SF 2267 (LSB 6161SV (1) 85)

SENATE FILE 2267

BY  COMMITTEE ON LOCAL GOVERNMENT

(SUCCESSOR TO SSB 3187)

A BILL FOR

An Act relating to the disposal of property by cities and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 174.15, subsection 2, Code 2014, is amended to read as follows:
   2.  Notwithstanding section 364.7, subsection 3 1, paragraph “c”, a city may dispose of real property by gift to a fair.
    Sec. 2.  Section 364.7, Code 2014, is amended to read as follows:
   364.7  Disposal of property.
   1.  A city may not dispose of an interest in real property with a market value in excess of ten thousand dollars by sale, lease for a term of more than three years, or gift, except in accordance with the following procedure:
   1.  a.  The council shall set forth its proposal in a resolution and shall publish notice as provided in section 362.3, of the resolution and of a date, time and place of a public hearing on the proposal.
   2.  b.  After the public hearing, the council may make a final determination on the proposal by resolution.
   3.  c.  A city may not dispose of real property by gift except to a governmental body for a public purpose or to a nonprofit entity that is exempt from federal income taxation pursuant to section 501(c)(3) of the Internal Revenue Code for use by the nonprofit entity in providing affordable housing.
   2.  For purposes of this section, unless the type of interest in the real property is not required to be assessed or have a value ascribed to it by the assessor, “market value” means the most recent actual value as determined by the assessor under section 441.21.
    Sec. 3.  Section 364.12A, Code 2014, is amended to read as follows:
   364.12A  Condemnation of residential buildings —— public purpose.

   For the purposes of section 6A.4, subsection 6, a city may condemn a residential building found to be a public nuisance and take title to the property for the public purpose of disposing of the property under section 364.7 by conveying the property to a private individual or a nonprofit entity for rehabilitation or for demolition and construction of housing.
    Sec. 4.  APPLICABILITY.  This Act applies to interests in real property disposed of by a city on or after July 1, 2014.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   Current Code section 364.7 provides that a city may not dispose of an interest in real property by sale, lease for a term of more than three years, or gift, except in accordance with a procedure that includes publication of the proposal to sell, lease, or gift the property and after a public hearing on the proposal.
   This bill provides that the procedure of publication and public hearing shall only apply to the city’s disposition of an interest in real property with a market value in excess of $10,000. The bill also provides that unless the type of interest in the real property is not required to be assessed or have a value ascribed to it by the assessor, “market value” means the most recent actual value as determined by the assessor for purposes of property taxation.
   Current Code section 364.7 also provides that a city may not dispose of real property by gift except to a governmental body for a public purpose. The bill authorizes a city to dispose of real property by gift to a nonprofit entity for use in providing affordable housing.
   The bill also amends Code section 364.12A relating to the disposal of property found to be a nuisance and acquired by condemnation to provide for the disposal of such property to a nonprofit entity for rehabilitation or for demolition and construction of housing. Code section 364.12A currently provides for the disposal of such property acquired by condemnation to a private individual for such purposes.
   The bill applies to interests in real property disposed of by a city on or after July 1, 2014.