Senate Study Bill 1247 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON APPROPRIATIONS BILL BY CHAIRPERSON BREITBACH) 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 2010XC (2) 88 js/lh

S.F. _____ 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 to cope with 10 dilapidated, abandoned, blighted, and tax delinquent 11 properties. 12 2. Citizens of Iowa are affected adversely by dilapidated, 13 abandoned, blighted, and tax delinquent properties, 14 including properties that have been abandoned due to mortgage 15 foreclosure. 16 3. Dilapidated, abandoned, blighted, and tax-delinquent 17 properties impose significant costs on neighborhoods and 18 communities by lowering property values, increasing fire 19 and police protection costs, decreasing tax revenues, and 20 undermining community cohesion. 21 4. There is an overwhelming public need to confront the 22 problems caused by dilapidated, abandoned, blighted, and 23 tax-delinquent properties; to return properties that are in 24 non-revenue-generating, non-tax-producing status to productive 25 status in order to revitalize rural areas, provide affordable 26 housing, and attract new industry; and to create jobs for the 27 citizens of this state through the establishment of new tools 28 that enable communities to turn abandoned spaces into vibrant 29 places. 30 5. Land banks are one of the tools that communities can use 31 to facilitate the return of dilapidated, abandoned, blighted, 32 and tax-delinquent properties to productive use. 33 Sec. 3. NEW SECTION . 358A.3 Definitions. 34 As used in this chapter, unless the context otherwise 35 -1- LSB 2010XC (2) 88 js/lh 1/ 25

S.F. _____ requires: 1 1. “Board” means the board of directors of a land bank. 2 2. “Financial institution” means a bank, savings 3 association, operating subsidiary of a bank or savings 4 association, credit union, association licensed to originate 5 mortgage loans, or an assignee of a mortgage or note originated 6 by such an institution. 7 3. “Geographical boundaries of the land bank” means the 8 jurisdiction of the municipality that created the land 9 bank or in the case of any combination of municipalities 10 creating a single land bank, the combined jurisdictions of the 11 municipalities. 12 4. “Land bank” means an entity created under section 358A.4. 13 5. “Local employee” means a person employed by a 14 municipality of this state and does not include an independent 15 contractor. 16 6. “Local official” means an officeholder of a municipality 17 of this state. 18 7. “Municipality” means a municipal corporation, county, or 19 township. 20 8. “Person” means an individual, firm, partnership, 21 corporation, joint stock company, association, or trust. 22 9. “Trump bid” means the expression of intent by a land bank 23 to purchase a property for sale at a tax foreclosure auction 24 by informing the treasurer for the municipality holding the 25 auction at least five business days prior to the beginning of 26 the auction. 27 Sec. 4. NEW SECTION . 358A.4 Creation. 28 1. A land bank organized under this chapter shall be a 29 body corporate and politic, with the name under which it was 30 organized, and may sue and be sued in its own name, contract 31 and be contracted with, acquire and hold real and personal 32 property necessary for corporate purposes, adopt a corporate 33 seal and alter the same at pleasure, and exercise all the 34 powers conferred in this chapter. 35 -2- LSB 2010XC (2) 88 js/lh 2/ 25

