Senate File 2369 - Introduced SENATE FILE 2369 BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO SF 2013) 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 5021SV (3) 88 js/jh

S.F. 2369 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 5021SV (3) 88 js/jh 1/ 28

S.F. 2369 1. “Abandoned” means a parcel containing a building that 1 has remained vacant for a period of at least twelve consecutive 2 months and that is in need of rehabilitation. 3 2. “Blighted” means a parcel containing a building that is 4 unsafe with objectively determinable signs of deterioration 5 sufficient to constitute a threat to human health, safety, and 6 welfare. 7 3. “Board” means the board of directors of a land bank. 8 4. “Dilapidated” means a parcel containing a building in a 9 state of deterioration as a result of age or neglect. 10 5. “Financial institution” means a bank, savings 11 association, operating subsidiary of a bank or savings 12 association, credit union, association licensed to originate 13 mortgage loans, or an assignee of a mortgage or note originated 14 by such an institution. 15 6. “Geographical boundaries of the land bank” means the 16 jurisdiction of the municipality that created the land bank 17 or in the case of any combination of municipalities creating 18 a single land bank or joining an existing land bank, the 19 combined jurisdictions of the municipalities. In the case of a 20 land bank created by a county, such land bank’s jurisdiction 21 includes only the area of the county not included within an 22 incorporated city. 23 7. “Land bank” means an entity created under section 358A.4. 24 8. “Local employee” means a person employed by a 25 municipality of this state and does not include an independent 26 contractor. 27 9. “Local official” means an officeholder of a municipality 28 of this state. 29 10. “Municipality” means a city, county, or township. 30 11. “Rehabilitation” means the action of restoring to its 31 former condition something that has deteriorated or has been 32 damaged. 33 Sec. 4. NEW SECTION . 358A.4 Creation. 34 1. A land bank organized under this chapter shall be a 35 -2- LSB 5021SV (3) 88 js/jh 2/ 28

S.F. 2369 body corporate and politic, with the name under which it was 1 organized, and may sue and be sued in its own name, contract 2 and be contracted with, acquire and hold real and personal 3 property necessary for corporate purposes, adopt a corporate 4 seal and alter the same at pleasure, and exercise all the 5 powers conferred in this chapter. 6 2. a. Any municipality may create a land bank. Creation 7 shall be by ordinance in the case of a city or by resolution in 8 the case of a county or township. The ordinance or resolution 9 shall make reference to the purposes listed under section 10 358A.2. 11 b. Any city, county, or township may create a land bank 12 in combination with other cities, counties, or townships. 13 Municipalities seeking to create such a land bank shall comply 14 with the procedures set forth in chapter 28E. A land bank 15 shall be considered a “public agency” for the purposes of 16 chapters 28E and 28H. 17 c. (1) Any city or township passing an ordinance or a 18 resolution or entering into a chapter 28E agreement under 19 paragraph “a” or “b” of this subsection shall promptly deliver 20 copies of the ordinance, resolution, or agreement to the 21 auditor, treasurer, and the county attorney of each county in 22 which the municipality is situated. 23 (2) Any board of supervisors adopting a resolution or 24 entering into a chapter 28E agreement creating a land bank 25 pursuant to this section shall deliver a copy of the resolution 26 or agreement to the county auditor, county treasurer, and 27 county attorney. 28 3. a. The enabling ordinance or resolution, or chapter 28E 29 agreement, shall set forth the following: 30 (1) The initial board of directors and the initial terms of 31 those directors. 32 (2) General term lengths and limits for the board of 33 directors. 34 (3) Procedures that the board of directors will follow in 35 -3- LSB 5021SV (3) 88 js/jh 3/ 28

