House File 582 - Introduced HOUSE FILE 582 BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO HSB 178) A BILL FOR An Act relating to affordable housing, disaster housing 1 assistance, and redevelopment tax credits by creating an 2 Iowa housing tax credit program, modifying distribution of 3 real estate transfer taxes, modifying workforce housing tax 4 incentives, including a downtown loan guarantee program, 5 creating a disaster housing recovery assistance program and 6 an eviction prevention program, providing for a fee, and 7 including effective date and applicability provisions. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 TLSB 1978HV (1) 89 jm/jh

H.F. 582 DIVISION I 1 IOWA HOUSING TAX CREDIT PROGRAM 2 Section 1. NEW SECTION . 16.37A Definitions. 3 For purposes of this section and sections 16.37B through 4 16.37G, unless the context otherwise requires: 5 1. “Compliance period” means the period of fifteen years 6 beginning with the first taxable year of the credit period. 7 2. “Credit period” means the period of ten tax years 8 beginning with the tax year in which a qualified development 9 is placed in service and the Iowa housing tax credit may be 10 claimed. If a qualified development consists of more than 11 one building, the qualified development is placed in service 12 in the tax year in which the last building of the qualified 13 development is placed in service. 14 3. “Department” means the Iowa department of revenue. 15 4. “Qualified allocation plan” means the qualified 16 allocation plan adopted by the authority pursuant to section 17 42(m) of the Internal Revenue Code. 18 5. “Qualified basis” means the qualified basis determined 19 under section 42(c)(1) of the Internal Revenue Code. 20 6. “Qualified development” means a qualified low-income 21 housing project under section 42(g) of the Internal Revenue 22 Code that is financed with tax-exempt bonds, pursuant to 23 section 42(i)(2) of the Internal Revenue Code, and located in 24 this state. 25 7. “Taxpayer” means an individual, a person, firm, 26 corporation, or other entity that owns an interest, direct 27 or indirect, in a qualified development and who claims a tax 28 credit under section 16.37C. 29 Sec. 2. NEW SECTION . 16.37B Application —— review —— 30 authorization. 31 1. The authority shall develop a system for the application, 32 review, and authorization of Iowa housing tax credits awarded 33 pursuant to this part and shall control the issuance of all tax 34 credit certificates to taxpayers pursuant to this part. 35 -1- LSB 1978HV (1) 89 jm/jh 1/ 29

H.F. 582 2. Applications for Iowa housing tax credits shall be 1 accepted during an application period established by the 2 authority. 3 3. The authority may authorize the tax credit if all of the 4 following conditions are satisfied: 5 a. The tax credit certificate is issued to a taxpayer who 6 has an ownership interest in the qualified development. 7 b. The tax credit amount is allocated pursuant to a 8 qualified allocation plan. 9 c. The tax credit is necessary for the financial feasibility 10 of the qualified development. 11 d. The amount of the tax credit allocated to an owner 12 does not exceed thirty percent of the qualified basis of the 13 qualified development. 14 e. The qualified development is the subject of a recorded 15 restrictive covenant requiring that, for the compliance period 16 or for a longer period agreed to by the authority and the 17 owner of the qualified development, the development shall be 18 maintained and operated as a qualified development and shall be 19 in compliance with Tit. VIII of the federal Civil Rights Act of 20 1968, as amended. 21 4. Upon review of an application, the authority may approve 22 the qualified development for the tax credit program provided 23 in section 16.37C, and issue a tax credit certificate stating 24 the amount of the tax credit the authority determines the 25 taxpayer is eligible to claim for each year of the credit 26 period. 27 5. Unless otherwise provided in this section or the context 28 clearly requires otherwise, the authority shall determine 29 eligibility for a credit and allocate credits in accordance 30 with the standards and requirements set forth in section 42 of 31 the Internal Revenue Code. 32 6. An applicant that is unsuccessful in receiving a tax 33 credit award during an application period may make additional 34 applications during subsequent application periods. Such 35 -2- LSB 1978HV (1) 89 jm/jh 2/ 29

