SF 2013 (LSB 5021XS (8) 88)

SENATE FILE 2013

BY  LOFGREN and DAWSON

A BILL FOR

An Act relating to the creation of land banks.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
LAND BANKS

    Section 1.  NEW SECTION.  358A.1  Short title.
   This chapter shall be known and may be cited as the “Iowa Land Bank Act”.
    Sec. 2.  NEW SECTION.  358A.2  Legislative intent.
   The legislature finds and declares all of the following:
   1.  Iowa’s communities are important to the social and economic vitality of this state. Whether urban, suburban, or rural, many communities are struggling with dilapidated, abandoned, blighted, and tax-delinquent properties.
   2.  Citizens of Iowa are affected adversely by dilapidated, abandoned, blighted, and tax-delinquent properties, including properties that have been abandoned due to mortgage foreclosure.
   3.  Dilapidated, abandoned, blighted, and tax-delinquent properties impose significant costs on neighborhoods and communities by lowering property values, increasing fire and police protection costs, decreasing tax revenues, and undermining community cohesion.
   4.  There is an overwhelming public need to confront the problems caused by dilapidated, abandoned, blighted, and tax-delinquent properties; to return properties that are in non-revenue-generating, non-tax-producing status to productive status in order to revitalize urban, suburban, and rural areas, provide affordable housing, and attract new industry; and to create jobs for the citizens of this state through the establishment of new tools that enable communities to turn abandoned spaces into vibrant places.
   5.  Land banks are one of the tools that communities can use to facilitate the return of dilapidated, abandoned, blighted, and tax-delinquent properties to productive use.
    Sec. 3.  NEW SECTION.  358A.3  Definitions.
   As used in this chapter, unless the context otherwise requires:
   1.  “Board” means the board of directors of a land bank.
   2.  “Financial institution” means a bank, savings association, operating subsidiary of a bank or savings association, credit union, association licensed to originate mortgage loans, or an assignee of a mortgage or note originated by such an institution.
   3.  “Geographical boundaries of the land bank” means the jurisdiction of the municipality that created the land bank or in the case of any combination of municipalities creating a single land bank or joining an existing land bank, the combined jurisdictions of the municipalities.
   4.  “Land bank” means an entity created under section 358A.4.
   5.  “Local employee” means a person employed by a municipality of this state and does not include an independent contractor.
   6.  “Local official” means an officeholder of a municipality of this state.
   7.  “Municipality” means a city, county, or township.
   8.  “Trump bid” means the expression of intent by a land bank to purchase a property for sale at a tax sale under chapter 446 by informing the treasurer for the municipality holding the sale.
    Sec. 4.  NEW SECTION.  358A.4  Creation.
   1.  A land bank organized under this chapter shall be a body corporate and politic, with the name under which it was organized, and may sue and be sued in its own name, contract and be contracted with, acquire and hold real and personal property necessary for corporate purposes, adopt a corporate seal and alter the same at pleasure, and exercise all the powers conferred in this chapter.
   2.  a.  Any municipality may create a land bank. Creation shall be by ordinance in the case of a city or by resolution in the case of a county or township. The ordinance or resolution shall make reference to the purposes listed under section 358A.2.
   b.  Any city, county, or township may create a land bank in combination with other cities, counties, or townships. Municipalities seeking to create such a land bank shall comply with the procedures set forth in chapter 28E. A land bank shall be considered a “public agency” for the purposes of chapters 28E and 28H.
   c.  (1)  Any city or township passing an ordinance or a resolution or entering into a chapter 28E agreement under paragraph “a” or “b” of this subsection shall promptly deliver copies of the ordinance, resolution, or agreement to the auditor, treasurer, and the county attorney of each county in which the municipality is situated.
   (2)  Any board of supervisors adopting a resolution or entering into a chapter 28E agreement creating a land bank pursuant to this section shall deliver a copy of the resolution or agreement to the county auditor, county treasurer, and county attorney.
   3.  a.  The enabling ordinance or resolution, or chapter 28E agreement, shall set forth the following:
   (1)  The initial board of directors and the initial terms of those directors.
   (2)  General term lengths and limits for the board of directors.