S.F. 2369 exercising discretionary provisions of this chapter. 1 b. A chapter 28E agreement shall include procedures for the 2 distribution of assets between participating municipalities 3 upon the dissolution of the land bank. 4 c. Unless otherwise limited in the ordinance, resolution, 5 or chapter 28E agreement, the powers and procedures of a newly 6 created land bank shall be the powers and procedures specified 7 in this chapter. 8 4. A council of governments established in section 28H.1 9 shall not form a land bank. However, pursuant to a chapter 10 28E agreement, a council of governments may provide community 11 development services, planning services, and technical 12 assistance to a land bank. 13 Sec. 5. NEW SECTION . 358A.5 Board. 14 1. a. A land bank shall have a board of directors in which 15 all powers of the land bank shall be vested. 16 b. Unless restricted by the enabling ordinance, resolution, 17 or agreement as specified in section 358A.4, the provisions of 18 this section shall apply to the governance of a land bank. 19 2. a. The membership of the board shall be established in 20 the bylaws of the land bank and shall consist of an odd number 21 of members, which shall be not less than five nor more than 22 eleven. 23 b. Unless otherwise specified by the ordinance, resolution, 24 or agreement under section 358A.4, the default length of a term 25 for a board member shall be four years. The maximum length of a 26 term for a board member shall be five years. 27 c. A land bank may, as determined in the bylaws, limit the 28 number of terms or consecutive terms that members of its board 29 may serve. 30 3. a. A local official may serve as a board member and 31 service as a land bank board member shall neither terminate nor 32 impair that public office. 33 b. A local employee shall be eligible to serve as a land 34 bank board member. 35 -4- LSB 5021SV (3) 88 js/jh 4/ 28

S.F. 2369 c. The members of a land bank board shall all be voting 1 members. Land bank board members shall, to the extent 2 practicable, include representatives of each of the following: 3 (1) A local government. 4 (2) A chamber of commerce. 5 (3) Persons with experience in financial services. 6 (4) Persons with experience in real property acquisition or 7 real property development. 8 (5) Persons with experience in nonprofit or affordable 9 housing. 10 (6) Persons who meet all of the following: 11 (a) The person is a resident of the land bank jurisdiction. 12 (b) The person is not a local public official or local 13 employee. 14 d. Requirements provided in paragraph “c” of this subsection 15 may be satisfied by the appointment of a single voting member 16 who meets more than one of the criteria. 17 e. A member removed under subsection 9 shall be ineligible 18 for reappointment to the board unless the reappointment is 19 confirmed unanimously by the board. 20 4. Annually, the board shall select from the board 21 membership a chair, vice chair, secretary, and treasurer and 22 such other officers as the board deems necessary. 23 5. A vacancy on the board shall be filled following the 24 procedure adopted pursuant to subsection 9. Removal of a 25 member shall cause the position to become vacant. 26 6. Board members shall serve without compensation. 27 However, the board may reimburse a member for expenses actually 28 incurred in the performance of duties on behalf of the land 29 bank as provided in bylaws adopted pursuant to subsection 9. 30 7. The board shall meet as follows: 31 a. In regular session according to a schedule adopted by the 32 board. 33 b. In special session convened by the chair or upon written 34 petition signed by a majority of the members. 35 -5- LSB 5021SV (3) 88 js/jh 5/ 28

S.F. 2369 8. a. A majority of the board, excluding vacancies, 1 constitutes a quorum. 2 b. A board may permit any or all members to participate in 3 a regular or special meeting by, or conduct a meeting through 4 the use of, any means of electronic communication by which all 5 directors participating can simultaneously hear each other 6 during the meeting. A member participating in a meeting by 7 means of electronic communication is deemed to be present, in 8 person, at the meeting. 9 9. a. The board shall adopt bylaws establishing all of the 10 following: 11 (1) Duties of officers selected pursuant to subsection 4. 12 (2) Requirements for attendance and participation of 13 members at regular and special meetings of the board. 14 (3) A procedure for removal of a member for failure 15 to comply with a bylaw. Removal shall only be made by the 16 affirmative vote of no less than a majority of all of the other 17 members of the board. 18 (4) A procedure detailing prioritization of what and which 19 types of properties to acquire, a procedure for acquisition of 20 properties, and a statement of purpose. 21 (5) A procedure for the terms and conditions relating 22 to disposition of properties, including but not limited to a 23 process for distribution of any proceeds to any claimants or 24 taxing entities, and to any other land bank. 25 (6) A procedure for the establishment, membership, and 26 duties of committees of the board. 27 (7) Rules to determine which expenses may be reimbursed. 28 (8) A procedure for making an appointment to fill a vacancy 29 on the board. The procedure shall include a simple majority 30 vote by the board to approve the appointment. 31 (9) Other matters necessary to govern the conduct of a land 32 bank. 33 b. When in actual conflict, the ordinances, resolutions, or 34 agreements described in section 358A.4 shall control over any 35 -6- LSB 5021SV (3) 88 js/jh 6/ 28

