House File 957 - Introduced HOUSE FILE 957 BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO HSB 246) A BILL FOR An Act relating to the natural hazard mitigation financing 1 program, the disaster recovery housing assistance program, 2 the disaster recovery new housing program, post-loss 3 assignment of benefits, the licensing and regulation 4 of adjusters, appraisers, and umpires, and the Iowa 5 economic emergency fund, and providing penalties, making 6 appropriations, and including effective date and retroactive 7 applicability provisions. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 TLSB 1094HV (2) 91 nls/ko

H.F. 957 DIVISION I 1 NATURAL HAZARD MITIGATION FINANCING PROGRAM 2 Section 1. NEW SECTION . 16.230 Definitions. 3 1. “Department” means the department of homeland security 4 and emergency management. 5 2. “Fund” means the natural hazard mitigation revolving loan 6 fund created in section 29D.4. 7 3. “Loan recipient” means the same as defined in section 8 29D.2. 9 4. “Program” means the natural hazard mitigation financing 10 program created in section 29D.3. 11 5. “Project” means the same as defined in section 29D.2. 12 Sec. 2. NEW SECTION . 16.231 Funds and accounts —— program 13 funds and accounts not part of state general fund. 14 1. The department, in consultation with the authority, 15 may establish and maintain funds or accounts determined to 16 be necessary to carry out the purposes of chapter 29D and 17 shall provide for the funding, administration, investment, 18 restrictions, and disposition of the funds and accounts. 19 Any moneys appropriated to the department and the authority 20 for purposes of paying the costs and expenses associated 21 with the administration of the program shall be administered 22 as determined by the department in consultation with the 23 authority. 24 2. The funds or accounts held by the department or the 25 authority, or a trustee acting on behalf of the department or 26 the authority pursuant to a trust agreement related to the 27 program, shall not be considered part of the general fund of 28 the state, are not subject to appropriation for any other 29 purpose by the general assembly, and in determining a general 30 fund balance shall not be included in the general fund of the 31 state, but shall remain in the funds and accounts maintained 32 by the department or the authority, or a trustee pursuant to a 33 trust agreement. Funds and accounts held by the department or 34 the authority, or a trustee acting on behalf of the department 35 -1- LSB 1094HV (2) 91 nls/ko 1/ 103

H.F. 957 or the authority pursuant to a trust agreement related to the 1 program, are separate dedicated funds and accounts under the 2 administration and control of the department in consultation 3 with the authority. 4 Sec. 3. NEW SECTION . 16.232 Program funding —— bonds and 5 notes. 6 1. The authority shall cooperate with the department in the 7 creation, administration, and financing of the program. 8 2. The authority may issue bonds and notes for the purpose 9 of funding the fund and the state matching funds required 10 pursuant to the federal Robert T. Stafford Disaster Relief 11 and Emergency Assistance Act, Pub. L. No. 93-288, as amended, 12 42 U.S.C. §5121 et seq. The authority may enter into one or 13 more loan agreements or purchase agreements with one or more 14 bondholders or noteholders containing the terms and conditions 15 of the repayment of, and the security for, each bond or note. 16 The authority and each bondholder or noteholder, or a trustee 17 agent designated by the authority, may enter into an agreement 18 to provide for any of the following: 19 a. That the proceeds of the bond or note and the investments 20 of the proceeds may be received, held, and disbursed by the 21 authority or by a trustee or agent designated by the authority. 22 b. That the bondholder or noteholder, or a trustee or 23 agent designated by the authority, may collect, invest, and 24 apply the amount payable under the loan agreement or any other 25 instruments securing the debt obligations under the loan 26 agreement. 27 c. That the bondholder or noteholder may enforce the 28 remedies provided in the loan agreement or other instruments on 29 the bondholder’s or noteholder’s behalf without the appointment 30 or designation of a trustee. If there is a default in the 31 principal of, or interest on, the bond or note or in the 32 performance of any agreement contained in the loan agreement or 33 other instrument, the payment or performance may be enforced in 34 accordance with the loan agreement or other instrument. 35 -2- LSB 1094HV (2) 91 nls/ko 2/ 103

