H.F. 153 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. The 4 fund shall consist of moneys appropriated to the authority for 5 deposit in the fund and any other moneys that are lawfully 6 available to the authority. There is appropriated from the 7 rebuild Iowa infrastructure fund for deposit in the vacant 8 school building demolition grant fund, for each fiscal year 9 beginning on or after July 1, 2023, but on or before July 1, 10 2025, the sum of two million dollars. 11 2. Moneys in the vacant school building demolition grant 12 fund are appropriated to the authority for purposes of funding 13 a grant program for the demolition of vacant buildings owned 14 by a political subdivision of this state or proposed to be 15 acquired by a political subdivision of this state that were at 16 any time previously used as school attendance centers or school 17 administration buildings, but which are no longer used for any 18 political subdivision purpose. 19 3. Notwithstanding section 12C.7, subsection 2, interest 20 or earnings on moneys deposited in the vacant school building 21 demolition grant fund shall be credited to the vacant school 22 building demolition grant fund. Notwithstanding section 8.33, 23 moneys credited to the vacant school building demolition grant 24 fund shall not revert at the close of a fiscal year. However, 25 if the authority receives no qualifying applications for three 26 consecutive years, the moneys in the vacant school building 27 demolition grant fund shall be transferred for deposit in the 28 rebuild Iowa infrastructure fund. 29 4. The authority may use not more than five percent of 30 the moneys in the fund at the beginning of the fiscal year 31 for purposes of administrative costs, finance, compliance, 32 marketing, and program support. 33 5. a. The authority shall provide grants under this 34 section using a competitive scoring process. Grants shall not, 35 -1- LSB 1923YH (4) 90 md/jh 1/ 4

H.F. 153 however, be awarded to political subdivisions with a population 1 that exceeds two thousand five hundred. The authority 2 may require a local match from a political subdivision 3 participating in the program, which may be in a form other than 4 cash and may be for costs of the project other than demolition. 5 Grants may be awarded for up to the total demolition cost of 6 the project. However, the minimum amount of any grant awarded 7 under the program shall be fifty percent of the project’s 8 demolition cost and the authority shall seek to provide 9 higher percentages to political subdivisions with the lowest 10 populations as compared to other grant applicants. 11 b. In providing grants under this section, the authority 12 shall coordinate with the political subdivision to develop a 13 plan for the use of grant funds that is consistent with the 14 community development, housing, or economic development goals 15 of the political subdivision. 16 c. In providing grants under this section, the authority 17 shall coordinate with the political subdivision to ensure that 18 the condition and use of the property following demolition is 19 consistent with the property’s surroundings, including for 20 future new construction, park space, or agricultural use. 21 d. The political subdivision shall not be required to sell 22 the property after demolition as a condition of the grant. 23 However, if the property is sold by the political subdivision 24 following demolition, proceeds from sale of the property, 25 following subtraction of the political subdivision’s costs 26 related to the demolition, including costs to acquire the 27 property if applicable, shall be paid to the authority for 28 deposit in the vacant school building demolition grant fund. 29 6. The authority shall submit a report to the general 30 assembly and the governor’s office on or before January 31 of 31 each year, describing the results of the program implemented 32 pursuant to this section and making recommendations for 33 additional program changes. 34 EXPLANATION 35 -2- LSB 1923YH (4) 90 md/jh 2/ 4

H.F. 153 The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 This bill creates a vacant school building demolition 3 grant program to be administered by the economic development 4 authority for the demolition of vacant buildings owned by a 5 political subdivision of this state or proposed to be acquired 6 by a political subdivision of this state that were at any 7 time previously used as school attendance centers or school 8 administration buildings, but which are no longer used for any 9 political subdivision purpose. 10 The bill creates a vacant school building demolition 11 grant fund in the state treasury under the control of the 12 authority. The fund shall consist of moneys appropriated to 13 the authority and any other moneys that are lawfully available 14 to the authority. The bill appropriates from the rebuild 15 Iowa infrastructure fund for deposit in the vacant school 16 building demolition grant fund, for each fiscal year beginning 17 on or after July 1, 2023, but on or before July 1, 2025, $2 18 million. Interest or earnings on moneys deposited in the 19 vacant school building demolition grant fund shall be credited 20 to the vacant school building demolition grant fund and moneys 21 credited to the vacant school building demolition grant fund 22 shall not revert at the close of a fiscal year. If, however, 23 the authority receives no qualifying applications for three 24 consecutive years, the moneys in the vacant school building 25 demolition grant fund shall be transferred for deposit in the 26 rebuild Iowa infrastructure fund. 27 The authority is required to provide grants using a 28 competitive scoring process. Grants shall not, however, be 29 awarded to political subdivisions with a population that 30 exceeds 2,500. The authority may require a local match from 31 a political subdivision participating in the program, which 32 may be in a form other than cash and may be for costs of the 33 project other than demolition. Grants may be awarded for 34 up to the total demolition cost of the project. However, 35 -3- LSB 1923YH (4) 90 md/jh 3/ 4

H.F. 153 the minimum amount of any grant awarded under the program 1 shall be 50 percent of the project’s demolition cost and the 2 authority shall seek to provide higher percentages to political 3 subdivisions with the lowest populations as compared to other 4 grant applicants. The authority is also required to coordinate 5 with each political subdivision to develop a plan for the 6 use of grant funds that is consistent with the community 7 development, housing, or economic development goals of the 8 political subdivision and to ensure that the condition and use 9 of the property following demolition is consistent with the 10 property’s surroundings. 11 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, 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 Under the bill, the authority may use not more than 5 percent 20 of the moneys in the fund at the beginning of the fiscal year 21 for purposes of administrative costs, finance, compliance, 22 marketing, and program support. 23 The authority is required to submit a report to the general 24 assembly and the governor’s office on or before January 31 of 25 each year, describing the results of the program implemented 26 pursuant to this section and making recommendations for 27 additional program changes. 28 -4- LSB 1923YH (4) 90 md/jh 4/ 4