S.F. 2369 bylaws adopted by the board. 1 10. a. Except as set forth in paragraph “b” or “c” of this 2 subsection, the enabling ordinance, resolution, or agreement, 3 or as set forth by a land bank in its bylaws, an action of the 4 board must be approved by the affirmative vote of a majority of 5 the board present and voting. 6 b. Action of the board on the following matters must be 7 approved by a majority of the entire board membership excluding 8 vacancies: 9 (1) Adoption of bylaws. 10 (2) Hiring or firing of an employee or contractor of the 11 land bank. 12 (3) Incurring of debt. 13 (4) Adoption or amendment of the annual budget. 14 (5) Sale, lease, encumbrance, or alienation of real 15 property or personal property with a value of more than fifty 16 thousand dollars. 17 c. A resolution regarding dissolution of the land bank under 18 section 358A.17 must be approved by two-thirds of the entire 19 board membership. 20 d. A member of the board shall not vote by proxy. 21 e. A member may request that a vote on any resolution or 22 action of the land bank be recorded. 23 11. Members of the board shall not be liable personally on 24 the obligations of the land bank, and rights of creditors of a 25 land bank shall be solely against the land bank. 26 Sec. 6. NEW SECTION . 358A.6 Staff. 27 1. A land bank may employ or contract for the employment 28 of a secretary, an executive director, legal counsel and legal 29 staff, including the use of student clinicians from a reputable 30 law school in this state with a clinical law program, and such 31 other technical experts and agents and employees, permanent 32 or temporary, as the land bank may require. The land bank 33 may determine the qualifications and fix the compensation and 34 benefits of such persons. A land bank may also enter into 35 -7- LSB 5021SV (3) 88 js/jh 7/ 28

S.F. 2369 contracts and agreements with municipalities or nonprofit 1 entities for staffing services to be provided to the land 2 bank or for a land bank to provide such staffing services to 3 municipalities or agencies or departments of municipalities. 4 2. An employee of the land bank is not and shall not be 5 deemed to be an employee of the municipality for whose benefit 6 the land bank is organized solely because the employee is 7 employed by the land bank. 8 3. A land bank is an employer as defined in section 97B.1A, 9 subsection 9, paragraph “a”, and an employee of the land bank 10 is an employee as defined in section 97B.1A, subsection 8. 11 4. The land bank shall determine the compensation for an 12 executive director who shall manage the operations of a land 13 bank and employ or contract for the employment of others for 14 the benefit of the land bank as approved and funded by the 15 board of directors. 16 Sec. 7. NEW SECTION . 358A.7 Powers. 17 1. In furtherance of the purposes set forth in section 18 358A.2, a land bank shall have all of the following powers: 19 a. To borrow money for any of the purposes of the land bank 20 by means of loans, lines of credit, or any other financial 21 instruments or securities other than through the issuance 22 of bonds, debentures, or notes. A land bank may secure its 23 indebtedness by mortgage, pledge, deed of trust, or other lien 24 on its property, franchises, rights, and privileges of every 25 kind and nature or any part thereof or interest therein. The 26 funds borrowed by the land bank are payable as to principal, 27 interest, and any other amounts owed the lender solely from 28 the proceeds from the net revenues of the land bank and are 29 not a debt of or charge against any of the municipalities that 30 formed the land bank within the meaning of any constitutional 31 or statutory debt limitation provision. For purposes of this 32 subsection: 33 (1) “Net revenues” means the gross revenues of the land bank 34 less the land bank’s operating expenses. 35 -8- LSB 5021SV (3) 88 js/jh 8/ 28