H.F. 957 d. Other terms and conditions as deemed necessary or 1 appropriate by the authority. 2 3. Chapter 16, except to the extent inconsistent with this 3 section, shall apply to bonds or notes issued, and powers 4 granted to the authority, under this section. Section 16.28, 5 subsection 4, shall not apply to this section. 6 4. All bonds or notes issued by the authority in connection 7 with the program are exempt from taxation by this state and the 8 interest on the bonds or notes is exempt from state income tax. 9 Sec. 4. NEW SECTION . 16.233 Security —— reserve funds —— 10 pledges —— nonliability. 11 1. The authority may provide in the resolution, trust 12 agreement, or other instrument authorizing the issuance of 13 bonds or notes pursuant to chapter 29D that the principal of, 14 premium, and interest on the bonds or notes are payable from 15 any of the following and may pledge the same to the authority’s 16 bonds or notes: 17 a. The income and receipts or other moneys derived from the 18 projects financed with the proceeds of the bonds or notes. 19 b. The income and receipts or other moneys derived from 20 designated projects whether or not the projects are financed in 21 whole or in part with the proceeds of the bonds or notes. 22 c. The amounts on deposit in the fund. 23 d. The amounts payable to the authority by loan recipients 24 pursuant to loan agreements with loan recipients. 25 e. Any other funds or accounts established by the authority 26 in connection with the program or the sale and issuance of the 27 authority’s bonds or notes. 28 2. The authority may establish reserve funds to secure 29 one or more issues of its bonds or notes. The authority may 30 deposit in a reserve fund established under this subsection 31 the proceeds of the sale of the authority’s bonds or notes and 32 other moneys which are made available from any other source. 33 3. It is the intention of the general assembly that a pledge 34 made in respect of bonds or notes shall be valid and binding 35 -3- LSB 1094HV (2) 91 nls/ko 3/ 103

H.F. 957 from the time the pledge is made, that the moneys or property 1 so pledged and received after the pledge by the authority 2 shall immediately be subject to the lien of the pledge without 3 physical delivery or further act, and that the lien of the 4 pledge shall be valid and binding as against all parties having 5 claims of any kind in tort, contract, or otherwise against 6 the authority whether or not the parties have notice of the 7 lien. Neither the resolution, trust agreement, nor any other 8 instrument by which a pledge is created needs to be recorded or 9 filed under the Iowa uniform commercial code, chapter 554, to 10 be valid, binding, or effective against the parties. 11 4. Neither the members of the authority nor persons 12 executing the bonds or notes are liable personally on the bonds 13 or notes or are subject to personal liability or accountability 14 by reason of the issuance of the bonds or notes. 15 5. The bonds or notes issued by the authority are not 16 an indebtedness or other liability of the state or of a 17 political subdivision of the state within the meaning of any 18 constitutional or statutory debt limitations but are special 19 obligations of the authority, and are payable solely from 20 the income and receipts or other funds or property of the 21 authority, and the amounts on deposit in the revolving loan 22 funds, and the amounts payable to the authority under the 23 authority’s loan agreements with loan recipients to the extent 24 that the amounts are designated in the resolution, trust 25 agreement, or other instrument of the authority authorizing the 26 issuance of the bonds or notes as being available as security 27 for such bonds or notes. The authority shall not pledge the 28 faith or credit of the state or of a political subdivision of 29 the state to the payment of any bonds or notes. The issuance 30 of any bonds or notes by the authority does not directly, 31 indirectly, or contingently obligate the state or a political 32 subdivision of the state to apply moneys from, or levy or 33 pledge any form of taxation to the payment of the bonds or 34 notes. 35 -4- LSB 1094HV (2) 91 nls/ko 4/ 103