   (3)  Procedures that the board of directors will follow in exercising discretionary provisions of this chapter.
   b.  A chapter 28E agreement shall include procedures for the distribution of assets between participating municipalities upon the dissolution of the land bank.
   c.  Unless otherwise limited in the ordinance, resolution, or chapter 28E agreement, the powers and procedures of a newly created land bank shall be the powers and procedures specified in this chapter.
   4.  A council of governments established in section 28H.1 shall not form a land bank. However, pursuant to a chapter 28E agreement, a council of governments may provide community development services, planning services, and technical assistance to a land bank.
    Sec. 5.  NEW SECTION.  358A.5  Board.
   1.  a.  A land bank shall have a board of directors in which all powers of the land bank shall be vested.
   b.  Unless restricted by the enabling ordinance, resolution, or agreement as specified in section 358A.4, the provisions of this section shall apply to the governance of a land bank.
   2.  a.  The membership of the board shall be established in the bylaws of the land bank and shall consist of an odd number of members, which shall be not less than five nor more than eleven.
   b.  Unless otherwise specified by the ordinance, resolution, or agreement under section 358A.4, the default length of a term for a board member shall be four years. The maximum length of a term for a board member shall be five years.
   c.  A land bank may, as determined in the bylaws, limit the number of terms or consecutive terms that members of its board may serve.
   3.  a.  A local official may serve as a board member and service as a land bank board member shall neither terminate nor impair that public office.
   b.  A local employee shall be eligible to serve as a land bank board member.
   c.  The members of a land bank board shall all be voting members. Land bank board members shall, to the extent practicable, include representatives of each of the following:
   (1)  A local government.
   (2)  A chamber of commerce.
   (3)  Persons with experience in financial services.
   (4)  Persons with experience in real property acquisition or real property development.
   (5)  Persons with experience in nonprofit or affordable housing.
   (6)  Persons who meet all of the following:
   (a)  The person is a resident of the land bank jurisdiction.
   (b)  The person is not a local public official or local employee.
   d.  Requirements provided in paragraph “c” of this subsection may be satisfied by the appointment of a single voting member who meets more than one of the criteria. 
   e.  A member removed under subsection 9 shall be ineligible for reappointment to the board unless the reappointment is confirmed unanimously by the board.
   4.  Annually, the board shall select from the board membership a chair, vice chair, secretary, and treasurer and such other officers as the board deems necessary.
   5.  A vacancy on the board shall be filled following the procedure adopted pursuant to subsection 9. Removal of a member shall cause the position to become vacant.
   6.  Board members shall serve without compensation. However, the board may reimburse a member for expenses actually incurred in the performance of duties on behalf of the land bank as provided in bylaws adopted pursuant to subsection 9.
   7.  The board shall meet as follows:
   a.  In regular session according to a schedule adopted by the board.
   b.  In special session convened by the chair or upon written petition signed by a majority of the members.
   8.  a.  A majority of the board, excluding vacancies, constitutes a quorum.
   b.  A board may permit any or all members to participate in a regular or special meeting by, or conduct a meeting through the use of, any means of electronic communication by which all directors participating can simultaneously hear each other during the meeting. A member participating in a meeting by means of electronic communication is deemed to be present, in person, at the meeting.
   9.  a.  The board shall adopt bylaws establishing all of the following:
   (1)  Duties of officers selected pursuant to subsection 4.
   (2)  Requirements for attendance and participation of members at regular and special meetings of the board.
   (3)  A procedure for removal of a member for failure to comply with a bylaw. Removal shall only be made by the affirmative vote of no less than a majority of all of the other members of the board.
   (4)  A procedure detailing prioritization of what and which types of properties to acquire, a procedure for acquisition of properties, and a statement of purpose.
   (5)  A procedure for the terms and conditions relating to disposition of properties, including but not limited to a process for distribution of any proceeds to any claimants or taxing entities, and to any other land bank.
   (6)  A procedure for the establishment, membership, and duties of committees of the board.
   (7)  Rules to determine which expenses may be reimbursed.
   (8)  A procedure for making an appointment to fill a vacancy on the board. The procedure shall include a simple majority vote by the board to approve the appointment.
