Senate File 100 - Introduced SENATE FILE 100 BY LOFGREN and DAWSON 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 2029XS (3) 89 js/ns

S.F. 100 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 general assembly finds and declares all of the 7 following: 8 1. Iowa’s communities are important to the social and 9 economic vitality of this state. Whether urban, suburban, 10 or rural, many communities are struggling with dilapidated, 11 abandoned, blighted, and tax-delinquent 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 urban, suburban, and rural 26 areas, provide affordable housing, and attract new industry; 27 and to create jobs for the citizens of this state through the 28 establishment of new tools that enable communities to turn 29 abandoned spaces into vibrant 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 2029XS (3) 89 js/ns 1/ 28

S.F. 100 requires: 1 1. “Abandoned” means a parcel containing a building has 2 remained vacant for a period of at least twelve consecutive 3 months and is in need of rehabilitation. 4 2. “Blighted” means a parcel containing a building is unsafe 5 with objectively determinable signs of deterioration sufficient 6 to constitute a threat to human health, safety, and welfare. 7 3. “Board” means the board of directors of a land bank. 8 4. “Dilapidated” means a parcel containing a building is in 9 a state of deterioration as a result of age or neglect. 10 5. “Geographical boundaries of the land bank” means the 11 jurisdiction of the municipality that created the land bank 12 or in the case of any combination of municipalities creating 13 a single land bank or joining an existing land bank, the 14 combined jurisdictions of the municipalities. In the case of a 15 land bank created by a county, such land bank’s jurisdiction 16 includes only the area of the county not included within an 17 incorporated city. 18 6. “Land bank” means an entity created under section 358A.4. 19 7. “Local employee” means a person employed by a 20 municipality of this state and does not include an independent 21 contractor. 22 8. “Local official” means an officeholder of a municipality 23 of this state. 24 9. “Municipality” means a city, county, or township. 25 10. “Rehabilitation” means the action of restoring to its 26 former condition something that has deteriorated or has been 27 damaged. 28 Sec. 4. NEW SECTION . 358A.4 Creation. 29 1. A land bank organized under this chapter shall be a 30 body corporate and politic, with the name under which it was 31 organized, and may sue and be sued in its own name, contract 32 and be contracted with, acquire and hold real and personal 33 property necessary for corporate purposes, adopt a corporate 34 seal and alter the same at pleasure, and exercise all the 35 -2- LSB 2029XS (3) 89 js/ns 2/ 28

S.F. 100 powers conferred in this chapter. 1 2. a. Any municipality may create a land bank. Creation 2 shall be by ordinance in the case of a city or by resolution in 3 the case of a county or township. The ordinance or resolution 4 shall make reference to the purposes listed under section 5 358A.2. 6 b. Any municipality may create a land bank in combination 7 with other municipalities. Municipalities seeking to create 8 such 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. (1) Any city or township passing an ordinance or a 12 resolution or entering into a chapter 28E agreement creating 13 a land bank pursuant to this section shall promptly deliver 14 copies of the ordinance, resolution, or agreement to the 15 auditor, treasurer, and the county attorney of each county in 16 which the municipality is situated. 17 (2) Any board of supervisors adopting a resolution or 18 entering into a chapter 28E agreement creating a land bank 19 pursuant to this section shall deliver a copy of the resolution 20 or agreement to the county auditor, county treasurer, and 21 county attorney. 22 3. a. The enabling ordinance or resolution, or chapter 28E 23 agreement, shall set forth all of the following: 24 (1) The initial members of the board and the initial terms 25 of those members. 26 (2) General term lengths and limits for members of the 27 board. 28 (3) Procedures that the board shall follow in exercising 29 discretionary provisions of this chapter. 30 b. A chapter 28E agreement relating to a land bank shall 31 include procedures for the distribution of assets between 32 participating municipalities upon the dissolution of the land 33 bank. 34 c. Unless otherwise limited in the ordinance, resolution, 35 -3- LSB 2029XS (3) 89 js/ns 3/ 28