H.F. 957 Sec. 5. NEW SECTION . 29D.1 Short title. 1 This chapter shall be known and may be cited as the “Natural 2 Hazard Mitigation Financing Program” . 3 Sec. 6. NEW SECTION . 29D.2 Definitions. 4 As used in this chapter, unless the context otherwise 5 requires: 6 1. “Authority” means the Iowa finance authority created in 7 section 16.1A. 8 2. “Cost” means all costs or indebtedness incurred by a loan 9 recipient and determined by the department as reasonable and 10 necessary for carrying out all work necessary or incidental to 11 the accomplishment of a project. 12 3. “Department” means the department of homeland security 13 and emergency management. 14 4. “Director” means the director of the department of 15 homeland security and emergency management. 16 5. “Eligible entity” means a person that is eligible under 17 the STORM Act to receive a loan under the program. 18 6. “Fund” means the natural hazard mitigation revolving loan 19 fund created in section 29D.4. 20 7. “Loan recipient” means an eligible entity that has 21 received a loan from the fund. 22 8. “Municipality” means a city, county, sanitary district, 23 state agency, or other governmental body or corporation, or any 24 combination of two or more governmental bodies or corporations 25 acting jointly, in connection with a project. 26 9. “Private entity” means a corporation, limited liability 27 company, trust, estate, partnership, association, or any 28 other legal entity or a legal representative, agent, officer, 29 employee, or assignee of such entity. “Private entity” does not 30 include any of the following: 31 a. An individual, municipality, or city utility as that term 32 is defined in section 362.2. 33 b. A public water supply system as defined in section 34 455B.171. 35 -5- LSB 1094HV (2) 91 nls/ko 5/ 103

H.F. 957 c. A qualified entity as defined in section 384.84, 1 subsection 2. 2 10. “Program” means the natural hazard mitigation financing 3 program created in section 29D.3. 4 11. a. “Project” means an activity or set of activities, 5 in accordance with the limitations set forth in the STORM Act, 6 that mitigate the impact of natural hazards, including but not 7 limited to: 8 (1) Drought and prolonged episodes of intense heat. 9 (2) Severe storms, including tornadoes, windstorms, and 10 severe winter storms. 11 (3) Wildfires. 12 (4) Earthquakes. 13 (5) Flooding. 14 (6) Shoreline erosion. 15 (7) High water levels. 16 (8) Storm surges. 17 b. “Project” may include but is not limited to any of the 18 following: 19 (1) The construction, repair, or replacement of a 20 nonfederal levee or other flood control structure, provided 21 that the administrator of the federal emergency management 22 agency, in consultation with the United States army corps of 23 engineers, if appropriate, requires an eligible entity to 24 determine that such levee or other flood control structure is 25 designed, constructed, and maintained in accordance with sound 26 engineering practices and standards equivalent to the purpose 27 for which such levee or structure is intended. 28 (2) Zoning and land use planning changes. 29 (3) Establishing and enforcing building codes. 30 12. “Safeguarding tomorrow through ongoing risk mitigation 31 Act” , or “STORM Act” , means the federal Robert T. Stafford 32 Disaster Relief and Emergency Assistance Act, Pub. L. No. 33 93-288, as amended, 42 U.S.C. §5121 et seq. 34 Sec. 7. NEW SECTION . 29D.3 Natural hazard mitigation 35 -6- LSB 1094HV (2) 91 nls/ko 6/ 103

H.F. 957 financing program. 1 1. The natural hazard mitigation financing program is 2 created for the purpose of making loans available to eligible 3 entities to finance all or part of the costs of a project. 4 2. The program shall be a joint and cooperative undertaking 5 of the department and the authority. The department and 6 the authority may enter into any agreements, documents, 7 instruments, certificates, data, or information as necessary 8 for the operation, administration, and financing of the program 9 consistent with this chapter, chapter 16, subchapter X, part 10 11, the STORM Act, the rules promulgated under chapter 17A by 11 the department in consultation with the authority, and any 12 other applicable federal or state laws. The authority and the 13 department may act to conform the program to the applicable 14 guidance and regulations adopted by the federal emergency 15 management agency. 16 Sec. 8. NEW SECTION . 29D.4 Natural hazard mitigation 17 revolving loan fund. 18 1. A natural hazard mitigation revolving loan fund is 19 created in the state treasury under the control of the 20 department in consultation with the authority. The revolving 21 loan fund is a separate dedicated fund under the administration 22 and control of the department in consultation with the 23 authority and shall be subject to section 16.31. Moneys 24 on deposit in the revolving loan fund shall be invested by 25 the treasurer of state in cooperation with the department, 26 in consultation with the authority, and the income from the 27 investments shall be credited to and deposited in the revolving 28 loan fund. 29 2. a. The fund shall consist of moneys appropriated by 30 the general assembly, moneys received by the fund through the 31 federal emergency management agency and the STORM Act, moneys 32 received as repayment of loan principal and interest from loans 33 paid for by the fund, and all other moneys received by the fund 34 from any other source. Notwithstanding section 8.33, moneys in 35 -7- LSB 1094HV (2) 91 nls/ko 7/ 103

