S.F. _____ H.F. _____ Section 1. NEW SECTION . 16.5E Application or award —— 1 prohibition. 2 1. The authority may prohibit a person from receiving an 3 award of financial assistance, or from being selected as a 4 vendor to provide goods or services to the authority in any of 5 the following circumstances: 6 a. An act or omission by the person seriously affects or 7 threatens public health, public safety, or the environment. 8 b. The person is charged with or convicted of a crime 9 involving dishonesty. 10 c. An act or omission by the person indicates a lack of 11 integrity or honesty. 12 d. The person violates the terms of an agreement or 13 transaction that detrimentally impacts the integrity of a 14 program administered by the authority, or other governmental 15 entity as defined in section 8A.101. 16 e. A compelling cause exists that is relevant to and affects 17 the person’s obligations under the programs administered by the 18 authority, or is relevant to and affects the provision of goods 19 and services to the authority by a vendor. 20 2. Upon a determination by the authority, a person shall 21 be prohibited from receiving an award of financial assistance, 22 or from being selected as a vendor pursuant to subsection 1. 23 The authority shall provide written notice to the prohibited 24 person stating the reason for the prohibition. The authority 25 may immediately disqualify a prohibited person from receiving 26 financial assistance, or from being selected as a vendor. 27 3. The authority shall adopt rules as necessary pursuant to 28 chapter 17A to administer this section. 29 Sec. 2. Section 16.35, subsection 2, Code 2024, is amended 30 by striking the subsection and inserting in lieu thereof the 31 following: 32 2. The authority shall adopt a qualified allocation 33 plan that satisfies the requirements of section 42 of 34 the Internal Revenue Code. The authority may revise the 35 -1- LSB 5332XD (5) 90 jm/ko 1/ 4

S.F. _____ H.F. _____ qualified allocation plan provided the revision satisfies the 1 requirements of section 42 of the Internal Revenue Code. When 2 adopting the qualified allocation plan, the authority shall 3 specify the selection criteria, the application procedure, and 4 the allocation of low-income housing credits under the state 5 housing credit ceiling. The selection criteria described 6 in the qualified allocation plan shall include all of the 7 following: 8 a. The selection criteria described in section 42 of the 9 Internal Revenue Code. 10 b. The statutory preferences described in section 42 of the 11 Internal Revenue Code. 12 c. The economic feasibility of the proposed project. 13 d. The ability of the applicant to complete the project in a 14 timely manner. 15 Sec. 3. Section 16.35, subsection 3, Code 2024, is amended 16 by striking the subsection. 17 Sec. 4. Section 16.154, subsection 1, Code 2024, is amended 18 to read as follows: 19 1. An eligible entity may apply to the authority for 20 financial assistance under the program by submitting a plan 21 that meets on an application form as required by the authority. 22 To be approved for an award of financial assistance, the plan 23 must meet all of the following requirements: 24 a. The plan includes proposes one or more projects that 25 improve water quality in the local area or watershed. Projects 26 shall may use practices identified in the Iowa nutrient 27 reduction strategy. 28 b. The plan describes in detail describes the manner in 29 which the projects will be financed and undertaken, including, 30 as applicable, the sources of revenue directed to financing 31 the improvements as well as the eligible entities that will be 32 receiving the revenues and how such revenues will be spent on 33 the projects. 34 EXPLANATION 35 -2- LSB 5332XD (5) 90 jm/ko 2/ 4

S.F. _____ H.F. _____ 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 relates to the duties of the Iowa finance authority 3 (authority). 4 The bill specifies the circumstances in which the authority 5 may prohibit a person from receiving an award or financial 6 assistance, or from being selected as a vendor to provide goods 7 or services to the authority. The circumstances include: 8 an act or omission by the person that seriously affects or 9 threatens public health, public safety, or the environment; 10 the person is charged with or convicted of a crime involving 11 dishonesty; an act or omission by the person that indicates a 12 lack of integrity or honesty; the person violates the terms 13 of an agreement or transaction; or a compelling cause exists 14 that is relevant to and affects the obligations of the person 15 or vendor under programs administered by the authority. The 16 authority is required to provide written notification to the 17 person of the reason for the prohibition, and may immediately 18 disqualify such a person from receiving financial assistance 19 or being selected as a vendor. 20 The authority is the designated housing credit agency 21 for the allowance of low-income housing credits under 22 the state housing credit ceiling. The bill requires the 23 authority to adopt a qualified allocation plan that satisfies 24 the requirements of section 42 of the Internal Revenue 25 Code (IRC). The bill allows the authority to revise the 26 qualified allocation plan provided the revision satisfies the 27 requirements of section 42 of the IRC. When adopting the 28 qualified allocation plan under the bill, the authority is 29 required to specify the selection criteria, the application 30 procedure, and the allocation of low-income housing credits 31 under the state housing credit ceiling. 32 Under the bill, the selection criteria shall include all of 33 the following: the selection criteria described in section 42 34 of the IRC, the statutory preferences described in section 42 35 -3- LSB 5332XD (5) 90 jm/ko 3/ 4

S.F. _____ H.F. _____ of the IRC, the economic feasibility of the proposed project, 1 and the ability of the applicant to complete the project in a 2 timely manner. 3 The bill strikes a provision allowing the authority to adopt 4 rules specifying the application procedure and the allowance 5 of low-income housing credits under the state housing credit 6 ceiling. 7 The bill amends Code section 16.154 relating to entities 8 applying for financial assistance under the water quality 9 financing program. The bill requires an applicant to submit 10 the plan project to the authority on a form required by the 11 authority. The bill strikes the requirement the plan project 12 use practices identified in the Iowa nutrient reduction 13 strategy. The bill provides the plan project describe 14 the manner in which the plan project will be financed and 15 undertaken, and strikes the requirement the description be 16 detailed. 17 -4- LSB 5332XD (5) 90 jm/ko 4/ 4