally, payment of 9 interest, recaptures of awards, and other repayments to the 10 community housing and services for persons with disabilities 11 revolving loan program fund shall be credited to the fund. 12 Notwithstanding section 12C.7, subsection 2 , interest or 13 earnings on moneys in the fund shall be credited to the fund. 14 Notwithstanding section 8.33 , moneys credited to the fund from 15 any other fund that remain unencumbered or unobligated at the 16 close of the fiscal year shall not revert to the other fund. 17 3. a. The authority shall annually allocate moneys 18 available in the fund for the development of permanent 19 supportive housing for Medicaid waiver-eligible individuals. 20 The authority shall develop a joint application process for the 21 allocation of United States housing and urban development HOME 22 investment partnerships program funding and the funds available 23 under this section . Moneys allocated to such projects may be 24 in the form of loans, forgivable loans, or a combination of 25 loans and forgivable loans. 26 b. The authority shall annually allocate moneys available 27 in the fund for the development of infrastructure in which 28 to provide supportive services for Medicaid waiver-eligible 29 individuals who meet the psychiatric medical institution for 30 children level of care. Moneys allocated to such projects may 31 be in the form of loans, forgivable loans, or a combination of 32 loans and forgivable loans. 33 4. a. A project shall demonstrate written approval of the 34 project by the department of human services to the authority 35 -43- LSB 5173HV (2) 85 da/rj 43/ 101
H.F. 2428 prior to application for funding under this section . 1 b. In order to be approved by the department of human 2 services for application for funding for development of 3 permanent supportive housing under this section, a project 4 shall include all of the following components: 5 (1) Provision of services to any of the following Medicaid 6 waiver-eligible individuals: 7 (a) Individuals who are currently underserved in community 8 placements, including individuals who are physically aggressive 9 or have behaviors that are difficult to manage or individuals 10 who meet the psychiatric medical institution for children level 11 of care. 12 (b) Individuals who are currently residing in out-of-state 13 facilities. 14 (c) Individuals who are currently receiving care in a 15 licensed health care facility. 16 (2) A plan to provide each individual with crisis 17 stabilization services to ensure that the individual’s 18 behavioral issues are appropriately addressed by the provider. 19 (3) Policies and procedures that prohibit discharge of the 20 individual from the waiver services provided by the project 21 provider unless an alternative placement that is acceptable to 22 the client or the client’s guardian is identified. 23 c. In order to be approved by the department of human 24 services for application for funding for development of 25 infrastructure in which to provide supportive services under 26 this section , a project shall include all of the following 27 components: 28 (1) Provision of services to Medicaid waiver-eligible 29 individuals who meet the psychiatric medical institution for 30 children level of care. 31 (2) Policies and procedures that prohibit discharge of the 32 individual from the waiver services provided by the project 33 provider unless an alternative placement that is acceptable to 34 the client or the client’s guardian is identified. 35 -44- LSB 5173HV (2) 85 da/rj 44/ 101
H.F. 2428 d. Housing provided through a project under this section is 1 exempt from the requirements of chapter 135O . 2 Sec. 51. NEW SECTION . 16.50 Workforce housing assistance 3 grant fund. 4 1. A workforce housing assistance grant fund is created 5 under the authority of the Iowa finance authority. The fund 6 shall consist of appropriations made to the fund. The fund 7 shall be separate from the general fund of the state and the 8 balance in the fund shall not be considered part of the balance 9 of the general fund of the state. However, the fund shall be 10 considered a special account for the purposes of section 8.53 , 11 relating to generally accepted accounting principles. 12 2. Notwithstanding section 12C.7, subsection 2 , interest or 13 earnings on moneys in the fund shall be credited to the fund. 14 3. a. Moneys in the fund in a fiscal year are appropriated 15 to the Iowa finance authority to be used for grants for 16 projects that create workforce housing or for projects that 17 include adaptive reuse of buildings for workforce housing. For 18 purposes of this section , “workforce housing” means housing that 19 is affordable for a household whose income does not exceed one 20 hundred twenty percent of the median income for the area. 21 b. Priority shall be given to the following types of 22 projects: 23 (1) Projects that are eligible for historic preservation 24 and cultural and entertainment district tax credits under 25 section 404A.1 . 26 (2) Projects for the construction of new single-family 27 dwellings that incorporate one or more energy-efficient 28 measures. The authority shall by rule identify the types of 29 energy-efficient measures that will qualify a project for 30 priority under this subparagraph. 31 (3) Projects that utilize new markets tax credits, 32 established under the federal Community Renewal Tax Relief Act 33 of 2000, Pub. L. No. 106-554, 114 Stat. 2763A, and undertaken 34 by a qualified community development entity, as defined in the 35 -45- LSB 5173HV (2) 85 da/rj 45/ 101