H.F. 582 applicants shall be required to submit a new application which 1 shall be reviewed in the same manner as other applications in 2 that application period. 3 Sec. 3. NEW SECTION . 16.37C Iowa housing tax credits —— 4 limits. 5 1. An Iowa housing tax credit shall be allowed against 6 the taxes imposed in chapter 422, subchapters II, III, and V, 7 and in chapter 432, and against the moneys and credits tax 8 imposed in section 533.329, in the amount determined by the 9 authority pursuant to this part. Any tax credit in excess of 10 the taxpayer’s liability for the tax year is not refundable but 11 may be credited to the tax liability for the following five 12 years or until depleted, whichever is earlier. 13 2. An individual may claim a tax credit under this section 14 of a partnership, limited liability company, S corporation, 15 estate, or trust electing to have income taxed directly to 16 the individual. The amount claimed by the individual shall 17 be based upon the pro rata share of the individual’s earnings 18 from the partnership, limited liability company, S corporation, 19 estate, or trust. 20 3. In any calendar year, the aggregate amount of all tax 21 credits allocated by the authority shall not exceed fifteen 22 million dollars, plus the sum of the following amounts: 23 a. The total of all unallocated tax credits, if any, for the 24 preceding calendar years. 25 b. The total amount of all previously allocated tax credits 26 that have been recaptured, revoked, canceled, or otherwise 27 recovered by the authority. 28 4. a. To claim a tax credit under this section, a taxpayer 29 shall include one or more tax credit certificates issued by the 30 authority with the taxpayer’s tax return. 31 b. The tax credit certificate shall contain the taxpayer’s 32 name, address, tax identification number, the amount of the 33 credit including the amount the authority determines the 34 taxpayer is eligible to claim for each year of the credit 35 -3- LSB 1978HV (1) 89 jm/jh 3/ 29

H.F. 582 period, the name of the qualified development, any other 1 information required by the department of revenue, and a place 2 for the name and tax identification number of a transferee and 3 the amount of the tax credit being transferred. 4 c. Tax credit certificates issued under this section may 5 be transferred to any person or entity. Within ninety days 6 of transfer, the transferee shall submit the transferred tax 7 credit certificate to the authority along with a statement 8 containing the transferee’s name, tax identification number, 9 and address, the denomination that each replacement tax credit 10 certificate is to carry, and any other information required by 11 the department of revenue. 12 d. Within thirty days of receiving the transferred tax 13 credit certificate and the transferee’s statement, the 14 authority shall issue one or more replacement tax credit 15 certificates to the transferee. Each replacement tax credit 16 certificate must contain the information required for the 17 original tax credit certificate and must have the same 18 expiration date that appeared in the transferred tax credit 19 certificate. Tax credit certificate amounts of less than the 20 minimum amount established by rule of the authority shall not 21 be transferable. 22 e. A tax credit shall not be claimed by a transferee 23 under this section until a replacement tax credit certificate 24 identifying the transferee as the proper holder has been 25 issued. The transferee may use the amount of the tax credit 26 transferred against the taxes imposed in chapter 422, 27 subchapters II, III, and V, and in chapter 432, and against the 28 moneys and credits tax imposed in section 533.329, for any tax 29 year the original transferor could have claimed the tax credit. 30 Any consideration received for the transfer of the tax credit 31 shall not be included as income under chapter 422, subchapters 32 II, III, and V. Any consideration paid for the transfer of the 33 tax credit shall not be deducted from income under chapter 422, 34 subchapters II, III, and V. 35 -4- LSB 1978HV (1) 89 jm/jh 4/ 29

H.F. 582 Sec. 4. NEW SECTION . 16.37D Recapture. 1 1. As of the last day of any tax year during the compliance 2 period, if the amount of the qualified basis of a qualified 3 development owned by a taxpayer claiming the credit is less 4 than the amount of the qualified basis as of the last day of the 5 immediately preceding tax year, the amount of the taxpayer’s 6 liability under chapter 422, subchapter II, III, or V, chapter 7 432, or section 533.329, as applicable, shall be increased by 8 the recapture amount determined using the method under section 9 42(j) of the Internal Revenue Code. 10 2. If a recapture event occurs, the taxpayer shall include 11 the recaptured proportion of the credit on the return submitted 12 for the tax year in which the recapture event is identified. 13 Sec. 5. NEW SECTION . 16.37E Compliance monitoring. 14 The authority shall monitor and oversee compliance with 15 sections 16.37A through 16.37D and shall report specific 16 occurrences of noncompliance to the department. 17 Sec. 6. NEW SECTION . 16.37F Report to the general assembly. 18 On or before January 31 of each year, the authority shall 19 submit to the general assembly a report that includes all of 20 the following: 21 1. A statement of the number of qualified developments for 22 which the authority issued tax certificates the prior year. 23 2. A description of each qualified development for which the 24 authority issued a tax certificate the prior year, including 25 the geographic location of the development, the household type 26 and any specific demographic information available concerning 27 the residents intended to be served by the development, 28 the income levels of residents intended to be served by the 29 development, and the rents or set-asides authorized for each 30 development. 31 Sec. 7. NEW SECTION . 16.37G Rules. 32 The authority and the department shall adopt rules pursuant 33 to chapter 17A as necessary for the implementation and 34 administration of this part. 35 -5- LSB 1978HV (1) 89 jm/jh 5/ 29