S.F. 100 or chapter 28E agreement, the powers and procedures of a newly 1 created land bank shall be the powers and procedures specified 2 in this chapter. 3 4. A council of governments established in section 28H.1 4 shall not form a land bank. However, pursuant to a chapter 5 28E agreement, a council of governments may provide community 6 development services, planning services, and technical 7 assistance to a land bank. 8 Sec. 5. NEW SECTION . 358A.5 Board of directors. 9 1. a. A land bank shall have a board of directors in which 10 all powers of the land bank shall be vested. 11 b. Unless restricted by the enabling ordinance, resolution, 12 or agreement as specified in section 358A.4, the provisions of 13 this section shall apply to the governance of a land bank. 14 2. a. The membership of the board shall be established in 15 the bylaws of the land bank and shall consist of an odd number 16 of members, which shall be not less than five nor more than 17 eleven. 18 b. Unless otherwise specified by the ordinance, resolution, 19 or agreement under section 358A.4, the default length of a term 20 for a board member shall be four years. The maximum length of a 21 term for a board member shall be five years. 22 c. A land bank may, as determined in the bylaws, limit the 23 number of terms or consecutive terms that members of its board 24 may serve. 25 3. a. A local official may serve as a board member, and 26 service as a board member shall neither terminate nor impair 27 the local official’s office. 28 b. A local employee shall be eligible to serve as a board 29 member. 30 c. The members of a board shall all be voting members. 31 Board members shall, to the extent practicable, include 32 representatives of each of the following: 33 (1) A local government. 34 (2) A chamber of commerce. 35 -4- LSB 2029XS (3) 89 js/ns 4/ 28

S.F. 100 (3) Persons with experience in financial services. 1 (4) Persons with experience in real property acquisition or 2 real property development. 3 (5) Persons with experience in nonprofit or affordable 4 housing. 5 (6) Persons who meet all of the following: 6 (a) The person resides in the geographical boundaries of the 7 land bank. 8 (b) The person is not a local official or local employee. 9 d. Requirements provided in paragraph “c” may be satisfied 10 by the appointment of a single voting member who meets more 11 than one of the criteria. 12 e. A member removed under subsection 9 shall be ineligible 13 for reappointment to the board unless the reappointment is 14 confirmed unanimously by the board. 15 4. Annually, the board shall select from the board 16 membership a chair, vice chair, secretary, and treasurer and 17 such other officers as the board deems necessary. 18 5. A vacancy on the board shall be filled following the 19 procedure adopted pursuant to subsection 9. Removal of a 20 member shall cause the position to become vacant. 21 6. Board members shall serve without compensation. 22 However, the board may reimburse a member for expenses actually 23 incurred in the performance of duties on behalf of the land 24 bank as provided in bylaws adopted pursuant to subsection 9. 25 7. The board shall meet as follows: 26 a. In regular session according to a schedule adopted by the 27 board. 28 b. In special session convened by the chair or upon written 29 petition signed by a majority of the members. 30 8. a. A majority of the board, excluding vacancies, 31 constitutes a quorum. 32 b. A board may permit any or all members to participate in 33 a regular or special meeting by, or conduct a meeting through 34 the use of, any means of electronic communication by which all 35 -5- LSB 2029XS (3) 89 js/ns 5/ 28

S.F. 100 directors participating can simultaneously hear each other 1 during the meeting. A member participating in a meeting by 2 means of electronic communication is deemed to be present, in 3 person, at the meeting. 4 9. a. The board shall adopt bylaws establishing all of the 5 following: 6 (1) Duties of officers selected pursuant to subsection 4. 7 (2) Requirements for attendance and participation of 8 members at regular and special meetings of the board. 9 (3) A procedure for removal of a member for failure 10 to comply with a bylaw. Removal shall only be made by the 11 affirmative vote of no less than a majority of all of the other 12 members of the board. 13 (4) A procedure detailing prioritization of what and which 14 types of properties to acquire, a procedure for acquisition of 15 properties, and a statement of purpose. 16 (5) A procedure for the terms and conditions relating 17 to disposition of properties, including but not limited to a 18 process for distribution of any proceeds to any claimants or 19 taxing entities, and to any other land bank. 20 (6) A procedure for the establishment, membership, and 21 duties of committees of the board. 22 (7) Rules to determine which expenses may be reimbursed. 23 (8) A procedure for making an appointment to fill a vacancy 24 on the board. The procedure shall include a simple majority 25 vote by the board to approve the appointment. 26 (9) Other matters necessary to govern the conduct of a land 27 bank. 28 b. When in actual conflict, the ordinances, resolutions, or 29 agreements described in section 358A.4 shall control over any 30 bylaws adopted by the board. 31 10. a. Except as set forth in paragraph “b” or “c” , the 32 enabling ordinance, resolution, or agreement, or as set forth 33 by a land bank in its bylaws, an action of the board must be 34 approved by the affirmative vote of a majority of the board 35 -6- LSB 2029XS (3) 89 js/ns 6/ 28

