Senate Study Bill 3187 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON WILHELM) A BILL FOR An Act relating to the disposal of property by cities and 1 including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 6161XC (3) 85 md/sc

S.F. _____ Section 1. Section 174.15, subsection 2, Code 2014, is 1 amended to read as follows: 2 2. Notwithstanding section 364.7, subsection 3 1 , paragraph 3 “c” , a city may dispose of real property by gift to a fair. 4 Sec. 2. Section 364.7, Code 2014, is amended to read as 5 follows: 6 364.7 Disposal of property. 7 1. A city may not dispose of an interest in real property 8 with a market value in excess of ten thousand dollars by sale, 9 lease for a term of more than three years, or gift, except in 10 accordance with the following procedure: 11 1. a. The council shall set forth its proposal in a 12 resolution and shall publish notice as provided in section 13 362.3 , of the resolution and of a date, time and place of a 14 public hearing on the proposal. 15 2. b. After the public hearing, the council may make a 16 final determination on the proposal by resolution. 17 3. c. A city may not dispose of real property by gift 18 except to a governmental body for a public purpose or to a 19 nonprofit entity that is exempt from federal income taxation 20 pursuant to section 501(c)(3) of the Internal Revenue Code for 21 use by the nonprofit entity in providing affordable housing . 22 2. For purposes of this section, unless the type of interest 23 in the real property is not required to be assessed or have a 24 value ascribed to it by the assessor, “market value” means the 25 most recent actual value as determined by the assessor under 26 section 441.21. 27 Sec. 3. Section 364.12A, Code 2014, is amended to read as 28 follows: 29 364.12A Condemnation of residential buildings —— public 30 purpose. 31 For the purposes of section 6A.4, subsection 6 , a city may 32 condemn a residential building found to be a public nuisance 33 and take title to the property for the public purpose of 34 disposing of the property under section 364.7 by conveying the 35 -1- LSB 6161XC (3) 85 md/sc 1/ 2

S.F. _____ property to a private individual or a nonprofit entity for 1 rehabilitation or for demolition and construction of housing. 2 Sec. 4. APPLICABILITY. This Act applies to interests in 3 real property disposed of by a city on or after July 1, 2014. 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanation’s substance by the members of the general assembly. 7 Current Code section 364.7 provides that a city may not 8 dispose of an interest in real property by sale, lease for a 9 term of more than three years, or gift, except in accordance 10 with a procedure that includes publication of the proposal to 11 sell, lease, or gift the property and after a public hearing on 12 the proposal. 13 This bill provides that the procedure of publication and 14 public hearing shall only apply to the city’s disposition of 15 an interest in real property with a market value in excess 16 of $10,000. The bill also provides that unless the type of 17 interest in the real property is not required to be assessed 18 or have a value ascribed to it by the assessor, “market 19 value” means the most recent actual value as determined by the 20 assessor for purposes of property taxation. 21 Current Code section 364.7 also provides that a city may not 22 dispose of real property by gift except to a governmental body 23 for a public purpose. The bill authorizes a city to dispose 24 of real property by gift to a nonprofit entity for use in 25 providing affordable housing. 26 The bill also amends Code section 364.12A relating to the 27 disposal of property found to be a nuisance and acquired by 28 condemnation to provide for the disposal of such property 29 to a nonprofit entity for rehabilitation or for demolition 30 and construction of housing. Code section 364.12A currently 31 provides for the disposal of such property acquired by 32 condemnation to a private individual for such purposes. 33 The bill applies to interests in real property disposed of by 34 a city on or after July 1, 2014. 35 -2- LSB 6161XC (3) 85 md/sc 2/ 2