House File 2628 - Introduced HOUSE FILE 2628 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HF 2406) (SUCCESSOR TO HSB 619) A BILL FOR An Act relating to the establishment of a disaster recovery 1 homeowner assistance program and fund administered by the 2 Iowa finance authority, transfers of moneys to certain 3 funds, and including effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5422HZ (2) 88 ko/jh

H.F. 2628 Section 1. NEW SECTION . 16.43 Use of revolving loan funds. 1 1. Notwithstanding any other provision of law to the 2 contrary, the authority may transfer any unobligated and 3 unencumbered moneys in any revolving loan program fund created 4 pursuant to section 16.46, 16.47, 16.48, or 16.49, for deposit 5 in any other fund created under this part. 6 2. a. Any transfer of funds made under this section shall 7 be reported by the executive director to the legislative fiscal 8 committee of the legislative council. The report shall be due 9 not later than the tenth day of each calendar month and shall 10 cover all fund transfers made in the calendar month immediately 11 preceding the report. The report shall identify all of the 12 following: 13 (1) The total dollar amount of each transfer of funds. 14 (2) The date of each transfer of funds. 15 (3) Each fund affected by each transfer of funds. 16 (4) A brief explanation of the reason for each transfer of 17 funds. 18 (5) Any other information required by the committee. 19 b. A summary of all fund transfers made under this section 20 shall be included in the legislative fiscal committee’s annual 21 report. 22 Sec. 2. NEW SECTION . 16.44 Disaster recovery homeowner 23 assistance program and fund. 24 1. As used in this section, unless the context otherwise 25 requires: 26 a. “Disaster-affected home” means any of the following: 27 (1) A primary residence that is destroyed or damaged due to 28 a natural disaster that occurs on or after the effective date 29 of this Act, and is located in a county that due to the natural 30 disaster is the subject of a state of disaster emergency 31 proclamation by the governor that authorizes disaster recovery 32 homeowner assistance. 33 (2) A primary residence that is destroyed or damaged due to 34 a natural disaster that occurred on or after March 12, 2019, 35 -1- LSB 5422HZ (2) 88 ko/jh 1/ 11

H.F. 2628 but before the effective date of this Act, and is located in a 1 county that has been declared a major disaster by the president 2 of the United States on or after March 12, 2019, but before the 3 effective date of this Act, and that is also a county in which 4 individuals are eligible for federal individual assistance. 5 b. “Fund” means the disaster recovery homeowner assistance 6 fund. 7 c. “Local program administrator” means any of the following: 8 (1) The cities of Ames, Cedar Falls, Cedar Rapids, Council 9 Bluffs, Davenport, Des Moines, Dubuque, Iowa City, Waterloo, 10 and West Des Moines. 11 (2) A council of governments whose territory includes at 12 least one county that is the subject of a state of disaster 13 emergency proclamation by the governor that authorizes disaster 14 recovery homeowner assistance on or after the effective date 15 of this Act. 16 (3) A qualified local organization or governmental entity 17 as determined by rules as adopted by the authority. 18 d. “Program” means the disaster recovery homeowner 19 assistance program. 20 e. “Replacement housing” means housing purchased by a 21 homeowner to replace a disaster-affected home that is destroyed 22 or damaged beyond reasonable repair as determined by a local 23 program administrator. 24 f. “State of disaster emergency” means the same as described 25 in section 29C.6, subsection 1. 26 2. a. A disaster recovery homeowner assistance fund 27 is created within the authority, and the authority shall 28 administer the fund in a manner to award forgivable loans to 29 eligible homeowners for purposes of this section. 30 b. The fund may consist of any moneys appropriated by the 31 general assembly for purposes of this section and any other 32 moneys that are lawfully available to the authority. The 33 authority shall use any moneys specifically appropriated for 34 purposes of this section only for the purposes of this section. 35 -2- LSB 5422HZ (2) 88 ko/jh 2/ 11

