Senate File 2013 - Introduced SENATE FILE 2013 BY LOFGREN and DAWSON A BILL FOR An Act relating to the creation of land banks. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 5021XS (8) 88 js/jh

S.F. 2013 DIVISION I 1 LAND BANKS 2 Section 1. NEW SECTION . 358A.1 Short title. 3 This chapter shall be known and may be cited as the “Iowa 4 Land Bank Act” . 5 Sec. 2. NEW SECTION . 358A.2 Legislative intent. 6 The legislature finds and declares all of the following: 7 1. Iowa’s communities are important to the social and 8 economic vitality of this state. Whether urban, suburban, 9 or rural, many communities are struggling with dilapidated, 10 abandoned, blighted, and tax-delinquent properties. 11 2. Citizens of Iowa are affected adversely by dilapidated, 12 abandoned, blighted, and tax-delinquent properties, 13 including properties that have been abandoned due to mortgage 14 foreclosure. 15 3. Dilapidated, abandoned, blighted, and tax-delinquent 16 properties impose significant costs on neighborhoods and 17 communities by lowering property values, increasing fire 18 and police protection costs, decreasing tax revenues, and 19 undermining community cohesion. 20 4. There is an overwhelming public need to confront the 21 problems caused by dilapidated, abandoned, blighted, and 22 tax-delinquent properties; to return properties that are in 23 non-revenue-generating, non-tax-producing status to productive 24 status in order to revitalize urban, suburban, and rural 25 areas, provide affordable housing, and attract new industry; 26 and to create jobs for the citizens of this state through the 27 establishment of new tools that enable communities to turn 28 abandoned spaces into vibrant places. 29 5. Land banks are one of the tools that communities can use 30 to facilitate the return of dilapidated, abandoned, blighted, 31 and tax-delinquent properties to productive use. 32 Sec. 3. NEW SECTION . 358A.3 Definitions. 33 As used in this chapter, unless the context otherwise 34 requires: 35 -1- LSB 5021XS (8) 88 js/jh 1/ 23

S.F. 2013 1. “Board” means the board of directors of a land bank. 1 2. “Financial institution” means a bank, savings 2 association, operating subsidiary of a bank or savings 3 association, credit union, association licensed to originate 4 mortgage loans, or an assignee of a mortgage or note originated 5 by such an institution. 6 3. “Geographical boundaries of the land bank” means the 7 jurisdiction of the municipality that created the land bank or 8 in the case of any combination of municipalities creating a 9 single land bank or joining an existing land bank, the combined 10 jurisdictions of the municipalities. 11 4. “Land bank” means an entity created under section 358A.4. 12 5. “Local employee” means a person employed by a 13 municipality of this state and does not include an independent 14 contractor. 15 6. “Local official” means an officeholder of a municipality 16 of this state. 17 7. “Municipality” means a city, county, or township. 18 8. “Trump bid” means the expression of intent by a land bank 19 to purchase a property for sale at a tax sale under chapter 446 20 by informing the treasurer for the municipality holding the 21 sale. 22 Sec. 4. NEW SECTION . 358A.4 Creation. 23 1. A land bank organized under this chapter shall be a 24 body corporate and politic, with the name under which it was 25 organized, and may sue and be sued in its own name, contract 26 and be contracted with, acquire and hold real and personal 27 property necessary for corporate purposes, adopt a corporate 28 seal and alter the same at pleasure, and exercise all the 29 powers conferred in this chapter. 30 2. a. Any municipality may create a land bank. Creation 31 shall be by ordinance in the case of a city or by resolution in 32 the case of a county or township. The ordinance or resolution 33 shall make reference to the purposes listed under section 34 358A.2. 35 -2- LSB 5021XS (8) 88 js/jh 2/ 23

