SF 148 (LSB 1581XS (1) 87)

SENATE FILE 148

BY  ZAUN

A BILL FOR

An Act relating to developer fees for federal low-income housing credits.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  16.35A  Developer fees —— federal low-income housing credits.
   1.  In qualified allocation plans adopted by the authority for low-income housing credits pursuant to Internal Revenue Code §42, the authority shall not allow fees paid to the developer to exceed an amount equal to ten percent of the total project costs.
   2.  For purposes of the limitation in subsection 1, “developer” means the person responsible for initiating and controlling the development process and ensuring that all phases of the development process, or any material portion thereof, are accomplished.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill prohibits the Iowa finance authority from allowing a developer fee to exceed an amount equal to 10 percent of the total project costs in qualified allocation plans adopted for federal low-income housing credits.
   The bill defines “developer” as the person responsible for initiating and controlling the development process and ensuring that all phases of the development process, or any material portion thereof, are accomplished.