H.F. 582 Sec. 8. NEW SECTION . 422.10C Iowa housing tax credit. 1 The taxes imposed under this subchapter, less the credits 2 allowed under section 422.12, shall be reduced by an Iowa 3 housing tax credit allowed under section 16.37C. 4 Sec. 9. Section 422.33, Code 2021, is amended by adding the 5 following new subsection: 6 NEW SUBSECTION . 17. The taxes imposed under this subchapter 7 shall be reduced by an Iowa housing tax credit as allowed under 8 section 16.37C. 9 Sec. 10. Section 422.60, Code 2021, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 14. The taxes imposed under this subchapter 12 shall be reduced by an Iowa housing tax credit as allowed under 13 section 16.37C. 14 Sec. 11. NEW SECTION . 432.12N Iowa housing tax credit. 15 The taxes imposed under this chapter shall be reduced by an 16 Iowa housing tax credit allowed under section 16.37C. 17 Sec. 12. Section 533.329, subsection 2, Code 2021, is 18 amended by adding the following new paragraph: 19 NEW PARAGRAPH . l. The moneys and credits tax imposed under 20 this section shall be reduced by an Iowa housing tax credit 21 allowed under section 16.37C. 22 Sec. 13. CODE EDITOR DIRECTIVE. The Code editor shall 23 designate sections 16.37A through 16.37G, as enacted by 24 this division of this Act, as a new part within chapter 16, 25 subchapter VII, and may redesignate the new and preexisting 26 parts, replace references to sections 16.37A through 16.37G 27 with references to the new part, and correct internal 28 references as necessary, including references in subchapter or 29 part headnotes. 30 Sec. 14. EFFECTIVE DATE. This division of this Act takes 31 effect January 1, 2022. 32 Sec. 15. APPLICABILITY. This division of this Act applies 33 to tax years beginning on or after January 1, 2022. 34 DIVISION II 35 -6- LSB 1978HV (1) 89 jm/jh 6/ 29

H.F. 582 HOUSING TRUST FUND 1 Sec. 16. Section 428A.8, subsection 3, Code 2021, is amended 2 by striking the subsection. 3 DIVISION III 4 WORKFORCE HOUSING TAX INCENTIVES 5 Sec. 17. Section 15.119, subsection 2, paragraph g, Code 6 2021, is amended to read as follows: 7 g. (1) The workforce housing tax incentives program 8 administered pursuant to sections 15.351 through 15.356 . 9 In allocating tax credits pursuant to this subsection , the 10 authority shall not allocate more than twenty-five million 11 dollars for purposes of this paragraph. Of the moneys 12 allocated under this paragraph, ten million dollars shall be 13 reserved for allocation to qualified housing projects in small 14 cities, as defined in section 15.352 , that are registered on 15 or after July 1, 2017. 16 (2) (a) Notwithstanding subparagraph (1), in allocating 17 tax credits pursuant to this subsection for each fiscal 18 year of the period beginning July 1, 2021, and ending June 19 30, 2024, the authority shall not allocate more than fifty 20 million dollars for purposes of this paragraph. Of the moneys 21 allocated under this paragraph for each fiscal year of the 22 period beginning July 1, 2021, and ending June 30, 2024, twenty 23 million dollars shall be reserved for allocation to qualified 24 housing projects in small cities, as defined in section 15.352, 25 that are registered on or after July 1, 2017. 26 (b) This subparagraph is repealed July 1, 2024. 27 Sec. 18. Section 15.353, subsection 3, Code 2021, is amended 28 to read as follows: 29 3. a. Except as provided in paragraph “b” , the The average 30 dwelling unit cost does not exceed two hundred thousand dollars 31 per dwelling unit an amount determined by the authority by 32 rule. In determining the average dwelling unit cost the 33 authority shall consider, at a minimum, building materials, 34 labor, site development, and land or property acquisition 35 -7- LSB 1978HV (1) 89 jm/jh 7/ 29

