H.F. 506 Section 1. Section 8.57, subsection 1, paragraph b, Code 1 2021, is amended to read as follows: 2 b. The surplus existing in the general fund of the state 3 at the conclusion of the fiscal year is appropriated for 4 distribution in the succeeding fiscal year as provided in 5 subsections 1A, 2 , and 3 . Moneys credited to the cash reserve 6 fund from the appropriation made in this paragraph shall not 7 exceed the amount necessary for the cash reserve fund to reach 8 the cash reserve goal percentage for the succeeding fiscal 9 year. As used in this paragraph, “surplus” means the excess 10 of revenues and other financing sources over expenditures and 11 other financing uses for the general fund of the state in a 12 fiscal year. 13 Sec. 2. Section 8.57, Code 2021, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 1A. Notwithstanding any provision of law to 16 the contrary, there is appropriated from the surplus as defined 17 in subsection 1, paragraph “b” , at the conclusion of each 18 fiscal year to the department on aging, an amount of up to one 19 million dollars, prior to the crediting or appropriating of the 20 surplus to any other fund or for any other purpose, to provide 21 state matching funds for federal funds received in the prior 22 fiscal year for the home modification grant program created 23 in section 231.67. The department on aging shall report the 24 receipt of any federal funding to the department of management 25 upon receipt of such funds, and the department of management 26 shall determine the amount of funds to be appropriated based on 27 the reported amount of federal funds received. 28 Sec. 3. Section 8.57, subsection 2, Code 2021, is amended 29 to read as follows: 30 2. Moneys appropriated under subsection 1 shall be first 31 credited to the cash reserve fund following the appropriation 32 of any moneys to the home modification grant program created in 33 section 231.67 . To the extent that moneys appropriated under 34 subsection 1 would make the moneys in the cash reserve fund 35 -1- LSB 2409YH (3) 89 pf/rh 1/ 6

H.F. 506 exceed the cash reserve goal percentage of the adjusted revenue 1 estimate for the fiscal year, the moneys are appropriated 2 to the department of management to be spent for the purpose 3 of eliminating Iowa’s GAAP deficit, including the payment 4 of items budgeted in a subsequent fiscal year which under 5 generally accepted accounting principles should be budgeted 6 in the current fiscal year. These moneys shall be deposited 7 into a GAAP deficit reduction account established within the 8 department of management. The department of management shall 9 annually file with both houses of the general assembly at the 10 time of the submission of the governor’s budget, a schedule of 11 the items for which moneys appropriated under this subsection 12 for the purpose of eliminating Iowa’s GAAP deficit, including 13 the payment of items budgeted in a subsequent fiscal year 14 which under generally accepted accounting principles should 15 be budgeted in the current fiscal year, shall be spent. The 16 schedule shall indicate the fiscal year in which the spending 17 for an item is to take place and shall incorporate the items 18 detailed in 1994 Iowa Acts, ch. 1181, §17 . The schedule 19 shall list each item of expenditure and the estimated dollar 20 amount of moneys to be spent on that item for the fiscal 21 year. The department of management may submit during a 22 regular legislative session an amended schedule for legislative 23 consideration. If moneys appropriated under this subsection 24 are not enough to pay for all listed expenditures, the 25 department of management shall distribute the payments among 26 the listed expenditure items. Moneys appropriated to the 27 department of management under this subsection shall not be 28 spent on items other than those included in the filed schedule. 29 On September 1 following the close of a fiscal year, moneys in 30 the GAAP deficit reduction account which remain unexpended for 31 items on the filed schedule for the previous fiscal year shall 32 be credited to the Iowa economic emergency fund. 33 Sec. 4. NEW SECTION . 231.67 Home modification grant program 34 —— established —— requirements. 35 -2- LSB 2409YH (3) 89 pf/rh 2/ 6