S.F. 2369 (2) “Gross revenues” means the income and receipts of the 1 land bank from any source whatsoever, including but not limited 2 to contributions from private parties or member municipalities, 3 sale or lease of rehabilitated properties, and collection of a 4 portion of the property taxes during the five-year period after 5 sale or lease of the rehabilitated property. 6 b. To purchase, receive, hold, manage, lease, 7 lease-purchase, or otherwise acquire and to sell, convey, 8 including a conveyance by installment purchase contract, 9 transfer, lease, sublease, or otherwise dispose of real and 10 personal property, together with any incidental or appurtenant 11 rights, privileges, or uses, including but not limited to any 12 real or personal property acquired by the land bank in the 13 satisfaction of debts or the enforcement of obligations. 14 c. (1) To acquire the good will, business, rights, real and 15 personal property, and other assets of any person, subject to 16 any obligations enforceable against the property so acquired. 17 (2) To acquire, reclaim, manage, or contract for the 18 management of improved or unimproved and underutilized 19 real property for the purpose of constructing or causing 20 the construction of business establishments or housing on 21 the property, for the purpose of assembling and enhancing 22 utilization of the real property, or for the purpose of 23 disposing of such real property to others in whole or in part 24 for the construction of business establishments or housing. 25 (3) To acquire, reclaim, manage, contract for the 26 management of, construct or reconstruct, alter, repair, 27 maintain, operate, sell, convey, including a conveyance by 28 installment purchase contract, transfer, lease, sublease, or 29 otherwise dispose of business establishments or housing. 30 d. To acquire, subscribe for, own, hold, sell, assign, 31 transfer, mortgage, pledge, or otherwise dispose of stocks, 32 shares, bonds, debentures, notes, or other securities 33 interests or indebtedness and evidences of interest in, or 34 indebtedness of, any person, notwithstanding section 12B.10. 35 -9- LSB 5021SV (3) 88 js/jh 9/ 28

S.F. 2369 Any tax revenue received by a land bank shall not be used for 1 acquisition or subscription. The acquisition of securities 2 shall only be by gift. Securities so acquired shall be 3 converted to cash as soon as practicable. 4 e. To mortgage, pledge, or otherwise encumber any property 5 acquired pursuant to the powers contained in paragraph “b” , “c” , 6 or “d” of this subsection. 7 f. To serve as an agent for grant applications and for the 8 administration of grants, or to make applications as principal 9 for grants intended for use by the land bank. 10 g. To charge fees or exchange in-kind goods or services for 11 services rendered to political subdivisions and other persons 12 for whom services are rendered. 13 h. To purchase tax sale certificates at auction, negotiated 14 sale, or from a third party who purchased and is a holder of one 15 or more tax sale certificates issued pursuant to chapter 446. 16 i. To be assigned a mortgage on real property from a 17 mortgagee in lieu of acquiring such real property subject to 18 a mortgage. 19 j. To register as a bidder for tax sales conducted under 20 chapter 446, including tax sales conducted under section 21 446.19C, to bid on parcels offered at such sales, and to hold 22 and administer tax sale certificates obtained at such sales, 23 provided that a land bank may exercise the powers authorized 24 under this paragraph only with respect to parcels within the 25 geographical boundaries of the land bank. 26 k. A land bank may petition for abatement pursuant to 27 chapter 657A and is an “interested person” for purposes of that 28 chapter. 29 l. To do all acts and things necessary or convenient to 30 carry out the purposes set forth in section 358A.2 and the 31 powers especially created for a land bank in this section, 32 including but not limited to contracting with the federal 33 government, the state or any political subdivision of the 34 state, and any other party, whether nonprofit or for-profit. 35 -10- LSB 5021SV (3) 88 js/jh 10/ 28