H.F. 582 costs . 1 b. (1) The average dwelling unit cost does not exceed 2 two hundred fifty thousand dollars per dwelling unit if the 3 project involves the rehabilitation, repair, redevelopment, 4 or preservation of property described in section 404A.1, 5 subsection 8 , paragraph “a” . 6 (2) The average dwelling unit cost for the project does not 7 exceed two hundred fifteen thousand dollars per dwelling unit 8 if the project is located in a small city. 9 Sec. 19. Section 15.354, subsection 3, paragraph d, Code 10 2021, is amended to read as follows: 11 d. Upon completion of a housing project, an a housing 12 business shall submit all of the following to the authority: 13 (1) An examination of the project in accordance with the 14 American institute of certified public accountants’ statements 15 on standards for attestation engagements, completed by a 16 certified public accountant authorized to practice in this 17 state , shall be submitted to the authority . 18 (2) A statement of the final amount of qualifying new 19 investment for the housing project. 20 (3) Any information the authority deems necessary to ensure 21 compliance with the agreement signed by the housing business 22 pursuant to paragraph “a” , the requirements of this part, 23 and rules the authority and the department of revenue adopt 24 pursuant to section 15.356. 25 Sec. 20. Section 15.354, subsection 3, paragraph e, 26 subparagraph (1), Code 2021, is amended to read as follows: 27 (1) Upon review of the examination , and verification of 28 the amount of the qualifying new investment, and review of 29 any other information submitted pursuant to paragraph “d” , 30 subparagraph (3), the authority may notify the housing business 31 of the amount that the housing business may claim as a refund 32 of the sales and use tax under section 15.355, subsection 2 , 33 and may issue a tax credit certificate to the housing business 34 stating the amount of workforce housing investment tax credits 35 -8- LSB 1978HV (1) 89 jm/jh 8/ 29

H.F. 582 under section 15.355 , subsection 3 , the eligible housing 1 business may claim. The sum of the amount that the housing 2 business may claim as a refund of the sales and use tax and 3 the amount of the tax credit certificate shall not exceed the 4 amount of the tax incentive award. 5 Sec. 21. Section 15.354, subsection 6, paragraphs b and c, 6 Code 2021, are amended to read as follows: 7 b. Notwithstanding subsection 1 , the authority may accept 8 applications for disaster recovery housing projects on a 9 continuous basis establish a disaster recovery application 10 period following the declaration of a major disaster by the 11 president of the United States for a county in Iowa . 12 c. Notwithstanding subsection 2 , paragraphs “a” , “b” , and 13 “d” , upon Upon review of a housing business’s application , 14 and scoring of all applications received during a disaster 15 recovery application period, the authority may make a tax 16 incentive award to a disaster recovery housing project. The 17 tax incentive award shall represent the maximum amount of tax 18 incentives that the disaster recovery housing project may 19 qualify for under the program. In determining a tax incentive 20 award, the authority shall not use an amount of project costs 21 that exceeds the amount included in the application of the 22 housing business. Tax incentive awards shall be approved by 23 the director of the authority. 24 Sec. 22. Section 15.355, subsection 2, Code 2021, is amended 25 to read as follows: 26 2. A housing business may claim a refund of the sales and 27 use taxes paid under chapter 423 that are directly related to 28 a housing project and specified in the agreement. The refund 29 available pursuant to this subsection shall be as provided in 30 section 15.331A , excluding subsection 2 , paragraph “c” , of 31 that section. For purposes of the program, the term “project 32 completion” , as used in section 15.331A , shall mean the date 33 on which the authority notifies the department of revenue that 34 all applicable requirements of an the agreement entered into 35 -9- LSB 1978HV (1) 89 jm/jh 9/ 29