H.F. 2428 federal Act. 1 (4) Projects that are located in an area where other state 2 funding has been used to support the creation of new jobs. 3 c. In any fiscal year, an area shall not receive grants 4 totaling more than twenty-five percent of the moneys expended 5 from the fund in that fiscal year. For purposes of this 6 paragraph, “area” means the same area used to determine the 7 median income under paragraph “a” . 8 4. Annually, on or before January 15 of each year, the 9 authority shall report to the legislative services agency and 10 the department of management the status of all projects that 11 received moneys from the workforce housing assistance grant 12 fund. The report shall include a description of each project, 13 the progress of work completed, the total estimated cost of 14 each project, a list of all revenue sources being used to fund 15 each project, the amount of funds expended, the amount of 16 funds obligated, and the date each project was completed or an 17 estimated completion date of each project, where applicable. 18 5. Payment of moneys from appropriations from the fund shall 19 be made in a manner that does not adversely affect the tax 20 exempt status of any outstanding bonds issued by the treasurer 21 of state pursuant to section 12.87 . 22 Sec. 52. NEW SECTION . 16.55 Solar and renewable energy 23 systems loans. 24 The authority may make loans to lending institutions or 25 purchase loans from lending institutions under part 3 to be 26 used to finance property improvement loans for solar and other 27 renewable energy systems. These loans shall be limited to low 28 or moderate income families. 29 Sec. 53. NEW SECTION . 16.56 Jumpstart housing assistance 30 program. 31 1. As used in this section , unless the context otherwise 32 requires: 33 a. “Disaster-affected home” means a primary residence that 34 was destroyed or damaged due to a natural disaster occurring 35 -46- LSB 5173HV (2) 85 da/rj 46/ 101
H.F. 2428 after May 24, 2008, and before August 14, 2008. 1 b. “Local government participant” means the cities of Ames, 2 Cedar Falls, Cedar Rapids, Council Bluffs, Davenport, Des 3 Moines, Dubuque, Iowa City, Waterloo, and West Des Moines; a 4 council of governments whose territory includes at least one 5 county that was declared a disaster area by the president 6 of the United States after May 24, 2008, and before August 7 14, 2008; and any county that is not part of any council of 8 governments and was declared a disaster area by the president 9 of the United States after May 24, 2008, and before August 14, 10 2008. 11 2. The Iowa finance authority shall establish and 12 administer a jumpstart housing assistance program. Under 13 the program, the authority shall provide grants to local 14 government participants for purposes of distributing the moneys 15 to eligible residents for eligible purposes which relate to 16 disaster-affected homes. 17 3. An eligible resident is a person residing in a 18 disaster-affected home who is the owner of record of a right, 19 title, or interest in the disaster-affected home and who has 20 been approved by the federal emergency management agency for 21 housing assistance. An eligible resident must have a family 22 income equal to or less than one hundred fifty percent of the 23 area median family income. 24 4. Eligible purposes include forgivable loans for down 25 payment assistance, emergency housing repair or rehabilitation, 26 and interim mortgage assistance. An eligible resident who 27 receives a forgivable loan may also receive energy efficiency 28 assistance which shall be added to the principal of the 29 forgivable loan. 30 5. A local government participant may retain a portion of 31 the grant moneys for administrative purposes as provided in a 32 grant agreement between the authority and the local government 33 participant. 34 6. Any money paid to a local government participant by 35 -47- LSB 5173HV (2) 85 da/rj 47/ 101