S.F. 2369 2. The powers enumerated in this chapter shall not be 1 construed to limit the general powers of a land bank. The 2 powers granted under this chapter are in addition to the powers 3 granted by any other section of the Code, but as to a land 4 bank, shall be used only for the purposes set forth in section 5 358A.2. 6 Sec. 8. NEW SECTION . 358A.8 Eminent domain. 7 1. A land bank shall not possess or exercise the power of 8 eminent domain. 9 2. Land acquired by a municipality by the exercise of 10 condemnation through eminent domain shall not be used to 11 effectuate the purposes of this chapter. 12 Sec. 9. NEW SECTION . 358A.9 Acquisition of property. 13 1. a. Except as provided in section 358A.8, a land bank 14 may acquire real property or interests in real property by 15 gift, devise, transfer, exchange, foreclosure, purchase, or 16 otherwise, on terms and conditions and in a manner the board 17 considers is in the best interest of the land bank. 18 b. A land bank may hold and own in its own name any 19 property acquired by or conveyed to the land bank. All deeds, 20 mortgages, contracts, leases, purchases, or other agreements 21 regarding property of the land bank, including agreements to 22 acquire or dispose of real property, may be approved by and 23 executed in the name of the land bank. 24 2. a. A land bank may acquire real property by purchase 25 contracts, lease-purchase agreements, installment sales 26 contracts, land contracts, or other contracts that convey an 27 interest in real property. A land bank may accept transfers 28 of property or interests in property from the state or 29 any political subdivision of the state upon such terms and 30 conditions as agreed to by the land bank and that unit of 31 government so long as the real property is located within the 32 geographical boundaries of the land bank. 33 b. A land bank may acquire tax sale certificates at a tax 34 sale conducted under chapter 446 and may subsequently acquire 35 -11- LSB 5021SV (3) 88 js/jh 11/ 28

S.F. 2369 title through tax lien foreclosure procedures. A land bank 1 shall not be considered a city or county for purposes of 2 bidding on and acquiring tax sale certificates under chapter 3 446, redeeming property under chapter 447, or obtaining a tax 4 sale deed under chapter 448. 5 c. The acquisition of property by the land bank shall not 6 be governed or controlled by any regulations or laws relating 7 to procurement or acquisition of property of any municipality 8 that created the land bank, unless specifically provided in the 9 ordinance, resolution, or chapter 28E agreement establishing 10 the land bank. 11 d. Except as otherwise provided in paragraph “e” of this 12 subsection, a land bank shall not own or hold real property 13 located outside the geographical boundaries of the land bank. 14 e. A land bank may be granted, pursuant to an 15 intergovernmental contract with a political subdivision of 16 this state, the authority to manage and maintain real property 17 located within the geographical boundaries of the political 18 subdivision, but outside the geographical boundaries of the 19 land bank. If a land bank receives a gift or devise of real 20 property located outside of the geographical boundaries of the 21 land bank, the land bank shall dispose of such property by sale 22 or exchange as soon as reasonably practicable. 23 3. A land bank shall maintain all of its real property in 24 accordance with the laws and ordinances of the jurisdiction in 25 which the real property is located. 26 4. A land bank shall maintain and make available for public 27 review and inspection an inventory of all real property held 28 by the land bank. 29 Sec. 10. NEW SECTION . 358A.10 Disposition of property. 30 1. A land bank may convey, exchange, sell, transfer, lease, 31 grant, or mortgage interests in real property of the land bank 32 at such times, to such persons, upon such terms and conditions, 33 and subject to such restrictions and covenants as the land bank 34 deems necessary or appropriate to assure the effective use of 35 -12- LSB 5021SV (3) 88 js/jh 12/ 28

