Senate File 2328 - Introduced SENATE FILE 2328 BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO SSB 3141) 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 5173SV (8) 85 da/rj

S.F. 2328 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 5173SV (8) 85 da/rj 1/ 94

S.F. 2328 (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 5173SV (8) 85 da/rj 2/ 94

S.F. 2328 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 5173SV (8) 85 da/rj 3/ 94

S.F. 2328 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 section 16.4. 16 Such additional programs shall be administered in accordance 17 with rules, if any, which the authority determines useful and 18 convenient to adopt pursuant to chapter 17A. 19 3. The Iowa finance authority board of directors shall 20 have general control, supervision, and regulation of all 21 authority programs established under this chapter and chapter 22 175 described in this section . 23 4. The authority is charged with the broad administrative 24 authority to make, administer, interpret, construe, repeal, and 25 execute the rules, and to administer, interpret, construe, and 26 execute the laws of this state relating to such programs. 27 5. The board may, by resolution, delegate to the 28 agricultural development board, title guaranty division 29 board, executive director, or other authority employee such 30 of its powers, under such terms and conditions, as it deems 31 appropriate. 32 Sec. 6. Section 16.2, subsection 9, Code 2014, is amended by 33 striking the subsection. 34 Sec. 7. Section 16.2A, subsection 1, Code 2014, is amended 35 -4- LSB 5173SV (8) 85 da/rj 4/ 94

S.F. 2328 to read as follows: 1 1. A title guaranty division is created within the 2 authority. The powers of the division relating to the issuance 3 of title guaranties are vested in and shall be exercised by 4 a division board of five members appointed by the governor 5 subject to confirmation by the senate. The membership 6 of the board shall include an attorney, an abstractor, a 7 real estate broker, a representative of a mortgage lender 8 lending institution that engages in mortgage lending , and 9 a representative of the housing development industry. The 10 executive director of the authority shall appoint an attorney 11 as director of the title guaranty division, who shall serve 12 as an ex officio member of the board. The appointment of and 13 compensation for the division director are exempt from the 14 merit system provisions of chapter 8A, subchapter IV . 15 Sec. 8. NEW SECTION . 16.2B Agricultural development 16 division —— administration of programs. 17 1. An agricultural development division is created 18 within the authority. The agricultural development division 19 shall administer subchapter VIII , by providing assistance 20 to beginning farmers, agricultural producers, displaced 21 farmers, or other persons qualifying for such assistance under 22 subchapter VIII . 23 2. The agricultural development division shall be 24 administered in accordance with the policies of the 25 agricultural development board created in section 16.2C . 26 The executive director of the authority may organize the 27 agricultural development division and employ necessary 28 qualified personnel to administer subchapter VIII. 29 3. The agricultural development division shall, to 30 every extent practical, assist such persons to do all of the 31 following: 32 a. Acquire agricultural land, agricultural improvements, 33 or depreciable agricultural property, including as provided in 34 subchapter VIII. 35 -5- LSB 5173SV (8) 85 da/rj 5/ 94

S.F. 2328 b. Obtain agricultural assets transfer tax credits, 1 including by issuing tax credit certificates pursuant to 2 subchapter VIII, part 5. 3 c. Obtain financing for other capital requirements or 4 operating expenses. 5 4. The net earnings of the agricultural development 6 division, beyond that necessary for retirement of its notes, 7 bonds, or other obligations or to implement the public purposes 8 and programs authorized in subchapter VIII, shall not inure to 9 the benefit of any person other than the state. 10 5. a. At least two of the authority’s full-time equivalent 11 positions, as defined in section 8.36A , shall be entirely 12 dedicated to administering programs established pursuant to 13 subchapter VIII. One of those full-time equivalent positions 14 shall be dedicated to overseeing the administration of those 15 programs, and to the extent that the programs are affected, the 16 full-time equivalent position shall be provided the powers and 17 duties necessary to do all of the following: 18 (1) Participate in making managerial decisions. 19 (2) Provide for outreach and promotion. 20 (3) Improve delivery of services. 21 b. This subsection is repealed on July 1, 2015. 22 Sec. 9. NEW SECTION . 16.2C Agricultural development board. 23 1. The powers of the agricultural development division, 24 created within the Iowa finance authority under section 16.2B , 25 are vested in and shall be exercised by the agricultural 26 development board as provided in section 16.2B and this 27 section . 28 2. The agricultural development board is created to 29 exercise all powers and perform all duties necessary to 30 administer subchapter VIII according to policies established 31 by the Iowa finance authority. The authority shall establish 32 policies and practices for the division and oversee its 33 operations. The authority may review or approve decisions 34 affecting the division or administration of subchapter VIII, 35 -6- LSB 5173SV (8) 85 da/rj 6/ 94

