H.F. 339 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 became 16 vacant before January 1, 2021, and were at any time previously 17 used as school attendance centers or school administration 18 buildings, but which are no longer used for any political 19 subdivision purpose. 20 3. Notwithstanding section 12C.7, subsection 2, interest 21 or earnings on moneys deposited in the vacant school building 22 demolition grant fund shall be credited to the vacant school 23 building demolition grant fund. Notwithstanding section 8.33, 24 moneys credited to the vacant school building demolition grant 25 fund shall not revert at the close of a fiscal year. However, 26 if the authority receives no qualifying applications for three 27 consecutive years, the moneys in the vacant school building 28 demolition grant fund shall be transferred for deposit in the 29 rebuild Iowa infrastructure fund. 30 4. The authority may use not more than five percent of 31 the moneys in the fund at the beginning of the fiscal year 32 for purposes of administrative costs, finance, compliance, 33 marketing, and program support. 34 5. a. The authority shall provide grants under this section 35 -1- LSB 1923HV (2) 90 md/jh 1/ 4

H.F. 339 using a competitive scoring process. The authority shall 1 prioritize grant applications from political subdivisions with 2 the lowest populations as compared to other grant applicants. 3 A grant shall only be approved if the eligible building is 4 located in a city or township with a population less than 5 two thousand five hundred, and the political subdivision 6 applying is either a county with a population that is among the 7 eighty-eight lowest-populated counties in the state or is a 8 political subdivision that is located in whole or in part in 9 such a county. 10 b. In providing grants under this section, the authority 11 shall coordinate with the political subdivision to develop a 12 plan for the use of grant funds that is consistent with the 13 community development, housing, or economic development goals 14 of the political subdivision. 15 c. In providing grants under this section, the authority 16 shall coordinate with the political subdivision to ensure that 17 the condition and use of the property following demolition is 18 consistent with the property’s surroundings, including for 19 future new construction, park space, or agricultural use. 20 d. 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, 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 6. The authority shall submit a report to the general 29 assembly and the governor’s office on or before January 31 of 30 each year, describing the results of the program implemented 31 pursuant to this section and making recommendations for 32 additional program changes. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -2- LSB 1923HV (2) 90 md/jh 2/ 4

H.F. 339 the explanation’s substance by the members of the general assembly. 1 This bill creates a vacant school building demolition 2 grant program to be administered by the economic development 3 authority for the demolition of vacant buildings owned by a 4 political subdivision of this state or proposed to be acquired 5 by a political subdivision of this state that became vacant 6 before January 1, 2021, and were at any time previously used as 7 school attendance centers or school administration buildings, 8 but which are no longer used for any political subdivision 9 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. The authority shall prioritize 29 grant applications from political subdivisions with the lowest 30 populations as compared to other grant applicants. A grant 31 shall only be approved if the eligible building is located in a 32 city or township with a population of less than 2,500, and the 33 applicant is either a county with a population that is among 34 the 88 lowest populated counties in the state or is a political 35 -3- LSB 1923HV (2) 90 md/jh 3/ 4

H.F. 339 subdivision that is located in whole or in part in such a 1 county. The authority is also required to coordinate with 2 each political subdivision to develop a plan for the use of 3 grant funds that is consistent with the community development, 4 housing, or economic development goals of the political 5 subdivision and to ensure that the condition and use of the 6 property following demolition is consistent with the property’s 7 surroundings. 8 The political subdivision shall not be required to sell 9 the property after demolition as a condition of the grant. 10 However, if the property is sold by the political subdivision 11 following demolition, proceeds from sale of the property, 12 following subtraction of the political subdivision’s costs 13 related to the demolition, including costs to acquire the 14 property if applicable, shall be paid to the authority for 15 deposit in the vacant school building demolition grant fund. 16 Under the bill, the authority may use not more than 5 percent 17 of the moneys in the fund at the beginning of the fiscal year 18 for purposes of administrative costs, finance, compliance, 19 marketing, and program support. 20 The authority is required to submit a report to the general 21 assembly and the governor’s office on or before January 31 of 22 each year, describing the results of the program implemented 23 pursuant to this section and making recommendations for 24 additional program changes. 25 -4- LSB 1923HV (2) 90 md/jh 4/ 4