H.F. 957 the fund that remain unencumbered or unobligated at the close 1 of the fiscal year shall not revert but shall remain available 2 for expenditure for the purposes designated. Notwithstanding 3 section 12C.7, subsection 2, interest or earnings on moneys in 4 the fund shall be credited to the fund. 5 b. Moneys in the fund are appropriated to the department to 6 provide loans to eligible entities pursuant to section 29D.9, 7 and for administration of the program as permitted under the 8 STORM Act. Moneys in the fund shall not be used to provide a 9 loan to a private entity for the acquisition of real property. 10 Moneys in the fund shall not be considered part of the general 11 fund of the state subject to appropriation for any other 12 purpose by the general assembly, and in determining a general 13 fund balance, shall not be included in the general fund of 14 the state subject to section 16.31, insofar as section 16.31 15 complies with the STORM Act. 16 Sec. 9. NEW SECTION . 29D.5 Director —— powers and duties. 17 The director shall do all of the following: 18 1. Process and review each intended use plan application 19 to determine if the intended use plan application meets the 20 eligibility requirements promulgated by the department by rule, 21 and approve or deny the application. 22 2. Process and review all documents relating to the 23 planning, design, construction, and operation of each project. 24 3. Prepare and process, in coordination with the authority, 25 documents relating to the administration of the program. 26 4. Prepare an annual budget for administration of the 27 program. 28 5. Receive program fees as determined in conjunction with 29 the authority. 30 6. Perform other acts and assume other duties and 31 responsibilities necessary for the administration of the 32 program and compliance with the STORM Act. 33 Sec. 10. NEW SECTION . 29D.6 Intended use plans —— 34 capitalization grants —— accounting. 35 -8- LSB 1094HV (2) 91 nls/ko 8/ 103

H.F. 957 1. For the fiscal year beginning July 1, 2025, and each 1 fiscal year thereafter, the department may prepare and deliver 2 intended use plans to, and enter into capitalization grant 3 agreements with, the administrator of the federal emergency 4 management agency under the terms and conditions set forth 5 in the STORM Act and federal regulations adopted pursuant to 6 the STORM Act, and may accept capitalization grants for the 7 fund in accordance with payment schedules established by the 8 administrator. All payments from the administrator shall be 9 deposited into the fund. 10 2. The department, in consultation with the authority, 11 shall establish fiscal controls and accounting procedures 12 during appropriate accounting periods for payments received for 13 deposit into, and disbursements made from, the fund, and to 14 fund balances at the beginning and end of an accounting period. 15 Sec. 11. NEW SECTION . 29D.7 Authority —— loan application 16 review and approval. 17 1. The department and the authority shall review each 18 loan application to determine if the applicant is an eligible 19 entity and qualifies for a loan pursuant to eligibility 20 requirements established by rule promulgated by the department 21 and the authority, and in accordance with the intended use plan 22 applications approved by the director under section 29D.6. 23 2. The authority, in cooperation with the department, shall 24 determine the interest rate and repayment terms for each loan 25 made under the program and the authority shall enter into a 26 loan agreement with each loan recipient in compliance with 27 the Clean Water Act as defined in section 455B.291, the Safe 28 Drinking Water Act as defined in section 455B.291, the STORM 29 Act, and any other applicable state or federal law. 30 3. The authority may charge loan recipients fees and assess 31 costs as deemed necessary by the authority for the continued 32 operation of the program. Fees and costs collected pursuant 33 to this subsection shall be deposited in the fund described in 34 section 29D.4. 35 -9- LSB 1094HV (2) 91 nls/ko 9/ 103