S.F. _____ 2. a. Any municipality may create a land bank. Creation 1 shall be by ordinance in the case of a municipal corporation 2 or by resolution in the case of a county or township. The 3 ordinance or resolution shall make reference to the purposes 4 listed under section 358A.2. 5 b. Any municipal corporation, county, or township may create 6 a land bank in combination with other municipal corporations, 7 counties, or townships. Municipalities seeking to create such 8 a land bank shall comply with the procedures set forth in 9 chapter 28E. A land bank shall be considered a “public agency” 10 for the purposes of chapters 28E and 28H. 11 c. Any municipal corporation or township passing an 12 ordinance or a resolution or entering into a chapter 28E 13 agreement under paragraph “a” or “b” of this subsection shall 14 promptly deliver copies of the ordinance, resolution, or 15 agreement to the auditor, treasurer, and the county attorney of 16 each county in which the municipality is situated. Any board 17 of supervisors adopting a resolution or entering into a chapter 18 28E agreement creating a land bank pursuant to this section 19 shall deliver a copy of the resolution or agreement to the 20 county auditor, county treasurer, and county attorney. 21 3. The enabling ordinance or resolution, or chapter 28E 22 agreement, shall set forth the procedures that the land bank 23 will follow in selecting a board of directors, determining 24 term lengths and limits for the board, and exercising other 25 discretionary powers described in other provisions of this 26 chapter. Unless specified otherwise in the ordinance, 27 resolution, or agreement, the powers and procedures of a newly 28 created land bank shall be the powers and procedures specified 29 in this chapter. 30 Sec. 5. NEW SECTION . 358A.5 Board. 31 1. a. A land bank shall have a board of directors in which 32 all powers of the land bank shall be vested. 33 b. Unless restricted by the enabling ordinance, resolution, 34 or agreement as specified in section 358A.4, the provisions of 35 -3- LSB 2010XC (2) 88 js/lh 3/ 25

S.F. _____ this section shall apply to the governance of a land bank. 1 2. a. The membership of the board shall be established in 2 the bylaws of the land bank and shall consist of an odd number 3 of members, which shall be not less than five nor more than 4 eleven members. 5 b. Unless otherwise specified by the ordinance, resolution, 6 or agreement under section 358A.4, the default length of a term 7 for a board member shall be four years. 8 c. A land bank may, as determined in the bylaws, limit the 9 number of terms that members of its board may serve. 10 3. a. Notwithstanding any law to the contrary, a local 11 official may serve as a board member and service as a land bank 12 board member shall neither terminate nor impair that public 13 office. 14 b. A local employee shall be eligible to serve as a land 15 bank board member. 16 c. The members of a land bank board shall all be voting 17 members. Land bank board members shall include representatives 18 of each of the following: 19 (1) A local government. 20 (2) A chamber of commerce. 21 (3) Persons with experience in banking. 22 (4) Persons with experience in real property acquisition or 23 real property development. 24 (5) Persons with experience in nonprofit or affordable 25 housing. 26 (6) Persons who meet all of the following: 27 (a) The person is a resident of the land bank jurisdiction. 28 (b) The person is not a local public official or local 29 employee. 30 (c) The person maintains membership with a recognized civic 31 organization within the land bank jurisdiction. 32 d. Requirements provided in paragraph “c” of this subsection 33 may be satisfied by the appointment of a single voting member 34 who meets more than one of the criteria. 35 -4- LSB 2010XC (2) 88 js/lh 4/ 25

S.F. _____ e. A member removed under subsection 4 shall be ineligible 1 for reappointment to the board unless the reappointment is 2 confirmed unanimously by the board. 3 4. Annually, the board shall select from the board 4 membership a chair, vice chair, secretary, and treasurer and 5 such other officers as the board deems necessary. 6 5. A vacancy on the board shall be filled in the same manner 7 as the original appointment. Removal of a member shall cause 8 the position to become vacant. 9 6. Board members shall serve without compensation. 10 However, the board may reimburse a member for expenses actually 11 incurred in the performance of duties on behalf of the land 12 bank. 13 7. The board shall meet as follows: 14 a. In regular session according to a schedule adopted by the 15 board. 16 b. In special session convened by the chair or upon written 17 petition signed by a majority of the members. 18 8. a. A majority of the board, excluding vacancies, 19 constitutes a quorum. 20 b. A board may permit any or all directors to participate in 21 a regular or special meeting by, or conduct a meeting through 22 the use of, any means of electronic communication by which all 23 directors participating can simultaneously hear each other 24 during the meeting. A director participating in a meeting by 25 means of electronic communication is deemed to be present, in 26 person, at the meeting. 27 9. a. The board shall adopt bylaws establishing all of the 28 following: 29 (1) Duties of officers selected pursuant to subsection 3. 30 (2) Requirements for attendance and participation of 31 members at regular and special meetings of the board. 32 (3) A procedure for removal of a member for failure 33 to comply with a bylaw. Removal shall only be made by the 34 affirmative vote of no less than a majority of all of the other 35 -5- LSB 2010XC (2) 88 js/lh 5/ 25

