House File 778 - Introduced HOUSE FILE 778 BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO HF 216) A BILL FOR An Act creating a vacant school building demolition grant 1 program and fund. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2196HV (2) 89 md/jh

H.F. 778 Section 1. NEW SECTION . 15.263 Vacant school building 1 demolition grant program —— fund. 2 1. A vacant school building demolition grant fund is created 3 in the state treasury under the control of the authority. 4 The fund shall consist of moneys appropriated by the general 5 assembly to the authority for deposit in the fund and any other 6 moneys that are lawfully available to the authority. 7 2. Moneys in the vacant school building demolition grant 8 fund are appropriated to the authority for purposes of funding 9 a grant program for the demolition of buildings owned by a 10 political subdivision of this state or proposed to be acquired 11 by a political subdivision of this state that became vacant 12 before January 1, 2021, and were at any time previously used as 13 school attendance centers or school administration buildings, 14 but which are no longer used for any political subdivision 15 purpose. The authority shall administer the fund in a manner 16 designed to make grants annually available to political 17 subdivisions for purposes of this section. 18 3. Notwithstanding section 12C.7, subsection 2, interest 19 or earnings on moneys deposited in the vacant school building 20 demolition grant fund shall be credited to the vacant school 21 building demolition grant fund. Notwithstanding section 8.33, 22 moneys credited to the vacant school building demolition grant 23 fund shall not revert at the close of a fiscal year. However, 24 if the authority receives no qualifying applications for three 25 consecutive years, the moneys in the vacant school building 26 demolition grant fund shall be transferred to the department of 27 revenue for deposit in the general fund of the state. 28 4. The authority may use not more than five percent of 29 the moneys in the fund at the beginning of the fiscal year 30 for purposes of administrative costs, finance, compliance, 31 marketing, and program support. 32 5. a. The authority may provide grants under this section 33 using a competitive scoring process. The authority shall 34 prioritize grant applications from political subdivisions with 35 -1- LSB 2196HV (2) 89 md/jh 1/ 4

H.F. 778 the lowest populations as compared to other grant applicants. 1 b. In providing grants under this section, the authority 2 shall coordinate with the political subdivision to develop a 3 plan for the use of grant funds that is consistent with the 4 community development, housing, or economic development goals 5 of the political subdivision. 6 c. In providing grants under this section, the authority 7 shall coordinate with the political subdivision to ensure that 8 the condition and use of the property following demolition is 9 consistent with the property’s surroundings, including for 10 future new construction, park space, or agricultural use. 11 d. The political subdivision shall not be required to sell 12 the property after demolition as a condition of the grant. 13 However, if the property is sold by the political subdivision 14 following demolition, proceeds from sale of the property shall, 15 following subtraction of the political subdivision’s costs 16 related to the demolition, including costs to acquire the 17 property if applicable, shall be paid to the authority for 18 deposit in the vacant school building demolition grant fund. 19 6. The authority shall submit a report to the general 20 assembly and the governor’s office on or before January 31 of 21 each year, describing the results of the program implemented 22 pursuant to this section and making recommendations for 23 additional program changes. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill creates a vacant school building demolition 28 grant program to be administered by the economic development 29 authority for the demolition of buildings owned by a political 30 subdivision of this state or proposed to be acquired by a 31 political subdivision of this state that became vacant before 32 January 1, 2021, and were at any time previously used as school 33 attendance centers or school administration buildings, but 34 which are no longer used for any political subdivision purpose. 35 -2- LSB 2196HV (2) 89 md/jh 2/ 4

H.F. 778 The bill creates a vacant school building demolition 1 grant fund in the state treasury under the control of the 2 authority. Interest or earnings on moneys deposited in the 3 vacant school building demolition grant fund shall be credited 4 to the vacant school building demolition grant fund and moneys 5 credited to the vacant school building demolition grant fund 6 shall not revert at the close of a fiscal year. If, however, 7 the authority receives no qualifying applications for three 8 consecutive years, the moneys in the vacant school building 9 demolition grant fund shall be transferred to the department of 10 revenue for deposit in the general fund of the state. 11 The authority is required to prioritize grant applications 12 from political subdivisions with the lowest populations as 13 compared to other grant applicants. The authority is also 14 required to coordinate with each political subdivision to 15 develop a plan for the use of grant funds that is consistent 16 with the community development, housing, or economic 17 development goals of the political subdivision and to ensure 18 that the condition and use of the property following demolition 19 is consistent with the property’s surroundings. 20 The political subdivision shall not be required to sell 21 the property after demolition as a condition of the grant. 22 However, if the property is sold by the political subdivision 23 following demolition, proceeds from sale of the property shall, 24 following subtraction of the political subdivision’s costs 25 related to the demolition, including costs to acquire the 26 property if applicable, shall be paid to the authority for 27 deposit in the vacant school building demolition grant fund. 28 Under the bill, the authority may use not more than 5 percent 29 of the moneys in the fund at the beginning of the fiscal year 30 for purposes of administrative costs, finance, compliance, 31 marketing, and program support. 32 The authority is required to submit a report to the general 33 assembly and the governor’s office on or before January 31 of 34 each year, describing the results of the program implemented 35 -3- LSB 2196HV (2) 89 md/jh 3/ 4

H.F. 778 pursuant to this section and making recommendations for 1 additional program changes. 2 -4- LSB 2196HV (2) 89 md/jh 4/ 4