   (9)  Other matters necessary to govern the conduct of a land bank.
   b.  When in actual conflict, the ordinances, resolutions, or agreements described in section 358A.4 shall control over any bylaws adopted by the board.
   10.  a.  Except as set forth in paragraph “b” or “c” of this subsection, the enabling ordinance, resolution, or agreement, or as set forth by a land bank in its bylaws, an action of the board must be approved by the affirmative vote of a majority of the board present and voting.
   b.  Action of the board on the following matters must be approved by a majority of the entire board membership excluding vacancies:
   (1)  Adoption of bylaws.
   (2)  Hiring or firing of an employee or contractor of the land bank. This function may be delegated by the board to a specified officer or committee of the land bank.
   (3)  Incurring of debt.
   (4)  Adoption or amendment of the annual budget.
   (5)  Sale, lease, encumbrance, or alienation of real property or personal property with a value of more than fifty thousand dollars.
   c.  A resolution regarding dissolution of the land bank under section 358A.17 must be approved by two-thirds of the entire board membership.
   d.  A member of the board shall not vote by proxy.
   e.  A member may request that a vote on any resolution or action of the land bank be recorded.
   11.  Members of the board shall not be liable personally on the obligations of the land bank, and rights of creditors of a land bank shall be solely against the land bank.
    Sec. 6.  NEW SECTION.  358A.6  Staff.
   1.  A land bank may employ or contract for the employment of a secretary, an executive director, legal counsel and legal staff, including the use of student clinicians from a reputable law school in this state with a clinical law program, and such other technical experts and agents and employees, permanent or temporary, as the land bank may require. The land bank may determine the qualifications and fix the compensation and benefits of such persons. A land bank may also enter into contracts and agreements with municipalities or nonprofit entities for staffing services to be provided to the land bank or for a land bank to provide such staffing services to municipalities or agencies or departments of municipalities.
   2.  An employee of the land bank is not and shall not be deemed to be an employee of the municipality for whose benefit the land bank is organized solely because the employee is employed by the land bank.
   3.  The land bank shall determine the compensation for an executive director who shall manage the operations of a land bank and employ or contract for the employment of others for the benefit of the land bank as approved and funded by the board of directors. 
    Sec. 7.  NEW SECTION.  358A.7  Powers.
   1.  In furtherance of the purposes set forth in section 358A.2, a land bank shall have all of the following powers:
   a.  To borrow money for any of the purposes of the land bank by means of loans, lines of credit, or any other financial instruments or securities other than through the issuance of bonds, debentures, or notes. A land bank may secure its indebtedness by mortgage, pledge, deed of trust, or other lien on its property, franchises, rights, and privileges of every kind and nature or any part thereof or interest therein. The funds borrowed by the land bank are payable as to principal, interest, and any other amounts owed the lender solely from the proceeds from sale or rental of the property financed with the loan and are not a debt of or charge against the land bank or any of the municipalities that formed the land bank within the meaning of any constitutional or statutory debt limitation.
   b.  To purchase, receive, hold, manage, lease, lease-purchase, or otherwise acquire and to sell, convey, including a conveyance by installment purchase contract, transfer, lease, sublease, or otherwise dispose of real and personal property, together with any incidental or appurtenant rights, privileges, or uses, including but not limited to any real or personal property acquired by the land bank in the satisfaction of debts or the enforcement of obligations.
   c.  (1)  To acquire the good will, business, rights, real and personal property, and other assets, or any part or interest, of any person, subject to any obligations enforceable against the property so acquired. 
   (2)  To acquire, reclaim, manage, or contract for the management of improved or unimproved and underutilized real property for the purpose of constructing or causing the construction of business establishments or housing on the property, for the purpose of assembling and enhancing utilization of the real property, or for the purpose of disposing of such real property to others in whole or in part for the construction of business establishments or housing. 