H.F. 2628 The authority may use all other moneys in the fund, including 1 interest, earnings, and recaptures, for purposes of this 2 section. 3 c. Notwithstanding section 8.39, subsections 1 and 3, 4 and notwithstanding any other law to the contrary, with 5 the prior written consent and approval of the governor, the 6 executive director of the Iowa finance authority may transfer 7 any unobligated and unencumbered moneys in any fund created 8 pursuant to section 16.5, subsection 1, paragraph “s” , for 9 deposit in the disaster recovery homeowner assistance fund. 10 The prior written consent and approval of the director of the 11 department of management shall not be required to transfer the 12 unobligated and unencumbered moneys. 13 d. Notwithstanding section 8.39, subsections 2 and 3, and 14 notwithstanding any other law to the contrary, with the prior 15 written approval of the director of the economic development 16 authority and the prior written approval of the governor, the 17 executive director of the Iowa finance authority may transfer 18 any unobligated and unencumbered moneys in any fund created 19 pursuant to section 15.106A, subsection 1, paragraph “o” , for 20 deposit in the disaster recovery homeowner assistance fund. 21 e. (1) Any transfer of funds made pursuant to paragraph 22 “c” or “d” shall be reported by the executive director to the 23 legislative fiscal committee of the legislative committee. 24 The report shall be due not later than the tenth day of each 25 calendar month and shall cover all fund transfers made in the 26 calendar month immediately preceding the report. The report 27 shall identify all of the following: 28 (a) The total dollar amount of each transfer of funds. 29 (b) The date of each transfer of funds. 30 (c) Each fund affected by each transfer of funds. 31 (d) A brief explanation of the reason for each transfer of 32 funds. 33 (e) Any other information required by the committee. 34 (2) A summary of all fund transfers made pursuant to 35 -3- LSB 5422HZ (2) 88 ko/jh 3/ 11

H.F. 2628 paragraphs “c” and “d” shall be included in the legislative 1 fiscal committee’s annual report. 2 f. Notwithstanding section 8.33, moneys in the fund at the 3 end of each fiscal year shall not revert to the general fund or 4 any other fund but shall remain in the fund for expenditure for 5 subsequent fiscal years. 6 g. The authority shall not use more than five percent of 7 the moneys in the fund at the beginning of a fiscal year for 8 purposes of administrative costs and other program support. 9 3. The authority shall establish and administer a disaster 10 recovery homeowner assistance program and shall use moneys in 11 the fund to award forgivable loans to eligible homeowners of 12 disaster-affected homes. Moneys in the fund may be expended 13 following a state of disaster emergency proclamation by 14 the governor that authorizes disaster recovery homeowner 15 assistance. The authority may enter into an agreement with one 16 or more local program administrators to administer the program. 17 4. To be considered for a forgivable loan under the program, 18 a homeowner must register for the disaster case management 19 program established pursuant to section 29C.20B. The disaster 20 case manager may refer the homeowner to the appropriate local 21 program administrator. 22 5. To be eligible for a forgivable loan under the program a 23 homeowner must meet all of the following requirements: 24 a. The homeowner’s disaster-affected home must have 25 sustained damage greater than the damage that is covered by the 26 homeowner’s property and casualty insurance policy insuring the 27 home plus any other state or federal disaster-related financial 28 assistance that the homeowner is eligible to receive. 29 b. A local program administrator must deem the homeowner’s 30 disaster-affected home suitable for rehabilitation or damaged 31 beyond reasonable repair. 32 c. If the homeowner is seeking a forgivable loan for the 33 repair or rehabilitation of the homeowner’s disaster-affected 34 home, the homeowner’s disaster-affected home cannot be proposed 35 -4- LSB 5422HZ (2) 88 ko/jh 4/ 11

H.F. 2628 for buyout by the county or city in which the disaster-affected 1 home is located. 2 6. a. If a homeowner is referred to the authority or to a 3 local program administrator by the homeowner’s disaster case 4 manager, the authority may award a forgivable loan to the 5 eligible homeowner for any of the following purposes: 6 (1) Repair or rehabilitation of the homeowner’s 7 disaster-affected home. 8 (2) Down payment assistance on the purchase of replacement 9 housing and the cost of reasonable repairs to be performed 10 on the replacement housing to render the replacement housing 11 decent, safe, sanitary, and in good repair. Replacement 12 housing purchased by a homeowner shall not be located 13 in a one-hundred-year floodplain. For purposes of this 14 subparagraph, “decent, safe, sanitary, and in good repair” 15 means the same as described in 24 C.F.R. §5.703. 16 b. The maximum forgivable loan that the authority may 17 award to any one eligible homeowner shall be determined by the 18 authority by rule. 19 c. All forgivable loans that are awarded to an eligible 20 homeowner shall have a five-year term and shall be 21 interest-free. 22 d. A forgivable loan awarded to an eligible homeowner shall 23 be forgiven by the authority by a uniform percentage on a 24 monthly basis as determined by rules adopted by the authority. 25 e. If a homeowner who has been awarded a forgivable loan 26 sells a disaster-affected home or replacement housing for which 27 the homeowner received the forgivable loan prior to the end 28 of the five-year loan term, the remaining principal on the 29 forgivable loan shall be due and payable pursuant to rules 30 adopted by the authority. 31 7. The authority shall adopt rules pursuant to chapter 17A 32 to implement and administer this section. 33 8. a. Ninety calendar days after a state of disaster 34 emergency proclamation by the governor authorizes disaster 35 -5- LSB 5422HZ (2) 88 ko/jh 5/ 11