S.F. 2013 b. Any city, county, or township may create a land bank 1 in combination with other cities, counties, or townships. 2 Municipalities seeking to create such a land bank shall comply 3 with the procedures set forth in chapter 28E. A land bank 4 shall be considered a “public agency” for the purposes of 5 chapters 28E and 28H. 6 c. (1) Any city or township passing an ordinance or a 7 resolution or entering into a chapter 28E agreement under 8 paragraph “a” or “b” of this subsection shall promptly deliver 9 copies of the ordinance, resolution, or agreement to the 10 auditor, treasurer, and the county attorney of each county in 11 which the municipality is situated. 12 (2) Any board of supervisors adopting a resolution or 13 entering into a chapter 28E agreement creating a land bank 14 pursuant to this section shall deliver a copy of the resolution 15 or agreement to the county auditor, county treasurer, and 16 county attorney. 17 3. a. The enabling ordinance or resolution, or chapter 28E 18 agreement, shall set forth the following: 19 (1) The initial board of directors and the initial terms of 20 those directors. 21 (2) General term lengths and limits for the board of 22 directors. 23 (3) Procedures that the board of directors will follow in 24 exercising discretionary provisions of this chapter. 25 b. A chapter 28E agreement shall include procedures for the 26 distribution of assets between participating municipalities 27 upon the dissolution of the land bank. 28 c. Unless otherwise limited in the ordinance, resolution, 29 or chapter 28E agreement, the powers and procedures of a newly 30 created land bank shall be the powers and procedures specified 31 in this chapter. 32 4. A council of governments established in section 28H.1 33 shall not form a land bank. However, pursuant to a chapter 34 28E agreement, a council of governments may provide community 35 -3- LSB 5021XS (8) 88 js/jh 3/ 23

S.F. 2013 development services, planning services, and technical 1 assistance to a land bank. 2 Sec. 5. NEW SECTION . 358A.5 Board. 3 1. a. A land bank shall have a board of directors in which 4 all powers of the land bank shall be vested. 5 b. Unless restricted by the enabling ordinance, resolution, 6 or agreement as specified in section 358A.4, the provisions of 7 this section shall apply to the governance of a land bank. 8 2. a. The membership of the board shall be established in 9 the bylaws of the land bank and shall consist of an odd number 10 of members, which shall be not less than five nor more than 11 eleven. 12 b. Unless otherwise specified by the ordinance, resolution, 13 or agreement under section 358A.4, the default length of a term 14 for a board member shall be four years. The maximum length of a 15 term for a board member shall be five years. 16 c. A land bank may, as determined in the bylaws, limit the 17 number of terms or consecutive terms that members of its board 18 may serve. 19 3. a. A local official may serve as a board member and 20 service as a land bank board member shall neither terminate nor 21 impair that public office. 22 b. A local employee shall be eligible to serve as a land 23 bank board member. 24 c. The members of a land bank board shall all be voting 25 members. Land bank board members shall, to the extent 26 practicable, include representatives of each of the following: 27 (1) A local government. 28 (2) A chamber of commerce. 29 (3) Persons with experience in financial services. 30 (4) Persons with experience in real property acquisition or 31 real property development. 32 (5) Persons with experience in nonprofit or affordable 33 housing. 34 (6) Persons who meet all of the following: 35 -4- LSB 5021XS (8) 88 js/jh 4/ 23

S.F. 2013 (a) The person is a resident of the land bank jurisdiction. 1 (b) The person is not a local public official or local 2 employee. 3 d. Requirements provided in paragraph “c” of this subsection 4 may be satisfied by the appointment of a single voting member 5 who meets more than one of the criteria. 6 e. A member removed under subsection 9 shall be ineligible 7 for reappointment to the board unless the reappointment is 8 confirmed unanimously by the board. 9 4. Annually, the board shall select from the board 10 membership a chair, vice chair, secretary, and treasurer and 11 such other officers as the board deems necessary. 12 5. A vacancy on the board shall be filled following the 13 procedure adopted pursuant to subsection 9. Removal of a 14 member shall cause the position to become vacant. 15 6. Board members shall serve without compensation. 16 However, the board may reimburse a member for expenses actually 17 incurred in the performance of duties on behalf of the land 18 bank as provided in bylaws adopted pursuant to subsection 9. 19 7. The board shall meet as follows: 20 a. In regular session according to a schedule adopted by the 21 board. 22 b. In special session convened by the chair or upon written 23 petition signed by a majority of the members. 24 8. a. A majority of the board, excluding vacancies, 25 constitutes a quorum. 26 b. A board may permit any or all members to participate in 27 a regular or special meeting by, or conduct a meeting through 28 the use of, any means of electronic communication by which all 29 directors participating can simultaneously hear each other 30 during the meeting. A member participating in a meeting by 31 means of electronic communication is deemed to be present, in 32 person, at the meeting. 33 9. a. The board shall adopt bylaws establishing all of the 34 following: 35 -5- LSB 5021XS (8) 88 js/jh 5/ 23