   (3)  To acquire, reclaim, manage, contract for the management of, construct or reconstruct, alter, repair, maintain, operate, sell, convey, including a conveyance by installment purchase contract, transfer, lease, sublease, or otherwise dispose of business establishments or housing.
   d.  To acquire, subscribe for, own, hold, sell, assign, transfer, mortgage, pledge, or otherwise dispose of stocks, shares, bonds, debentures, notes, or other securities interests or indebtedness and evidences of interest in, or indebtedness of, any person, notwithstanding section 12B.10. Any tax revenue received by a land bank shall not be used for acquisition or subscription. The acquisition of securities shall only be by gift. Securities so acquired shall be converted to cash as soon as practicable.
   e.  To mortgage, pledge, or otherwise encumber any property acquired pursuant to the powers contained in paragraph “b”, “c”, or “d” of this subsection.
   f.  To serve as an agent for grant applications and for the administration of grants, or to make applications as principal for grants intended for use by the land bank.
   g.  To charge fees or exchange in-kind goods or services for services rendered to political subdivisions and other persons for whom services are rendered.
   h.  To purchase tax sale certificates at auction, negotiated sale, or from a third party who purchased and is a holder of one or more tax sale certificates issued pursuant to chapter 446.
   i.  To be assigned a mortgage on real property from a mortgagee in lieu of acquiring such real property subject to a mortgage.
   j.  To extinguish liens and encumbrances on tax-delinquent or otherwise encumbered property the land bank comes to possess.
   k.  To issue trump bids for properties subject to tax sale under chapter 446 at least five business days prior to the beginning of the sale and purchase such properties at the amount initially proposed at such a sale. At the beginning of a sale, properties that a land bank has expressed intent to purchase via a trump bid will be publicly sold to the land bank for the entirety of the delinquent tax debt on the property with the land bank acquiring full ownership with clear title of the property subject to the expiration of the applicable redemption period established in chapter 447 and issuance of the tax deed under chapter 448.
   l.  A land bank may petition for abatement pursuant to chapter 657A and is an “interested person” for purposes of that chapter.
   m.  To do all acts and things necessary or convenient to carry out the purposes set forth in section 358A.2 and the powers especially created for a land bank in this section, including but not limited to contracting with the federal government, the state or any political subdivision of the state, and any other party, whether nonprofit or for-profit.
   2.  The powers enumerated in this chapter shall not be construed to limit the general powers of a land bank. The powers granted under this chapter are in addition to the powers granted by any other section of the Code, but as to a land bank, shall be used only for the purposes set forth in section 358A.2.
    Sec. 8.  NEW SECTION.  358A.8  Eminent domain.
   1.  A land bank shall not possess or exercise the power of eminent domain.
   2.  Land acquired by a municipality by the exercise of condemnation through eminent domain shall not be used to effectuate the purposes of this chapter.
    Sec. 9.  NEW SECTION.  358A.9  Acquisition of property.
   1.  a.  Except as provided in section 358A.8, a land bank may acquire real property or interests in real property by gift, devise, transfer, exchange, foreclosure, purchase, or otherwise, on terms and conditions and in a manner the board considers is in the best interest of the land bank.
   b.  A land bank may hold and own in its own name any property acquired by or conveyed to the land bank. All deeds, mortgages, contracts, leases, purchases, or other agreements regarding property of the land bank, including agreements to acquire or dispose of real property, may be approved by and executed in the name of the land bank.
   2.  a.  A land bank may acquire real property by purchase contracts, lease-purchase agreements, installment sales contracts, land contracts, or other contracts that convey an interest in real property. A land bank may accept transfers of property or interests in property from the state or any political subdivision of the state upon such terms and conditions as agreed to by the land bank and that unit of government so long as the real property is located within the geographical boundaries of the land bank.
   b.  A land bank may register as a bidder for purposes of chapter 446. A land bank is not subject to a bidder registration fee imposed pursuant to section 446.16. A land bank shall not be considered a city or county for purposes of bidding on property under chapter 446 or redeeming property under chapter 447. If a municipality does not elect to tender a bid at a public sale pursuant to section 446.7 or sale pursuant to the provisions of a county charter, city charter, or administrative code, the land bank may tender a trump bid at the sale in an amount equal to the total amount of the delinquent tax debt on the property. If the land bank tenders a trump bid, the property shall be sold to the land bank, even if bids have been tendered by other third parties, subject to the expiration of the applicable redemption period established in chapter 447 and issuance of the tax deed under chapter 448. As the purchaser at the public sale or sale pursuant to the provisions of a county charter, city charter, or administrative code, the land bank shall receive the tax deed in accordance with chapters 446, 447, and 448. The deed to the land bank assigns all rights resulting from the land bank’s successful tender for the property to the foreclosing governmental unit, allowing the property to be deeded directly to the foreclosing governmental unit. All land bank acquisitions pursuant to this paragraph shall comply with other provisions in this section and all dispositions of property acquired pursuant to this paragraph shall comply with section 358A.10.