H.F. 506 1. As used in this section, unless the context otherwise 1 requires: 2 a. “Accommodate” means to make a residence accessible for 3 a qualified person in a manner that is necessary due to the 4 qualified person’s age, disability, or condition. 5 b. “Medical provider” means a physician, physician 6 assistant, advanced registered nurse practitioner, physical 7 therapist, or occupational therapist. 8 c. “Modification or improvement” means a modification of or 9 improvement to a qualified person’s residence that is certified 10 by a medical provider as being necessary to accommodate the 11 qualified person. 12 (1) A “modification or improvement” includes one or more of 13 the following: 14 (a) Providing for or installing a nonstep entrance. 15 (b) Providing for or installing exterior or interior ramps. 16 (c) Providing for or installing stairway lifts or 17 elevators. 18 (d) Providing for or installing handrails or grab bars, or 19 the reinforcement of grab bars. 20 (e) Providing for or installing hardware for doors. 21 (f) Widening exterior doors or interior hallways to more 22 than thirty-six inches. 23 (g) Widening interior doors to more than thirty-two inches. 24 (h) Modifying electrical components, including moving 25 electrical outlets and switches. 26 (i) Modifying bathrooms, including but not limited to 27 providing for the modification or installation of accessible 28 toilets, bathtubs, showers, plumbing, or fixtures. 29 (j) Modifying kitchens including but not limited to 30 providing for the modification or installation of accessible 31 countertops, cabinets, appliances, plumbing, or fixtures. 32 (k) Modifying bedrooms including but not limited to 33 the relocation of a bedroom to an accessible space in the 34 residence. 35 -3- LSB 2409YH (3) 89 pf/rh 3/ 6

H.F. 506 (2) A “modification or improvement” does not include 1 the construction of a new residence, or an addition to or 2 modification of an existing residence that expands the living 3 area but is not otherwise described in this paragraph “c” , 4 subparagraph (1). 5 d. “Qualified homeowner” means a person who meets all of the 6 following conditions: 7 (1) Has an income at or below the annual Iowa median 8 household income. 9 (2) Is the owner of residential real property in this state, 10 including a condominium, that is the primary residence of the 11 owner. 12 (3) Is a qualified person or resides with a spouse or 13 dependent who is a qualified person. 14 e. “Qualified person” means a person who is at least sixty 15 years of age, or who is living with a disability, as defined in 16 42 U.S.C. §12102, or who has a chronic condition the prognosis 17 for which requires a permanent modification to the qualified 18 person’s residence. 19 2. a. A home modification grant program is established in 20 the department. The department shall administer the program 21 and provide grants through expenditure of funds appropriated 22 to the department for this purpose. Grants shall be made, 23 in amounts not to exceed five thousand dollars per primary 24 residence, to qualified homeowners for the purposes of 25 modification or improvement to a qualified person’s residence 26 to accommodate the qualified person. 27 b. The department shall adopt rules pursuant to chapter 17A 28 to administer the program. 29 c. Notwithstanding section 8.33, funds appropriated to 30 the department for the purposes of the home modification 31 grant program under this section that remain unencumbered or 32 unobligated at the close of a fiscal year shall not revert 33 but shall remain available for expenditure for the purposes 34 designated. 35 -4- LSB 2409YH (3) 89 pf/rh 4/ 6

H.F. 506 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill establishes a home modification grant program to 4 be administered by the department on aging (IDA). To receive 5 a grant under the program, a qualified homeowner must have an 6 income at or below the annual Iowa median household income, be 7 the owner of a residential real property in the state that is 8 the primary residence of the owner, and be a qualified person 9 or reside with a spouse or dependent who is a qualified person. 10 Under the bill, a “qualified person” means a person who meets 11 one of the following conditions: is at least 60 years of age, 12 is living with a disability as defined under federal law, or 13 has a chronic condition the prognosis for which requires a 14 permanent modification to the qualified person’s residence. 15 Grants under the program are limited to not more than $5,000 16 per primary residence and may only be used for modifications 17 or improvements to a qualified person’s residence that are 18 certified by a medical provider as necessary to accommodate 19 the qualified person. Under the bill, a “modification or 20 improvement” does not include the construction of a new 21 residence, or an addition to or modification of an existing 22 residence that expands the living area but is not otherwise 23 described as an allowable modification or improvement under the 24 bill. 25 The bill makes an appropriation from the surplus of the 26 general fund of the state remaining at the conclusion of each 27 fiscal year, prior to the crediting or appropriating of the 28 surplus to any other fund or for any other purpose, to IDA in 29 an amount up to $1 million to provide state matching funds 30 for federal funds received in the prior fiscal year for the 31 home modification grant program. IDA shall report the receipt 32 of any federal funding to the department of management upon 33 receipt of such funds and the department of management shall 34 determine the amount of funds to be appropriated based on the 35 -5- LSB 2409YH (3) 89 pf/rh 5/ 6