S.F. 2328 including decisions of the agricultural development board. 1 3. The agricultural development board consists of five 2 members appointed by the governor subject to confirmation 3 by the senate. The executive director of the Iowa finance 4 authority or the executive director’s designee shall serve as 5 an ex officio, nonvoting member. 6 4. The appointed members of the agricultural development 7 board shall be appointed and retained in office as follows: 8 a. Not more than three members shall belong to the same 9 political party. 10 b. As far as possible, the governor shall include within 11 the membership persons who represent lending institutions 12 experienced in agricultural lending, real estate sales, 13 farmers, beginning farmers, average taxpayers, local 14 government, soil and water conservation district officials, 15 agricultural educators, and other persons specially interested 16 in family farm development. 17 c. Members shall serve for staggered terms of six years 18 beginning and ending as provided in section 69.19 . A person 19 appointed to fill a vacancy shall serve only for the unexpired 20 portion of the member’s term. A member is eligible for 21 reappointment. An appointed member may be removed from office 22 by the governor for misfeasance, malfeasance, willful neglect 23 of duty, or other just cause, after notice and hearing, unless 24 the notice and hearing is expressly waived in writing. 25 5. The agricultural development board shall conduct 26 business according to all of the following: 27 a. Three appointed members constitute a quorum and the 28 affirmative vote of a majority of the appointed members is 29 necessary for any substantive action taken by the board. A 30 majority of appointed members shall not include any member who 31 has a conflict of interest and a statement by a member that 32 the member has a conflict of interest is conclusive for this 33 purpose. A vacancy in the membership does not impair the right 34 of a quorum to exercise all rights and perform all duties of 35 -7- LSB 5173SV (8) 85 da/rj 7/ 94

S.F. 2328 the board. 1 b. Meetings of the board shall be held at the call of the 2 chairperson or whenever two appointed members so request. 3 c. The appointed members shall elect a chairperson and vice 4 chairperson annually, and other officers as they determine. 5 The executive director of the Iowa finance authority or the 6 executive director’s designee shall serve as secretary to the 7 board. 8 6. An appointed member of the agricultural development 9 board is entitled to receive a per diem as specified in section 10 7E.6 for each day spent in performance of duties as a member, 11 and shall be reimbursed for all actual and necessary expenses 12 incurred in the performance of duties as a member. 13 7. An appointed member of the agricultural development 14 board shall give bond as required for public officers in 15 chapter 64 . 16 Sec. 10. NEW SECTION . 16.2D Council on homelessness. 17 1. A council on homelessness is created consisting of 18 thirty-eight voting members. At least one voting member at all 19 times shall be a member of a minority group. 20 2. Members of the council shall consist of all of the 21 following: 22 a. Twenty-six members of the general public appointed to 23 two-year staggered terms by the governor in consultation with 24 the nominating committee under subsection 4 , paragraph “a” . 25 (1) Voting members from the general public may include 26 but are not limited to the following types of individuals 27 and representatives of the following programs: homeless or 28 formerly homeless individuals and their family members, youth 29 shelters, faith-based organizations, local homeless service 30 providers, emergency shelters, transitional housing providers, 31 family and domestic violence shelters, private business, local 32 government, and community-based organizations. 33 (2) Five of the twenty-six voting members selected from the 34 general public shall be individuals who are homeless, formerly 35 -8- LSB 5173SV (8) 85 da/rj 8/ 94

S.F. 2328 homeless, or family members of homeless or formerly homeless 1 individuals. 2 (3) One of the twenty-six members selected from the general 3 public shall be a representative of the Iowa state association 4 of counties. 5 (4) One of the twenty-six members selected from the general 6 public shall be a representative of the Iowa league of cities. 7 b. Twelve agency director members consisting of all of the 8 following: 9 (1) The director of the department of education or the 10 director’s designee. 11 (2) The director of the economic development authority or 12 the director’s designee. 13 (3) The director of human services or the director’s 14 designee. 15 (4) The attorney general or the attorney general’s 16 designee. 17 (5) The director of the department of human rights or the 18 director’s designee. 19 (6) The director of public health or the director’s 20 designee. 21 (7) The director of the department on aging or the 22 director’s designee. 23 (8) The director of the department of corrections or the 24 director’s designee. 25 (9) The director of the department of workforce development 26 or the director’s designee. 27 (10) The director of the department of public safety or the 28 director’s designee. 29 (11) The director of the department of veterans affairs or 30 the director’s designee. 31 (12) The executive director of the Iowa finance authority or 32 the executive director’s designee. 33 3. An agency director’s designee may vote on council matters 34 in the absence of the director. 35 -9- LSB 5173SV (8) 85 da/rj 9/ 94