   c.  The acquisition of property by the land bank shall not be governed or controlled by any regulations or laws relating to procurement or acquisition of property of any municipality that created the land bank, unless specifically provided in the ordinance, resolution, or chapter 28E agreement establishing the land bank.
   d.  Except as otherwise provided in paragraph “e” of this subsection, a land bank shall not own or hold real property located outside the geographical boundaries of the land bank.
   e.  A land bank may be granted, pursuant to an intergovernmental contract with a political subdivision of this state, the authority to manage and maintain real property located within the geographical boundaries of the political subdivision, but outside the geographical boundaries of the land bank.
   3.  A land bank shall maintain all of its real property in accordance with the laws and ordinances of the jurisdiction in which the real property is located.
   4.  A land bank shall maintain and make available for public review and inspection an inventory of all real property held by the land bank.
    Sec. 10.  NEW SECTION.  358A.10  Disposition of property.
   1.  a.  A land bank may convey, exchange, sell, transfer, lease, grant, or mortgage interests in real property of the land bank at such times, to such persons, upon such terms and conditions, and subject to such restrictions and covenants as the land bank deems necessary or appropriate to assure the effective use of the bank in accordance with the purposes of section 358A.2.
   b.  Unless otherwise provided in the enabling resolution, ordinance, or agreement, requirements that may be applicable to the disposition of real property and interests in real property by municipalities shall not be applicable to the disposition of real property and interests in real property by a land bank.
   2.  a.  A land bank shall determine the amount and form of consideration necessary to convey, exchange, sell, transfer, lease, grant, or mortgage interests in real property.
   b.  Consideration may take the form of monetary payments and secured financial obligations, covenants and conditions related to the present and future use of the property, contractual commitments by the transferee, and other forms of consideration as determined by the board to be in the best interest of the land bank.
   3.  a.  A municipality may in the ordinance or resolution creating a land bank, or in the chapter 28E agreement in the case of any combination of municipalities creating a single land bank, require that a particular form of disposition of real property or a disposition of real property located within a specified jurisdiction be subject to specified voting and approval requirements of the board.
   b.  Except as otherwise provided under paragraph “a” of this subsection, the board may delegate to officers and employees the authority to enter into and execute agreements, instruments of conveyance, and other related documents pertaining to the conveyance of real property by the land bank.
    Sec. 11.  NEW SECTION.  358A.11  Financing.
   1.  A land bank may receive funding through grants, loans, and other funds from the municipality that created the land bank, from other municipalities, from the state of Iowa, from the federal government, and from other public and private sources, including but not limited to donations, gifts, or bequests.
   2.  A land bank may receive and retain payments for services rendered, for rents and leasehold payments received, for consideration for disposition of real and personal property, for proceeds of insurance coverage for losses incurred, for income from investments, and for any other asset and activity lawfully permitted to a land bank under this chapter.
   3.  Up to seventy-five percent of the real property taxes remaining after the division of taxes pursuant to section 403.19, if applicable, and exclusive of any amount levied by a school district, collected on real property that a land bank has conveyed shall be remitted to the land bank. The specific percentage of the taxes to be remitted, as to each municipality that created the land bank, shall be set forth in the enabling ordinance, resolution, or chapter 28E agreement. The allocation of property tax revenues shall commence with the first assessment year beginning January 1 following the date of conveyance by the land bank and shall be allocated for a period of five consecutive assessment years. The funds shall be remitted to the land bank in accordance with the administrative procedures established by the county or counties in which the land bank is located.
   4.  At the time that a land bank sells or otherwise disposes of property as part of its land bank program, the proceeds from the sale, if any, shall be allocated as determined by the land bank among the following priorities:
   a.  Furtherance of land bank operations.
   b.  Recovery of land bank expenses.