H.F. 957 Sec. 12. NEW SECTION . 29D.8 Loans to eligible entities. 1 1. Moneys deposited in the fund shall be used for the 2 primary purpose of making loans to eligible entities to finance 3 eligible costs of projects in accordance with the intended 4 use plans prepared and delivered to the administrator of the 5 federal emergency management system by the department under 6 section 29D.6. The loan recipients and the purpose and amount 7 of the loans shall be determined by the director, in compliance 8 with the STORM Act and other applicable federal law, and any 9 resolution, agreement, indenture, or other document of the 10 authority, and rules adopted by the authority relating to any 11 bonds, notes, or other obligations issued for the program which 12 may be applicable to the loan. 13 2. Notwithstanding any provision of this chapter to the 14 contrary, moneys received under the federal American Recovery 15 and Reinvestment Act of 2009, Pub. L. No. 111-5, and deposited 16 in the fund may be used in any manner permitted or required by 17 applicable federal law. 18 Sec. 13. NEW SECTION . 29D.9 Rules. 19 The department, in consultation with the authority, shall 20 adopt rules pursuant to chapter 17A to administer this chapter. 21 Sec. 14. Section 422.7, subsection 2, Code 2025, is amended 22 by adding the following new paragraph: 23 NEW PARAGRAPH . u. Natural hazard mitigation financing 24 program bonds pursuant to section 16.232, subsection 4. 25 Sec. 15. CODE EDITOR DIRECTIVE. The Code editor shall 26 designate sections 16.230 through 16.233, as enacted in this 27 division of this Act, as part 11 of chapter 16, subchapter X, 28 entitled “Natural Hazard Mitigation Financing Program”. 29 DIVISION II 30 DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM 31 Sec. 16. Section 16.57B, subsection 1, paragraph a, Code 32 2025, is amended to read as follows: 33 a. “Disaster-affected home” means a primary residence 34 that is destroyed or damaged due to a natural disaster that 35 -10- LSB 1094HV (2) 91 nls/ko 10/ 103

H.F. 957 occurs on or after June 16, 2021, and the primary residence 1 is located in a county that is the subject of a state of 2 disaster emergency proclamation by the governor that authorizes 3 disaster recovery housing assistance. The state of disaster 4 emergency proclamation shall specify if disaster recovery 5 housing assistance is available to homeowners, renters, or both 6 homeowners and renters. 7 Sec. 17. Section 16.57B, subsection 1, Code 2025, is amended 8 by adding the following new paragraph: 9 NEW PARAGRAPH . 0b. “Financial assistance” means assistance 10 provided only from the funds, rights, and assets legally 11 available to the authority pursuant to this chapter and 12 includes but is not limited to assistance in the form of 13 grants, loans, and forgivable loans. 14 Sec. 18. Section 16.57B, subsection 2, paragraph a, 15 subparagraph (1), Code 2025, is amended to read as follows: 16 (1) A disaster recovery housing assistance fund is created 17 within the authority. The moneys in the fund shall be used by 18 the authority for the development and operation of a forgivable 19 loan and grant program for to award financial assistance to 20 homeowners and renters with disaster-affected homes, and for 21 the eviction prevention program pursuant to section 16.57C . 22 Sec. 19. Section 16.57B, subsection 2, paragraph c, Code 23 2025, is amended to read as follows: 24 c. The authority shall not use more than five percent of the 25 moneys in deposited into the fund on July 1 of a fiscal year 26 under paragraph “b” for purposes of administrative costs and 27 other program support during the fiscal year . 28 Sec. 20. Section 16.57B, subsection 3, paragraph a, Code 29 2025, is amended to read as follows: 30 a. The authority shall establish and administer a disaster 31 recovery housing assistance program and shall use moneys in the 32 fund to award forgivable loans financial assistance to eligible 33 homeowners and grants to eligible renters of disaster-affected 34 homes. Moneys in the fund may be expended following a state 35 -11- LSB 1094HV (2) 91 nls/ko 11/ 103