S.F. 2328 4. a. A nominating committee initially comprised of all 1 twelve agency director members shall nominate persons to 2 the governor to fill the general public member positions. 3 Following appointment of all twenty-six general public members, 4 the composition of the nominating committee may be modified by 5 rule. 6 b. The council may establish other committees and 7 subcommittees comprised of members of the council. 8 5. A vacancy on the council shall be filled in the same 9 manner as the original appointment. A member appointed to fill 10 a vacancy created other than by expiration of a term shall be 11 appointed for the remainder of the unexpired term. 12 6. a. A majority of the members of the council constitutes 13 a quorum. Any action taken by the council must be adopted by 14 the affirmative vote of a majority of its membership. 15 b. The council shall elect a chairperson and vice 16 chairperson from the membership of the council. The 17 chairperson and vice chairperson shall each serve two-year 18 terms. The positions of chairperson and vice chairperson shall 19 not be held by members who are both either general public 20 members or agency directors. The position of chairperson shall 21 rotate between agency director members and general public 22 members. 23 c. The council shall meet at least six times per year. 24 Meetings of the council may be called by the chairperson or by 25 a majority of the members. 26 d. General public members shall be reimbursed by the Iowa 27 finance authority for actual and necessary expenses incurred 28 while engaged in their official duties. 29 7. The Iowa finance authority shall provide staff 30 assistance and administrative support to the council. 31 8. The duties of the council shall include but are not 32 limited to the following: 33 a. Develop a process for evaluating state policies, 34 programs, statutes, and rules to determine whether any state 35 -10- LSB 5173SV (8) 85 da/rj 10/ 94

S.F. 2328 policies, programs, statutes, or rules should be revised to 1 help prevent and alleviate homelessness. 2 b. Evaluate whether state agency resources could be more 3 efficiently coordinated with other state agencies to prevent 4 and alleviate homelessness. 5 c. Work to develop a coordinated and seamless service 6 delivery system to prevent and alleviate homelessness. 7 d. Use existing resources to identify and prioritize efforts 8 to prevent persons from becoming homeless and to eliminate 9 factors that keep people homeless. 10 e. Identify and use federal and other funding opportunities 11 to address and reduce homelessness within the state. 12 f. Work to identify causes and effects of homelessness and 13 increase awareness among policymakers and the general public. 14 g. Advise the governor’s office, the Iowa finance authority, 15 state agencies, and private organizations on strategies to 16 prevent and eliminate homelessness. 17 9. a. The council shall make annual recommendations to 18 the governor regarding matters which impact homelessness on or 19 before September 15. 20 b. The council shall prepare and file with the governor and 21 the general assembly on or before the first day of December in 22 each odd-numbered year, a report on homelessness in Iowa. 23 c. The council shall assist in the completion of the state’s 24 continuum of care application to the United States department 25 of housing and urban development. 26 10. a. The Iowa finance authority, in consultation with the 27 council, shall adopt rules pursuant to chapter 17A for carrying 28 out the duties of the council pursuant to this section . 29 b. The council shall establish internal rules of procedure 30 consistent with the provisions of this section . 31 c. Rules adopted or internal rules of procedure established 32 pursuant to paragraph “a” or “b” shall be consistent with the 33 requirements of the federal McKinney-Vento Homeless Assistance 34 Act, 42 U.S.C. §11301 et seq. 35 -11- LSB 5173SV (8) 85 da/rj 11/ 94