H.F. 2628 recovery homeowner assistance under this section, the authority 1 shall submit a report to the general assembly identifying all 2 of the following for the ninety calendar days immediately 3 preceding the report: 4 (1) The total number of forgivable loans awarded. 5 (2) The total number of forgivable loans, and the amount of 6 each loan, awarded for repair or rehabilitation of homeowners’ 7 disaster-affected homes. 8 (3) The total number of forgivable loans, and the amount of 9 each loan, awarded for down payment assistance on the purchase 10 of replacement housing and the cost of reasonable repairs to be 11 performed on the replacement housing to render the replacement 12 housing decent, safe, sanitary, and in good repair. 13 (4) The total number of forgivable loans awarded in each 14 county in which at least one homeowner has been awarded a 15 forgivable loan. 16 b. The authority shall annually submit by the last day of 17 February a report to the general assembly that identifies all 18 of the following for the calendar year immediately preceding 19 the year of the report: 20 (1) The date of each state of disaster emergency 21 proclamation by the governor that authorized disaster recovery 22 homeowner assistance under this section. 23 (2) The total number of forgivable loans awarded. 24 (3) The total number of forgivable loans, and the amount of 25 each loan, awarded for repair or rehabilitation of homeowners’ 26 disaster-affected homes. 27 (4) The total number of forgivable loans, and the amount of 28 each loan, awarded for down payment assistance on the purchase 29 of replacement housing and the cost of reasonable repairs to be 30 performed on the replacement housing to render the replacement 31 housing decent, safe, sanitary, and in good repair. 32 (5) The total number of forgivable loans awarded in each 33 county in which at least one homeowner has been awarded a 34 forgivable loan. 35 -6- LSB 5422HZ (2) 88 ko/jh 6/ 11

H.F. 2628 (6) Each local program administrator involved in the 1 administration of the program. 2 (7) The total amount of principal repaid pursuant to 3 subsection 6, paragraph “e” . 4 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate 5 importance, takes effect upon enactment. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 This bill relates to the establishment of a disaster 10 recovery homeowner assistance program and fund administered by 11 the Iowa finance authority, and transfers of moneys to certain 12 funds. 13 The bill creates a disaster recovery homeowner assistance 14 fund (fund) within the Iowa finance authority (authority). The 15 fund may consist of any moneys appropriated by the general 16 assembly and any other moneys that are lawfully available to 17 the authority. The authority may use all moneys in the fund, 18 including interest, earnings, and recaptures for the purposes 19 of the fund. Moneys in the fund at the end of each fiscal year 20 do not revert to any other fund but remain in the fund for 21 expenditure for subsequent fiscal years. The bill prohibits 22 the authority from using more than 5 percent of the moneys in 23 the fund at the beginning of a fiscal year for purposes of 24 administrative costs and other program support. 25 Notwithstanding any other law to the contrary, the bill 26 permits the authority to transfer any unobligated and 27 unencumbered moneys in the revolving loan program funds 28 created pursuant to Code sections 16.46, 16.47, 16.48, or 29 16.49, for deposit in any other fund created under Code 30 chapter 16, part 4. The executive director of the authority 31 (executive director) is required to report any fund transfers 32 to the legislative fiscal committee of the legislative 33 council (legislative committee) on a monthly basis. The 34 required contents of the report are detailed in the bill. The 35 -7- LSB 5422HZ (2) 88 ko/jh 7/ 11

H.F. 2628 legislative committee’s annual report must include a summary of 1 all fund transfers. Notwithstanding Code sections 8.39(1) and 2 8.39(3), and notwithstanding any other law to the contrary, the 3 bill permits the executive director to transfer any unobligated 4 and unencumbered moneys in any fund created pursuant to Code 5 section 16.5(1)(s), for deposit in the disaster recovery 6 homeowner assistance fund with the prior written consent and 7 approval of the governor. The prior written consent and 8 approval of the director of the department of management is 9 not required to transfer the unobligated and unencumbered 10 moneys. Notwithstanding Code sections 8.39(2) and 8.39(3), 11 and notwithstanding any other law to the contrary, the bill 12 permits the executive director to transfer any unobligated 13 and unencumbered moneys in any fund created pursuant to Code 14 section 15.106A(1)(o), for deposit in the disaster recovery 15 homeowner assistance fund, with the prior written approval of 16 the director of the economic development authority and the 17 prior written approval of the governor. The executive director 18 is required to report all fund transfers to the legislative 19 committee on a monthly basis. The required contents of the 20 report are detailed in the bill. The legislative committee’s 21 annual report must include a summary of all of the fund 22 transfers. 23 The bill directs the authority to establish and administer a 24 disaster recovery homeowner assistance program (program) and to 25 use moneys in the fund to provide forgivable loans to eligible 26 homeowners of disaster-affected homes. “Disaster-affected 27 home” is defined in the bill as a primary residence that is 28 destroyed or damaged due to a natural disaster that occurs on 29 or after the effective date of the bill, and that is located 30 in a county that due to the natural disaster is the subject 31 of a state of disaster emergency proclamation by the governor 32 that authorizes disaster recovery homeowners assistance; or a 33 primary residence that is destroyed or damaged due to a natural 34 disaster that occurred on or after March 12, 2019, but before 35 -8- LSB 5422HZ (2) 88 ko/jh 8/ 11