S.F. _____ members of the board. 1 (4) A procedure detailing prioritization of what and which 2 types of properties to acquire, a procedure for acquisition of 3 properties, and a statement of purpose. 4 (5) A procedure for the terms and conditions relating 5 to disposition of properties, including but not limited to a 6 process for distribution of any proceeds to any claimants or 7 taxing entities, and to any other land bank. 8 (6) A procedure for the establishment, membership, and 9 duties of committees of the board. 10 (7) Other matters necessary to govern the conduct of a land 11 bank. 12 b. When in actual conflict, the ordinances, resolutions, or 13 agreements described in section 358A.4 shall control over any 14 bylaws adopted by the board. 15 10. a. Except as set forth in paragraph “b” or “c” of this 16 subsection, the enabling ordinance, resolution, or agreement, 17 or as set forth by a land bank in its bylaws, an action of the 18 board must be approved by the affirmative vote of a majority of 19 the board present and voting. 20 b. Action of the board on the following matters must be 21 approved by a majority of the entire board membership: 22 (1) Adoption of bylaws. 23 (2) Hiring or firing of an employee or contractor of the 24 land bank. This function may, by majority vote of the entire 25 board membership, be delegated by the board to a specified 26 officer or committee of the land bank. 27 (3) Incurring of debt. 28 (4) Adoption or amendment of the annual budget. 29 (5) Sale, lease, encumbrance, or alienation of real 30 property or personal property with a value of more than fifty 31 thousand dollars. 32 c. A resolution under section 358A.18 must be approved by 33 two-thirds of the entire board membership. 34 d. A member of the board may not vote by proxy. 35 -6- LSB 2010XC (2) 88 js/lh 6/ 25

S.F. _____ e. A member may request that a vote on any resolution or 1 action of the land bank be recorded. 2 11. Members of the board shall not be liable personally on 3 the bonds or other obligations of the land bank, and rights of 4 creditors of a land bank shall be solely against the land bank. 5 Sec. 6. NEW SECTION . 358A.6 Staff. 6 1. A land bank may employ or contract for the employment 7 of a secretary, an executive director, legal counsel and 8 legal staff, and such other technical experts and agents 9 and employees, permanent or temporary, as the land bank may 10 require. The land bank may determine the qualifications 11 and fix the compensation and benefits of such persons. A 12 land bank may also enter into contracts and agreements with 13 municipalities for staffing services to be provided to the land 14 bank or for a land bank to provide such staffing services to 15 municipalities or agencies or departments of municipalities. 16 2. An employee of the land bank is not and shall not be 17 deemed to be an employee of the political subdivision for whose 18 benefit the land bank is organized solely because the employee 19 is employed by the land bank. 20 3. The land bank shall determine the compensation for an 21 executive director who shall manage the operations of a land 22 bank and employ or contract for the employment of others for 23 the benefit of the land bank as approved and funded by the 24 board of directors. 25 Sec. 7. NEW SECTION . 358A.7 Powers. 26 1. In furtherance of the purposes set forth in section 27 358A.2, a land bank shall have all of the following powers: 28 a. (1) To borrow money for any of the purposes of the land 29 bank by means of loans, lines of credit, or any other financial 30 instruments or securities, including the issuance of its 31 bonds, debentures, notes, or other evidences of indebtedness, 32 whether secured or unsecured, and to secure the indebtedness by 33 mortgage, pledge, deed of trust, or other lien on its property, 34 franchises, rights, and privileges of every kind and nature or 35 -7- LSB 2010XC (2) 88 js/lh 7/ 25