S.F. 2013 (1) Duties of officers selected pursuant to subsection 4. 1 (2) Requirements for attendance and participation of 2 members at regular and special meetings of the board. 3 (3) A procedure for removal of a member for failure 4 to comply with a bylaw. Removal shall only be made by the 5 affirmative vote of no less than a majority of all of the other 6 members of the board. 7 (4) A procedure detailing prioritization of what and which 8 types of properties to acquire, a procedure for acquisition of 9 properties, and a statement of purpose. 10 (5) A procedure for the terms and conditions relating 11 to disposition of properties, including but not limited to a 12 process for distribution of any proceeds to any claimants or 13 taxing entities, and to any other land bank. 14 (6) A procedure for the establishment, membership, and 15 duties of committees of the board. 16 (7) Rules to determine which expenses may be reimbursed. 17 (8) A procedure for making an appointment to fill a vacancy 18 on the board. The procedure shall include a simple majority 19 vote by the board to approve the appointment. 20 (9) Other matters necessary to govern the conduct of a land 21 bank. 22 b. When in actual conflict, the ordinances, resolutions, or 23 agreements described in section 358A.4 shall control over any 24 bylaws adopted by the board. 25 10. a. Except as set forth in paragraph “b” or “c” of this 26 subsection, the enabling ordinance, resolution, or agreement, 27 or as set forth by a land bank in its bylaws, an action of the 28 board must be approved by the affirmative vote of a majority of 29 the board present and voting. 30 b. Action of the board on the following matters must be 31 approved by a majority of the entire board membership excluding 32 vacancies: 33 (1) Adoption of bylaws. 34 (2) Hiring or firing of an employee or contractor of the 35 -6- LSB 5021XS (8) 88 js/jh 6/ 23

S.F. 2013 land bank. This function may be delegated by the board to a 1 specified officer or committee of the land bank. 2 (3) Incurring of debt. 3 (4) Adoption or amendment of the annual budget. 4 (5) Sale, lease, encumbrance, or alienation of real 5 property or personal property with a value of more than fifty 6 thousand dollars. 7 c. A resolution regarding dissolution of the land bank under 8 section 358A.17 must be approved by two-thirds of the entire 9 board membership. 10 d. A member of the board shall not vote by proxy. 11 e. A member may request that a vote on any resolution or 12 action of the land bank be recorded. 13 11. Members of the board shall not be liable personally on 14 the obligations of the land bank, and rights of creditors of a 15 land bank shall be solely against the land bank. 16 Sec. 6. NEW SECTION . 358A.6 Staff. 17 1. A land bank may employ or contract for the employment 18 of a secretary, an executive director, legal counsel and legal 19 staff, including the use of student clinicians from a reputable 20 law school in this state with a clinical law program, and such 21 other technical experts and agents and employees, permanent 22 or temporary, as the land bank may require. The land bank 23 may determine the qualifications and fix the compensation and 24 benefits of such persons. A land bank may also enter into 25 contracts and agreements with municipalities or nonprofit 26 entities for staffing services to be provided to the land 27 bank or for a land bank to provide such staffing services to 28 municipalities or agencies or departments of municipalities. 29 2. An employee of the land bank is not and shall not be 30 deemed to be an employee of the municipality for whose benefit 31 the land bank is organized solely because the employee is 32 employed by the land bank. 33 3. The land bank shall determine the compensation for an 34 executive director who shall manage the operations of a land 35 -7- LSB 5021XS (8) 88 js/jh 7/ 23

