Senate File 2127 - Introduced SENATE FILE 2127 BY BROWN A BILL FOR An Act relating to an extension granted by the economic 1 development authority for certain agreements with eligible 2 housing businesses. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5372XS (5) 87 ko/rn

S.F. 2127 Section 1. 2014 Iowa Acts, chapter 1130, section 43, 1 subsection 1, as amended by 2015 Iowa Acts, chapter 138, 2 section 86, and 2016 Iowa Acts, chapter 1109, section 13, is 3 amended to read as follows: 4 1. On or after the effective date of this division of 5 this Act May 30, 2014 , a city or county shall not create an 6 enterprise zone under chapter 15E, division XVIII , or enter 7 into a new agreement under chapter 15E, division XVIII , unless 8 otherwise authorized in this Act 2015 Iowa Acts, chapter 138, 9 section 85 . 10 a. A city or county and the economic development authority, 11 with the approval of the economic development authority board, 12 may amend an agreement for compliance reasons if the . The 13 amendment does shall not increase the amount of incentives or 14 change the type of incentives originally awarded under the 15 agreement. 16 b. A city or county and the economic development authority, 17 with the approval of the economic development authority board, 18 may approve an extension for an agreement with an eligible 19 housing business, pursuant to section 15E.193B, Code 2014, 20 to complete the housing business’ building or rehabilitation 21 project if the project is located in a county that meets the 22 distress criteria described in section 15E.194, Code 2014, 23 and there remains a demonstrated need for housing within a 24 community in the county. The agreement extension shall be for 25 a maximum of one year from the date the extension is granted 26 and only one extension shall be permitted. The agreement 27 extension shall not increase the amount of incentives or change 28 the type of incentives originally awarded under the agreement. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 This bill relates to an extension granted by the economic 33 development authority for agreements with eligible housing 34 businesses. The authority’s program to provide incentives 35 -1- LSB 5372XS (5) 87 ko/rn 1/ 2

S.F. 2127 and assistance to eligible housing businesses to build or 1 rehabilitate single-family homes, or multiple dwelling unit 2 buildings, in economic development enterprise zones pursuant to 3 Code section 15E.193B, Code 2014, was terminated in 2014 when 4 Code section 15E.193B was repealed. 5 Under the 2014 law, agreements with eligible housing 6 businesses required the project or rehabilitation to be 7 completed within two years of the date the eligible housing 8 business began the building or rehabilitation. The bill 9 allows an extension to be granted by the economic development 10 authority, as approved by the economic development board, 11 for up to one year from the date the extension is granted 12 for the eligible housing business to complete its building 13 or rehabilitation project. The bill provides that only one 14 extension may be granted and only for a project in a distressed 15 county within a community with a demonstrated need for housing. 16 The bill prohibits the agreement extension from increasing 17 the amount of incentives or the type of incentives originally 18 awarded under the agreement. 19 -2- LSB 5372XS (5) 87 ko/rn 2/ 2