S.F. 2369 the bank in accordance with the purposes of section 358A.2. 1 2. The land bank shall set forth in a resolution the land 2 bank’s proposal for sale, exchange, transfer, lease for more 3 than a period of three years, grant, or other disposition of 4 real property the land bank owns and shall publish notice in a 5 newspaper published at least once weekly and having a general 6 circulation within the general boundaries of the land bank at 7 least four and not more than twenty days prior to the date of 8 the public hearing. The published notice shall provide the 9 date, time, and place of a public hearing on the proposal. 10 However, if the population within the geographical boundaries 11 of the land bank is less than two hundred or if there is not 12 a newspaper published within the geographical boundaries of 13 the land bank, the land bank may post such notice on the real 14 property that is the subject of such proposal and at two public 15 places within the geographical boundaries of the land bank. 16 3. After the public hearing, the land bank shall make a 17 final determination on the proposal by resolution. 18 4. A land bank shall not dispose of real property by gift 19 except to a governmental body for a public purpose. 20 5. A land bank shall determine the amount and form of 21 consideration necessary to convey, exchange, sell, transfer, 22 lease, grant, or mortgage interests in real property. 23 Consideration may take the form of monetary payments and 24 secured financial obligations, covenants and conditions related 25 to the present and future use of the property, contractual 26 commitments by the transferee, and other forms of consideration 27 as determined by the board to be in the best interest of 28 the land bank. The value of the consideration shall be 29 not less than the lesser of the fair market value of the 30 property subject to any terms and conditions imposed upon the 31 disposition of the property or the amount paid by the land bank 32 to acquire and rehabilitate the property. 33 6. A municipality may in the ordinance or resolution 34 creating a land bank, or in the chapter 28E agreement in the 35 -13- LSB 5021SV (3) 88 js/jh 13/ 28

S.F. 2369 case of any combination of municipalities creating a single 1 land bank, require that a particular form of disposition of 2 real property or a disposition of real property located within 3 a specified jurisdiction be subject to specified voting and 4 approval requirements of the board. 5 Sec. 11. NEW SECTION . 358A.11 Financing. 6 1. A land bank may receive funding through grants, loans, 7 and other funds from the municipality that created the land 8 bank, from other municipalities, from the state of Iowa, from 9 the federal government, and from other public and private 10 sources, including but not limited to donations, gifts, or 11 bequests. 12 2. A land bank may receive and retain payments for services 13 rendered, for rents and leasehold payments received, for 14 consideration for disposition of real and personal property, 15 for proceeds of insurance coverage for losses incurred, for 16 income from investments, and for any other asset and activity 17 lawfully permitted to a land bank under this chapter. 18 3. Up to seventy-five percent of the real property taxes 19 remaining after the division of taxes pursuant to section 20 403.19, if applicable, and exclusive of any amount levied by a 21 school district, collected on real property that a land bank 22 has conveyed or leased to a third party shall be remitted to 23 the land bank. The specific percentage of the taxes to be 24 remitted, as to each municipality that created the land bank, 25 shall be set forth in the enabling ordinance, resolution, or 26 chapter 28E agreement creating the land bank. The allocation 27 of property tax revenues shall commence with property taxes 28 payable on the assessed value of the property determined on the 29 first assessment year beginning January 1 following the date 30 of conveyance or lease by the land bank and shall be allocated 31 for a period of five consecutive years. The land bank shall 32 give the treasurer in the county where the property is located 33 written notice of the date of the sale or lease of any property 34 for which the land bank claims a real property tax payment 35 -14- LSB 5021SV (3) 88 js/jh 14/ 28