S.F. 2013 bank and employ or contract for the employment of others for 1 the benefit of the land bank as approved and funded by the 2 board of directors. 3 Sec. 7. NEW SECTION . 358A.7 Powers. 4 1. In furtherance of the purposes set forth in section 5 358A.2, a land bank shall have all of the following powers: 6 a. To borrow money for any of the purposes of the land bank 7 by means of loans, lines of credit, or any other financial 8 instruments or securities other than through the issuance 9 of bonds, debentures, or notes. A land bank may secure its 10 indebtedness by mortgage, pledge, deed of trust, or other lien 11 on its property, franchises, rights, and privileges of every 12 kind and nature or any part thereof or interest therein. The 13 funds borrowed by the land bank are payable as to principal, 14 interest, and any other amounts owed the lender solely from the 15 proceeds from sale or rental of the property financed with the 16 loan and are not a debt of or charge against the land bank or 17 any of the municipalities that formed the land bank within the 18 meaning of any constitutional or statutory debt limitation. 19 b. To purchase, receive, hold, manage, lease, 20 lease-purchase, or otherwise acquire and to sell, convey, 21 including a conveyance by installment purchase contract, 22 transfer, lease, sublease, or otherwise dispose of real and 23 personal property, together with any incidental or appurtenant 24 rights, privileges, or uses, including but not limited to any 25 real or personal property acquired by the land bank in the 26 satisfaction of debts or the enforcement of obligations. 27 c. (1) To acquire the good will, business, rights, real and 28 personal property, and other assets, or any part or interest, 29 of any person, subject to any obligations enforceable against 30 the property so acquired. 31 (2) To acquire, reclaim, manage, or contract for the 32 management of improved or unimproved and underutilized 33 real property for the purpose of constructing or causing 34 the construction of business establishments or housing on 35 -8- LSB 5021XS (8) 88 js/jh 8/ 23

S.F. 2013 the property, for the purpose of assembling and enhancing 1 utilization of the real property, or for the purpose of 2 disposing of such real property to others in whole or in part 3 for the construction of business establishments or housing. 4 (3) To acquire, reclaim, manage, contract for the 5 management of, construct or reconstruct, alter, repair, 6 maintain, operate, sell, convey, including a conveyance by 7 installment purchase contract, transfer, lease, sublease, or 8 otherwise dispose of business establishments or housing. 9 d. To acquire, subscribe for, own, hold, sell, assign, 10 transfer, mortgage, pledge, or otherwise dispose of stocks, 11 shares, bonds, debentures, notes, or other securities 12 interests or indebtedness and evidences of interest in, or 13 indebtedness of, any person, notwithstanding section 12B.10. 14 Any tax revenue received by a land bank shall not be used for 15 acquisition or subscription. The acquisition of securities 16 shall only be by gift. Securities so acquired shall be 17 converted to cash as soon as practicable. 18 e. To mortgage, pledge, or otherwise encumber any property 19 acquired pursuant to the powers contained in paragraph “b” , “c” , 20 or “d” of this subsection. 21 f. To serve as an agent for grant applications and for the 22 administration of grants, or to make applications as principal 23 for grants intended for use by the land bank. 24 g. To charge fees or exchange in-kind goods or services for 25 services rendered to political subdivisions and other persons 26 for whom services are rendered. 27 h. To purchase tax sale certificates at auction, negotiated 28 sale, or from a third party who purchased and is a holder of one 29 or more tax sale certificates issued pursuant to chapter 446. 30 i. To be assigned a mortgage on real property from a 31 mortgagee in lieu of acquiring such real property subject to 32 a mortgage. 33 j. To extinguish liens and encumbrances on tax-delinquent or 34 otherwise encumbered property the land bank comes to possess. 35 -9- LSB 5021XS (8) 88 js/jh 9/ 23

S.F. 2013 k. To issue trump bids for properties subject to tax sale 1 under chapter 446 at least five business days prior to the 2 beginning of the sale and purchase such properties at the 3 amount initially proposed at such a sale. At the beginning of 4 a sale, properties that a land bank has expressed intent to 5 purchase via a trump bid will be publicly sold to the land bank 6 for the entirety of the delinquent tax debt on the property 7 with the land bank acquiring full ownership with clear title 8 of the property subject to the expiration of the applicable 9 redemption period established in chapter 447 and issuance of 10 the tax deed under chapter 448. 11 l. A land bank may petition for abatement pursuant to 12 chapter 657A and is an “interested person” for purposes of that 13 chapter. 14 m. To do all acts and things necessary or convenient to 15 carry out the purposes set forth in section 358A.2 and the 16 powers especially created for a land bank in this section, 17 including but not limited to contracting with the federal 18 government, the state or any political subdivision of the 19 state, and any other party, whether nonprofit or for-profit. 20 2. The powers enumerated in this chapter shall not be 21 construed to limit the general powers of a land bank. The 22 powers granted under this chapter are in addition to the powers 23 granted by any other section of the Code, but as to a land 24 bank, shall be used only for the purposes set forth in section 25 358A.2. 26 Sec. 8. NEW SECTION . 358A.8 Eminent domain. 27 1. A land bank shall not possess or exercise the power of 28 eminent domain. 29 2. Land acquired by a municipality by the exercise of 30 condemnation through eminent domain shall not be used to 31 effectuate the purposes of this chapter. 32 Sec. 9. NEW SECTION . 358A.9 Acquisition of property. 33 1. a. Except as provided in section 358A.8, a land bank 34 may acquire real property or interests in real property by 35 -10- LSB 5021XS (8) 88 js/jh 10/ 23