S.F. _____ any part thereof or interest therein. 1 (2) To request, by resolution, any of the following: 2 (a) That a county board of supervisors use its powers under 3 chapter 331 to propose a special bond issue for all properties 4 in that county’s boundaries. 5 (b) (i) That a county board of supervisors use its 6 powers under chapter 331 to propose a special bond issue for 7 properties in only unincorporated areas or townships within 8 that county’s boundaries. 9 (ii) That a city or municipal corporation use its powers 10 under chapter 372 to propose a special bond issue or revenue 11 measure for properties held by a land bank within the corporate 12 boundaries of a city or municipal corporation. 13 b. To make loans to any person and to establish and regulate 14 the terms and conditions of the loans, provided that a land 15 bank shall not approve any application for a loan unless and 16 until the person applying for the loan shows that the person 17 has applied for the loan through ordinary banking or commercial 18 channels and that the loan has been refused by at least one 19 bank or other financial institution. 20 c. To purchase, receive, hold, manage, lease, 21 lease-purchase, or otherwise acquire and to sell, convey, 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 d. (1) To acquire the good will, business, rights, real 28 and personal property, and other assets, or any part or 29 interest, of any person, and to assume, undertake, or pay the 30 obligations, debts, and liabilities of any person. 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 2010XC (2) 88 js/lh 8/ 25

S.F. _____ 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, transfer, lease, sublease, or 7 otherwise dispose of business establishments or housing. 8 e. To acquire, subscribe for, own, hold, sell, assign, 9 transfer, mortgage, pledge, or otherwise dispose of stocks, 10 shares, bonds, debentures, notes, or other securities interests 11 or indebtedness and evidences of interest in, or indebtedness 12 of, any person and, while owning or holding the securities, to 13 exercise all the rights, powers, and privileges of ownership, 14 including any right to vote, provided that tax revenue, if any, 15 received by a land bank shall not be used for acquisition or 16 subscription. 17 f. To mortgage, pledge, or otherwise encumber any property 18 acquired pursuant to the powers contained in paragraph “c” , “d” , 19 or “e” of this subsection. 20 g. To serve as an agent for grant applications and for the 21 administration of grants, or to make applications as principal 22 for grants intended for use by the land bank. 23 h. To charge fees or exchange in-kind goods or services for 24 services rendered to political subdivisions and other persons 25 for whom services are rendered. 26 i. To purchase tax certificates at auction, negotiated sale, 27 or from a third party who purchased and is a holder of one or 28 more tax certificates issued pursuant to chapter 446. 29 j. To be assigned a mortgage on real property from a 30 mortgagee in lieu of acquiring such real property subject to 31 a mortgage. 32 k. To extinguish liens and encumbrances on tax-delinquent or 33 otherwise encumbered property the land bank comes to possess. 34 l. To issue trump bids for properties subject to tax 35 -9- LSB 2010XC (2) 88 js/lh 9/ 25

S.F. _____ foreclosure auction and purchase such properties at the amount 1 initially proposed at such an auction. At the beginning of an 2 auction, properties that a land bank has expressed intent to 3 purchase via a trump bid will be publicly sold to the land bank 4 for the initially proposed amount. 5 m. A land bank may petition for abatement pursuant to 6 chapter 657A and is an “interested person” for purposes of that 7 chapter. 8 n. To do all acts and things necessary or convenient to 9 carry out the purposes set forth in section 358A.2 and the 10 powers especially created for a land bank in this section, 11 including but not limited to contracting with the federal 12 government, the state or any political subdivision of the 13 state, and any other party, whether nonprofit or for-profit. 14 2. The powers enumerated in this chapter shall not be 15 construed to limit the general powers of a land bank. The 16 powers granted under this chapter are in addition to the powers 17 granted by any other section of the Code, but as to a land 18 bank, shall be used only for the purposes set forth in section 19 358A.2. 20 Sec. 8. NEW SECTION . 358A.8 Eminent domain. 21 A land bank shall not possess or exercise the power of 22 eminent domain. 23 Sec. 9. NEW SECTION . 358A.9 Acquisition of property. 24 1. a. Except as provided in section 358A.8, a land bank 25 may acquire real property or interests in real property by 26 gift, devise, transfer, exchange, foreclosure, purchase, or 27 otherwise, on terms and conditions and in a manner the board 28 considers is in the best interest of the land bank. 29 b. A land bank may hold and own in its own name any 30 property acquired by or conveyed to the land bank. All deeds, 31 mortgages, contracts, leases, purchases, or other agreements 32 regarding property of the land bank, including agreements to 33 acquire or dispose of real property, may be approved by and 34 executed in the name of the land bank. 35 -10- LSB 2010XC (2) 88 js/lh 10/ 25

