Senate File 590 - Introduced SENATE FILE 590 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SF 100) 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 2029SV (2) 89 js/ns

S.F. 590 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 2029SV (2) 89 js/ns 1/ 21

S.F. 590 requires: 1 1. “Abandoned” means a parcel is vacant or a building on 2 a parcel has remained vacant for a period of at least six 3 consecutive months and is in need of rehabilitation. 4 2. “Blighted” means a vacant parcel or a parcel containing 5 a building is unsafe with objectively determinable signs of 6 deterioration sufficient to constitute a threat to human 7 health, safety, and welfare. 8 3. “Board” means the board of directors of a land bank. 9 4. “Dilapidated” means a parcel containing a building is in 10 a state of deterioration as a result of age or neglect. 11 5. “Geographical boundaries of the land bank” means the 12 jurisdiction of the municipality that created the land bank 13 or in the case of any combination of municipalities creating 14 a single land bank or joining an existing land bank, the 15 combined jurisdictions of the municipalities. In the case of a 16 land bank created by a county, such land bank’s jurisdiction 17 includes only the area of the county not included within an 18 incorporated city. 19 6. “Land bank” means an entity created under section 358A.4. 20 7. “Local employee” means a person employed by a 21 municipality of this state and does not include an independent 22 contractor. 23 8. “Local official” means an officeholder of a municipality 24 of this state. 25 9. “Municipality” means a city, county, or township. 26 10. “Rehabilitation” means the action of restoring to its 27 former condition something that has deteriorated or has been 28 damaged. 29 Sec. 4. NEW SECTION . 358A.4 Creation. 30 1. A land bank organized under this chapter shall be a 31 body corporate and politic, with the name under which it was 32 organized, and may sue and be sued in its own name, contract 33 and be contracted with, acquire and hold real and personal 34 property necessary for corporate purposes, adopt a corporate 35 -2- LSB 2029SV (2) 89 js/ns 2/ 21

S.F. 590 seal and alter the same at pleasure, and exercise all the 1 powers conferred in this chapter. 2 2. a. Any municipality may create a land bank. Creation 3 shall be by ordinance in the case of a city or by resolution in 4 the case of a county or township. The ordinance or resolution 5 shall make reference to the purposes listed under section 6 358A.2. 7 b. Any municipality may create a land bank in combination 8 with one or more other municipalities. Municipalities seeking 9 to create such a land bank shall comply with the procedures set 10 forth in chapter 28E. A land bank shall be considered a public 11 agency for the purposes of chapters 28E and 28H. 12 c. (1) Any city or township passing an ordinance or a 13 resolution or entering into a chapter 28E agreement creating 14 a land bank pursuant to this section shall promptly deliver 15 copies of the ordinance, resolution, or agreement to the 16 auditor, treasurer, and the county attorney of each county in 17 which the municipality is situated. 18 (2) Any board of supervisors adopting a resolution or 19 entering into a chapter 28E agreement creating a land bank 20 pursuant to this section shall deliver a copy of the resolution 21 or agreement to the county auditor, county treasurer, and 22 county attorney. 23 3. a. The enabling ordinance or resolution, or chapter 24 28E agreement, shall set forth any restrictions or required 25 procedures that exceed those set forth in this chapter. 26 b. A chapter 28E agreement relating to a land bank shall 27 include procedures for the distribution of assets between 28 participating municipalities upon the dissolution of the land 29 bank. 30 c. Unless otherwise limited in the ordinance, resolution, 31 or chapter 28E agreement, the powers and procedures of a newly 32 created land bank shall be the powers and procedures specified 33 in this chapter. 34 4. A council of governments established in section 28H.1 35 -3- LSB 2029SV (2) 89 js/ns 3/ 21