    Sec. 12.  NEW SECTION.  358A.12  Delinquent property tax enforcement.
   1.  Whenever a land bank acquires real property encumbered by a lien or claim for real property taxes owed to one or more of the municipalities that established the land bank, or to other political subdivisions that have entered into an intergovernmental contract with the land bank, the land bank may, by resolution of the board, discharge and extinguish any and all of the liens or claims. The decision by the board to extinguish the property tax liens or claims is subject to the voting requirements contained in section 358A.5, subsection 10. If a portion of the real property taxes are attributable to property taxes certified for levy by a school district, the land bank shall notify the school district in writing of its intent to extinguish all such liens and claims. If the school district sends a written objection to the proposed extinguishment of such liens and claims to the land bank within thirty days of receipt of such notice, the land bank shall not extinguish the liens and claims. If the school district fails to send a written objection to the proposed extinguishment to the land bank within thirty days of receipt of such notice from the land bank, the land bank shall have the power, by resolution of the board, to discharge and extinguish any and all such liens or claims. To the extent necessary and appropriate, the land bank shall file with the appropriate taxing entity a copy of the resolution providing for the discharge and the extinguishment of liens or claims under this section.
   2.  If a land bank receives payments of any kind attributable to liens or claims for real property taxes owed or allocated to a municipality or school district on property acquired by the land bank, the land bank shall remit the full amount of the payments to the appropriate taxing entity.
    Sec. 13.  NEW SECTION.  358A.13  Exemption from taxation.
   The real property and the income and operations of a land bank are exempt from taxation by the state and by any political subdivision of the state. However, the interest of a purchaser of property conveyed by the land bank by installment purchase contract shall not be exempt. For purposes of this section, real property includes but is not limited to real property held by a land bank as lessor pursuant to long-term lease contracts with community land trusts as defined in 42 U.S.C. §12773.
    Sec. 14.  NEW SECTION.  358A.14  Public records and public meetings.
   A land bank is a “governmental body” for purposes of chapter 21 and a “government body” for the purposes of chapter 22. A land bank shall comply with all public meeting requirements under chapter 21 and all public records requirements under chapter 22.
    Sec. 15.  NEW SECTION.  358A.15  Reports.
   1.  A land bank shall submit to the governing body of the municipality that created the land bank a monthly report that informs the municipality of the land bank’s activities for the previous month.
   2.  By January 31 of each year, the land bank shall submit an annual report to the governing body of the municipality that created the land bank that informs the municipality of the land bank’s activities for the preceding calendar year.
   3.  A land bank shall submit an annual report, by January 31 of each year, to the general assembly’s standing committees on commerce concerning the land bank’s activities for the preceding calendar year.
    Sec. 16.  NEW SECTION.  358A.16  Audits.
   A land bank is a “governmental subdivision” for the purposes of chapter 11. A land bank shall be subject to periodic examination by the auditor of the state.
    Sec. 17.  NEW SECTION.  358A.17  Dissolution of land banks.
   1.  A land bank may be dissolved sixty calendar days after a resolution of dissolution is approved by two-thirds of the voting members of the board and by two-thirds of the membership of each governing body of a municipality that created the land bank. The board shall appoint a trustee to distribute assets held by the land bank. The board shall give sixty calendar days advance written notice of its consideration of a resolution of dissolution by publishing a notice in local newspapers of general circulation within each municipality that created the land bank. Upon dissolution of the land bank, all liabilities, real property, personal property, and other assets of the land bank shall become the liabilities and assets of the municipality that created the land bank, or, in the case of a land bank created pursuant to a chapter 28E agreement, shall be distributed pursuant to the chapter 28E agreement.
   2.  A municipality may withdraw from a land bank if the land bank was created pursuant to a chapter 28E agreement. The withdrawing municipality shall receive its share of assets and liabilities as determined in the chapter 28E agreement. A land bank consisting of two or more municipalities does not dissolve upon the withdrawal of a single municipality.
    Sec. 18.  NEW SECTION.  358A.18  Conflicts of interest.
