H.F. 195 Section 1. Section 404.1, subsection 2, Code 2015, is 1 amended to read as follows: 2 2. An area which by reason of the presence of a substantial 3 number of deteriorated or deteriorating structures, 4 predominance of defective or inadequate street layout, 5 incompatible land use relationships, faulty lot layout in 6 relation to size, adequacy, accessibility or usefulness, 7 unsanitary or unsafe conditions, deterioration of site or other 8 improvements, diversity of ownership, tax or special assessment 9 delinquency exceeding the actual value of the land, defective 10 or unusual conditions of title, or the existence of conditions 11 which endanger life or property by fire and other causes, or a 12 combination of such factors, substantially impairs or arrests 13 the sound growth of a municipality, retards the provision of 14 housing accommodations or constitutes an economic or social 15 liability and is a menace to the public health, safety, or 16 welfare in its present condition and use. 17 Sec. 2. Section 404.2, Code 2015, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 5A. a. If the proposed revitalization area 20 is a new development revitalization area, the governing body 21 of each local taxing authority authorized to certify a levy on 22 property located within the area comprising the revitalization 23 area has adopted a resolution authorizing the designation of 24 the revitalization area. 25 b. For the purposes of this subsection, “new development 26 revitalization area” means a revitalization area established 27 on or after July 1, 2015, that meets all of the following 28 conditions: 29 (1) Is designated in whole or in part under section 404.1, 30 subsection 5, or is comprised of property in which less 31 than fifty percent of the property meets the description of 32 conditions under section 404.1, subsections 1 and 2. 33 (2) Provides an exemption under this chapter from taxation 34 on value added by improvements to single-family residential 35 -1- LSB 1038YH (2) 86 md/sc 1/ 3

H.F. 195 property. 1 (3) Is either established by a city and covers all property 2 within the city limits or is established by a county and covers 3 all unincorporated areas of the county. 4 Sec. 3. APPLICABILITY. This Act applies to revitalization 5 areas established under chapter 404 on or after July 1, 2015. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 This bill relates to the revitalization areas and property 10 tax exemptions approved by cities and counties under Code 11 chapter 404. 12 The bill modifies some of the grounds under which a city 13 or county may designate a revitalization area. Current Code 14 section 404.1 provides, in part, that the governing body of 15 a city or county may designate an area as a revitalization 16 area, if that area is an area which by reason of the presence 17 of a substantial number of deteriorated or deteriorating 18 structures, predominance of defective or inadequate street 19 layout, incompatible land use relationships, faulty lot layout 20 in relation to size, adequacy, accessibility or usefulness, 21 unsanitary or unsafe conditions, deterioration of site or 22 other improvements, diversity of ownership, tax or special 23 assessment delinquency exceeding the actual value of the land, 24 defective or unusual conditions of title, or the existence of 25 conditions which endanger life or property by fire and other 26 causes, or a combination of such factors, substantially impairs 27 or arrests the sound growth of a municipality, retards the 28 provision of housing accommodations or constitutes an economic 29 or social liability and is a menace to the public health, 30 safety, or welfare in its present condition and use. The bill 31 strikes portions of that provision relating to predominance of 32 defective or inadequate street layout, incompatible land use 33 relationships, faulty lot layout in relation to size, adequacy, 34 accessibility or usefulness, diversity of ownership, tax or 35 -2- LSB 1038YH (2) 86 md/sc 2/ 3

H.F. 195 special assessment delinquency exceeding the actual value of 1 the land, and defective or unusual conditions of title. 2 The bill also amends provisions relating to the approval 3 requirements for revitalization areas under Code section 404.2. 4 The bill provides that if the proposed revitalization area 5 is a “new development revitalization area”, the governing 6 body of each local taxing authority authorized to certify 7 a levy on property located within the area comprising the 8 revitalization area must first adopt a resolution authorizing 9 the designation of the revitalization area. The bill defines 10 “new development revitalization area” to be a revitalization 11 area established on or after July 1, 2015, that meets all of 12 the following conditions: (1) is designated in whole or in 13 part as an area appropriate for public improvements related 14 to housing and residential development, or construction of 15 housing and residential development, including single or 16 multifamily housing, or is comprised of less than 50 percent 17 property that meets the description under Code section 404.1, 18 subsections 1 and 2, relating to conditions detrimental to 19 public health, safety, or welfare; (2) provides an exemption 20 under Code chapter 404 from taxation on value added by 21 improvements to single-family residential property; and (3) is 22 either established by a city and covers all property within 23 the city limits or is established by a county and covers all 24 unincorporated areas of a county. 25 The bill applies to revitalization areas established under 26 Code chapter 404 on or after July 1, 2015. 27 -3- LSB 1038YH (2) 86 md/sc 3/ 3