S.F. 590 shall not form a land bank. However, pursuant to a chapter 1 28E agreement, a council of governments may provide community 2 development services, planning services, and technical 3 assistance to a land bank. 4 Sec. 5. NEW SECTION . 358A.5 Board of directors. 5 1. a. A land bank shall have a board of directors in which 6 all powers of the land bank shall be vested. 7 b. Unless restricted by the enabling ordinance, resolution, 8 or agreement as specified in section 358A.4, the provisions of 9 this section shall apply to the governance of a land bank. 10 2. The membership of the board shall be established in the 11 bylaws of the land bank. 12 3. a. A local official may serve as a board member, and 13 service as a board member shall neither terminate nor impair 14 the local official’s office. 15 b. A local employee shall be eligible to serve as a board 16 member. 17 4. Board members shall serve without compensation. 18 However, the board may reimburse a member for expenses actually 19 incurred in the performance of duties on behalf of the land 20 bank as provided in bylaws adopted pursuant to subsection 5. 21 5. a. Upon creation by the enabling ordinance, resolution, 22 or agreement as specified in section 358A.4, the board shall 23 adopt bylaws addressing matters necessary to govern the conduct 24 of the land bank and shall meet as the bylaws prescribe. 25 b. When in actual conflict, the ordinances, resolutions, or 26 agreements described in section 358A.4 shall control over any 27 bylaws adopted by the board. 28 6. Except as set forth in the enabling ordinance, 29 resolution, or agreement, or as set forth by a land bank in 30 its bylaws, an action of the board must be approved by the 31 affirmative vote of a majority of the board present and voting. 32 7. Members of the board shall not be liable personally on 33 the obligations of the land bank, and rights of creditors of a 34 land bank shall be solely against the land bank. 35 -4- LSB 2029SV (2) 89 js/ns 4/ 21

S.F. 590 Sec. 6. NEW SECTION . 358A.6 Staff. 1 1. A land bank may employ or contract for the employment of 2 any persons the land bank may require to fulfill the objectives 3 of its bylaws and this chapter. 4 2. An employee of the land bank is not and shall not be 5 deemed to be an employee of the municipality for whose benefit 6 the land bank is organized solely because the employee is 7 employed by the land bank. 8 3. A land bank is an employer as defined in section 97B.1A, 9 subsection 9, paragraph “a” , and an employee of the land bank is 10 an employee as defined in section 97B.1A, subsection 8. 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 the power to perform all actions 14 necessary or convenient to carry out the purposes set forth in 15 this chapter, including but not limited to all of the following 16 powers: 17 a. To borrow money for any of the purposes of the land bank 18 by means of loans, lines of credit, or any other financial 19 instruments or securities other than through the issuance 20 of bonds, debentures, or notes. A land bank may secure its 21 indebtedness by mortgage, pledge, deed of trust, or other lien 22 on its property, franchises, rights, and privileges of every 23 kind and nature or any part thereof or interest therein. The 24 funds borrowed by the land bank are payable as to principal, 25 interest, and any other amounts owed the lender solely from 26 the proceeds from the net revenues of the land bank and are 27 not a debt of or charge against any of the municipalities that 28 formed the land bank within the meaning of any constitutional 29 or statutory debt limitation provision. For purposes of this 30 subsection: 31 (1) “Gross revenues” means the income and receipts of the 32 land bank from any source whatsoever, including but not limited 33 to contributions from private parties or member municipalities, 34 sale or lease of rehabilitated properties, and collection of a 35 -5- LSB 2029SV (2) 89 js/ns 5/ 21

S.F. 590 portion of the property taxes during the five-year period after 1 sale or lease of the rehabilitated property. 2 (2) “Net revenues” means the gross revenues of the land bank 3 less the land bank’s operating expenses. 4 b. To petition for abatement pursuant to chapter 657A. 5 A land bank is an “interested person” for purposes of that 6 chapter. 7 c. To contract with the federal government, the state, 8 a subdivision of the state, and any other party, whether 9 nonprofit or for-profit. 10 2. The powers enumerated in this chapter shall not be 11 construed to limit the general powers of a land bank or a 12 municipality. The powers granted under this chapter are in 13 addition to the powers granted by any other section of the 14 Code, but as to a land bank, shall be used only for the purposes 15 set forth in section 358A.2. 16 Sec. 8. NEW SECTION . 358A.8 Eminent domain. 17 A land bank shall not possess or exercise the power of 18 eminent domain, including under chapters 6A and 6B. 19 Sec. 9. NEW SECTION . 358A.9 Acquisition of property. 20 1. a. Except as provided in section 358A.8, a land bank may 21 acquire, hold, own, accept, and otherwise obtain real property 22 or interests in real property by gift, devise, transfer, 23 exchange, foreclosure, purchase, or otherwise, on terms and 24 conditions and in a manner the board considers is in the best 25 interest of the land bank and consistent with the purposes set 26 forth in section 358A.2 and the land bank’s bylaws. 27 b. A land bank may acquire tax sale certificates at a tax 28 sale conducted under chapter 446 and may subsequently acquire 29 title through tax lien foreclosure procedures. A land bank 30 shall not be considered a city or county for purposes of 31 bidding on and acquiring tax sale certificates under chapter 32 446, redeeming property under chapter 447, or obtaining a tax 33 sale deed under chapter 448. 34 c. The acquisition of property by the land bank shall not 35 -6- LSB 2029SV (2) 89 js/ns 6/ 21

