Senate Study Bill 3201 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON FEENSTRA) 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 5372XC (3) 87 ko/rn

S.F. _____ 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, ch. 138, §85 . 9 a. A city or county and the economic development authority, 10 with the approval of the economic development authority board, 11 may amend an agreement for compliance reasons if the . The 12 amendment does shall not increase the amount of incentives or 13 change the type of incentives originally awarded under the 14 agreement. 15 b. A city or county and the economic development authority, 16 with the approval of the economic development authority board, 17 may approve an extension for an agreement with an eligible 18 housing business, pursuant to section 15E.193B, Code 2014, 19 to complete the housing business’ building or rehabilitation 20 project if the project is located in a county that meets the 21 distress criteria described in section 15E.194, Code 2014, 22 and there remains a demonstrated need for housing within a 23 community in the county. The agreement extension shall be for 24 a maximum of one year from the date the extension is granted 25 and only one extension shall be permitted. The agreement 26 extension shall not increase the amount of incentives or change 27 the type of incentives originally awarded under the agreement. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 This bill relates to an extension granted by the economic 32 development authority for agreements with eligible housing 33 businesses. The authority’s program to provide incentives 34 and assistance to eligible housing businesses to build or 35 -1- LSB 5372XC (3) 87 ko/rn 1/ 2

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zones pursuant to 2 Code section 15E.193B, Code 2014, was terminated in 2014 when 3 Code section 15E.193B was repealed. 4 Under the 2014 law, agreements with eligible housing 5 businesses required the project or rehabilitation to be 6 completed within two years of the date the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