HF 506 (LSB 2366YH (2) 90)

HOUSE FILE 506

BY  BOSSMAN

A BILL FOR

An Act relating to the workforce housing tax incentives program.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 15.119, subsection 2, paragraph g, Code 2023, is amended to read as follows:
   g.  The workforce housing tax incentives program administered pursuant to sections 15.351 through 15.356. In allocating tax credits pursuant to this subsection, the authority shall not allocate more than thirty-five fifty million dollars for purposes of this paragraph. Of the moneys allocated under this paragraph, seventeen twenty-five million five hundred thousand dollars shall be reserved for allocation to qualified housing projects in small cities, as defined in section 15.352, that are registered on or after July 1, 2017.
    Sec. 2.  Section 15.353, subsection 3, paragraph a, Code 2023, is amended to read as follows:
   a.  Except as provided in paragraph “b”, the average dwelling unit cost does not exceed the maximum amount established by the board for each fiscal year for the applicable project type and project location. The board shall establish the maximum average dwelling unit cost for a project that includes single-family dwelling units that is located in a small city and for a project that includes single-family dwelling units that is located in an urban area. The board shall establish the maximum average dwelling unit cost for a project that includes multiple dwelling unit buildings and is located in a small city and for a project that includes multiple dwelling unit buildings and is located in an urban area. In establishing each maximum average dwelling unit cost, the board shall primarily consider the most recent annual United States census bureau building permits survey and historical program data.  For fiscal years beginning on or after July 1, 2023, the maximum average dwelling unit cost established by the board shall be no less than the following:
   (1)  Three hundred sixteen thousand three hundred twenty dollars for a project that includes single-family units that is located in either an urban area or in a small city.
   (2)  Two hundred sixty-eight thousand twenty-two dollars for a project that includes multiple dwelling unit buildings that is located in either an urban area or in a small city.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill provides that the economic development authority (authority) shall not allocate more than $50 million in tax credits (credits) to the workforce housing tax incentives program (workforce housing), and that $25 million of the total cap shall be reserved for allocation to qualified housing projects (projects) located in small cities, as defined in Code section 15.352. Under current law, the authority shall not allocate more than $35 million in credits to workforce housing, and $17.5 million of the total cap shall be reserved for allocation to projects located in small cities.
   Under current law, the authority’s board shall establish the maximum average dwelling unit cost (maximum average cost) under workforce housing for a project that includes single-family dwelling units that is located in a small city or in an urban area, and the maximum average cost for a project that includes multiple dwelling unit buildings that is located in a small city or in an urban area. Under current law, the maximum average cost established by the board is $266,320 for a project that includes single-family units that is located in either an urban area or in a small city, and $218,022 for a project that includes multiple dwelling unit buildings that is located in either an urban area or in a small city.
   The bill provides that for fiscal years beginning on or after July 1, 2023, the maximum average cost established by the board shall be no less than $316,320 for a project that includes single-family units that is located in either an urban area or in a small city, and $268,022 for a project that includes multiple dwelling unit buildings that is located in either an urban area or in a small city.