S.F. _____ 2. a. A land bank may acquire real property by purchase 1 contracts, lease-purchase agreements, installment sales 2 contracts, land contracts, or other contracts that convey an 3 interest in real property. A land bank may accept transfers 4 of property or interests in property from the state or 5 any political subdivision of the state upon such terms and 6 conditions as agreed to by the land bank and that unit of 7 government so long as the real property is located within the 8 geographical boundaries of the land bank. 9 b. The acquisition of property by the land bank shall not be 10 governed or controlled by any regulations or laws relating to 11 procurement or acquisition of property of any of the political 12 subdivisions of this state that are members of the land bank, 13 unless specifically provided in the ordinance, resolution, or 14 agreement between municipalities made pursuant to chapter 28E 15 establishing the land bank. 16 c. Except as otherwise provided in paragraph “d” of this 17 subsection, a land bank shall not own or hold real property 18 located outside the geographical boundaries of the land bank. 19 d. A land bank may be granted, pursuant to an 20 intergovernmental contract with a political subdivision of 21 this state, the authority to manage and maintain real property 22 located within the geographical boundaries of the political 23 subdivision, but outside the geographical boundaries of the 24 land bank. 25 3. A land bank shall maintain all of its real property in 26 accordance with the laws and ordinances of the jurisdiction in 27 which the real property is located. 28 4. A land bank shall maintain and make available for public 29 review and inspection an inventory of all real property held 30 by the land bank. 31 Sec. 10. NEW SECTION . 358A.10 Disposition of property. 32 1. a. A land bank may convey, exchange, sell, transfer, 33 lease, grant, or mortgage interests in real property of the 34 land bank at such times, to such persons, upon such terms and 35 -11- LSB 2010XC (2) 88 js/lh 11/ 25

S.F. _____ conditions, and subject to such restrictions and covenants as 1 the land bank deems necessary or appropriate to assure the 2 effective use of the bank in accordance with the purposes of 3 section 358A.2. 4 b. Unless otherwise provided in the enabling resolution, 5 ordinance, or agreement, requirements that may be applicable to 6 the disposition of real property and interests in real property 7 by municipalities shall not be applicable to the disposition of 8 real property and interests in real property by a land bank. 9 2. a. A land bank shall determine the amount and form of 10 consideration necessary to convey, exchange, sell, transfer, 11 lease as lessor, grant, or mortgage interests in real property. 12 b. Consideration may take the form of monetary payments and 13 secured financial obligations, covenants and conditions related 14 to the present and future use of the property, contractual 15 commitments by the transferee, and other forms of consideration 16 as determined by the board to be in the best interest of the 17 land bank. 18 3. a. A municipality may in the ordinance or resolution 19 creating a land bank, or in the chapter 28E agreement in the 20 case of any combination of municipalities creating a single 21 land bank, require that a particular form of disposition of 22 real property or a disposition of real property located within 23 specified jurisdictions be subject to specified voting and 24 approval requirements of the board. 25 b. Except as otherwise provided under paragraph “a” of this 26 subsection, the board may delegate to officers and employees 27 the authority to enter into and execute agreements, instruments 28 of conveyance, and other related documents pertaining to the 29 conveyance of real property by the land bank. 30 Sec. 11. NEW SECTION . 358A.11 Financing. 31 1. A land bank may receive funding through grants, loans, 32 and other funds from the governmental unit or units that 33 created the land bank, from other municipalities, from the 34 state of Iowa, from the federal government, and from other 35 -12- LSB 2010XC (2) 88 js/lh 12/ 25