S.F. 590 be governed or controlled by any regulations or laws relating 1 to procurement or acquisition of property of any municipality 2 that created the land bank, unless specifically provided in the 3 ordinance, resolution, or chapter 28E agreement establishing 4 the land bank. 5 d. Except as otherwise provided in paragraph “e” , a land 6 bank shall not own or hold real property located outside the 7 geographical boundaries of the land bank. 8 e. A land bank may be granted, pursuant to an 9 intergovernmental contract with a political subdivision of 10 this state, the authority to manage and maintain real property 11 located within the geographical boundaries of the political 12 subdivision, but outside the geographical boundaries of the 13 land bank. If a land bank receives a gift or devise of real 14 property located outside of the geographical boundaries of the 15 land bank, the land bank shall dispose of such property by sale 16 or exchange as soon as reasonably practicable. 17 2. A land bank shall maintain all of its real property in 18 accordance with the laws and ordinances of the jurisdiction in 19 which the real property is located. 20 3. A land bank shall maintain and make available for public 21 review and inspection an inventory of all real property held 22 by the land bank. 23 Sec. 10. NEW SECTION . 358A.10 Disposition of property. 24 1. A land bank may convey, exchange, sell, transfer, lease, 25 grant, mortgage, or otherwise dispose of interests in real 26 property of the land bank at such times, to such persons, upon 27 such terms and conditions, and subject to such restrictions and 28 covenants as the land bank deems necessary or appropriate to 29 assure the effective use of the land bank in accordance with 30 the purposes of section 358A.2 and consistent with the land 31 bank’s bylaws. 32 2. A land bank shall determine the amount and form of 33 consideration necessary to convey, exchange, sell, transfer, 34 lease, grant, mortgage, or otherwise dispose of interests in 35 -7- LSB 2029SV (2) 89 js/ns 7/ 21

S.F. 590 real property. Consideration may take the form of monetary 1 payments and secured financial obligations, covenants and 2 conditions related to the present and future use of the 3 property, contractual commitments by the transferee, and other 4 forms of consideration as determined by the board to be in the 5 best interest of the land bank and consistent with its bylaws. 6 3. A municipality may in the ordinance or resolution 7 creating a land bank, or in the chapter 28E agreement in the 8 case of any combination of municipalities creating a single 9 land bank, require that a particular form of disposition of 10 real property or a disposition of real property located within 11 a specified jurisdiction be subject to specified voting and 12 approval requirements of the board. 13 Sec. 11. NEW SECTION . 358A.11 Financing. 14 1. A land bank may receive funding through grants, loans, 15 and other moneys from the municipality that created the land 16 bank, from other municipalities, from the state, from the 17 federal government, and from any other public and private 18 sources, including but not limited to donations, gifts, or 19 bequests. 20 2. A land bank may receive and retain payments for services 21 rendered, for rents and leasehold payments received, for 22 consideration for disposition of real and personal property, 23 for proceeds of insurance coverage for losses incurred, for 24 income from investments, and for any other asset and activity 25 lawfully permitted to a land bank under this chapter. 26 3. Up to seventy-five percent of the real property taxes 27 remaining after the division of taxes pursuant to section 28 403.19, if applicable, and exclusive of any amount levied by a 29 school district, collected on real property that a land bank 30 has conveyed or leased to a third party shall be remitted 31 to the land bank. The allocation of property tax revenues 32 shall commence with property taxes payable on the assessed 33 value of the property determined on the first assessment year 34 beginning January 1 following the date of conveyance or lease 35 -8- LSB 2029SV (2) 89 js/ns 8/ 21