H.F. 2428 an eligible resident shall be remitted to the authority for 1 deposit in the housing assistance fund created in section 2 16.40 . 3 7. As determined by the authority, unused or unobligated 4 moneys may be reclaimed and reallocated by the authority to 5 other local government participants. 6 Sec. 54. NEW SECTION . 16.57 Residential treatment 7 facilities. 8 1. The authority may issue its bonds and notes and loan the 9 proceeds of the bonds or notes to a nonprofit corporation for 10 the purpose of financing the acquisition or construction of 11 residential housing or treatment facilities serving juveniles 12 or persons with disabilities. 13 2. The authority may enter into a loan agreement with 14 a nonprofit corporation for the purpose of financing the 15 acquisition or construction of residential housing or treatment 16 facilities serving juveniles or persons with disabilities and 17 shall provide for payment of the loan and security for the loan 18 as the authority deems advisable. 19 3. In the resolution authorizing the issuance of the 20 bonds or notes pursuant to this section , the authority may 21 provide that the related principal and interest are limited 22 obligations payable solely out of the revenues derived from the 23 debt obligation, collateral, or other security furnished by or 24 on behalf of the nonprofit corporation, and the principal or 25 interest does not constitute an indebtedness of the authority 26 or a charge against the authority’s general credit or general 27 fund. 28 4. The powers granted the authority under this section are 29 in addition to the authority’s other powers under this chapter . 30 All other provisions of this chapter , except section 16.28, 31 subsection 4 , apply to bonds or notes issued pursuant to, and 32 powers granted to the authority under this section , except to 33 the extent the provisions are inconsistent with this section . 34 Sec. 55. NEW SECTION . 16.58 Definitions. 35 -48- LSB 5173HV (2) 85 da/rj 48/ 101
H.F. 2428 As used in this subchapter , unless the context otherwise 1 requires: 2 1. “Agricultural assets” means agricultural land, 3 depreciable agricultural property, crops, or livestock. 4 2. “Agricultural improvements” means any improvements, 5 buildings, structures, or fixtures suitable for use in farming 6 which are located on agricultural land. 7 3. “Agricultural land” means land suitable for use in 8 farming. 9 4. “Agricultural producer” means a person that engages 10 or wishes to engage or intends to engage in the business of 11 producing and marketing agricultural produce in this state. 12 5. “Bankhead-Jones Farm Tenant Act” means the Act cited as 13 50 Stat. 522 (1937), formerly codified as 7 U.S.C. §1000 et 14 seq., repealed by Pub. L. No. 87-128 (1961). 15 6. “Beginning farmer” means an individual, partnership, 16 family farm corporation, or family farm limited liability 17 company, with a low or moderate net worth that engages in 18 farming or wishes to engage in farming. 19 7. “Beginning farmer tax credit program” means all of the 20 following: 21 a. The agricultural assets transfer tax credit as provided 22 in section 16.80 . 23 b. The custom farming contract tax credit as provided in 24 section 16.81 . 25 8. “Family farm corporation” means the same as defined in 26 section 9H.1. 27 9. “Family farm limited liability company” means the same as 28 defined in section 9H.1. 29 10. “Farming” means the cultivation of land for the 30 production of agricultural crops, the raising of poultry, the 31 production of eggs, the production of milk, the production of 32 fruit or other horticultural crops, grazing, the production of 33 livestock, aquaculture, hydroponics, the production of forest 34 products, or other activities designated by the authority by 35 -49- LSB 5173HV (2) 85 da/rj 49/ 101
H.F. 2428 rules subject to chapter 17A . 1 11. “Low or moderate net worth” means a net worth that does 2 not exceed the maximum allowable net worth established by the 3 authority. The authority shall establish the maximum allowable 4 net worth in accordance with the prices paid by farmers index 5 as compiled by the United States department of agriculture. 6 12. “Production item” includes tools, machinery, or 7 equipment principally used to produce crops or livestock. 8 13. “Qualified beginning farmer” means a beginning farmer 9 who meets the requirements to participate in a beginning farmer 10 tax credit program as provided in part 5, subpart B. 11 Sec. 56. NEW SECTION . 16.59 Special financing —— 12 calculations. 13 A low or moderate net worth requirement provided in this 14 subchapter applies to an individual, partnership, family farm 15 corporation, or family farm limited liability company. The 16 requirement as applied to each such person is calculated as 17 follows: 18 1. For an individual, an aggregate net worth of the 19 individual and the individual’s spouse and minor children not 20 greater than the low or moderate net worth. 21 2. For a partnership, an aggregate net worth of all 22 partners, including each partner’s net capital in the 23 partnership, and each partner’s spouse and minor children not 24 greater than twice the low or moderate net worth. However, the 25 aggregate net worth of each partner and that partner’s spouse 26 and minor children shall not exceed the low or moderate net 27 worth. 28 3. For a family farm corporation, an aggregate net worth 29 of all shareholders, including the value of each shareholder’s 30 share in the family farm corporation, and each shareholder’s 31 spouse and minor children not greater than twice the low or 32 moderate net worth. However, the aggregate net worth of each 33 shareholder and that shareholder’s spouse and minor children 34 shall not exceed the low or moderate net worth. 35 -50- LSB 5173HV (2) 85 da/rj 50/ 101