H.F. 957 of disaster emergency proclamation by the governor pursuant 1 to section 29C.6 that authorizes disaster recovery housing 2 assistance. The governor, by state of disaster emergency 3 proclamation, shall specify if disaster recovery housing 4 assistance is available to homeowners, renters, or both 5 homeowners and renters. 6 Sec. 21. Section 16.57B, subsections 4, 5, 6, and 7, Code 7 2025, are amended to read as follows: 8 4. Registration required . To be considered for a forgivable 9 loan or grant under the program, a A homeowner or renter must 10 may register for the disaster case advocacy program established 11 pursuant to section 29C.20B . The disaster case manager may 12 refer the homeowner or renter to the appropriate local program 13 administrator. 14 5. Homeowners. 15 a. To be eligible for a forgivable loan financial assistance 16 under the program, all of the following requirements shall 17 apply: 18 (1) The homeowner’s disaster-affected home must have 19 sustained damage greater than the damage that is covered by the 20 homeowner’s property and casualty insurance policy insuring the 21 home plus any other state or federal disaster-related financial 22 assistance that the homeowner is eligible to receive. 23 (2) A local official must either deem the disaster-affected 24 home suitable for rehabilitation or damaged beyond reasonable 25 repair. 26 (3) The disaster-affected home is not eligible for buyout by 27 the county or city where the disaster-affected home is located, 28 or the disaster-affected home is eligible for a buyout by the 29 county or city where the disaster-affected home is located, 30 but the homeowner is requesting a forgivable loan financial 31 assistance for the repair or rehabilitation of the homeowner’s 32 disaster-affected home in lieu of a buyout. 33 (4) Assistance Financial assistance under the program must 34 not duplicate benefits provided by any local, state, or federal 35 -12- LSB 1094HV (2) 91 nls/ko 12/ 103

H.F. 957 disaster recovery assistance program. 1 b. If a homeowner is referred to the authority or to a 2 local program administrator by the disaster case manager of 3 the homeowner, the The authority may award a forgivable loan 4 financial assistance to the eligible homeowner for any of the 5 following purposes: 6 (1) Repair or rehabilitation of the disaster-affected home. 7 The disaster-affected home to be repaired or rehabilitated 8 shall not be located in a one-hundred-year floodplain. 9 (2) (a) Down payment assistance on the purchase of 10 replacement housing, and the cost of reasonable repairs to be 11 performed on the replacement housing to render the replacement 12 housing decent, safe, sanitary, and in good repair. 13 (b) Replacement housing shall not be located in a 14 one-hundred-year floodplain. 15 (c) For purposes of this subparagraph, “decent, safe, 16 sanitary, and in good repair” means the same as described in 24 17 C.F.R. §5.703. 18 c. The authority shall determine the interest rate for the 19 any financial assistance awarded in the form of a loan or a 20 forgivable loan. 21 d. If a homeowner who has been awarded a loan or a 22 forgivable loan sells a disaster-affected home or replacement 23 housing for which the homeowner received the loan or forgivable 24 loan prior to the end of the loan term, the remaining principal 25 on the loan or forgivable loan shall be due and payable 26 pursuant to rules adopted by the authority. 27 6. Renters. 28 a. To be eligible for a grant financial assistance under the 29 program, all of the following requirements shall apply: 30 (1) A local program administrator either deems 31 the disaster-affected home of the renter suitable for 32 rehabilitation but unsuitable for current short-term 33 habitation, or the disaster-affected home is damaged beyond 34 reasonable repair. 35 -13- LSB 1094HV (2) 91 nls/ko 13/ 103

H.F. 957 (2) Assistance Financial assistance under the program must 1 not duplicate benefits provided by any local, state, or federal 2 disaster recovery assistance program. 3 b. If a renter is referred to the authority or to a 4 local program administrator by the disaster case manager of 5 the renter, the The authority may award a grant financial 6 assistance to the eligible renter to provide short-term 7 financial assistance for the payment of rent for replacement 8 housing. 9 7. Report. On or before January 31 of each year, or as part 10 of the annual report under section 16.7 , the authority shall 11 submit a report to the general assembly that identifies all of 12 the following for the calendar year immediately preceding the 13 year of the report: 14 a. The date of each state of disaster emergency proclamation 15 by the governor that authorized disaster recovery housing 16 assistance under this section , and if disaster recovery housing 17 assistance was made available to homeowners, renters, or both 18 homeowners and renters . 19 b. The total number of forgivable loans and grants financial 20 assistance awards awarded. 21 c. The total number of forgivable loans financial assistance 22 awards , and the amount of each loan financial assistance award 23 awarded for repair or rehabilitation. 24 d. The total number of forgivable loans financial assistance 25 awards , and the amount of each loan financial assistance 26 award , awarded for down payment assistance on the purchase of 27 replacement housing and the cost of reasonable repairs to be 28 performed on the replacement housing to render the replacement 29 housing decent, safe, sanitary, and in good repair. 30 e. The total number of grants, and the amount of each grant, 31 awarded for rental assistance. 32 f. The total number of loans, forgivable loans , and grants 33 awarded in each county in which at least one homeowner or 34 renter has been awarded a loan, forgivable loan , or grant. 35 -14- LSB 1094HV (2) 91 nls/ko 14/ 103