S.F. 2328 11. The council shall comply with the requirements of 1 chapters 21 and 22 . The Iowa finance authority shall be the 2 official repository of council records. 3 Sec. 11. NEW SECTION . 16.2E Legislative findings —— 4 general. 5 The general assembly finds and declares all of the 6 following: 7 1. The establishment of the authority is in all respects 8 for the benefit of the people of the state of Iowa, for the 9 improvement of their health and welfare, and for the promotion 10 of the economy, which are public purposes. 11 2. The authority will be performing an essential 12 governmental function in the exercise of the powers and duties 13 conferred upon it by this chapter. 14 3. All of the purposes stated in this chapter are public 15 purposes and uses for which public moneys may be borrowed, 16 expended, advanced, loaned, or granted. 17 Sec. 12. Section 16.3, subsections 1, 2, 14, 15, 16, 17, and 18 18, Code 2014, are amended by striking the subsections. 19 Sec. 13. Section 16.4, subsection 7, Code 2014, is amended 20 to read as follows: 21 7. The authority shall encourage the protection, 22 restoration and rehabilitation of historic properties, and 23 the preservation of other properties of special value for 24 architectural or esthetic reasons. As used in this subsection , 25 “historic properties” means landmarks, landmark sites, or 26 districts which are significant in the history, architecture, 27 archaeology, or culture of this state, its communities, or the 28 nation. 29 Sec. 14. NEW SECTION . 16.4A Legislative findings —— 30 agricultural development. 31 The general assembly finds and declares all of the 32 following: 33 1. There exists a serious problem in this state regarding 34 the ability of nonestablished farmers to acquire agricultural 35 -12- LSB 5173SV (8) 85 da/rj 12/ 94

S.F. 2328 land and agricultural improvements and depreciable agricultural 1 property in order to enter farming. 2 2. This barrier to entry into farming is conducive to 3 consolidation of acreage of agricultural land with fewer 4 individuals resulting in a grave threat to the traditional 5 family farm. 6 3. These conditions result in a loss in population, 7 unemployment, and a movement of persons from rural communities 8 to urban areas accompanied by added costs to communities for 9 creation of new public facilities and services. 10 4. One major cause of this condition has been recurrent 11 shortages of funds in private channels and the high interest 12 cost of borrowing. 13 5. These shortages and costs have made the sale and 14 purchase of agricultural land to beginning farmers a virtual 15 impossibility in many parts of the state. 16 6. The ordinary operations of private enterprise have not in 17 the past corrected these conditions. 18 7. A stable supply of adequate funds for agricultural 19 financing is required to encourage beginning farmers in 20 an orderly and sustained manner and to reduce the problems 21 described in this section . 22 8. Article IX, 2nd subarticle, section 3, of the 23 Constitution of the State of Iowa requires that, “The 24 General Assembly shall encourage, by all suitable means, the 25 promotion of intellectual, scientific, moral, and agricultural 26 improvement,” and agricultural improvement and the public good 27 are served by a policy of facilitating access to capital by 28 beginning farmers unable to obtain capital elsewhere in order 29 to preserve, encourage, and protect the family farm which has 30 been the economic, political, and social backbone of rural 31 Iowa. 32 9. It is necessary to create a program to encourage 33 ownership of farms by beginning farmers by providing purchase 34 money loans to beginning farmers who are not able to obtain 35 -13- LSB 5173SV (8) 85 da/rj 13/ 94

S.F. 2328 adequate capital elsewhere to provide such funds and to lower 1 costs through the use of public financing. 2 10. There exists a serious problem in this state regarding 3 the ability of farmers to obtain affordable operating loans for 4 reasonable and necessary expenses and cash flow requirements 5 of farming. 6 11. Farming is one of the principal pursuits of the 7 inhabitants of this state. Many other industries and pursuits, 8 in turn, are wholly dependent upon farming. 9 12. The inability of farmers to obtain affordable operating 10 loans is conducive to a general decline of the economy in this 11 state. 12 13. A serious problem continues to exist in this state 13 regarding the ability of agricultural producers to obtain, 14 retain, restructure, or service loans or other financing on 15 a reasonable and affordable basis for operating expenses, 16 cash flow requirements, and capital asset acquisition or 17 maintenance. 18 14. Because the Iowa economy is dependent upon the 19 production and marketing of agricultural produce, the inability 20 of agricultural producers to obtain, retain, restructure, 21 or service loans or other financing on a reasonable and 22 an affordable basis for operating expenses, cash flow 23 requirements, or capital asset acquisition or maintenance 24 contributes to a general decline of the state’s economy. 25 Sec. 15. NEW SECTION . 16.4B Guiding principles —— 26 agricultural development. 27 In the performance of its duties, implementation of its 28 powers, and selection of specific programs and projects to 29 receive its assistance under subchapter VIII, the authority 30 shall be guided by the following precatory principles: 31 1. The authority shall not become an owner of real or 32 depreciable property, except on a temporary basis where 33 necessary in order to implement its programs, to protect its 34 investments by means of foreclosure or other means, or to 35 -14- LSB 5173SV (8) 85 da/rj 14/ 94

