H.F. 2406 Section 1. NEW SECTION . 16.43 Use of revolving loan funds. 1 Notwithstanding any other provision of law to the contrary, 2 the authority may transfer any unobligated and unencumbered 3 moneys in any revolving loan program fund created pursuant to 4 section 16.46, 16.47, 16.48, or 16.49, for deposit in any other 5 fund created under this part. 6 Sec. 2. NEW SECTION . 16.44 Disaster recovery homeowner 7 assistance program and fund. 8 1. As used in this section, unless the context otherwise 9 requires: 10 a. “Disaster-affected home” means any of the following: 11 (1) A primary residence that is destroyed or damaged due to 12 a natural disaster that occurs on or after the effective date 13 of this Act, and is located in a county that due to the natural 14 disaster is the subject of a state of disaster emergency 15 proclamation by the governor that authorizes disaster recovery 16 homeowner assistance. 17 (2) A primary residence that is destroyed or damaged due to 18 a natural disaster that occurred on or after March 12, 2019, 19 but before the effective date of this Act, and is located in a 20 county that has been declared a major disaster by the president 21 of the United States on or after March 12, 2019, but before the 22 effective date of this Act, and that is also a county in which 23 individuals are eligible for federal individual assistance. 24 b. “Fund” means the disaster recovery homeowner assistance 25 fund. 26 c. “Local program administrator” means any of the following: 27 (1) The cities of Ames, Cedar Falls, Cedar Rapids, Council 28 Bluffs, Davenport, Des Moines, Dubuque, Iowa City, Waterloo, 29 and West Des Moines. 30 (2) A council of governments whose territory includes at 31 least one county that is the subject of a state of disaster 32 emergency proclamation by the governor that authorizes disaster 33 recovery homeowner assistance on or after the effective date 34 of this Act. 35 -1- LSB 5422HV (3) 88 ko/jh 1/ 8

H.F. 2406 (3) A qualified local organization or governmental entity 1 as determined by rules as adopted by the authority. 2 d. “Program” means the disaster recovery homeowner 3 assistance program. 4 e. “Replacement housing” means housing purchased by a 5 homeowner to replace a disaster-affected home that is destroyed 6 or damaged beyond reasonable repair as determined by a local 7 program administrator. 8 f. “State of disaster emergency” means the same as described 9 in section 29C.6, subsection 1. 10 2. a. A disaster recovery homeowner assistance fund 11 is created within the authority, and the authority shall 12 administer the fund in a manner to award forgivable loans to 13 eligible homeowners for purposes of this section. 14 b. The fund may consist of any moneys appropriated by the 15 general assembly for purposes of this section and any other 16 moneys that are lawfully available to the authority. The 17 authority shall use any moneys specifically appropriated for 18 purposes of this section only for the purposes of this section. 19 The authority may use all other moneys in the fund, including 20 interest, earnings, and recaptures, for purposes of this 21 section. 22 c. Notwithstanding section 8.39, subsections 1 and 3, and 23 notwithstanding any other law to the contrary, without the 24 prior written consent and approval of the governor and the 25 department of management, the executive director of the Iowa 26 finance authority may transfer any unobligated and unencumbered 27 moneys in any fund created pursuant to section 16.5, subsection 28 1, paragraph “s” , for deposit in the disaster recovery homeowner 29 assistance fund. 30 d. Notwithstanding section 8.39, subsections 2 and 3, 31 and notwithstanding any other law to the contrary, with the 32 written approval of the director of the economic development 33 authority and without the approval of the governor, the 34 executive director of the Iowa finance authority may transfer 35 -2- LSB 5422HV (3) 88 ko/jh 2/ 8

H.F. 2406 any unobligated and unencumbered moneys in any fund created 1 pursuant to section 15.106A, subsection 1, paragraph “o” , for 2 deposit in the disaster recovery homeowner assistance fund. 3 e. Notwithstanding section 8.33, moneys in the fund at the 4 end of each fiscal year shall not revert to the general fund or 5 any other fund but shall remain in the fund for expenditure for 6 subsequent fiscal years. 7 f. The authority shall not use more than five percent of 8 the moneys in the fund at the beginning of a fiscal year for 9 purposes of administrative costs and other program support. 10 3. The authority shall establish and administer a disaster 11 recovery homeowner assistance program and shall use moneys in 12 the fund to award forgivable loans to eligible homeowners of 13 disaster-affected homes. Moneys in the fund may be expended 14 following a state of disaster emergency proclamation by 15 the governor that authorizes disaster recovery homeowner 16 assistance. The authority may enter into an agreement with one 17 or more local program administrators to administer the program. 18 4. To be considered for a forgivable loan under the program, 19 a homeowner must register for the disaster case management 20 program established pursuant to section 29C.20B. The disaster 21 case manager may refer the homeowner to the appropriate local 22 program administrator. 23 5. To be eligible for a forgivable loan under the program a 24 homeowner must meet all of the following requirements: 25 a. The homeowner’s disaster-affected home must have 26 sustained damage greater than the damage that is covered by the 27 homeowner’s property and casualty insurance policy insuring the 28 home plus any other state or federal disaster-related financial 29 assistance that the homeowner is eligible to receive. 30 b. A local program administrator must deem the homeowner’s 31 disaster-affected home suitable for rehabilitation or damaged 32 beyond reasonable repair. 33 c. If the homeowner is seeking a forgivable loan for the 34 repair or rehabilitation of the homeowner’s disaster-affected 35 -3- LSB 5422HV (3) 88 ko/jh 3/ 8