H.F. 957 g. Each local program administrator involved in the 1 administration of the program. 2 h. The total amount of loan and forgivable loan principal 3 repaid. 4 Sec. 22. Section 16.57D, subsections 1 and 2, Code 2025, are 5 amended to read as follows: 6 1. Establish the maximum loan, forgivable loan , and grant 7 amounts awarded under the program. 8 2. Establish the terms of any loan or forgivable loan 9 provided under the program. 10 DIVISION III 11 DISASTER RECOVERY NEW HOUSING PROGRAM 12 Sec. 23. Section 422.7, Code 2025, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 45. a. Subtract, to the extent included, 15 the amount of any qualifying state disaster recovery new 16 housing grant issued to an individual or business by the 17 economic development authority. 18 b. For purposes of this subsection, “qualifying state 19 disaster recovery new housing grant” means an award of a state 20 disaster recovery new housing grant that was applied for 21 between August 20, 2024, and December 31, 2024, and approved 22 and issued by the economic development authority. 23 Sec. 24. Section 422.35, Code 2025, is amended by adding the 24 following new subsection: 25 NEW SUBSECTION . 14. a. Subtract, to the extent included, 26 the amount of any qualifying state disaster recovery new 27 housing grant issued to a business by the economic development 28 authority. 29 b. For purposes of this subsection, “qualifying state 30 disaster recovery new housing grant” means an award of a state 31 disaster recovery new housing grant that was applied for 32 between August 20, 2024, and December 31, 2024, and approved 33 and issued by the economic development authority. 34 Sec. 25. EFFECTIVE DATE. This division of this Act, being 35 -15- LSB 1094HV (2) 91 nls/ko 15/ 103

H.F. 957 deemed of immediate importance, takes effect upon enactment. 1 Sec. 26. RETROACTIVE APPLICABILITY. This division of this 2 Act applies retroactively to tax years beginning on or after 3 January 1, 2024. 4 DIVISION IV 5 POST-LOSS ASSIGNMENT OF BENEFITS —— RESIDENTIAL CONTRACTOR 6 Sec. 27. Section 507B.4, subsection 3, Code 2025, is amended 7 by adding the following new paragraph: 8 NEW PARAGRAPH . v. Post-loss assignment of benefits. Any 9 violation of section 515.137A by a residential contractor. 10 Sec. 28. Section 515.137A, subsection 2, Code 2025, is 11 amended by adding the following new paragraphs: 12 NEW PARAGRAPH . 0b. “Catastrophic disaster” includes a major 13 disaster declaration by the president of the United States or a 14 state of disaster emergency proclamation by the governor. 15 NEW PARAGRAPH . 00b. “Consumer advocate” means a consumer 16 advocate appointed pursuant to section 505.8, subsection 6, 17 paragraph “b” , subparagraph (1). 18 NEW PARAGRAPH . 000b. “Post-loss assignment” means any 19 instrument by which post-loss benefits, rights, or duties of 20 a named insured under a residential property and casualty 21 insurance policy are assigned or transferred to a residential 22 contractor. The post-loss assignment must only assign the 23 insurance proceeds a named insured is entitled to receive 24 from the named insured’s insurer for the repair, replacement 25 construction, or reconstruction of the named insured’s 26 property. 27 Sec. 29. Section 515.137A, subsections 3, 4, and 5, Code 28 2025, are amended by striking the subsections and inserting in 29 lieu thereof the following: 30 3. A residential contractor shall be prohibited from all of 31 the following under a post-loss assignment by a named insured 32 to the residential contractor: 33 a. Rebating or offering to rebate any portion of the named 34 insured’s insurance deductible as an inducement for the named 35 -16- LSB 1094HV (2) 91 nls/ko 16/ 103