S.F. 100 present and voting. 1 b. Action of the board on the following matters must be 2 approved by a majority of the entire board membership excluding 3 vacancies: 4 (1) Adoption of bylaws. 5 (2) Hiring or firing of an employee or contractor of the 6 land bank. 7 (3) Incurring of debt. 8 (4) Adoption or amendment of the annual budget. 9 (5) Sale, lease, encumbrance, or alienation of real 10 property or personal property with a value of more than fifty 11 thousand dollars. 12 c. A resolution regarding dissolution of the land bank under 13 section 358A.17 must be approved by two-thirds of the entire 14 board membership. 15 d. A member of the board shall not vote by proxy. 16 e. A member may request that a vote on any resolution or 17 action of the land bank be recorded. 18 11. Members of the board shall not be liable personally on 19 the obligations of the land bank, and rights of creditors of a 20 land bank shall be solely against the land bank. 21 Sec. 6. NEW SECTION . 358A.6 Staff. 22 1. A land bank may employ or contract for the employment 23 of a secretary, an executive director, legal counsel and legal 24 staff, including the use of student clinicians from a reputable 25 law school in this state with a clinical law program, and such 26 other technical experts and agents and employees, permanent 27 or temporary, as the land bank may require. The land bank 28 may determine the qualifications and fix the compensation and 29 benefits of such persons. A land bank may also enter into 30 contracts and agreements with municipalities or nonprofit 31 entities for staffing services to be provided to the land 32 bank or for a land bank to provide such staffing services to 33 municipalities or agencies or departments of municipalities. 34 2. An employee of the land bank is not and shall not be 35 -7- LSB 2029XS (3) 89 js/ns 7/ 28

S.F. 100 deemed to be an employee of the municipality for whose benefit 1 the land bank is organized solely because the employee is 2 employed by the land bank. 3 3. A land bank is an employer as defined in section 97B.1A, 4 subsection 9, paragraph “a” , and an employee of the land bank is 5 an employee as defined in section 97B.1A, subsection 8. 6 4. The land bank shall determine the compensation for an 7 executive director who shall manage the operations of a land 8 bank and employ or contract for the employment of others for 9 the benefit of the land bank as approved and funded by the 10 board of directors. 11 Sec. 7. NEW SECTION . 358A.7 Powers. 12 1. In furtherance of the purposes set forth in section 13 358A.2, a land bank shall have all of the following powers: 14 a. To borrow money for any of the purposes of the land bank 15 by means of loans, lines of credit, or any other financial 16 instruments or securities other than through the issuance 17 of bonds, debentures, or notes. A land bank may secure its 18 indebtedness by mortgage, pledge, deed of trust, or other lien 19 on its property, franchises, rights, and privileges of every 20 kind and nature or any part thereof or interest therein. The 21 funds borrowed by the land bank are payable as to principal, 22 interest, and any other amounts owed the lender solely from 23 the proceeds from the net revenues of the land bank and are 24 not a debt of or charge against any of the municipalities that 25 formed the land bank within the meaning of any constitutional 26 or statutory debt limitation provision. For purposes of this 27 subsection: 28 (1) “Gross revenues” means the income and receipts of the 29 land bank from any source whatsoever, including but not limited 30 to contributions from private parties or member municipalities, 31 sale or lease of rehabilitated properties, and collection of a 32 portion of the property taxes during the five-year period after 33 sale or lease of the rehabilitated property. 34 (2) “Net revenues” means the gross revenues of the land bank 35 -8- LSB 2029XS (3) 89 js/ns 8/ 28