   1.  A member of the board or employee of a land bank shall not acquire any direct or indirect interest in real property of the land bank, in any real property to be acquired by the land bank, or in any real property to be acquired from the land bank. A member of the board or employee of a land bank shall not have any direct or indirect interest in any contract or proposed contract for material or services to be furnished or used by a land bank.
   2.  a.  Any person who serves or is employed by a land bank shall not engage in any of the following conduct:
   (1)  Outside employment or an activity that involves the use of the land bank’s time, facilities, equipment, and supplies or the use of evidences of office or employment to give the person, an entity affiliated with or controlled by the person, or member of the person’s immediate family, as defined in section 68B.2, an advantage or pecuniary benefit that is not available to other similarly situated members or classes of members of the general public. For purposes of this subparagraph, a person is not “similarly situated” merely by being, or being related to, a person who serves or is employed by the land bank.
   (2)  Outside employment or an activity that involves the receipt of, promise of, or acceptance of money or other consideration by the person, an entity affiliated with or controlled by the person, or a member of the person’s immediate family, as defined in section 68B.2, from anyone other than the land bank for the performance of any act that the person would be required or expected to perform as a part of the person’s regular duties or during the hours during which the person performs service or work for the land bank.
   (3)  Outside employment or an activity that is subject to the official control, inspection, review, audit, or enforcement authority of the person, during the performance of the person’s duties of office or employment.
   b.  If the outside employment or activity is employment or activity described in subsection 2, paragraph “a”, subparagraph (1) or (2), the person shall immediately cease the employment or activity. If the outside employment or activity is employment or activity described in subsection 2, paragraph “a”, subparagraph (3), unless otherwise provided by law, the person shall take one of the following courses of action:
   (1)  Cease the outside employment or activity.
   (2)  Publicly disclose the existence of the conflict and refrain from taking any official action or performing any official duty that would detrimentally affect or create a benefit for the outside employment or activity. For purposes of this subparagraph, “official action” or “official duty” includes but is not limited to participating in any vote, taking affirmative action to influence any vote, granting any license or permit, determining the facts or law in a contested case or rulemaking proceeding, conducting any inspection, or providing any other official service or thing that is not available generally to members of the public in order to further the interests of the outside employment or activity.
   3.  Unless otherwise specifically provided the requirements of this section shall be in addition to, and shall not supersede, any other rights or remedies provided by law.
DIVISION II
COORDINATING PROVISIONS

    Sec. 19.  Section 11.1, subsection 1, paragraph c, Code 2020, is amended to read as follows:
   c.  “Governmental subdivision” means cities and administrative agencies established by cities, hospitals or health care facilities established by a city, counties, county hospitals organized under chapters 347 and 347A, memorial hospitals organized under chapter 37, entities organized under chapter 28E, land banks created under chapter 358A, community colleges, area education agencies, and school districts.
    Sec. 20.  Section 21.2, subsection 1, Code 2020, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  k.  A land bank created under chapter 358A.
    Sec. 21.  Section 22.1, subsection 1, Code 2020, is amended to read as follows:
   1.  “Government body” means this state, or any county, city, township, school corporation, political subdivision, tax-supported district, nonprofit corporation other than a fair conducting a fair event as provided in chapter 174, whose facilities or indebtedness are supported in whole or in part with property tax revenue and which is licensed to conduct pari-mutuel wagering pursuant to chapter 99D; the governing body of a drainage or levee district as provided in chapter 468, including a board as defined in section 468.3, regardless of how the district is organized; a land bank created under chapter 358A; or other entity of this state, or any branch, department, board, bureau, commission, council, committee, official, or officer of any of the foregoing or any employee delegated the responsibility for implementing the requirements of this chapter.
    Sec. 22.  Section 331.361, subsections 2 and 4, Code 2020, are amended to read as follows:
   2.  In disposing of an interest in real property by sale or exchange, by lease for a term of more than three years, or by gift, the following procedures shall be followed, except for dispositions to land banks created under chapter 358A and as otherwise provided by state law:
   a.  The board shall set forth its proposal in a resolution and shall publish notice of the time and place of a public hearing on the proposal, in accordance with section 331.305.
   b.  After the public hearing, the board may make a final determination on the proposal by resolution.
   c.  When unused highway right-of-way is not being sold or transferred to another governmental authority, the county shall comply with the requirements of section 306.23.