S.F. 2328 facilitate transfer of real or depreciable property for the use 1 of beginning farmers. 2 2. The authority shall exercise diligence and care in 3 selection of projects to receive its assistance and shall apply 4 customary and acceptable business and lending standards in 5 selection and subsequent implementation of the projects. The 6 authority may delegate primary responsibility for determination 7 and implementation of the projects to any federal governmental 8 agency which assumes any obligation to repay the loan, either 9 directly or by insurance or guaranty. 10 3. The authority shall establish a beginning farmer 11 loan program to aid beginning farmers in the acquisition of 12 agricultural land and improvements and depreciable agricultural 13 property. 14 4. The authority shall develop programs for providing 15 financial assistance to agricultural producers in this state. 16 Sec. 16. NEW SECTION . 16.4C Legislative findings —— title 17 guaranty. 18 The general assembly finds and declares that the abstract 19 attorney’s title opinion system promotes land title stability 20 for determining the marketability of land titles and is a 21 public purpose. A public purpose is served by providing, as 22 an adjunct to the abstract attorney’s title opinion system, 23 a low-cost mechanism to provide for additional guaranties of 24 real property titles in Iowa. The title guaranties facilitate 25 mortgage lenders’ participation in the secondary market and 26 add to the integrity of the land-title transfer system in the 27 state. 28 Sec. 17. NEW SECTION . 16.4D Legislative findings —— 29 economic development. 30 The general assembly finds and declares all of the 31 following: 32 1. Economic development and expansion of business, 33 industry, and farming in the state is dependent upon the 34 availability of financing of the development and expansion at 35 -15- LSB 5173SV (8) 85 da/rj 15/ 94

S.F. 2328 affordable interest rates. 1 2. The pooling of private financing enhances the 2 marketability of the obligations involved and increases access 3 to other state, regional, and national credit markets. 4 3. The creation of an economic development program as 5 provided in section 16.102 will make the pooling of private 6 financing available to small businesses, farmers, agricultural 7 landowners and operators, and commercial, industrial, and other 8 business enterprises at favorable interest rates with reduced 9 marketing costs. 10 Sec. 18. Section 16.5, subsection 1, paragraph p, Code 2014, 11 is amended to read as follows: 12 p. Through the Iowa title guaranty division, make and issue 13 title guaranties on Iowa real property in a form acceptable 14 to the secondary market, to fix and collect the charges for 15 the guaranties and to procure reinsurance against any loss in 16 connection with the guaranties. 17 Sec. 19. Section 16.5C, subsections 6 and 8, Code 2014, are 18 amended to read as follows: 19 6. Renegotiate a mortgage loan or loan to a mortgage lender 20 lending institution in default; waive a default or consent to 21 the modification of the terms of a mortgage loan or a loan to a 22 mortgage lender lending institution ; forgive or forbear all or 23 part of a mortgage loan or a loan to a mortgage lender lending 24 institution ; and commence, prosecute, and enforce a judgment 25 in any action, including but not limited to a foreclosure 26 action, to protect or enforce any right conferred upon the 27 authority by law, mortgage loan agreement, contract, or other 28 agreement, and in connection with any such action, bid for and 29 purchase the property or acquire or take possession of it, 30 complete, administer, and pay the principal of and interest on 31 any obligations incurred in connection with the property, and 32 dispose of and otherwise deal with the property in a manner as 33 the authority deems advisable to protect its interests. 34 8. Purchase, and make advance commitments to purchase, 35 -16- LSB 5173SV (8) 85 da/rj 16/ 94