S.F. 590 by the land bank and shall be allocated for a period of up 1 to five consecutive years. The specific percentage of the 2 taxes to be remitted, if any, and the number of consecutive 3 years to allocate the taxes shall be established by the 4 municipality creating the land bank in accordance with this 5 section and shall be set forth in the enabling ordinance, 6 resolution, or chapter 28E agreement creating the land bank. 7 Each municipality may, in the enabling ordinance, resolution, 8 or chapter 28E agreement creating the land bank, include the 9 right of the municipality to waive or amend by resolution, and 10 on a project-specific basis, the percentage of real estate 11 taxes to be remitted to the land bank for a specific property 12 and the number of consecutive years of tax allocation for a 13 specific property. The land bank shall give the treasurer in 14 the county where the property is located written notice of the 15 date of the sale or lease of any property for which the land 16 bank claims a real property tax payment under this subsection. 17 The notice shall identify the property by local tax parcel 18 number, address, and legal description and include a copy of 19 the ordinance, resolution, or chapter 28E agreement setting 20 forth the portion of such taxes allocable to the land bank 21 under this subsection. Upon receipt of the taxes from such 22 property, the treasurer shall pay the land bank its share of 23 the taxes paid on such property for the applicable number of 24 consecutive years. 25 Sec. 12. NEW SECTION . 358A.12 Delinquent property tax 26 enforcement. 27 1. Whenever a land bank acquires real property encumbered 28 by a lien or claim for real property taxes owed to one or 29 more of the municipalities that established the land bank, 30 or to other political subdivisions that have entered into 31 an intergovernmental contract with the land bank, the land 32 bank may request, by resolution of the board or as otherwise 33 provided in its bylaws, that the county in which the property 34 is located discharge and extinguish any and all of the liens 35 -9- LSB 2029SV (2) 89 js/ns 9/ 21

S.F. 590 or claims. If a portion of the real property taxes are 1 attributable to property taxes certified for levy by a school 2 district, the land bank shall notify the school district in 3 writing of its intent to extinguish all such liens and claims. 4 If the school district sends a written objection to the 5 proposed extinguishment of such liens and claims to the land 6 bank within thirty days of receipt of such notice, the land 7 bank shall not attempt to extinguish the liens and claims. If 8 the school district fails to send a written objection to the 9 proposed extinguishment to the land bank within thirty days of 10 receipt of such notice from the land bank, the county in which 11 the land bank is located shall have the power, by resolution of 12 the board, to discharge and extinguish any and all such liens 13 or claims. 14 2. If a land bank receives payments of any kind attributable 15 to liens or claims for real property taxes owed or allocated to 16 a municipality, public utility, or school district on property 17 acquired by the land bank, the land bank shall remit the full 18 amount of the payments to the appropriate taxing entity. 19 Sec. 13. NEW SECTION . 358A.13 Exemption from taxation. 20 The income and operations of a land bank are exempt from 21 taxation by the state and by any political subdivision of the 22 state. 23 Sec. 14. NEW SECTION . 358A.14 Public records and public 24 meetings. 25 A land bank is a “governmental body” for purposes of chapter 26 21 and a “government body” for the purposes of chapter 22. A 27 land bank shall comply with all public meeting requirements 28 under chapter 21 and all public records requirements under 29 chapter 22. 30 Sec. 15. NEW SECTION . 358A.15 Reports. 31 A land bank shall submit to the governing body of the 32 municipality that created the land bank an annual report that 33 informs the municipality of the land bank’s activities for the 34 previous year. 35 -10- LSB 2029SV (2) 89 js/ns 10/ 21

S.F. 590 Sec. 16. NEW SECTION . 358A.16 Audits. 1 A land bank is a “governmental subdivision” for the purposes 2 of chapter 11. A land bank shall be subject to periodic 3 examination by the auditor of state. 4 Sec. 17. NEW SECTION . 358A.17 Dissolution of land banks. 5 1. A land bank may be dissolved in accordance with its 6 bylaws. Upon dissolution of the land bank, all liabilities, 7 real property, personal property, and other assets of the 8 land bank shall become the liabilities and assets of the 9 municipality that created the land bank, or, in the case of a 10 land bank created pursuant to a chapter 28E agreement, shall be 11 distributed pursuant to the chapter 28E agreement. 12 2. A municipality may withdraw from a land bank if the land 13 bank was created pursuant to a chapter 28E agreement. The 14 withdrawing municipality shall receive its share of assets and 15 liabilities as determined in the chapter 28E agreement. A land 16 bank consisting of two or more municipalities does not dissolve 17 upon the withdrawal of a single municipality. 18 Sec. 18. NEW SECTION . 358A.18 Conflicts of interest. 19 1. For purposes of this section, “family member” means a 20 person who is a spouse, domestic partner, child, step-child, 21 grandchild, parent, step-parent, grandparent, sibling, niece, 22 nephew, uncle, aunt, mother-in-law, father-in-law, son-in-law, 23 or daughter-in-law of a member of the board or an employee of a 24 land bank. “Family member” includes a person who is a family 25 member through adoption. 26 2. A member of the board, employee of a land bank, or family 27 member of a member of the board or an employee of the land 28 bank shall not acquire any direct or indirect interest in real 29 property of the land bank or in any property to be acquired 30 from the land bank, or have or acquire any direct or indirect 31 interest in any real property to be acquired by a land bank. 32 A land bank shall not acquire any real property from a board 33 member, employee of the land bank, or family member of a board 34 member or employee of the land bank. 35 -11- LSB 2029SV (2) 89 js/ns 11/ 21