H.F. 2406 home, the homeowner’s disaster-affected home cannot be proposed 1 for buyout by the county or city in which the disaster-affected 2 home is located. 3 6. a. If a homeowner is referred to the authority or to a 4 local program administrator by the homeowner’s disaster case 5 manager, the authority may award a forgivable loan to the 6 eligible homeowner for any of the following purposes: 7 (1) Repair or rehabilitation of the homeowner’s 8 disaster-affected home. 9 (2) Down payment assistance on the purchase of replacement 10 housing and the cost of reasonable repairs to be performed 11 on the replacement housing to render the replacement housing 12 decent, safe, sanitary, and in good repair. Replacement 13 housing purchased by a homeowner shall not be located 14 in a one-hundred-year floodplain. For purposes of this 15 subparagraph, “decent, safe, sanitary, and in good repair” 16 means the same as described in 24 C.F.R. §5.703. 17 b. The maximum forgivable loan that the authority may 18 award to any one eligible homeowner shall be determined by the 19 authority by rule. 20 c. All forgivable loans that are awarded to an eligible 21 homeowner shall have a five-year term and shall be 22 interest-free. 23 d. A forgivable loan awarded to an eligible homeowner shall 24 be forgiven by the authority by a uniform percentage on a 25 monthly basis as determined by rules adopted by the authority. 26 e. If a homeowner who has been awarded a forgivable loan 27 sells a disaster-affected home or replacement housing for which 28 the homeowner received the forgivable loan prior to the end 29 of the five-year loan term, the remaining principal on the 30 forgivable loan shall be due and payable pursuant to rules 31 adopted by the authority. 32 7. The authority shall adopt rules pursuant to chapter 17A 33 to implement and administer this section. 34 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate 35 -4- LSB 5422HV (3) 88 ko/jh 4/ 8

H.F. 2406 importance, takes effect upon enactment. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 This bill relates to the establishment of a disaster 5 recovery homeowner assistance program and fund administered by 6 the Iowa finance authority, and transfers of moneys to certain 7 funds. 8 The bill creates a disaster recovery homeowner assistance 9 fund (fund) within the Iowa finance authority (authority). The 10 fund may consist of any moneys appropriated by the general 11 assembly and any other moneys that are lawfully available to 12 the authority. The authority may use all moneys in the fund, 13 including interest, earnings, and recaptures for the purposes 14 of the fund. Moneys in the fund at the end of each fiscal year 15 do not revert to any other fund but remain in the fund for 16 expenditure for subsequent fiscal years. The bill prohibits 17 the authority from using more than 5 percent of the moneys in 18 the fund at the beginning of a fiscal year for purposes of 19 administrative costs and other program support. 20 Notwithstanding any other law to the contrary, the bill 21 permits the authority to transfer any unobligated and 22 unencumbered moneys in the revolving loan program funds created 23 pursuant to Code sections 16.46, 16.47, 16.48, or 16.49, for 24 deposit in any other fund created under Code chapter 16, 25 part 4. Notwithstanding Code sections 8.39(1) and 8.39(3), 26 and notwithstanding any other law to the contrary, the bill 27 permits the executive director of the authority to transfer 28 any unobligated and unencumbered moneys in any fund created 29 pursuant to Code section 16.5(1)(s), for deposit in the 30 disaster recovery homeowner assistance fund without the prior 31 written consent and approval of the governor and the department 32 of management. Notwithstanding Code sections 8.39(2) and 33 8.39(3), and notwithstanding any other law to the contrary, 34 the bill permits the executive director of the Iowa finance 35 -5- LSB 5422HV (3) 88 ko/jh 5/ 8