H.F. 2628 the effective date of the bill, and is located in a county that 1 has been declared a major disaster by the president of the 2 United States on or after March 12, 2019, and that is also a 3 county in which individuals are eligible for federal individual 4 assistance. 5 The authority may enter into an agreement with one or more 6 local program administrators (administrator) to administer the 7 program, and moneys in the fund may be expended following a 8 state of disaster emergency proclamation by the governor that 9 authorizes disaster recovery homeowner assistance. “Local 10 program administrator” is defined in the bill as the cities of 11 Ames, Cedar Falls, Cedar Rapids, Council Bluffs, Davenport, Des 12 Moines, Dubuque, Iowa City, Waterloo, and West Des Moines; and 13 a council of governments whose territory includes at least one 14 county that is the subject of the state of disaster emergency 15 proclamation by the governor that authorizes disaster recovery 16 homeowner assistance; or a qualified local organization or 17 governmental entity as determined by rules as adopted by the 18 authority. 19 To be considered for a forgivable loan under the program, 20 a homeowner must register for the disaster case management 21 program established pursuant to Code section 29C.20B. The 22 homeowner’s disaster case manager may refer the homeowner to 23 the appropriate local program administrator. 24 To be eligible for a forgivable loan under the program, 25 the bill requires a homeowner to own a disaster-affected home 26 (home) located in a county that has been proclaimed a state 27 of disaster emergency by the governor; the home must have 28 sustained damage greater than the damage that is covered by the 29 homeowner’s property and casualty insurance policy insuring 30 the home plus any other state or federal disaster-related 31 financial assistance that the homeowner is eligible to receive; 32 an administrator must deem the home suitable for rehabilitation 33 or damaged beyond reasonable repair; and if the homeowner is 34 seeking a forgivable loan for the repair or rehabilitation of 35 -9- LSB 5422HZ (2) 88 ko/jh 9/ 11

H.F. 2628 the homeowner’s disaster-affected home, the home cannot be 1 proposed for buyout by the county or city in which the home is 2 located. 3 If a homeowner is referred to an administrator by the 4 homeowner’s manager, the bill allows the authority to award 5 a forgivable loan to the eligible homeowner for repair or 6 rehabilitation of the disaster-affected home, or for down 7 payment assistance on the purchase of replacement housing, 8 and the cost of reasonable repairs to be performed on the 9 replacement housing to render it decent, safe, sanitary, and 10 in good repair. Replacement housing purchased by a homeowner 11 cannot be located in a 100-year floodplain. All awarded 12 forgivable loans must be interest-free and have a five-year 13 term. The maximum forgivable loan that may be awarded to any 14 one eligible homeowner shall be determined by the authority 15 by rule. “Decent, safe, sanitary, and in good repair” is 16 defined in the bill to mean the same as described in 24 C.F.R. 17 §5.703. “Replacement housing” is defined in the bill as 18 housing purchased by a homeowner to replace a disaster-affected 19 home that is destroyed or damaged beyond reasonable repair as 20 determined by a local program administrator. 21 A uniform percentage of a forgivable loan awarded to a 22 homeowner must be forgiven by the authority on a monthly 23 basis as determined by rules adopted by the authority. If 24 a homeowner who has been awarded a forgivable loan sells a 25 disaster-affected home or replacement housing for which the 26 homeowner received the forgivable loan prior to the end of 27 the five-year term, the remaining principal on the forgivable 28 loan becomes due and payable pursuant to rules adopted by the 29 authority. 30 Ninety calendar days after a state of disaster emergency 31 proclamation by the governor authorizes disaster recovery 32 homeowner assistance under the program, the authority must 33 submit a report to the general assembly that covers the 90 34 calendar days immediately preceding the report. The authority 35 -10- LSB 5422HZ (2) 88 ko/jh 10/ 11