S.F. 2013 gift, devise, transfer, exchange, foreclosure, purchase, or 1 otherwise, on terms and conditions and in a manner the board 2 considers is in the best interest of the land bank. 3 b. A land bank may hold and own in its own name any 4 property acquired by or conveyed to the land bank. All deeds, 5 mortgages, contracts, leases, purchases, or other agreements 6 regarding property of the land bank, including agreements to 7 acquire or dispose of real property, may be approved by and 8 executed in the name of the land bank. 9 2. a. A land bank may acquire real property by purchase 10 contracts, lease-purchase agreements, installment sales 11 contracts, land contracts, or other contracts that convey an 12 interest in real property. A land bank may accept transfers 13 of property or interests in property from the state or 14 any political subdivision of the state upon such terms and 15 conditions as agreed to by the land bank and that unit of 16 government so long as the real property is located within the 17 geographical boundaries of the land bank. 18 b. A land bank may register as a bidder for purposes 19 of chapter 446. A land bank is not subject to a bidder 20 registration fee imposed pursuant to section 446.16. A land 21 bank shall not be considered a city or county for purposes of 22 bidding on property under chapter 446 or redeeming property 23 under chapter 447. If a municipality does not elect to tender 24 a bid at a public sale pursuant to section 446.7 or sale 25 pursuant to the provisions of a county charter, city charter, 26 or administrative code, the land bank may tender a trump bid 27 at the sale in an amount equal to the total amount of the 28 delinquent tax debt on the property. If the land bank tenders 29 a trump bid, the property shall be sold to the land bank, even 30 if bids have been tendered by other third parties, subject to 31 the expiration of the applicable redemption period established 32 in chapter 447 and issuance of the tax deed under chapter 448. 33 As the purchaser at the public sale or sale pursuant to the 34 provisions of a county charter, city charter, or administrative 35 -11- LSB 5021XS (8) 88 js/jh 11/ 23

S.F. 2013 code, the land bank shall receive the tax deed in accordance 1 with chapters 446, 447, and 448. The deed to the land bank 2 assigns all rights resulting from the land bank’s successful 3 tender for the property to the foreclosing governmental unit, 4 allowing the property to be deeded directly to the foreclosing 5 governmental unit. All land bank acquisitions pursuant to this 6 paragraph shall comply with other provisions in this section 7 and all dispositions of property acquired pursuant to this 8 paragraph shall comply with section 358A.10. 9 c. The acquisition of property by the land bank shall not 10 be governed or controlled by any regulations or laws relating 11 to procurement or acquisition of property of any municipality 12 that created the land bank, unless specifically provided in the 13 ordinance, resolution, or chapter 28E agreement establishing 14 the land bank. 15 d. Except as otherwise provided in paragraph “e” of this 16 subsection, a land bank shall not own or hold real property 17 located outside the geographical boundaries of the land bank. 18 e. A land bank may be granted, pursuant to an 19 intergovernmental contract with a political subdivision of 20 this state, the authority to manage and maintain real property 21 located within the geographical boundaries of the political 22 subdivision, but outside the geographical boundaries of the 23 land bank. 24 3. A land bank shall maintain all of its real property in 25 accordance with the laws and ordinances of the jurisdiction in 26 which the real property is located. 27 4. A land bank shall maintain and make available for public 28 review and inspection an inventory of all real property held 29 by the land bank. 30 Sec. 10. NEW SECTION . 358A.10 Disposition of property. 31 1. a. A land bank may convey, exchange, sell, transfer, 32 lease, grant, or mortgage interests in real property of the 33 land bank at such times, to such persons, upon such terms and 34 conditions, and subject to such restrictions and covenants as 35 -12- LSB 5021XS (8) 88 js/jh 12/ 23