S.F. 100 less the land bank’s operating expenses. 1 b. To purchase, receive, hold, manage, lease, 2 lease-purchase, or otherwise acquire and to sell, convey, 3 including a conveyance by installment purchase contract, 4 transfer, lease, sublease, or otherwise dispose of real and 5 personal property, together with any incidental or appurtenant 6 rights, privileges, or uses, including but not limited to any 7 real or personal property acquired by the land bank in the 8 satisfaction of debts or the enforcement of obligations. 9 c. (1) To acquire the good will, business, rights, real and 10 personal property, and other assets of any person, subject to 11 any obligations enforceable against the property so acquired. 12 (2) To acquire, reclaim, manage, or contract for the 13 management of improved or unimproved and underutilized 14 real property for the purpose of constructing or causing 15 the construction of business establishments or housing on 16 the property, for the purpose of assembling and enhancing 17 utilization of the real property, or for the purpose of 18 disposing of such real property to others in whole or in part 19 for the construction of business establishments or housing. 20 (3) To acquire, reclaim, manage, contract for the 21 management of, construct or reconstruct, alter, repair, 22 maintain, operate, sell, convey, including a conveyance by 23 installment purchase contract, transfer, lease, sublease, or 24 otherwise dispose of business establishments or housing. 25 d. To acquire, subscribe for, own, hold, sell, assign, 26 transfer, mortgage, pledge, or otherwise dispose of stocks, 27 shares, bonds, debentures, notes, or other securities 28 interests or indebtedness and evidences of interest in, or 29 indebtedness of, any person, notwithstanding section 12B.10. 30 Any tax revenue received by a land bank shall not be used for 31 acquisition or subscription. The acquisition of securities 32 shall only be by gift. Securities so acquired shall be 33 converted to cash as soon as practicable. 34 e. To mortgage, pledge, or otherwise encumber any property 35 -9- LSB 2029XS (3) 89 js/ns 9/ 28

S.F. 100 acquired pursuant to the powers contained in paragraph “b” , “c” , 1 or “d” . 2 f. To serve as an agent for grant applications and for the 3 administration of grants, or to make applications as principal 4 for grants intended for use by the land bank. 5 g. To charge fees or exchange in-kind goods or services for 6 services rendered to political subdivisions and other persons 7 for whom services are rendered. 8 h. To purchase tax sale certificates at auction, negotiated 9 sale, or from a third party who purchased and is a holder of one 10 or more tax sale certificates issued pursuant to chapter 446. 11 i. To be assigned a mortgage on real property from a 12 mortgagee in lieu of acquiring such real property subject to 13 a mortgage. 14 j. To register as a bidder for tax sales conducted under 15 chapter 446, including tax sales conducted under section 16 446.19C, to bid on parcels offered at such sales, and to hold 17 and administer tax sale certificates obtained at such sales, 18 provided that a land bank may exercise the powers authorized 19 under this paragraph only with respect to parcels within the 20 geographical boundaries of the land bank. 21 k. To petition for abatement pursuant to chapter 657A. 22 A land bank is an “interested person” for purposes of that 23 chapter. 24 l. To do all acts and things necessary or convenient to 25 carry out the purposes set forth in section 358A.2 and the 26 powers especially created for a land bank in this section, 27 including but not limited to contracting with the federal 28 government, the state or any political subdivision of the 29 state, and any other party, whether nonprofit or for-profit. 30 2. The powers enumerated in this chapter shall not be 31 construed to limit the general powers of a land bank. The 32 powers granted under this chapter are in addition to the powers 33 granted by any other section of the Code, but as to a land 34 bank, shall be used only for the purposes set forth in section 35 -10- LSB 2029XS (3) 89 js/ns 10/ 28