S.F. 590 3. Members of the board and employees of the land bank shall 1 disclose to the board any direct or indirect ownership interest 2 such person or a family member of such person has in any 3 property to be acquired by the land bank or located within one 4 thousand feet of any property that the land bank is considering 5 acquiring before the land bank takes any action to acquire such 6 property. A member of the board who is required to make such 7 disclosure shall not participate in the decision to approve the 8 acquisition of such property. 9 4. A member of the board, employee of a land bank, or family 10 member of a member of the board or an employee of the land 11 bank may have a direct or indirect interest in any contract 12 or proposed contract for material or services to be furnished 13 to or used by a land bank only upon all of the following 14 conditions: 15 a. The member of the board or employee of the land bank 16 discloses the material facts of such transaction and the nature 17 of such interest to the board before the board acts to approve 18 such contract and, if the person is a board member, does not 19 participate in the discussion or vote to consider approval of 20 such contract. 21 b. Such contract is approved by a majority of the members 22 of the board who have no direct or indirect interest in such 23 contract and whose family members have no direct or indirect 24 interest in such contract. 25 c. Such contract is fair at the time the contract is 26 approved. 27 5. a. Any person who serves or is employed by a land bank 28 shall not engage in any of the following conduct: 29 (1) Outside employment or an activity that involves the use 30 of the land bank’s time, facilities, equipment, and supplies 31 or the use of evidences of office or employment to give the 32 person, an entity affiliated with or controlled by the person, 33 or a family member of the person an advantage or pecuniary 34 benefit that is not available to other similarly situated 35 -12- LSB 2029SV (2) 89 js/ns 12/ 21

S.F. 590 members or classes of members of the general public. For 1 purposes of this subparagraph, a person is not “similarly 2 situated” merely by being, or being related to, a person who 3 serves or is employed by the land bank. 4 (2) Outside employment or an activity that involves the 5 receipt of, promise of, or acceptance of money or other 6 consideration by the person, an entity affiliated with or 7 controlled by the person, or a family member of the person from 8 anyone other than the land bank for the performance of any act 9 that the person would be required or expected to perform as a 10 part of the person’s regular duties or during the hours during 11 which the person performs service or work for the land bank. 12 (3) Outside employment or an activity that is subject to 13 the official control, inspection, review, audit, or enforcement 14 authority of the person, during the performance of the person’s 15 duties of office or employment. 16 b. If the outside employment or activity is employment or 17 activity described in paragraph “a” , subparagraph (1) or (2), 18 the person shall immediately cease the employment or activity. 19 If the outside employment or activity is employment or activity 20 described in paragraph “a” , subparagraph (3), unless otherwise 21 provided by law, the person shall take one of the following 22 courses of action: 23 (1) Cease the outside employment or activity. 24 (2) Publicly disclose the existence of the conflict and 25 refrain from taking any official action or performing any 26 official duty that would detrimentally affect or create a 27 benefit for the outside employment or activity. For purposes 28 of this subparagraph, “official action” or “official duty” 29 includes but is not limited to participating in any vote, 30 taking affirmative action to influence any vote, granting any 31 license or permit, determining the facts or law in a contested 32 case or rulemaking proceeding, conducting any inspection, or 33 providing any other official service or thing that is not 34 available generally to members of the public in order to 35 -13- LSB 2029SV (2) 89 js/ns 13/ 21