H.F. 2406 authority to transfer any unobligated and unencumbered moneys 1 in any fund created pursuant to Code section 15.106A(1)(o), for 2 deposit in the disaster recovery homeowner assistance fund, 3 with the written approval of the director of the economic 4 development authority and without the approval of the governor. 5 The bill directs the authority to establish and administer a 6 disaster recovery homeowner assistance program (program) and to 7 use moneys in the fund to provide forgivable loans to eligible 8 homeowners of disaster-affected homes. “Disaster-affected 9 home” is defined in the bill as a primary residence that is 10 destroyed or damaged due to a natural disaster that occurs on 11 or after the effective date of the bill, and that is located 12 in a county that due to the natural disaster is the subject 13 of a state of disaster emergency proclamation by the governor 14 that authorizes disaster recovery homeowners assistance; or a 15 primary residence that is destroyed or damaged due to a natural 16 disaster that occurred on or after March 12, 2019, but before 17 the effective date of the bill, and is located in a county that 18 has been declared a major disaster by the president of the 19 United States on or after March 12, 2019, and that is also a 20 county in which individuals are eligible for federal individual 21 assistance. 22 The authority may enter into an agreement with one or more 23 local program administrators (administrator) to administer the 24 program, and moneys in the fund may be expended following a 25 state of disaster emergency proclamation by the governor that 26 authorizes disaster recovery homeowner assistance. “Local 27 program administrator” is defined in the bill as the cities of 28 Ames, Cedar Falls, Cedar Rapids, Council Bluffs, Davenport, Des 29 Moines, Dubuque, Iowa City, Waterloo, and West Des Moines; and 30 a council of governments whose territory includes at least one 31 county that is the subject of the state of disaster emergency 32 proclamation by the governor that authorizes disaster recovery 33 homeowner assistance; or a qualified local organization or 34 governmental entity as determined by rules as adopted by the 35 -6- LSB 5422HV (3) 88 ko/jh 6/ 8

H.F. 2406 authority. 1 To be considered for a forgivable loan under the program, 2 a homeowner must register for the disaster case management 3 program established pursuant to Code section 29C.20B. The 4 homeowner’s disaster case manager may refer the homeowner to 5 the appropriate local programadministrator. 6 To be eligible for a forgivable loan under the program, 7 the bill requires a homeowner to own a disaster-affected home 8 (home) located in a county that has been proclaimed a state 9 of disaster emergency by the governor; the home must have 10 sustained damage greater than the damage that is covered by the 11 homeowner’s property and casualty insurance policy insuring 12 the home plus any other state or federal disaster-related 13 financial assistance that the homeowner is eligible to receive; 14 an administrator must deem the home suitable for rehabilitation 15 or damaged beyond reasonable repair; and if the homeowner is 16 seeking a forgivable loan for the repair or rehabilitation of 17 the homeowner’s disaster-affected home, the home cannot be 18 proposed for buyout by the county or city in which the home is 19 located. 20 If a homeowner is referred to an administrator by the 21 homeowner’s manager, the bill allows the authority to award 22 a forgivable loan to the eligible homeowner for repair or 23 rehabilitation of the disaster-affected home, or for down 24 payment assistance on the purchase of replacement housing, 25 and the cost of reasonable repairs to be performed on the 26 replacement housing to render it decent, safe, sanitary, and 27 in good repair. Replacement housing purchased by a homeowner 28 cannot be located in a 100-year floodplain. All awarded 29 forgivable loans must be interest-free and have a five-year 30 term. The maximum forgivable loan that may be awarded to any 31 one eligible homeowner shall be determined by the authority 32 by rule. “Decent, safe, sanitary, and in good repair” is 33 defined in the bill to mean the same as described in 24 C.F.R. 34 §5.703. “Replacement housing” is defined in the bill as 35 -7- LSB 5422HV (3) 88 ko/jh 7/ 8

H.F. 2406 housing purchased by a homeowner to replace a disaster-affected 1 home that is destroyed or damaged beyond reasonable repair as 2 determined by a local program administrator. 3 A uniform percentage of a forgivable loan awarded to a 4 homeowner must be forgiven by the authority on a monthly 5 basis as determined by rules adopted by the authority. If 6 a homeowner who has been awarded a forgivable loan sells a 7 disaster-affected home or replacement housing for which the 8 homeowner received the forgivable loan prior to the end of 9 the five-year term, the remaining principal on the forgivable 10 loan becomes due and payable pursuant to rules adopted by the 11 authority. 12 The authority is required to adopt rules to implement and 13 administer the fund and the program. 14 The bill takes effect upon enactment. 15 -8- LSB 5422HV (3) 88 ko/jh 8/ 8