S.F. 100 358A.2. 1 Sec. 8. NEW SECTION . 358A.8 Eminent domain. 2 1. A land bank shall not possess or exercise the power of 3 eminent domain, including under chapters 6A and 6B. 4 2. Land acquired by a municipality by the exercise of 5 condemnation through eminent domain shall not be used to 6 effectuate the purposes of this chapter. 7 Sec. 9. NEW SECTION . 358A.9 Acquisition of property. 8 1. a. Except as provided in section 358A.8, a land bank 9 may acquire real property or interests in real property by 10 gift, devise, transfer, exchange, foreclosure, purchase, or 11 otherwise, on terms and conditions and in a manner the board 12 considers is in the best interest of the land bank. 13 b. A land bank may hold and own in its name any property 14 acquired by or conveyed to the land bank. All deeds, 15 mortgages, contracts, leases, purchases, or other agreements 16 regarding property of the land bank, including agreements to 17 acquire or dispose of real property, may be approved by and 18 executed in the name of the land bank. 19 2. a. A land bank may acquire real property by purchase 20 contracts, lease-purchase agreements, installment sales 21 contracts, land contracts, or other contracts that convey an 22 interest in real property. A land bank may accept transfers 23 of property or interests in property from the state or 24 any political subdivision of the state upon such terms and 25 conditions as agreed to by the land bank and that unit of 26 government so long as the real property is located within the 27 geographical boundaries of the land bank. 28 b. A land bank may acquire tax sale certificates at a tax 29 sale conducted under chapter 446 and may subsequently acquire 30 title through tax lien foreclosure procedures. A land bank 31 shall not be considered a city or county for purposes of 32 bidding on and acquiring tax sale certificates under chapter 33 446, redeeming property under chapter 447, or obtaining a tax 34 sale deed under chapter 448. 35 -11- LSB 2029XS (3) 89 js/ns 11/ 28

S.F. 100 c. The acquisition of property by the land bank shall not 1 be governed or controlled by any regulations or laws relating 2 to procurement or acquisition of property of any municipality 3 that created the land bank, unless specifically provided in the 4 ordinance, resolution, or chapter 28E agreement establishing 5 the land bank. 6 d. Except as otherwise provided in paragraph “e” , a land 7 bank shall not own or hold real property located outside the 8 geographical boundaries of the land bank. 9 e. A land bank may be granted, pursuant to an 10 intergovernmental contract with a political subdivision of 11 this state, the authority to manage and maintain real property 12 located within the geographical boundaries of the political 13 subdivision, but outside the geographical boundaries of the 14 land bank. If a land bank receives a gift or devise of real 15 property located outside of the geographical boundaries of the 16 land bank, the land bank shall dispose of such property by sale 17 or exchange as soon as reasonably practicable. 18 3. A land bank shall maintain all of its real property in 19 accordance with the laws and ordinances of the jurisdiction in 20 which the real property is located. 21 4. A land bank shall maintain and make available for public 22 review and inspection an inventory of all real property held 23 by the land bank. 24 Sec. 10. NEW SECTION . 358A.10 Disposition of property. 25 1. A land bank may convey, exchange, sell, transfer, lease, 26 grant, or mortgage interests in real property of the land bank 27 at such times, to such persons, upon such terms and conditions, 28 and subject to such restrictions and covenants as the land bank 29 deems necessary or appropriate to assure the effective use of 30 the bank in accordance with the purposes of section 358A.2. 31 2. The land bank shall set forth in a resolution the land 32 bank’s proposal for sale, exchange, transfer, lease for more 33 than a period of three years, grant, or other disposition of 34 real property the land bank owns and shall publish notice in a 35 -12- LSB 2029XS (3) 89 js/ns 12/ 28