S.F. 590 further the interests of the outside employment or activity. 1 6. Unless otherwise specifically provided, the requirements 2 of this section shall be in addition to, and shall not 3 supersede, any other rights or remedies provided by law. 4 DIVISION II 5 LAND BANK TAX SALE COORDINATING PROVISIONS 6 Sec. 19. Section 446.16, subsection 2, Code 2021, is amended 7 to read as follows: 8 2. The treasurer may establish and collect a reasonable 9 registration fee from each registered bidder at the tax 10 sale. The fee shall not be assessed against a county , or 11 municipality , or land bank created under chapter 358A . The 12 total of the fees collected shall not exceed the total costs of 13 the tax sale. Registration fees collected shall be deposited 14 in the general fund of the county. 15 Sec. 20. NEW SECTION . 446.19C Land bank tax sale. 16 1. A land bank has the exclusive bidder’s right to purchase 17 tax sale certificates offered at the treasurer’s annual tax 18 sale with respect to tax delinquent parcels located within the 19 geographical boundaries of the land bank that are dilapidated, 20 abandoned, or blighted and that are suitable for housing or 21 commercial use following rehabilitation. 22 2. To qualify for the exclusive bidder’s right to purchase 23 tax sale certificates under this section, a land bank must 24 file a verified statement with the treasurer on or before May 25 15. The land bank is responsible for obtaining information 26 from the treasurer as needed to accurately identify tax parcel 27 numbers and total amounts due. The land bank shall provide the 28 treasurer with the federal tax identification number of the 29 land bank, but such information is not required to be shown on 30 the verified statement. The verified statement shall include 31 all of the following: 32 a. The name, address, telephone number, and electronic mail 33 address of the land bank. 34 b. A statement that the land bank is exercising its right to 35 -14- LSB 2029SV (2) 89 js/ns 14/ 21

S.F. 590 purchase each identified parcel pursuant to this section. 1 c. Specific identification of each parcel by the parcel’s 2 official county tax parcel number. 3 d. With respect to each identified parcel, a statement that 4 the parcel is dilapidated, abandoned, or blighted and that the 5 parcel is suitable for housing or commercial use following 6 rehabilitation. 7 e. The total amount due for each identified parcel computed 8 to the date of the tax sale. 9 3. In addition to the verified statement, the land bank 10 shall submit payment to the treasurer of an amount equal to 11 the total amount due cumulatively for all of the parcels 12 identified in the verified statement. The filing of the 13 verified statement by a land bank accompanied by payment of the 14 total amount due for all identified parcels shall constitute 15 the registration by the land bank as a bidder at the tax sale. 16 The land bank shall not be required to pay a registration fee. 17 4. The land bank’s verified statement shall be published at 18 the same time and in the same manner as the notice of the annual 19 tax sale, and the requirements in section 446.9, subsection 2, 20 for publication of notice of the annual tax sale also apply to 21 publication of the verified statement. 22 5. Upon timely receipt of the verified statement and 23 payment of the total amount due cumulatively for all identified 24 parcels, the treasurer shall remove all of the identified 25 parcels from the regular annual tax sale and place those 26 parcels in a separate sale known as the “land bank tax sale”. 27 On the day of the regular tax sale, the treasurer shall issue 28 and deliver tax sale certificates to the land bank for all 29 parcels listed in the land bank’s verified statement that 30 remain liable to sale for delinquent taxes. The land bank’s 31 exclusive right to purchase tax sale certificates to parcels 32 included in the land bank tax sale is prior and superior to the 33 rights of any other tax sale bidder. Any tax sale certificate 34 issued to a land bank under the provisions of this section 35 -15- LSB 2029SV (2) 89 js/ns 15/ 21

S.F. 590 shall secure a one hundred percent interest in the parcel. 1 6. The separate land bank tax sale shall be conducted by 2 the treasurer prior to the separate public nuisance tax sale 3 conducted under section 446.19B. If the same parcel is listed 4 in both such sales, the parcel shall be sold to the land bank. 5 7. If any parcel identified within the land bank’s verified 6 statement has been removed from the land bank tax sale because 7 of receipt by the treasurer of payment of the taxes required to 8 eliminate the delinquency, the treasurer shall refund to the 9 land bank the amount paid with respect to the total amount due 10 for the parcel. 11 8. For purposes of this section, “abandoned” , “blighted” , 12 “dilapidated” , “geographical boundaries of the land bank” , “land 13 bank” , and “rehabilitation” mean the same as defined in section 14 358A.3. 15 Sec. 21. Section 447.9, subsection 1, Code 2021, is amended 16 to read as follows: 17 1. After one year and nine months from the date of sale, or 18 after nine months from the date of a sale made under section 19 446.18 , or after three months from the date of a sale made 20 under section 446.19A , or 446.19B , or 446.19C, the holder 21 of the certificate of purchase may cause to be served upon 22 the person in possession of the parcel, and also upon the 23 person in whose name the parcel is taxed, a notice signed by 24 the certificate holder or the certificate holder’s agent or 25 attorney, stating the date of sale, the description of the 26 parcel sold, the name of the purchaser, and that the right 27 of redemption will expire and a deed for the parcel be made 28 unless redemption is made within ninety days from the completed 29 service of the notice. The notice shall be served by both 30 regular mail and certified mail to the person’s last known 31 address and such service is deemed completed when the notice 32 is deposited in the mail and postmarked for delivery. The 33 ninety-day redemption period begins as provided in section 34 447.12 . When the notice is given by a county as a holder of 35 -16- LSB 2029SV (2) 89 js/ns 16/ 21