S.F. 2369 under this subsection. The notice shall identify the property 1 by local tax parcel number, address, and legal description and 2 include a copy of the ordinance, resolution, or chapter 28E 3 agreement setting forth the portion of such taxes allocable to 4 the land bank under this subsection. Upon receipt of the taxes 5 from such property, the treasurer shall pay the land bank its 6 share of the taxes paid on such property with respect to the 7 applicable five-year period. 8 4. At the time that a land bank sells or otherwise disposes 9 of property as part of its land bank program, the proceeds from 10 the sale, if any, shall be allocated as determined by the land 11 bank among the following priorities: 12 a. Furtherance of land bank operations. 13 b. Recovery of land bank expenses. 14 Sec. 12. NEW SECTION . 358A.12 Delinquent property tax 15 enforcement. 16 1. Whenever a land bank acquires real property encumbered 17 by a lien or claim for real property taxes owed to one or 18 more of the municipalities that established the land bank, 19 or to other political subdivisions that have entered into an 20 intergovernmental contract with the land bank, the land bank 21 may, by resolution of the board, discharge and extinguish any 22 and all of the liens or claims. The decision by the board to 23 extinguish the property tax liens or claims is subject to the 24 voting requirements contained in section 358A.5, subsection 25 10. If a portion of the real property taxes are attributable 26 to property taxes certified for levy by a school district, 27 the land bank shall notify the school district in writing of 28 its intent to extinguish all such liens and claims. If the 29 school district sends a written objection to the proposed 30 extinguishment of such liens and claims to the land bank within 31 thirty days of receipt of such notice, the land bank shall not 32 extinguish the liens and claims. If the school district fails 33 to send a written objection to the proposed extinguishment to 34 the land bank within thirty days of receipt of such notice 35 -15- LSB 5021SV (3) 88 js/jh 15/ 28

S.F. 2369 from the land bank, the land bank shall have the power, by 1 resolution of the board, to discharge and extinguish any 2 and all such liens or claims. To the extent necessary and 3 appropriate, the land bank shall file with the appropriate 4 taxing entity a copy of the resolution providing for the 5 discharge and the extinguishment of liens or claims under this 6 section. 7 2. If a land bank receives payments of any kind attributable 8 to liens or claims for real property taxes owed or allocated 9 to a municipality or school district on property acquired by 10 the land bank, the land bank shall remit the full amount of the 11 payments to the appropriate taxing entity. 12 Sec. 13. NEW SECTION . 358A.13 Exemption from taxation. 13 The income and operations of a land bank are exempt from 14 taxation by the state and by any political subdivision of the 15 state. 16 Sec. 14. NEW SECTION . 358A.14 Public records and public 17 meetings. 18 A land bank is a “governmental body” for purposes of chapter 19 21 and a “government body” for the purposes of chapter 22. A 20 land bank shall comply with all public meeting requirements 21 under chapter 21 and all public records requirements under 22 chapter 22. 23 Sec. 15. NEW SECTION . 358A.15 Reports. 24 1. A land bank shall submit to the governing body of the 25 municipality that created the land bank a monthly report that 26 informs the municipality of the land bank’s activities for the 27 previous month. 28 2. By January 31 of each year, the land bank shall submit an 29 annual report to the governing body of the municipality that 30 created the land bank that informs the municipality of the land 31 bank’s activities for the preceding calendar year. 32 3. A land bank shall submit an annual report, by January 33 31 of each year, to the general assembly’s standing committees 34 on commerce concerning the land bank’s activities for the 35 -16- LSB 5021SV (3) 88 js/jh 16/ 28

S.F. 2369 preceding calendar year. 1 Sec. 16. NEW SECTION . 358A.16 Audits. 2 A land bank is a “governmental subdivision” for the purposes 3 of chapter 11. A land bank shall be subject to periodic 4 examination by the auditor of the state. 5 Sec. 17. NEW SECTION . 358A.17 Dissolution of land banks. 6 1. A land bank may be dissolved sixty calendar days after 7 a resolution of dissolution is approved by two-thirds of the 8 voting members of the board and by two-thirds of the membership 9 of each governing body of a municipality that created the 10 land bank. The board shall appoint a trustee to distribute 11 assets held by the land bank. The board shall give sixty 12 calendar days advance written notice of its consideration of 13 a resolution of dissolution by publishing a notice in local 14 newspapers of general circulation within each municipality that 15 created the land bank. Upon dissolution of the land bank, all 16 liabilities, real property, personal property, and other assets 17 of the land bank shall become the liabilities and assets of the 18 municipality that created the land bank, or, in the case of a 19 land bank created pursuant to a chapter 28E agreement, shall be 20 distributed pursuant to the chapter 28E agreement. 21 2. A municipality may withdraw from a land bank if the land 22 bank was created pursuant to a chapter 28E agreement. The 23 withdrawing municipality shall receive its share of assets and 24 liabilities as determined in the chapter 28E agreement. A land 25 bank consisting of two or more municipalities does not dissolve 26 upon the withdrawal of a single municipality. 27 Sec. 18. NEW SECTION . 358A.18 Conflicts of interest. 28 1. For purposes of this section, “family member” means a 29 person who is a spouse, domestic partner, child, step-child, 30 grandchild, parent, step-parent, grandparent, sibling, niece, 31 nephew, uncle, aunt, mother-in-law, father-in-law, son-in-law, 32 or daughter-in-law of a member of the board or an employee of a 33 land bank. “Family member” includes a person who is a family 34 member through adoption. 35 -17- LSB 5021SV (3) 88 js/jh 17/ 28