S.F. 2328 residential mortgage loans from mortgage lenders lending 1 institutions at prices and upon terms and conditions it 2 determines consistent with its goals and legislative findings. 3 However, the total purchase price for all residential 4 mortgage loans which the authority commits to purchase from 5 a mortgage lender lending institution at any one time shall 6 not exceed the total of the unpaid principal balances of the 7 residential mortgage loans purchased. Mortgage lenders Lending 8 institutions are authorized to sell residential mortgage loans 9 to the authority in accordance with this section and the rules 10 of the authority. The authority may charge a mortgage lender 11 lending institution a commitment fee or other fees as set by 12 rule as a condition for the authority purchasing residential 13 mortgage loans. 14 Sec. 20. NEW SECTION . 16.5D Specific powers and duties —— 15 agricultural development. 16 The authority has all of the general and specific powers 17 needed to carry out its purposes and duties as provided in 18 this subchapter, and to exercise its specific powers under 19 subchapter VIII. 20 Sec. 21. Section 16.7, Code 2014, is amended to read as 21 follows: 22 16.7 Annual report. 23 1. The authority shall submit to the governor and to the 24 general assembly, not later than January 15 each year , a an 25 annual report. 26 2. A complete report shall include at least three parts 27 which include all of the following: 28 a. A general description of the authority setting forth: 29 a. (1) Its operations and accomplishments. 30 b. (2) Its receipts and expenditures during the fiscal 31 year, in accordance with the classifications it establishes for 32 its operating and capital accounts. 33 c. (3) Its assets and liabilities at the end of its fiscal 34 year and the status of reserve, special , and other funds. 35 -17- LSB 5173SV (8) 85 da/rj 17/ 94

S.F. 2328 d. (4) A schedule of its bonds and notes outstanding at 1 the end of its fiscal year, together with a statement of the 2 amounts redeemed and issued during its fiscal year. 3 e. (5) A statement of its proposed and projected 4 activities. 5 f. (6) Recommendations to the general assembly, as it deems 6 necessary. 7 g. An analysis of current housing needs in the state. 8 2. The annual report shall identify performance 9 (7) Performance goals of the authority, and clearly 10 indicate indicating the extent of progress during the reporting 11 period, in attaining the goals. 12 b. A summary of housing programs administered under this 13 chapter. The summary shall include an analysis of current 14 housing needs in this state. Where possible, results shall be 15 expressed in terms of housing units. 16 c. A summary of agricultural development programs 17 administered under subchapter VIII. Where possible, findings 18 and results shall be expressed in terms of number of loans, tax 19 credits, participating qualified beginning farmers, and acres 20 of agricultural land, including by county. 21 Sec. 22. Section 16.9, Code 2014, is amended by striking the 22 section and inserting in lieu thereof the following: 23 16.9 Nondiscrimination and affirmative action. 24 In administering its programs under this chapter, the 25 authority shall comply with all applicable state and federal 26 laws relating to nondiscrimination and affirmative action. 27 Sec. 23. NEW SECTION . 16.11 Assistance by state officers, 28 agencies, and departments. 29 State officers and state departments and agencies may render 30 services to the authority within their respective functions as 31 requested by the authority. 32 Sec. 24. NEW SECTION . 16.13 Conflicts of interest. 33 1. As used in this section, “member” means each individual 34 appointed to any of the following: 35 -18- LSB 5173SV (8) 85 da/rj 18/ 94

S.F. 2328 a. The board of directors of the Iowa finance authority 1 created pursuant to section 16.2. 2 b. The board of directors of the agricultural development 3 division created pursuant to section 16.2C. 4 2. a. If a member or employee of the authority other than 5 the executive director of the authority has an interest, either 6 direct or indirect, in a contract to which the authority is, 7 or is to be, a party, or in a mortgage lender requesting a loan 8 from, or offering to sell mortgage loans to, the authority, 9 the interest shall be disclosed to the authority in writing 10 and shall be set forth in the minutes of the authority. The 11 member or employee having the interest shall not participate 12 in any action of the authority with respect to that contract 13 or mortgage lender. 14 b. A violation of a provision of this subsection is 15 misconduct in office under section 721.2. However, a 16 resolution of the authority is not invalid because of a vote 17 cast by a member in violation of this subsection unless the 18 vote was decisive in the passage of the resolution. 19 c. For the purposes of this subsection, “action of the 20 authority with respect to that contract or mortgage lender” 21 means only an action directly affecting a separate contract or 22 mortgage lender, and does not include an action which benefits 23 the general public or which affects all or a substantial 24 portion of the contracts or mortgage lenders included in a 25 program of the authority. 26 3. Nothing in this section shall be deemed to limit the 27 right of a member, officer, or employee of the authority to 28 acquire an interest in bonds or notes of the authority or to 29 limit the right of a member, officer, or employee other than 30 the executive director to have an interest in a financial 31 institution, including a lending institution, in which the 32 funds of the authority are, or are to be, deposited or which 33 is, or is to be, acting as trustee or paying agent under a trust 34 indenture to which the authority is a party. 35 -19- LSB 5173SV (8) 85 da/rj 19/ 94