House File 2559 - Introduced HOUSE FILE 2559 BY LATHAM A BILL FOR An Act relating to the housing renewal pilot program, including 1 repayments of interest and income, and recaptures or returns 2 of financial assistance awards. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6090YH (2) 91 nls/ko

H.F. 2559 Section 1. 2022 Iowa Acts, chapter 1148, section 20, 1 subsection 2, as amended by 2023 Iowa Acts, chapter 110, 2 section 18, is amended to read as follows: 3 2. a. A housing renewal program fund is created in the 4 state treasury under the control of the Iowa finance authority. 5 The fund shall consist of moneys appropriated to or deposited 6 in the fund. Moneys in the fund are appropriated to the Iowa 7 finance authority to establish and administer a housing renewal 8 pilot program. 9 b. For the fiscal year beginning July 1, 2022, and ending 10 June 30, 2023, there is appropriated from the general fund of 11 the state to the Iowa finance authority five hundred thousand 12 dollars for deposit in the housing renewal program fund. 13 c. Notwithstanding section 8.33 , moneys appropriated in 14 this section that remain unencumbered or unobligated at the 15 close of the fiscal year shall not revert but shall remain 16 available for expenditure for the purposes designated until the 17 close of the succeeding fiscal year. 18 d. Notwithstanding section 12C.7, subsection 2 , interest or 19 earnings on moneys in the housing renewal program fund shall be 20 credited to the fund. Payment of interest, income generated 21 from the sale of an ownership unit pursuant to subsection 6, 22 recaptures of financial assistance awards, and other repayments 23 under the housing renewal pilot program shall be deposited 24 in the fund retained by the nonprofit Iowa affiliate for the 25 purpose of awarding financial assistance under the housing 26 renewal pilot program to eligible participants . 27 Sec. 2. 2022 Iowa Acts, chapter 1148, section 20, subsection 28 5, paragraph c, subparagraph (2), as amended by 2023 Iowa Acts, 29 chapter 110, section 18, is amended to read as follows: 30 (2) Unless the nonprofit Iowa affiliate authorizes 31 additional time for good cause shown, if an eligible 32 participant has no project activity within twelve months 33 from the date a contract is executed between the nonprofit 34 Iowa affiliate and the eligible participant, the financial 35 -1- LSB 6090YH (2) 91 nls/ko 1/ 3

H.F. 2559 assistance award shall be returned to the Iowa finance 1 authority for deposit in the housing renewal program fund 2 nonprofit Iowa affiliate to be used to award financial 3 assistance under the housing renewal pilot program to eligible 4 participants . 5 Sec. 3. 2022 Iowa Acts, chapter 1148, section 20, subsection 6 5, paragraph d, as amended by 2023 Iowa Acts, chapter 110, 7 section 18, is amended to read as follows: 8 d. An eligible participant shall sell each completed 9 ownership unit to a homebuyer whose income is under equal to or 10 less than the one hundred twenty percent area median income and 11 who must occupy the ownership unit as the homebuyer’s primary 12 residence. The deed to the ownership unit must contain a 13 restrictive resale requirement that prohibits the homebuyer or 14 a subsequent owner from selling the ownership unit to a person 15 with an income above the one hundred twenty percent area median 16 income for five calendar years from the date the eligible 17 participant sold the ownership unit to the first homebuyer 18 whose income is under equal to or less than the one hundred 19 twenty percent area median income. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill relates to the housing renewal pilot program, 24 including repayments of interest and income, and recaptures or 25 returns of financial assistance awards. The housing renewal 26 pilot program (program) was established in 2022 and amended 27 in 2023, and is administered by the Iowa finance authority 28 (authority). 29 Under the current program, payments of interest, income 30 generated from the sale of an ownership unit, recaptures of 31 financial assistance awards, and other repayments under the 32 program are deposited in the housing renewal program fund. 33 Under the bill, such repayments shall be retained by the 34 nonprofit Iowa affiliate (affiliate) selected by the authority 35 -2- LSB 6090YH (2) 91 nls/ko 2/ 3

H.F. 2559 to provide financial assistance under the program to eligible 1 participants. 2 Under the current program, unless the affiliate authorizes 3 additional time for good cause shown, if an eligible 4 participant has no project activity within 12 months from 5 the date a contract is executed between the affiliate and 6 the eligible participant, the financial assistance award 7 shall be returned to the authority for deposit in the program 8 fund. Under the bill, such financial assistance award shall 9 be returned to the affiliate to be used to provide financial 10 assistance to eligible participants. 11 The bill clarifies that an eligible participant shall sell 12 each completed ownership unit to a homebuyer whose income is 13 less than or equal to the 120 percent area median income. 14 -3- LSB 6090YH (2) 91 nls/ko 3/ 3