H.F. 582 pursuant to section 15.354 , subsection 3, paragraph “a” , and 1 all applicable requirements of this part, including the rules 2 the authority and the department of revenue adopted pursuant to 3 section 15.356, are satisfied. 4 DIVISION IV 5 DOWNTOWN LOAN GUARANTEE PROGRAM 6 Sec. 23. NEW SECTION . 15.431 Downtown loan guarantee 7 program. 8 1. The economic development authority, in partnership with 9 the Iowa finance authority, shall establish and administer a 10 downtown loan guarantee program to encourage Iowa downtown 11 businesses and banks to reinvest and reopen following the 12 COVID-19 pandemic. 13 2. In order for a loan to be guaranteed, all of the 14 following conditions must be true: 15 a. The loan finances an eligible downtown resource center 16 community catalyst building remediation grant project or main 17 street Iowa challenge grant within a designated district. 18 b. The loan finances a rehabilitation project, or finances 19 acquisition or refinancing costs associated with the project. 20 c. At least twenty-five percent of the project costs are 21 used for construction on the project or renovation. 22 d. The project includes a housing component. 23 e. The loan is used for construction of the project, 24 permanent financing of the project, or both. 25 f. A federally insured financial lending institution issued 26 the loan. 27 g. The loan does not reimburse the borrower for working 28 capital, operations, or similar expenses. 29 h. The project meets downtown resource center and main 30 street Iowa design review. 31 3. a. For a loan amount less than or equal to five hundred 32 thousand dollars, the economic development authority may 33 guarantee up to fifty percent of the loan amount. 34 b. For a loan amount greater than five hundred thousand 35 -10- LSB 1978HV (1) 89 jm/jh 10/ 29

H.F. 582 dollars, the economic development authority may provide a 1 maximum loan guarantee of up to two hundred fifty thousand 2 dollars. 3 4. A project loan must be secured by a mortgage against the 4 project property. 5 5. The economic development authority may guarantee loans 6 for up to five years. The economic development authority 7 may extend the loan guarantee for an additional five years 8 if an underwriting review finds that an extension would be 9 beneficial. 10 6. The lender shall pay an annual loan guarantee fee as set 11 forth by rule. 12 7. The economic development authority reserves the right 13 to deny a loan guarantee for unreasonable bank loan fees or 14 interest rate. 15 8. The loan must not be insured or guaranteed by another 16 local, state, or federal guarantee program. 17 9. The loan guarantee is not transferable if the loan or the 18 project is sold or transferred. 19 10. In the event of a loss due to default, the loan 20 guarantee proportionally pays the guarantee percentage of the 21 loss to the lender. 22 11. Moneys for the program may consist of any moneys 23 appropriated by the general assembly for purposes of this 24 section, and any other moneys that are lawfully available to 25 the authority, including moneys transferred or deposited from 26 other funds created pursuant to section 15.106A, subsection 1, 27 paragraph “o” . 28 DIVISION V 29 DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM AND FUND 30 Sec. 24. NEW SECTION . 16.57A Transfer of unobligated or 31 unencumbered funds —— report. 32 1. Notwithstanding any other provision of law to the 33 contrary, the authority may transfer any unobligated and 34 unencumbered moneys in any revolving loan program fund created 35 -11- LSB 1978HV (1) 89 jm/jh 11/ 29

H.F. 582 pursuant to section 16.46, 16.47, 16.48, or 16.49, for deposit 1 in the disaster recovery housing assistance fund created in 2 section 16.57B. 3 2. Notwithstanding section 8.39, and any other law to 4 the contrary, with the prior written consent and approval of 5 the governor, the executive director of the authority may 6 transfer any unobligated and unencumbered moneys in any fund 7 created pursuant to section 16.5, subsection 1, paragraph 8 “s” , for deposit in the disaster recovery housing assistance 9 fund created in section 16.57B. The prior written consent and 10 approval of the director of the department of management shall 11 not be required to transfer the unobligated and unencumbered 12 moneys. 13 3. Notwithstanding section 8.39, and any other law to the 14 contrary, with the prior written approval of the governor, the 15 director of the economic development authority may transfer 16 any unobligated and unencumbered moneys in any fund created 17 pursuant to section 15.106A, subsection 1, paragraph “o” , 18 for deposit in the disaster recovery housing assistance fund 19 created in section 16.57B. 20 4. Any transfer made under this section shall be reported in 21 the same manner as provided in section 8.39, subsection 5. 22 Sec. 25. NEW SECTION . 16.57B Disaster recovery housing 23 assistance program —— fund. 24 1. Definitions. As used in this section, unless the context 25 otherwise requires: 26 a. “ Disaster-affected home” means any of the following: 27 (1) A primary residence that is destroyed or damaged due 28 to a natural disaster that occurs on or after the effective 29 date of this division of this Act, and the primary residence is 30 located in a county that is the subject of a state of disaster 31 emergency proclamation by the governor that authorizes disaster 32 recovery housing assistance. 33 (2) A primary residence that is destroyed or damaged due to 34 a natural disaster that occurred on or after March 12, 2019, 35 -12- LSB 1978HV (1) 89 jm/jh 12/ 29