S.F. 100 newspaper published at least once weekly and having a general 1 circulation within the general boundaries of the land bank at 2 least four and not more than twenty days prior to the date of 3 the public hearing. The published notice shall provide the 4 date, time, and place of a public hearing on the proposal. 5 However, if the population within the geographical boundaries 6 of the land bank is less than two hundred or if there is not 7 a newspaper published within the geographical boundaries of 8 the land bank, the land bank may post such notice on the real 9 property that is the subject of such proposal and at two public 10 places within the geographical boundaries of the land bank. 11 3. After the public hearing, the land bank shall make a 12 final determination on the proposal by resolution. 13 4. A land bank shall not dispose of real property by gift 14 except to a governmental body for a public purpose. 15 5. A land bank shall determine the amount and form of 16 consideration necessary to convey, exchange, sell, transfer, 17 lease, grant, or mortgage interests in real property. 18 Consideration may take the form of monetary payments and 19 secured financial obligations, covenants and conditions related 20 to the present and future use of the property, contractual 21 commitments by the transferee, and other forms of consideration 22 as determined by the board to be in the best interest of 23 the land bank. The value of the consideration shall be 24 not less than the lesser of the fair market value of the 25 property subject to any terms and conditions imposed upon the 26 disposition of the property or the amount paid by the land bank 27 to acquire and rehabilitate the property. 28 6. A municipality may in the ordinance or resolution 29 creating a land bank, or in the chapter 28E agreement in the 30 case of any combination of municipalities creating a single 31 land bank, require that a particular form of disposition of 32 real property or a disposition of real property located within 33 a specified jurisdiction be subject to specified voting and 34 approval requirements of the board. 35 -13- LSB 2029XS (3) 89 js/ns 13/ 28

S.F. 100 Sec. 11. NEW SECTION . 358A.11 Financing. 1 1. A land bank may receive funding through grants, loans, 2 and other moneys from the municipality that created the land 3 bank, from other municipalities, from the state, from the 4 federal government, and from other public and private sources, 5 including but not limited to donations, gifts, or bequests. 6 2. A land bank may receive and retain payments for services 7 rendered, for rents and leasehold payments received, for 8 consideration for disposition of real and personal property, 9 for proceeds of insurance coverage for losses incurred, for 10 income from investments, and for any other asset and activity 11 lawfully permitted to a land bank under this chapter. 12 3. Up to seventy-five percent of the real property taxes 13 remaining after the division of taxes pursuant to section 14 403.19, if applicable, and exclusive of any amount levied by a 15 school district, collected on real property that a land bank 16 has conveyed or leased to a third party shall be remitted to 17 the land bank. The specific percentage of the taxes to be 18 remitted, as to each municipality that created the land bank, 19 shall be set forth in the enabling ordinance, resolution, or 20 chapter 28E agreement creating the land bank. The allocation 21 of property tax revenues shall commence with property taxes 22 payable on the assessed value of the property determined on the 23 first assessment year beginning January 1 following the date 24 of conveyance or lease by the land bank and shall be allocated 25 for a period of five consecutive years. The land bank shall 26 give the treasurer in the county where the property is located 27 written notice of the date of the sale or lease of any property 28 for which the land bank claims a real property tax payment 29 under this subsection. The notice shall identify the property 30 by local tax parcel number, address, and legal description and 31 include a copy of the ordinance, resolution, or chapter 28E 32 agreement setting forth the portion of such taxes allocable to 33 the land bank under this subsection. Upon receipt of the taxes 34 from such property, the treasurer shall pay the land bank its 35 -14- LSB 2029XS (3) 89 js/ns 14/ 28