S.F. 590 a certificate of purchase the notice shall be signed by the 1 county treasurer or the county attorney, and when given by a 2 city, it shall be signed by the city officer designated by 3 resolution of the council. When the notice is given by the 4 Iowa finance authority or a city or county agency holding 5 the parcel as part of an Iowa homesteading project, it shall 6 be signed on behalf of the agency or authority by one of its 7 officers, as authorized in rules of the agency or authority. 8 DIVISION III 9 OTHER COORDINATING PROVISIONS 10 Sec. 22. Section 11.1, subsection 1, paragraph c, Code 2021, 11 is amended to read as follows: 12 c. “Governmental subdivision” means cities and 13 administrative agencies established by cities, hospitals or 14 health care facilities established by a city, counties, county 15 hospitals organized under chapters 347 and 347A , memorial 16 hospitals organized under chapter 37 , entities organized under 17 chapter 28E , land banks created under chapter 358A, community 18 colleges, area education agencies, and school districts. 19 Sec. 23. Section 21.2, subsection 1, Code 2021, is amended 20 by adding the following new paragraph: 21 NEW PARAGRAPH . k. A land bank created under chapter 358A. 22 Sec. 24. Section 22.1, subsection 1, Code 2021, is amended 23 to read as follows: 24 1. “Government body” means this state, or any county, 25 city, township, school corporation, political subdivision, 26 tax-supported district, nonprofit corporation other than a 27 fair conducting a fair event as provided in chapter 174 , whose 28 facilities or indebtedness are supported in whole or in part 29 with property tax revenue and which is licensed to conduct 30 pari-mutuel wagering pursuant to chapter 99D ; the governing 31 body of a drainage or levee district as provided in chapter 32 468 , including a board as defined in section 468.3 , regardless 33 of how the district is organized; a land bank created under 34 chapter 358A; or other entity of this state, or any branch, 35 -17- LSB 2029SV (2) 89 js/ns 17/ 21

S.F. 590 department, board, bureau, commission, council, committee, 1 official, or officer of any of the foregoing or any employee 2 delegated the responsibility for implementing the requirements 3 of this chapter . 4 Sec. 25. Section 97B.1A, subsection 9, paragraph a, Code 5 2021, is amended to read as follows: 6 a. “Employer” means the state of Iowa, the counties, 7 municipalities, agencies, public school districts, all 8 political subdivisions, and all of their departments and 9 instrumentalities, including area agencies on aging, other than 10 those employing persons as specified in subsection 8 , paragraph 11 “b” , subparagraph (7), land banks created under chapter 358A, 12 and joint planning commissions created under chapter 28E or 13 28I . 14 Sec. 26. Section 364.7, Code 2021, is amended to read as 15 follows: 16 364.7 Disposal of property. 17 A city may not dispose of an interest in real property by 18 sale, lease for a term of more than three years, or gift, 19 except in accordance with the following procedure: 20 1. The council shall set forth its proposal in a resolution 21 and shall publish notice as provided in section 362.3 , of the 22 resolution and of a date, time and place of a public hearing on 23 the proposal. 24 2. After the public hearing, the council may make a final 25 determination on the proposal by resolution. 26 3. A city may not dispose of real property by gift except 27 to a governmental body for a public purpose or to a land bank 28 created under chapter 358A . 29 Sec. 27. Section 427.1, Code 2021, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 42. Land bank property. The real property 32 of a land bank created under chapter 358A. For purposes of 33 this subsection, real property includes but is not limited 34 to real property held by a land bank as lessor pursuant 35 -18- LSB 2029SV (2) 89 js/ns 18/ 21