Senate Study Bill 3141 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED IOWA FINANCE AUTHORITY BILL) 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 5173XD (17) 85 da/rj

S.F. _____ H.F. _____ 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 5173XD (17) 85 da/rj 1/ 101

S.F. _____ H.F. _____ (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 5173XD (17) 85 da/rj 2/ 101

S.F. _____ H.F. _____ 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 5173XD (17) 85 da/rj 3/ 101

S.F. _____ H.F. _____ 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 5173XD (17) 85 da/rj 4/ 101

S.F. _____ H.F. _____ 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 5173XD (17) 85 da/rj 5/ 101

S.F. _____ H.F. _____ 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 5173XD (17) 85 da/rj 6/ 101

S.F. _____ H.F. _____ 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 5173XD (17) 85 da/rj 7/ 101

S.F. _____ H.F. _____ 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 5173XD (17) 85 da/rj 8/ 101

S.F. _____ H.F. _____ 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 5173XD (17) 85 da/rj 9/ 101

S.F. _____ H.F. _____ 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 5173XD (17) 85 da/rj 10/ 101

S.F. _____ H.F. _____ 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 5173XD (17) 85 da/rj 11/ 101

S.F. _____ H.F. _____ 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 5173XD (17) 85 da/rj 12/ 101

S.F. _____ H.F. _____ 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 5173XD (17) 85 da/rj 13/ 101

S.F. _____ H.F. _____ 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 5173XD (17) 85 da/rj 14/ 101

S.F. _____ H.F. _____ 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 5173XD (17) 85 da/rj 15/ 101

S.F. _____ H.F. _____ 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 5173XD (17) 85 da/rj 16/ 101

S.F. _____ H.F. _____ 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 5173XD (17) 85 da/rj 17/ 101

S.F. _____ H.F. _____ 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 5173XD (17) 85 da/rj 18/ 101

S.F. _____ H.F. _____ 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 5173XD (17) 85 da/rj 19/ 101