H.F. 582 but before the effective date of this division of this Act, and 1 is located in a county that has been declared a major disaster 2 by the president of the United States on or after March 12, 3 2019, but before the effective date of this division of this 4 Act, and is located in a county where individuals are eligible 5 for federal individual assistance. 6 b. “Fund” means the disaster recovery housing assistance 7 fund. 8 c. “Local program administrator” means any of the following: 9 (1) The cities of Ames, Cedar Falls, Cedar Rapids, Council 10 Bluffs, Davenport, Des Moines, Dubuque, Iowa City, Waterloo, 11 and West Des Moines. 12 (2) A council of governments whose territory includes at 13 least one county that is the subject of a state of disaster 14 emergency proclamation by the governor that authorizes disaster 15 recovery housing assistance or the eviction prevention program 16 under section 16.57C on or after the effective date of this 17 division of this Act. 18 (3) A community action agency as defined in section 216A.91 19 and whose territory includes at least one county that is the 20 subject of a state of disaster emergency proclamation by the 21 governor that authorizes disaster recovery housing assistance 22 or the eviction prevention program under section 16.57C on or 23 after the effective date of this division of this Act. 24 (4) A qualified local organization or governmental entity 25 as determined by rules adopted by the authority. 26 d. “Program” means the disaster recovery housing assistance 27 program. 28 e. “Replacement housing” means housing purchased 29 by a homeowner or leased by a renter needed to replace 30 a disaster-affected home that is destroyed or damaged 31 beyond reasonable repair as determined by a local program 32 administrator. 33 f. “State of disaster emergency” means the same as described 34 in section 29C.6, subsection 1. 35 -13- LSB 1978HV (1) 89 jm/jh 13/ 29

H.F. 582 2. Fund. 1 a. (1) A disaster recovery housing assistance fund is 2 created within the authority. The moneys in the fund shall be 3 used by the authority for the development and operation of a 4 forgivable loan and grant program for homeowners and renters 5 with disaster-affected homes, and for the eviction prevention 6 program pursuant to section 16.57C. 7 (2) Notwithstanding section 12C.7, subsection 2, interest 8 or earnings on moneys deposited in the fund shall be credited 9 to the fund. Notwithstanding section 8.33, moneys credited to 10 the fund shall not revert at the close of a fiscal year. 11 b. Moneys transferred by the authority for deposit in the 12 fund, moneys appropriated to the fund, and any other moneys 13 available to and obtained or accepted by the authority for 14 placement in the fund shall be deposited in the fund. 15 c. The authority shall not use more than five percent of 16 the moneys in the fund on July 1 of a fiscal year for purposes 17 of administrative costs and other program support during the 18 fiscal year. 19 3. Program. 20 a. The authority shall establish and administer a disaster 21 recovery housing assistance program and shall use moneys in 22 the fund to award forgivable loans to eligible homeowners and 23 grants to eligible renters of disaster-affected homes. Moneys 24 in the fund may be expended following a state of disaster 25 emergency proclamation by the governor pursuant to section 26 29C.6 that authorizes disaster recovery housing assistance. 27 b. The authority may enter into an agreement with one or 28 more local program administrators to administer the program. 29 4. Registration required. To be considered for a forgivable 30 loan or grant under the program, a homeowner or renter must 31 register for the disaster case management program established 32 pursuant to section 29C.20B. The disaster case manager may 33 refer the homeowner or renter to the appropriate local program 34 administrator. 35 -14- LSB 1978HV (1) 89 jm/jh 14/ 29