S.F. 2013 the land bank deems necessary or appropriate to assure the 1 effective use of the bank in accordance with the purposes of 2 section 358A.2. 3 b. Unless otherwise provided in the enabling resolution, 4 ordinance, or agreement, requirements that may be applicable to 5 the disposition of real property and interests in real property 6 by municipalities shall not be applicable to the disposition of 7 real property and interests in real property by a land bank. 8 2. a. A land bank shall determine the amount and form of 9 consideration necessary to convey, exchange, sell, transfer, 10 lease, grant, or mortgage interests in real property. 11 b. Consideration may take the form of monetary payments and 12 secured financial obligations, covenants and conditions related 13 to the present and future use of the property, contractual 14 commitments by the transferee, and other forms of consideration 15 as determined by the board to be in the best interest of the 16 land bank. 17 3. a. A municipality may in the ordinance or resolution 18 creating a land bank, or in the chapter 28E agreement in the 19 case of any combination of municipalities creating a single 20 land bank, require that a particular form of disposition of 21 real property or a disposition of real property located within 22 a specified jurisdiction be subject to specified voting and 23 approval requirements of the board. 24 b. Except as otherwise provided under paragraph “a” of this 25 subsection, the board may delegate to officers and employees 26 the authority to enter into and execute agreements, instruments 27 of conveyance, and other related documents pertaining to the 28 conveyance of real property by the land bank. 29 Sec. 11. NEW SECTION . 358A.11 Financing. 30 1. A land bank may receive funding through grants, loans, 31 and other funds from the municipality that created the land 32 bank, from other municipalities, from the state of Iowa, from 33 the federal government, and from other public and private 34 sources, including but not limited to donations, gifts, or 35 -13- LSB 5021XS (8) 88 js/jh 13/ 23

S.F. 2013 bequests. 1 2. A land bank may receive and retain payments for services 2 rendered, for rents and leasehold payments received, for 3 consideration for disposition of real and personal property, 4 for proceeds of insurance coverage for losses incurred, for 5 income from investments, and for any other asset and activity 6 lawfully permitted to a land bank under this chapter. 7 3. Up to seventy-five percent of the real property taxes 8 remaining after the division of taxes pursuant to section 9 403.19, if applicable, and exclusive of any amount levied by 10 a school district, collected on real property that a land 11 bank has conveyed shall be remitted to the land bank. The 12 specific percentage of the taxes to be remitted, as to each 13 municipality that created the land bank, shall be set forth in 14 the enabling ordinance, resolution, or chapter 28E agreement. 15 The allocation of property tax revenues shall commence with the 16 first assessment year beginning January 1 following the date of 17 conveyance by the land bank and shall be allocated for a period 18 of five consecutive assessment years. The funds shall be 19 remitted to the land bank in accordance with the administrative 20 procedures established by the county or counties in which the 21 land bank is located. 22 4. At the time that a land bank sells or otherwise disposes 23 of property as part of its land bank program, the proceeds from 24 the sale, if any, shall be allocated as determined by the land 25 bank among the following priorities: 26 a. Furtherance of land bank operations. 27 b. Recovery of land bank expenses. 28 Sec. 12. NEW SECTION . 358A.12 Delinquent property tax 29 enforcement. 30 1. Whenever a land bank acquires real property encumbered 31 by a lien or claim for real property taxes owed to one or 32 more of the municipalities that established the land bank, 33 or to other political subdivisions that have entered into an 34 intergovernmental contract with the land bank, the land bank 35 -14- LSB 5021XS (8) 88 js/jh 14/ 23

