S.F. 148 Section 1. NEW SECTION . 16.35A Developer fees —— federal 1 low-income housing credits. 2 1. In qualified allocation plans adopted by the authority 3 for low-income housing credits pursuant to Internal Revenue 4 Code §42, the authority shall not allow fees paid to the 5 developer to exceed an amount equal to ten percent of the total 6 project costs. 7 2. For purposes of the limitation in subsection 1, 8 “developer” means the person responsible for initiating and 9 controlling the development process and ensuring that all 10 phases of the development process, or any material portion 11 thereof, are accomplished. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 This bill prohibits the Iowa finance authority from allowing 16 a developer fee to exceed an amount equal to 10 percent of the 17 total project costs in qualified allocation plans adopted for 18 federal low-income housing credits. 19 The bill defines “developer” as the person responsible for 20 initiating and controlling the development process and ensuring 21 that all phases of the development process, or any material 22 portion thereof, are accomplished. 23 -1- LSB 1581XS (1) 87 jh/sc 1/ 1