H.F. 582 5. Homeowners. 1 a. To be eligible for a forgivable loan under the program, 2 all of the following requirements shall apply: 3 (1) The homeowner’s disaster-affected home must have 4 sustained damage greater than the damage that is covered by the 5 homeowner’s property and casualty insurance policy insuring the 6 home plus any other state or federal disaster-related financial 7 assistance that the homeowner is eligible to receive. 8 (2) A local program administrator must either deem the 9 disaster-affected home suitable for rehabilitation or damaged 10 beyond reasonable repair. 11 (3) The disaster-affected home is not eligible for buyout by 12 the county or city where the disaster-affected home is located, 13 or the disaster-affected home is eligible for a buyout by the 14 county or city where the disaster-affected home is located, but 15 the homeowner is requesting a forgivable loan for the repair 16 or rehabilitation of the homeowner’s disaster-affected home in 17 lieu of a buyout. 18 (4) Assistance under the program must not duplicate 19 benefits provided by any local, state, or federal disaster 20 recovery assistance program. 21 b. If a homeowner is referred to the authority or to a 22 local program administrator by the disaster case manager of the 23 homeowner, the authority may award a forgivable loan to the 24 eligible homeowner for any of the following purposes: 25 (1) Repair or rehabilitation of the disaster-affected home. 26 (2) (a) Down payment assistance on the purchase of 27 replacement housing, and the cost of reasonable repairs to be 28 performed on the replacement housing to render the replacement 29 housing decent, safe, sanitary, and in good repair. 30 (b) Replacement housing shall not be located in a 31 one-hundred-year floodplain. 32 (c) For purposes of this subparagraph, “decent, safe, 33 sanitary, and in good repair” means the same as described in 24 34 C.F.R. §5.703. 35 -15- LSB 1978HV (1) 89 jm/jh 15/ 29

H.F. 582 c. The authority shall determine the interest rate for the 1 forgivable loan. 2 d. If a homeowner who has been awarded a forgivable loan 3 sells a disaster-affected home or replacement housing for which 4 the homeowner received the forgivable loan prior to the end 5 of the loan term, the remaining principal on the forgivable 6 loan shall be due and payable pursuant to rules adopted by the 7 authority. 8 6. Renters. 9 a. To be eligible for a grant under the program, all of the 10 following requirements shall apply: 11 (1) A local program administrator either deems 12 the disaster-affected home of the renter suitable for 13 rehabilitation but unsuitable for current short-term 14 habitation, or the disaster-affected home is damaged beyond 15 reasonable repair. 16 (2) Assistance under the program must not duplicate 17 benefits provided by any local, state, or federal disaster 18 recovery assistance program. 19 b. If a renter is referred to the authority or to a local 20 program administrator by the disaster case manager of the 21 renter, the authority may award a grant to the eligible renter 22 to provide short-term financial assistance for the payment of 23 rent for replacement housing. 24 7. Report. On or before January 31 of each year, the 25 authority shall submit a report to the general assembly 26 that identifies all of the following for the calendar year 27 immediately preceding the year of the report: 28 a. The date of each state of disaster emergency proclamation 29 by the governor that authorized disaster recovery housing 30 assistance under this section. 31 b. The total number of forgivable loans and grants awarded. 32 c. The total number of forgivable loans, and the amount of 33 each loan awarded for repair or rehabilitation. 34 d. The total number of forgivable loans, and the amount of 35 -16- LSB 1978HV (1) 89 jm/jh 16/ 29

H.F. 582 each loan, awarded for down payment assistance on the purchase 1 of replacement housing and the cost of reasonable repairs to be 2 performed on the replacement housing to render the replacement 3 housing decent, safe, sanitary, and in good repair. 4 e. The total number of grants, and the amount of each grant, 5 awarded for rental assistance. 6 f. The total number of forgivable loans and grants awarded 7 in each county in which at least one homeowner or renter has 8 been awarded a forgivable loan or grant. 9 g. Each local program administrator involved in the 10 administration of the program. 11 h. The total amount of forgivable loan principal repaid. 12 Sec. 26. NEW SECTION . 16.57C Eviction prevention program. 13 1. a. “Eligible renter” means a renter whose income meets 14 the qualifications of the program, who is at risk of eviction, 15 and who resides in a county that is the subject of a state of 16 disaster emergency proclamation by the governor that authorizes 17 the eviction prevention program. 18 b. “Eviction prevention partner” means a qualified local 19 organization or governmental entity as determined by rule by 20 the authority. 21 2. The authority shall establish and administer an eviction 22 prevention program. Under the eviction prevention program, 23 the authority shall award grants to eligible renters and to 24 eviction prevention partners for purposes of this section. 25 Grants may be awarded upon a state of disaster emergency 26 proclamation by the governor that authorizes the eviction 27 prevention program. Eviction prevention assistance shall be 28 paid out of the fund established in section 16.57B. 29 3. a. Grants awarded to eligible renters pursuant to this 30 section shall be used for short-term financial rent assistance 31 to keep eligible renters in the current residences of such 32 renters. 33 b. Grants awarded to eviction prevention partners pursuant 34 to this section shall be used to pay for rent or services 35 -17- LSB 1978HV (1) 89 jm/jh 17/ 29