S.F. _____ public and private sources, including but not limited to 1 donations, gifts, or bequests. 2 2. A land bank may receive and retain payments for services 3 rendered, for rents and leasehold payments received, for 4 consideration for disposition of real and personal property, 5 for proceeds of insurance coverage for losses incurred, for 6 income from investments, and for any other asset and activity 7 lawfully permitted to a land bank under this article. 8 3. Up to seventy-five percent of the real property taxes, 9 exclusive of any state or school district ad valorem tax, 10 collected on real property that has been conveyed by a land 11 bank to a subsequent landowner pursuant to the laws of this 12 state shall be remitted to the land bank. The specific 13 percentage of the taxes to be remitted, as to each land 14 bank member, shall be set forth in the enabling ordinance, 15 resolution, or chapter 28E agreement. The allocation of 16 property tax revenues shall commence with the first taxable 17 year following the date of conveyance by the land bank to a 18 subsequent owner and shall continue for a period of five years. 19 The funds shall be remitted to the land bank in accordance with 20 the administrative procedures established by the county or 21 counties in which the 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 Borrowing and issuance of 29 bonds. 30 1. A land bank shall have the power to issue bonds for any 31 of its corporate purposes, the principal and interest of which 32 are payable from the land bank’s general revenues and other 33 assets. The bonds shall be secured by a pledge of any revenue 34 of the land bank or by a mortgage of any property of the land 35 -13- LSB 2010XC (2) 88 js/lh 13/ 25

S.F. _____ bank. 1 2. The bonds issued by a land bank are, and shall conform to 2 the requirements pertaining to, negotiable instruments under 3 the uniform commercial code, chapter 554. 4 3. The bonds of a land bank created under the provisions of 5 this section and the income from the bonds shall at all times 6 be exempt from all taxes imposed by the state or any political 7 subdivision of the state. 8 4. a. Bonds issued by a land bank shall be authorized by 9 resolution of the board and shall be limited obligations of the 10 land bank. The principal and interest, costs of issuance, and 11 other costs incidental to the issuance of the bonds shall be 12 payable solely from the income and revenue derived from the 13 sale, lease, or other disposition of the assets of the land 14 bank. 15 b. Any refunding bonds issued by a land bank shall be 16 payable from any source described in paragraph “a” or from the 17 investment of any of the proceeds of the refunding bonds. 18 c. Bonds of the land bank shall be issued in such form, 19 shall be in such denominations, shall bear interest, shall 20 mature in such manner, and shall be executed by one or more 21 members of the board as provided in the resolution authorizing 22 the issuance of the bonds. Bonds may be subject to redemption 23 at the option of and in the manner determined by the board in 24 the resolution authorizing the issuance of the bonds. 25 5. Bonds issued by the land bank shall be issued, sold, 26 and delivered in accordance with the terms and provisions of a 27 resolution adopted by the board. The board may sell the bonds 28 in the manner, either at public or at private sale, and for the 29 price as the board may determine to be in the best interests of 30 the land bank. The resolution issuing bonds shall be published 31 in a newspaper of general circulation within the municipality 32 or municipalities that created the land bank. 33 6. Neither the members of a land bank nor any person 34 executing bonds or refunding bonds shall be personally 35 -14- LSB 2010XC (2) 88 js/lh 14/ 25

S.F. _____ liable on any of the bonds by reason of the issuance. Bonds, 1 refunding bonds, or other obligations of a land bank shall 2 not be a debt of any municipality that created the land bank 3 and shall so state on the face of the bonds, refunding bonds, 4 or obligations. A municipality, and any revenue or property 5 of any municipality, that establishes a land bank shall not 6 be liable on any of the bonds, refunding bonds, or other 7 obligations of the land bank. 8 Sec. 13. NEW SECTION . 358A.13 Delinquent property tax 9 enforcement. 10 1. Whenever any real property that is acquired by a land 11 bank is encumbered by a lien or claim for real property taxes 12 owed to one or more of the municipalities that established 13 the land bank, or to other political subdivisions that have 14 entered into an intergovernmental contract with the land bank, 15 the land bank may, by resolution of the board, discharge and 16 extinguish any and all of the liens or claims. The decision 17 by the board to extinguish the property tax liens or claims is 18 subject to the voting requirements contained in section 358A.5, 19 subsection 9. Unless otherwise provided in an applicable 20 intergovernmental contract, whenever any real property is 21 acquired by a land bank and is encumbered by a lien or claim 22 for real property taxes owed to a school district, the land 23 bank shall notify the school district in writing of its 24 intent to extinguish all such liens and claims. If the school 25 district fails to send a written objection to the proposed 26 extinguishment to the land bank within thirty days of receipt 27 of such notice from the land bank, the land bank shall have the 28 power, by resolution of the board, to discharge and extinguish 29 any and all such liens or claims. To the extent necessary and 30 appropriate, the land bank shall file with the appropriate 31 taxing entity a copy of the resolution providing for the 32 discharge and the extinguishment of liens or claims under this 33 section. 34 2. If a land bank receives payments of any kind attributable 35 -15- LSB 2010XC (2) 88 js/lh 15/ 25