S.F. 100 share of the taxes paid on such property with respect to the 1 applicable five-year period. 2 4. At the time that a land bank sells or otherwise disposes 3 of property as part of its land bank program, the proceeds from 4 the sale, if any, shall be allocated as determined by the land 5 bank among the following priorities: 6 a. Furtherance of land bank operations. 7 b. Recovery of land bank expenses. 8 Sec. 12. NEW SECTION . 358A.12 Delinquent property tax 9 enforcement. 10 1. Whenever a land bank acquires real property encumbered 11 by a lien or claim for real property taxes owed to one or 12 more of the municipalities that established the land bank, 13 or to other political subdivisions that have entered into an 14 intergovernmental contract with the land bank, the land bank 15 may, by resolution of the board, discharge and extinguish any 16 and all of the liens or claims. The decision by the board to 17 extinguish the property tax liens or claims is subject to the 18 voting requirements contained in section 358A.5, subsection 19 10. If a portion of the real property taxes are attributable 20 to property taxes certified for levy by a school district, 21 the land bank shall notify the school district in writing of 22 its intent to extinguish all such liens and claims. If the 23 school district sends a written objection to the proposed 24 extinguishment of such liens and claims to the land bank within 25 thirty days of receipt of such notice, the land bank shall not 26 extinguish the liens and claims. If the school district fails 27 to send a written objection to the proposed extinguishment to 28 the land bank within thirty days of receipt of such notice 29 from the land bank, the land bank shall have the power, by 30 resolution of the board, to discharge and extinguish any 31 and all such liens or claims. To the extent necessary and 32 appropriate, the land bank shall file with the appropriate 33 taxing entity a copy of the resolution providing for the 34 discharge and the extinguishment of liens or claims under this 35 -15- LSB 2029XS (3) 89 js/ns 15/ 28

S.F. 100 section. 1 2. If a land bank receives payments of any kind attributable 2 to liens or claims for real property taxes owed or allocated 3 to a municipality or school district on property acquired by 4 the land bank, the land bank shall remit the full amount of the 5 payments to the appropriate taxing entity. 6 Sec. 13. NEW SECTION . 358A.13 Exemption from taxation. 7 The income and operations of a land bank are exempt from 8 taxation by the state and by any political subdivision of the 9 state. 10 Sec. 14. NEW SECTION . 358A.14 Public records and public 11 meetings. 12 A land bank is a “governmental body” for purposes of chapter 13 21 and a “government body” for the purposes of chapter 22. A 14 land bank shall comply with all public meeting requirements 15 under chapter 21 and all public records requirements under 16 chapter 22. 17 Sec. 15. NEW SECTION . 358A.15 Reports. 18 1. A land bank shall submit to the governing body of the 19 municipality that created the land bank a monthly report that 20 informs the municipality of the land bank’s activities for the 21 previous month. 22 2. By January 31 of each year, the land bank shall submit an 23 annual report to the governing body of the municipality that 24 created the land bank that informs the municipality of the land 25 bank’s activities for the preceding calendar year. 26 3. A land bank shall submit an annual report, by January 27 31 of each year, to the general assembly concerning the land 28 bank’s activities for the preceding calendar year. 29 Sec. 16. NEW SECTION . 358A.16 Audits. 30 A land bank is a “governmental subdivision” for the purposes 31 of chapter 11. A land bank shall be subject to periodic 32 examination by the auditor of state. 33 Sec. 17. NEW SECTION . 358A.17 Dissolution of land banks. 34 1. A land bank may be dissolved sixty calendar days after 35 -16- LSB 2029XS (3) 89 js/ns 16/ 28

S.F. 100 a resolution of dissolution is approved by two-thirds of the 1 voting members of the board and by two-thirds of the membership 2 of each governing body of a municipality that created the 3 land bank. The board shall appoint a trustee to distribute 4 assets held by the land bank. The board shall give sixty 5 calendar days advance written notice of its consideration of 6 a resolution of dissolution by publishing a notice in local 7 newspapers of general circulation within each municipality that 8 created the land bank. Upon dissolution of the land bank, all 9 liabilities, real property, personal property, and other assets 10 of the land bank shall become the liabilities and assets of the 11 municipality that created the land bank, or, in the case of a 12 land bank created pursuant to a chapter 28E agreement, shall be 13 distributed pursuant to the chapter 28E agreement. 14 2. A municipality may withdraw from a land bank if the land 15 bank was created pursuant to a chapter 28E agreement. The 16 withdrawing municipality shall receive its share of assets and 17 liabilities as determined in the chapter 28E agreement. A land 18 bank consisting of two or more municipalities does not dissolve 19 upon the withdrawal of a single municipality. 20 Sec. 18. NEW SECTION . 358A.18 Conflicts of interest. 21 1. For purposes of this section, “family member” means a 22 person who is a spouse, domestic partner, child, step-child, 23 grandchild, parent, step-parent, grandparent, sibling, niece, 24 nephew, uncle, aunt, mother-in-law, father-in-law, son-in-law, 25 or daughter-in-law of a member of the board or an employee of a 26 land bank. “Family member” includes a person who is a family 27 member through adoption. 28 2. A member of the board, employee of a land bank, or family 29 member of a member of the board or an employee of the land 30 bank shall not acquire any direct or indirect interest in real 31 property of the land bank or in any property to be acquired 32 from the land bank, or have or acquire any direct or indirect 33 interest in any real property to be acquired by a land bank. 34 A land bank shall not acquire any real property from a board 35 -17- LSB 2029XS (3) 89 js/ns 17/ 28