S.F. 2013 may, by resolution of the board, discharge and extinguish any 1 and all of the liens or claims. The decision by the board to 2 extinguish the property tax liens or claims is subject to the 3 voting requirements contained in section 358A.5, subsection 4 10. If a portion of the real property taxes are attributable 5 to property taxes certified for levy by a school district, 6 the land bank shall notify the school district in writing of 7 its intent to extinguish all such liens and claims. If the 8 school district sends a written objection to the proposed 9 extinguishment of such liens and claims to the land bank within 10 thirty days of receipt of such notice, the land bank shall not 11 extinguish the liens and claims. If the school district fails 12 to send a written objection to the proposed extinguishment to 13 the land bank within thirty days of receipt of such notice 14 from the land bank, the land bank shall have the power, by 15 resolution of the board, to discharge and extinguish any 16 and all such liens or claims. To the extent necessary and 17 appropriate, the land bank shall file with the appropriate 18 taxing entity a copy of the resolution providing for the 19 discharge and the extinguishment of liens or claims under this 20 section. 21 2. If a land bank receives payments of any kind attributable 22 to liens or claims for real property taxes owed or allocated 23 to a municipality or school district on property acquired by 24 the land bank, the land bank shall remit the full amount of the 25 payments to the appropriate taxing entity. 26 Sec. 13. NEW SECTION . 358A.13 Exemption from taxation. 27 The real property and the income and operations of a land 28 bank are exempt from taxation by the state and by any political 29 subdivision of the state. However, the interest of a purchaser 30 of property conveyed by the land bank by installment purchase 31 contract shall not be exempt. For purposes of this section, 32 real property includes but is not limited to real property held 33 by a land bank as lessor pursuant to long-term lease contracts 34 with community land trusts as defined in 42 U.S.C. §12773. 35 -15- LSB 5021XS (8) 88 js/jh 15/ 23

S.F. 2013 Sec. 14. NEW SECTION . 358A.14 Public records and public 1 meetings. 2 A land bank is a “governmental body” for purposes of chapter 3 21 and a “government body” for the purposes of chapter 22. A 4 land bank shall comply with all public meeting requirements 5 under chapter 21 and all public records requirements under 6 chapter 22. 7 Sec. 15. NEW SECTION . 358A.15 Reports. 8 1. A land bank shall submit to the governing body of the 9 municipality that created the land bank a monthly report that 10 informs the municipality of the land bank’s activities for the 11 previous month. 12 2. By January 31 of each year, the land bank shall submit an 13 annual report to the governing body of the municipality that 14 created the land bank that informs the municipality of the land 15 bank’s activities for the preceding calendar year. 16 3. A land bank shall submit an annual report, by January 17 31 of each year, to the general assembly’s standing committees 18 on commerce concerning the land bank’s activities for the 19 preceding calendar year. 20 Sec. 16. NEW SECTION . 358A.16 Audits. 21 A land bank is a “governmental subdivision” for the purposes 22 of chapter 11. A land bank shall be subject to periodic 23 examination by the auditor of the state. 24 Sec. 17. NEW SECTION . 358A.17 Dissolution of land banks. 25 1. A land bank may be dissolved sixty calendar days after 26 a resolution of dissolution is approved by two-thirds of the 27 voting members of the board and by two-thirds of the membership 28 of each governing body of a municipality that created the 29 land bank. The board shall appoint a trustee to distribute 30 assets held by the land bank. The board shall give sixty 31 calendar days advance written notice of its consideration of 32 a resolution of dissolution by publishing a notice in local 33 newspapers of general circulation within each municipality that 34 created the land bank. Upon dissolution of the land bank, all 35 -16- LSB 5021XS (8) 88 js/jh 16/ 23

S.F. 2013 liabilities, real property, personal property, and other assets 1 of the land bank shall become the liabilities and assets of the 2 municipality that created the land bank, or, in the case of a 3 land bank created pursuant to a chapter 28E agreement, shall be 4 distributed pursuant to the chapter 28E agreement. 5 2. A municipality may withdraw from a land bank if the land 6 bank was created pursuant to a chapter 28E agreement. The 7 withdrawing municipality shall receive its share of assets and 8 liabilities as determined in the chapter 28E agreement. A land 9 bank consisting of two or more municipalities does not dissolve 10 upon the withdrawal of a single municipality. 11 Sec. 18. NEW SECTION . 358A.18 Conflicts of interest. 12 1. A member of the board or employee of a land bank shall 13 not acquire any direct or indirect interest in real property 14 of the land bank, in any real property to be acquired by the 15 land bank, or in any real property to be acquired from the land 16 bank. A member of the board or employee of a land bank shall 17 not have any direct or indirect interest in any contract or 18 proposed contract for material or services to be furnished or 19 used by a land bank. 20 2. a. Any person who serves or is employed by a land bank 21 shall not engage in any of the following conduct: 22 (1) Outside employment or an activity that involves the 23 use of the land bank’s time, facilities, equipment, and 24 supplies or the use of evidences of office or employment to 25 give the person, an entity affiliated with or controlled by 26 the person, or member of the person’s immediate family, as 27 defined in section 68B.2, an advantage or pecuniary benefit 28 that is not available to other similarly situated members or 29 classes of members of the general public. For purposes of this 30 subparagraph, a person is not “similarly situated” merely by 31 being, or being related to, a person who serves or is employed 32 by the land bank. 33 (2) Outside employment or an activity that involves the 34 receipt of, promise of, or acceptance of money or other 35 -17- LSB 5021XS (8) 88 js/jh 17/ 23