H.F. 582 provided to eligible renters for the purpose of preventing the 1 eviction of eligible renters. 2 4. The authority may enter into an agreement with one or 3 more local program administrators to administer the program. 4 Sec. 27. NEW SECTION . 16.57D Rules. 5 The authority shall adopt rules pursuant to chapter 17A to 6 implement and administer this part, including rules to do all 7 of the following: 8 1. Establish the maximum forgivable loan and grant amounts 9 awarded under the program. 10 2. Establish the terms of any forgivable loan provided under 11 the program. 12 3. Income qualifications of eligible renters in the 13 eviction prevention program. 14 Sec. 28. CODE EDITOR DIRECTIVE. The Code editor shall 15 designate sections 16.57A through 16.57D, as enacted by 16 this division of this Act, as a new part within chapter 16, 17 subchapter VIII, and may redesignate the new and preexisting 18 parts, replace references to sections 16.57A through 16.57D 19 with references to the new part, and correct internal 20 references as necessary, including references in subchapter or 21 part headnotes. 22 Sec. 29. EFFECTIVE DATE. This division of this Act, being 23 deemed of immediate importance, takes effect upon enactment. 24 DIVISION VI 25 BROWNFIELDS AND GRAYFIELDS 26 Sec. 30. Section 15.119, subsection 3, Code 2021, is amended 27 to read as follows: 28 3. In allocating the amount of tax credits authorized 29 pursuant to subsection 1 among the programs specified in 30 subsection 2 , the authority shall not allocate more than ten 31 twenty million dollars for purposes of subsection 2 , paragraph 32 “f” . 33 Sec. 31. Section 15.293A, subsection 8, Code 2021, is 34 amended to read as follows: 35 -18- LSB 1978HV (1) 89 jm/jh 18/ 29

H.F. 582 8. This section is repealed on June 30, 2021 2031 . 1 Sec. 32. Section 15.293B, Code 2021, is amended by adding 2 the following new subsection: 3 NEW SUBSECTION . 5A. a. Tax credits revoked under 4 subsection 3 including tax credits revoked up to five years 5 prior to the effective date of this Act, and tax credits 6 not awarded under subsection 4 or 5, may be awarded in the 7 next annual application period established in subsection 1, 8 paragraph “c” . 9 b. Tax credits awarded pursuant to paragraph “a” shall not 10 be counted against the limit under section 15.119, subsection 11 3. 12 Sec. 33. Section 15.293B, subsection 7, Code 2021, is 13 amended to read as follows: 14 7. This section is repealed on June 30, 2021 2031 . 15 Sec. 34. EFFECTIVE DATE. The following, being deemed of 16 immediate importance, take effect upon enactment: 17 1. The section of this division of this Act amending section 18 15.293A, subsection 8. 19 2. The section of this division of this Act amending section 20 15.293B, subsection 7. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 This bill relates to affordable housing, disaster housing 25 assistance, and redevelopment tax credits by creating an 26 Iowa housing tax credit program, modifying distribution of 27 real estate transfer taxes, modifying workforce housing tax 28 incentives, and creating a disaster housing recovery assistance 29 program, modifying redevelopment tax credits, and including 30 effective date and applicability provisions. 31 IOWA HOUSING TAX CREDIT PROGRAM. The bill creates an Iowa 32 housing tax credit program available against the individual and 33 corporate income taxes, franchise tax, insurance premium tax, 34 and moneys and credits tax. 35 -19- LSB 1978HV (1) 89 jm/jh 19/ 29