S.F. _____ to liens or claims for real property taxes owed to a 1 municipality or school district on property acquired by the 2 land bank, the land bank shall remit the full amount of the 3 payments to the appropriate taxing entity. 4 3. A municipality may enter into a contract to sell some 5 or all of the delinquent tax liens held by it to a land bank, 6 subject to the following conditions: 7 a. The consideration to be paid may be more or less than the 8 face amount of the tax liens sold. 9 b. Property owners shall be given at least thirty days 10 advance notice of such sale in the same form and manner as is 11 provided by section 429.1. Failure to provide such notice or 12 the failure of the addressee to receive the same shall not in 13 any way affect the validity of any sale of a tax lien or tax 14 liens or the validity of the taxes or interest prescribed with 15 respect thereto. 16 c. The municipality shall set the terms and conditions of 17 the contract of sale. 18 d. Thirty days prior to the commencement of any foreclosure 19 action, the land bank shall provide to the municipality a 20 list of liens to be foreclosed. The municipality may, at 21 its sole option and discretion, repurchase a lien or liens 22 on the foreclosure list from the land bank. The repurchase 23 price shall be the amount of the lien or liens plus any 24 accrued interest and collection fees incurred by the land 25 bank. The land bank shall provide the foreclosure list to the 26 municipality, along with the applicable repurchase price of 27 each lien, by certified mail, and the municipality shall have 28 thirty days from receipt to notify the land bank of its intent 29 to exercise the option to purchase one or more of the liens. If 30 the municipality opts to purchase the lien, it shall provide 31 payment within thirty days of receipt of the repurchase price 32 of the lien or liens. If the municipality fails to exercise 33 the option to repurchase the lien or liens, the land bank shall 34 have the right to commence a foreclosure action immediately 35 -16- LSB 2010XC (2) 88 js/lh 16/ 25

S.F. _____ upon the expiration of the thirty-day period. 1 e. The sale of a tax lien pursuant to this section shall not 2 operate to shorten the otherwise applicable redemption period 3 or change the otherwise applicable interest rate. 4 f. Upon the expiration of the redemption period prescribed 5 by law, the purchaser of a delinquent tax lien, or its 6 successors or assigns, may foreclose the lien in the same 7 manner as in an action to foreclose a mortgage as provided in 8 chapter 654. The procedure in such action shall be the same 9 procedure prescribed by chapter 654. At any time following 10 the commencement of an action to foreclose a lien, the amount 11 required to redeem the lien, or the amount received upon 12 sale of a property, shall include reasonable and necessary 13 collection costs, attorneys’ fees, legal costs, allowances, and 14 disbursements. 15 g. If the court orders a public sale pursuant to section 16 446.7, and the purchaser of the property is the land bank, then 17 the form, substance, and timing of the land bank’s payment of 18 the sales price may be according to the agreement and as is 19 mutually acceptable to the plaintiff and the land bank. The 20 obligation of the land bank to perform in accordance with the 21 agreement shall be deemed to be in full satisfaction of the tax 22 claim that was the basis for the judgment. 23 h. Notwithstanding any other provision of law to the 24 contrary, in the event that a municipality does not elect to 25 tender a bid at a public sale pursuant to section 446.7 or sale 26 pursuant to the provisions of a county charter, city charter, 27 administrative code, or special law, the land bank may tender a 28 bid at the sale in an amount equal to the total amount of all 29 claims and liens that were the basis for the judgment. If the 30 land bank tenders a bid, the property shall be deemed sold to 31 the land bank, even if bids have been tendered by other third 32 parties. The bid of the land bank shall be paid in accordance 33 with the form, substance, and timing provided in the agreement 34 and as is mutually acceptable to the plaintiff and the land 35 -17- LSB 2010XC (2) 88 js/lh 17/ 25

