HF 339 (LSB 1923HV (2) 90)

HOUSE FILE 339

BY  COMMITTEE ON ECONOMIC GROWTH AND TECHNOLOGY

(SUCCESSOR TO HF 153)

A BILL FOR

An Act creating a vacant school building demolition grant program and fund and making appropriations. 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  15.263  Vacant school building demolition grant program —— fund.
   1.  A vacant school building demolition grant fund is created in the state treasury under the control of the authority. The fund shall consist of moneys appropriated to the authority for deposit in the fund and any other moneys that are lawfully available to the authority. There is appropriated from the rebuild Iowa infrastructure fund for deposit in the vacant school building demolition grant fund, for each fiscal year beginning on or after July 1, 2023, but on or before July 1, 2025, the sum of two million dollars. 
   2.  Moneys in the vacant school building demolition grant fund are appropriated to the authority for purposes of funding a grant program for the demolition of vacant buildings owned by a political subdivision of this state or proposed to be acquired by a political subdivision of this state that became vacant before January 1, 2021, and were at any time previously used as school attendance centers or school administration buildings, but which are no longer used for any political subdivision purpose. 
   3.  Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys deposited in the vacant school building demolition grant fund shall be credited to the vacant school building demolition grant fund. Notwithstanding section 8.33, moneys credited to the vacant school building demolition grant fund shall not revert at the close of a fiscal year. However, if the authority receives no qualifying applications for three consecutive years, the moneys in the vacant school building demolition grant fund shall be transferred for deposit in the rebuild Iowa infrastructure fund.
   4.  The authority may use not more than five percent of the moneys in the fund at the beginning of the fiscal year for purposes of administrative costs, finance, compliance, marketing, and program support.
   5.  a.  The authority shall provide grants under this section using a competitive scoring process. The authority shall prioritize grant applications from political subdivisions with the lowest populations as compared to other grant applicants. A grant shall only be approved if the eligible building is located in a city or township with a population less than two thousand five hundred, and the political subdivision applying is either a county with a population that is among the eighty-eight lowest-populated counties in the state or is a political subdivision that is located in whole or in part in such a county.
   b.  In providing grants under this section, the authority shall coordinate with the political subdivision to develop a plan for the use of grant funds that is consistent with the community development, housing, or economic development goals of the political subdivision.
   c.  In providing grants under this section, the authority shall coordinate with the political subdivision to ensure that the condition and use of the property following demolition is consistent with the property’s surroundings, including for future new construction, park space, or agricultural use.
   d.  The political subdivision shall not be required to sell the property after demolition as a condition of the grant. However, if the property is sold by the political subdivision following demolition, proceeds from sale of the property, following subtraction of the political subdivision’s costs related to the demolition, including costs to acquire the property if applicable, shall be paid to the authority for deposit in the vacant school building demolition grant fund.
   6.  The authority shall submit a report to the general assembly and the governor’s office on or before January 31 of each year, describing the results of the program implemented pursuant to this section and making recommendations for additional program changes.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill creates a vacant school building demolition grant program to be administered by the economic development authority for the demolition of vacant buildings owned by a political subdivision of this state or proposed to be acquired by a political subdivision of this state that became vacant before January 1, 2021, and were at any time previously used as school attendance centers or school administration buildings, but which are no longer used for any political subdivision purpose.
   The bill creates a vacant school building demolition grant fund in the state treasury under the control of the authority. The fund shall consist of moneys appropriated to the authority and any other moneys that are lawfully available to the authority. The bill appropriates from the rebuild Iowa infrastructure fund for deposit in the vacant school building demolition grant fund, for each fiscal year beginning on or after July 1, 2023, but on or before July 1, 2025, $2 million. Interest or earnings on moneys deposited in the vacant school building demolition grant fund shall be credited to the vacant school building demolition grant fund and moneys credited to the vacant school building demolition grant fund shall not revert at the close of a fiscal year. If, however, the authority receives no qualifying applications for three consecutive years, the moneys in the vacant school building demolition grant fund shall be transferred for deposit in the rebuild Iowa infrastructure fund.
   The authority is required to provide grants using a competitive scoring process. The authority shall prioritize grant applications from political subdivisions with the lowest populations as compared to other grant applicants. A grant shall only be approved if the eligible building is located in a city or township with a population of less than 2,500, and the applicant is either a county with a population that is among the 88 lowest populated counties in the state or is a political subdivision that is located in whole or in part in such a county. The authority is also required to coordinate with each political subdivision to develop a plan for the use of grant funds that is consistent with the community development, housing, or economic development goals of the political subdivision and to ensure that the condition and use of the property following demolition is consistent with the property’s surroundings.
   The political subdivision shall not be required to sell the property after demolition as a condition of the grant. However, if the property is sold by the political subdivision following demolition, proceeds from sale of the property, following subtraction of the political subdivision’s costs related to the demolition, including costs to acquire the property if applicable, shall be paid to the authority for deposit in the vacant school building demolition grant fund.
   Under the bill, the authority may use not more than 5 percent of the moneys in the fund at the beginning of the fiscal year for purposes of administrative costs, finance, compliance, marketing, and program support.
   The authority is required to submit a report to the general assembly and the governor’s office on or before January 31 of each year, describing the results of the program implemented pursuant to this section and making recommendations for additional program changes.