S.F. 100 member, employee of the land bank, or family member of a board 1 member or employee of the land bank. 2 3. Members of the board and employees of the land bank shall 3 disclose to the board any direct or indirect ownership interest 4 such person or a family member of such person has in any 5 property to be acquired by the land bank or located within one 6 thousand feet of any property that the land bank is considering 7 acquiring before the land bank takes any action to acquire such 8 property. A member of the board who is required to make such 9 disclosure shall not participate in the decision to approve the 10 acquisition of such property. 11 4. A member of the board, employee of a land bank, or family 12 member of a member of the board or an employee of the land 13 bank may have a direct or indirect interest in any contract 14 or proposed contract for material or services to be furnished 15 to or used by a land bank only upon all of the following 16 conditions: 17 a. The member of the board or employee of the land bank 18 discloses the material facts of such transaction and the nature 19 of such interest to the board before the board acts to approve 20 such contract and, if the person is a board member, does not 21 participate in the discussion or vote to consider approval of 22 such contract. 23 b. Such contract is approved by a majority of the members 24 of the board who have no direct or indirect interest in such 25 contract and whose family members have no direct or indirect 26 interest in such contract. 27 c. Such contract is fair at the time the contract is 28 approved. 29 5. a. Any person who serves or is employed by a land bank 30 shall not engage in any of the following conduct: 31 (1) Outside employment or an activity that involves the use 32 of the land bank’s time, facilities, equipment, and supplies 33 or the use of evidences of office or employment to give the 34 person, an entity affiliated with or controlled by the person, 35 -18- LSB 2029XS (3) 89 js/ns 18/ 28

S.F. 100 or a family member of the person an advantage or pecuniary 1 benefit that is not available to other similarly situated 2 members or classes of members of the general public. For 3 purposes of this subparagraph, a person is not “similarly 4 situated” merely by being, or being related to, a person who 5 serves or is employed by the land bank. 6 (2) Outside employment or an activity that involves the 7 receipt of, promise of, or acceptance of money or other 8 consideration by the person, an entity affiliated with or 9 controlled by the person, or a family member of the person from 10 anyone other than the land bank for the performance of any act 11 that the person would be required or expected to perform as a 12 part of the person’s regular duties or during the hours during 13 which the person performs service or work for the land bank. 14 (3) Outside employment or an activity that is subject to 15 the official control, inspection, review, audit, or enforcement 16 authority of the person, during the performance of the person’s 17 duties of office or employment. 18 b. If the outside employment or activity is employment or 19 activity described in paragraph “a” , subparagraph (1) or (2), 20 the person shall immediately cease the employment or activity. 21 If the outside employment or activity is employment or activity 22 described in paragraph “a” , subparagraph (3), unless otherwise 23 provided by law, the person shall take one of the following 24 courses of action: 25 (1) Cease the outside employment or activity. 26 (2) Publicly disclose the existence of the conflict and 27 refrain from taking any official action or performing any 28 official duty that would detrimentally affect or create a 29 benefit for the outside employment or activity. For purposes 30 of this subparagraph, “official action” or “official duty” 31 includes but is not limited to participating in any vote, 32 taking affirmative action to influence any vote, granting any 33 license or permit, determining the facts or law in a contested 34 case or rulemaking proceeding, conducting any inspection, or 35 -19- LSB 2029XS (3) 89 js/ns 19/ 28