S.F. _____ bank. The obligation of the land bank to perform in accordance 1 with the agreement shall be deemed to be in full satisfaction 2 of the municipal claim that was the basis for the judgment. 3 As the purchaser at the public sale or sale pursuant to the 4 provisions of a county charter, city charter, administrative 5 code, or special law, the land bank shall receive an absolute 6 title to the property sold, free and discharged to all tax and 7 municipal claims, liens, mortgages, charges, and estates of any 8 kind. The deed to the land bank assigns all rights resulting 9 from the land bank’s successful tender for the property to 10 the foreclosing governmental unit, allowing the property to 11 be deeded directly to the foreclosing governmental unit. All 12 land bank acquisitions pursuant to this subsection shall comply 13 with section 358A.9 and all dispositions of property acquired 14 pursuant to this subsection shall comply with section 358A.10. 15 Sec. 14. NEW SECTION . 358A.14 Expedited quiet title action. 16 1. a. A land bank may file an action to quiet title to any 17 real property in which the land bank has an interest. Chapter 18 649 shall apply to quiet title actions initiated by a land 19 bank to the extent that chapter is not inconsistent with this 20 section. 21 b. A land bank may join one or more parcels of real property 22 in a single petition to quiet title. 23 c. For the purposes of section 649.1, the land bank shall 24 be deemed to be the holder of sufficient legal and equitable 25 interests and possessory rights to qualify the land bank as a 26 petitioner in the action. 27 2. a. Prior to the filing of an action to quiet title, the 28 land bank must conduct an examination of title to determine the 29 identity of any person possessing a claim or interest in or to 30 the real property. 31 b. As part of the petition to quiet title, the land bank 32 shall file an affidavit identifying all parties potentially 33 having an interest in the real property and the form of notice 34 provided to each party. 35 -18- LSB 2010XC (2) 88 js/lh 18/ 25

S.F. _____ 3. The court shall schedule a hearing on the petition within 1 ninety days following filing of the petition. For all matters 2 upon which an answer was not filed by an interested party, the 3 court shall issue a final judgment within one hundred twenty 4 days of the filing of the petition. 5 4. a. A judgment entered under this section is a final 6 order with respect to the property affected by the judgment, 7 shall bar identified interested parties from bringing new 8 claims relating to the property, and shall not be modified, 9 stayed, or held invalid after the effective date of the 10 judgment, except as provided in paragraph “b” of this 11 subsection. 12 b. A person claiming to have a property interest foreclosed 13 under this section may, within thirty days of the effective 14 date of the judgment, appeal the court order and judgment 15 foreclosing the property interest. The court’s judgment 16 foreclosing the property interest shall be stayed until the 17 judgment is reversed, modified, or affirmed. If an appeal 18 under this subsection stays the judgment foreclosing the 19 property interest, the judgment is stayed only as to the 20 property that is the subject of that appeal and the trial 21 court’s judgment foreclosing other property interests that are 22 not the subject of that appeal are not stayed. 23 5. If a judgment to quiet title is entered, the owner of any 24 extinguished recorded or unrecorded interest in that property 25 who claims that notice of the expedited quiet title action was 26 not received is not entitled to bring an action for possession 27 of the property against any subsequent owner, but may bring an 28 action to recover monetary damages under this subsection. An 29 action to recover monetary damages under this subsection shall 30 not be brought more than two years after a judgment to quiet 31 title is entered. Any monetary damages recoverable under this 32 subsection shall be determined as of the date the judgment to 33 quiet title was entered and shall not exceed the fair market 34 value of the interest in the property held by the person 35 -19- LSB 2010XC (2) 88 js/lh 19/ 25