H.F. 2428 4. For a family farm limited liability company, an aggregate 1 net worth of all members, including each member’s ownership 2 interest in the family farm limited liability company, and each 3 member’s spouse and minor children of not greater than the low 4 or moderate net worth. However, the aggregate net worth of 5 each member and that member’s spouse and minor children shall 6 not exceed the low or moderate net worth. 7 Sec. 57. NEW SECTION . 16.60 Combination programs. 8 Programs authorized in this subchapter may be combined with 9 any other programs authorized in this chapter or any other 10 public or private programs. 11 Sec. 58. NEW SECTION . 16.62 Trust assets. 12 The authority shall make application to and receive from the 13 United States secretary of agriculture, or any other proper 14 federal official, pursuant and subject to the provisions of 15 Pub. L. No. 81-499, 64 Stat. 152 (1950), formerly codified at 16 40 U.S.C. §440 et seq. (1976), all of the trust assets held by 17 the United States in trust for the Iowa rural rehabilitation 18 corporation now dissolved. 19 Sec. 59. NEW SECTION . 16.63 Agreements. 20 The authority may enter into agreements with the United 21 States secretary of agriculture pursuant to Pub. L. No. 81-499 22 §2(f) (1950) upon terms and conditions and for periods of 23 time as mutually agreeable, authorizing the authority to 24 accept, administer, expend, and use in the state of Iowa all 25 or any part of the trust assets or other funds in the state 26 of Iowa which have been appropriated for use in carrying out 27 the purposes of the Bankhead-Jones Farm Tenant Act and to do 28 any and all things necessary to effectuate and carry out the 29 purposes of such agreements. 30 Sec. 60. NEW SECTION . 16.64 Bonds and notes —— tax 31 exemption. 32 1. An action shall not be brought questioning the legality 33 of any bonds or notes or the power of the authority to issue 34 any bonds or notes or to the legality of any proceedings in 35 -51- LSB 5173HV (2) 85 da/rj 51/ 101
H.F. 2428 connection with the authorization or issuance of the bonds or 1 notes after determination by the board of the authority to 2 proceed with the issuance of the bonds or notes sixty days from 3 the date of publication of the notice. 4 2. Bonds and notes issued by the authority for purposes of 5 financing the beginning farmer loan program provided in section 6 16.75 are exempt from taxation by the state, and interest 7 earned on the bonds and notes is deductible in determining 8 net income for purposes of the state individual and corporate 9 income tax under divisions II and III of chapter 422. 10 Sec. 61. NEW SECTION . 16.68 Surplus moneys. 11 Moneys declared by the authority to be surplus moneys 12 which are not required to service bonds and notes, to pay 13 administrative expenses of the authority, or to accumulate 14 necessary operating or loss reserves, shall be used by the 15 authority to provide loans, grants, subsidies, and other 16 services or assistance to beginning farmers or agricultural 17 producers through any of the programs authorized in this 18 subchapter. 19 Sec. 62. NEW SECTION . 16.70 Loans to lending institutions. 20 1. The authority may make and contract to make loans to 21 lending institutions on terms and conditions the authority 22 determines are reasonably related to protecting the security of 23 the authority’s investment and to implementing the purposes of 24 this subchapter . Lending institutions are authorized to borrow 25 from the authority in accordance with the provisions of this 26 section and the rules of the authority. 27 2. The authority shall require as a condition of each loan 28 to a lending institution that the lending institution, within 29 a reasonable period after receipt of the loan proceeds as the 30 authority prescribes by rule, shall have entered into written 31 commitments to make and, within a reasonable period thereafter 32 as the authority prescribes by rule, shall have disbursed the 33 loan proceeds in new mortgage or secured loans to beginning 34 farmers in an aggregate principal amount of not less than the 35 -52- LSB 5173HV (2) 85 da/rj 52/ 101
H.F. 2428 amount of the loan. New mortgage or secured loans shall have 1 terms and conditions as the authority prescribes by rules which 2 are reasonably related to implementing the purposes of this 3 subchapter as provided in subchapter