   4.  The board shall not dispose of real property by gift except for a public purpose, as determined by the board, in accordance with other state law.  This subsection shall not apply to disposal of real property by gift to land banks created under chapter 358A.
    Sec. 23.  Section 364.7, Code 2020, is amended to read as follows:
   364.7  Disposal of property.
   1.  A city may not dispose of an interest in real property by sale, lease for a term of more than three years, or gift, except in accordance with the following procedure:
   1.  a.  The council shall set forth its proposal in a resolution and shall publish notice as provided in section 362.3, of the resolution and of a date, time and place of a public hearing on the proposal.
   2.  b.  After the public hearing, the council may make a final determination on the proposal by resolution.
   3.  c.  A city may not dispose of real property by gift except to a governmental body for a public purpose.
   2.  This section shall not apply to disposal of an interest in real property to a land bank created under chapter 358A.
    Sec. 24.  Section 427.1, Code 2020, is amended by adding the following new subsection:
   NEW SUBSECTION.  42.  Land bank property.  The real property of a land bank, as created under chapter 358A, and its income and operations are exempt from all taxation by the state and by any political subdivision of the state. For purposes of this subsection, real property includes but is not limited to real property held by a land bank as lessor pursuant to long-term lease contracts with community land trusts as defined in 42 U.S.C. §12773.
    Sec. 25.  Section 657A.2, subsection 1, Code 2020, is amended to read as follows:
   1.  No sooner than the latter of thirty days after provision of the responsible building official’s findings under section 657A.1A and six months after a building has become abandoned, a petition for abatement under this chapter may be filed in the district court of the county in which the property is located by the city in which the property is located, by the county if the property is located outside the limits of a city, by a neighboring landowner, by a land bank created under chapter 358A, or by a duly organized nonprofit corporation which has as one of its goals the improvement of housing conditions in the county or city in which the property in question is located. The petition shall not demand a personal judgment against any party, but shall concern only the interests in the property. A petition for abatement filed under this chapter shall include the legal description of the real property upon which the public nuisance is located unless the public nuisance is not situated on or confined to a parcel of real property, or is portable or capable of being removed from the real property. Service shall be made on all interested persons by personal service or, if personal service cannot be made, by certified mail and first class mail to the last known address of record of the interested person and by posting the notice in a conspicuous place on the building, or by publication. The last known address of record for the property owner shall be the address of record with the county treasurer of the county where the property is located. Service may also be made as provided in section 654.4A.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill provides for the establishment of land banks.
   Division I of the bill authorizes one or more municipalities to establish a land bank as a method to return dilapidated, abandoned, blighted, and tax-delinquent properties in their communities to economically productive status. An established land bank is a public agency for the purpose of joint exercise of governmental powers, a governmental body for purposes of public meetings requirements of Code chapter 21, and a government body for purposes of public records requirements of Code chapter 22. Land banks are subject to periodic examination by the auditor of state under Code chapter 11. The bill sets membership requirements and term limits for a board of directors of a land bank, including interests that shall be represented on the board. The bill requires the board to establish bylaws relating to governance of the land bank.
   Division I of the bill grants a land bank various powers and duties, including the authority to acquire properties through certain procedures such as issuing a trump bid, which shall be for all delinquent taxes owed on a property, at a tax sale. However, the bill explicitly prohibits a land bank from possessing or exercising the power of eminent domain. The bill establishes financing procedures that govern land banks, including allowing to be remitted to the land bank up to 75 percent of real property taxes collected on a real property conveyed by a land bank that remains after the division of taxes for an urban renewal area and exclusive of any amount levied by a school district for five consecutive assessment years. The bill provides procedures for removing encumbrances on acquired property, including the extinguishing of tax liens. The bill requires a land bank to make monthly and annual reports to the governing body that created the land bank and submit an annual report to the general assembly. The bill provides procedures for disposing of property that is acquired by the land bank. The bill also provides procedures for dissolving a land bank.
   Division II of the bill makes changes throughout the Code to conform with land bank procedures established in Division I of the bill.