S.F. 2369 2. A member of the board, employee of a land bank, or family 1 member of a member of the board or an employee of the land 2 bank shall not acquire any direct or indirect interest in real 3 property of the land bank or in any property to be acquired 4 from the land bank, or have or acquire any direct or indirect 5 interest in any real property to be acquired by a land bank. 6 A land bank shall not acquire any real property from a board 7 member, employee of the land bank, or family member of a board 8 member or employee of the land bank. 9 3. Members of the board and employees of the land bank shall 10 disclose to the board any direct or indirect ownership interest 11 such person or a family member of such person has in any 12 property to be acquired by the land bank or located within one 13 thousand feet of any property that the land bank is considering 14 acquiring before the land bank takes any action to acquire such 15 property. A member of the board who is required to make such 16 disclosure shall not participate in the decision to approve the 17 acquisition of such property. 18 4. A member of the board, employee of a land bank, or family 19 member of a member of the board or an employee of the land 20 bank may have a direct or indirect interest in any contract 21 or proposed contract for material or services to be furnished 22 to or used by a land bank only upon all of the following 23 conditions: 24 a. The member of the board or employee of the land bank 25 discloses the material facts of such transaction and the nature 26 of such interest to the board before the board acts to approve 27 such contract and, if the person is a board member, does not 28 participate in the discussion or vote to consider approval of 29 such contract. 30 b. Such contract is approved by a majority of the members 31 of the board who have no direct or indirect interest in such 32 contract and whose family members have no direct or indirect 33 interest in such contract. 34 c. Such contract is fair at the time the contract is 35 -18- LSB 5021SV (3) 88 js/jh 18/ 28

S.F. 2369 approved. 1 5. a. Any person who serves or is employed by a land bank 2 shall not engage in any of the following conduct: 3 (1) Outside employment or an activity that involves the use 4 of the land bank’s time, facilities, equipment, and supplies 5 or the use of evidences of office or employment to give the 6 person, an entity affiliated with or controlled by the person, 7 or a family member of the person an advantage or pecuniary 8 benefit that is not available to other similarly situated 9 members or classes of members of the general public. For 10 purposes of this subparagraph, a person is not “similarly 11 situated” merely by being, or being related to, a person who 12 serves or is employed by the land bank. 13 (2) Outside employment or an activity that involves the 14 receipt of, promise of, or acceptance of money or other 15 consideration by the person, an entity affiliated with or 16 controlled by the person, or a family member of the person from 17 anyone other than the land bank for the performance of any act 18 that the person would be required or expected to perform as a 19 part of the person’s regular duties or during the hours during 20 which the person performs service or work for the land bank. 21 (3) Outside employment or an activity that is subject to 22 the official control, inspection, review, audit, or enforcement 23 authority of the person, during the performance of the person’s 24 duties of office or employment. 25 b. If the outside employment or activity is employment or 26 activity described in paragraph “a” , subparagraph (1) or (2), 27 the person shall immediately cease the employment or activity. 28 If the outside employment or activity is employment or activity 29 described in paragraph “a” , subparagraph (3), unless otherwise 30 provided by law, the person shall take one of the following 31 courses of action: 32 (1) Cease the outside employment or activity. 33 (2) Publicly disclose the existence of the conflict and 34 refrain from taking any official action or performing any 35 -19- LSB 5021SV (3) 88 js/jh 19/ 28