S.F. 2013 consideration by the person, an entity affiliated with or 1 controlled by the person, or a member of the person’s immediate 2 family, as defined in section 68B.2, from anyone other than the 3 land bank for the performance of any act that the person would 4 be required or expected to perform as a part of the person’s 5 regular duties or during the hours during which the person 6 performs service or work for the land bank. 7 (3) Outside employment or an activity that is subject to 8 the official control, inspection, review, audit, or enforcement 9 authority of the person, during the performance of the person’s 10 duties of office or employment. 11 b. If the outside employment or activity is employment or 12 activity described in subsection 2, paragraph “a” , subparagraph 13 (1) or (2), the person shall immediately cease the employment 14 or activity. If the outside employment or activity is 15 employment or activity described in subsection 2, paragraph 16 “a” , subparagraph (3), unless otherwise provided by law, the 17 person shall take one of the following courses of action: 18 (1) Cease the outside employment or activity. 19 (2) Publicly disclose the existence of the conflict and 20 refrain from taking any official action or performing any 21 official duty that would detrimentally affect or create a 22 benefit for the outside employment or activity. For purposes 23 of this subparagraph, “official action” or “official duty” 24 includes but is not limited to participating in any vote, 25 taking affirmative action to influence any vote, granting any 26 license or permit, determining the facts or law in a contested 27 case or rulemaking proceeding, conducting any inspection, or 28 providing any other official service or thing that is not 29 available generally to members of the public in order to 30 further the interests of the outside employment or activity. 31 3. Unless otherwise specifically provided the requirements 32 of this section shall be in addition to, and shall not 33 supersede, any other rights or remedies provided by law. 34 DIVISION II 35 -18- LSB 5021XS (8) 88 js/jh 18/ 23

S.F. 2013 COORDINATING PROVISIONS 1 Sec. 19. Section 11.1, subsection 1, paragraph c, Code 2020, 2 is amended to read as follows: 3 c. “Governmental subdivision” means cities and 4 administrative agencies established by cities, hospitals or 5 health care facilities established by a city, counties, county 6 hospitals organized under chapters 347 and 347A , memorial 7 hospitals organized under chapter 37 , entities organized under 8 chapter 28E , land banks created under chapter 358A, community 9 colleges, area education agencies, and school districts. 10 Sec. 20. Section 21.2, subsection 1, Code 2020, is amended 11 by adding the following new paragraph: 12 NEW PARAGRAPH . k. A land bank created under chapter 358A. 13 Sec. 21. Section 22.1, subsection 1, Code 2020, is amended 14 to read as follows: 15 1. “Government body” means this state, or any county, 16 city, township, school corporation, political subdivision, 17 tax-supported district, nonprofit corporation other than a 18 fair conducting a fair event as provided in chapter 174 , whose 19 facilities or indebtedness are supported in whole or in part 20 with property tax revenue and which is licensed to conduct 21 pari-mutuel wagering pursuant to chapter 99D ; the governing 22 body of a drainage or levee district as provided in chapter 23 468 , including a board as defined in section 468.3 , regardless 24 of how the district is organized; a land bank created under 25 chapter 358A; or other entity of this state, or any branch, 26 department, board, bureau, commission, council, committee, 27 official, or officer of any of the foregoing or any employee 28 delegated the responsibility for implementing the requirements 29 of this chapter . 30 Sec. 22. Section 331.361, subsections 2 and 4, Code 2020, 31 are amended to read as follows: 32 2. In disposing of an interest in real property by sale or 33 exchange, by lease for a term of more than three years, or by 34 gift, the following procedures shall be followed, except for 35 -19- LSB 5021XS (8) 88 js/jh 19/ 23