H.F. 957 insured to purchase a good or service. 1 b. Imposing an administrative fee on the named insured 2 for canceling the post-loss assignment, or imposing a fee to 3 process the insurance check or to interact with the named 4 insured’s mortgage company. 5 c. Acting as a public adjuster without being licensed under 6 chapter 522C. 7 d. Receiving payments from the named insured’s insurer 8 that are unrelated to the repair, replacement construction, 9 or reconstruction work on the covered insured’s property, 10 including but not limited to all of the following: 11 (1) Additional living expenses. 12 (2) Loss of use. 13 4. a. A post-loss assignment must include all of the 14 following: 15 (1) An itemized description of the work to be performed. 16 (2) An itemized description of the materials, labor, and 17 fees for the work to be performed. 18 (3) A total itemized amount to be paid for the work to be 19 performed. 20 (4) A statement that the residential contractor has made 21 no assurances that the claimed loss will be fully covered by 22 the named insured’s insurance contract and shall include the 23 following notice in capitalized fourteen point type: 24 YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE UNDER 25 YOUR INSURANCE POLICY. PLEASE READ AND UNDERSTAND THIS 26 DOCUMENT BEFORE SIGNING. 27 THE ITEMIZED DESCRIPTION OF THE WORK TO BE DONE SHOWN IN THIS 28 ASSIGNMENT FORM HAS NOT BEEN AGREED TO BY THE INSURER. THE 29 INSURER HAS THE RIGHT TO PAY ONLY FOR THE COST TO REPAIR OR 30 REPLACE DAMAGED PROPERTY CAUSED BY A COVERED PERIL. POST-LOSS 31 ASSIGNMENTS ARE SUBJECT TO THE AUTHORITY OF THE IOWA INSURANCE 32 DIVISION. YOU MAY FILE A COMPLAINT WITH THE DIVISION ON THE 33 DIVISION’S INTERNET SITE OR CALL THE DIVISION AT (telephone 34 number). 35 -17- LSB 1094HV (2) 91 nls/ko 17/ 103

H.F. 957 (5) In capitalized fourteen point type and located in the 1 immediate proximity of the space reserved in the assignment for 2 the signature of the named insured, the following notice: 3 YOU MAY CANCEL THIS POST-LOSS ASSIGNMENT FOR ANY REASON 4 WITHOUT PENALTY WITHIN FIVE (5) BUSINESS DAYS FROM THE LATER OF 5 THE DATE THE POST-LOSS ASSIGNMENT IS FULLY EXECUTED OR THE DATE 6 ON WHICH YOU RECEIVE A COPY OF THE FULLY EXECUTED POST-LOSS 7 ASSIGNMENT. IF MAILED, THE CANCELLATION MUST BE POSTMARKED 8 BEFORE THE FIVE (5) BUSINESS DAY DEADLINE. 9 YOU MUST CANCEL THE POST-LOSS ASSIGNMENT IN WRITING AND 10 THE CANCELLATION MUST BE DELIVERED TO (name and address 11 of residential contractor as provided by the residential 12 contractor). IF THE ASSIGNEE HAS NOT BEGUN SUBSTANTIALLY 13 PERFORMING WORK ON THE PROPERTY, YOU MAY CANCEL THIS POST-LOSS 14 ASSIGNMENT WITHOUT PENALTY AFTER AT LEAST THIRTY (30) CALENDAR 15 DAYS AFTER THE DATE WORK ON THE PROPERTY IS SCHEDULED TO 16 COMMENCE, OR AFTER AT LEAST THIRTY (30) CALENDAR DAYS AFTER 17 THE POST-LOSS ASSIGNMENT IS FULLY EXECUTED IF THE POST-LOSS 18 ASSIGNMENT DOES NOT CONTAIN A COMMENCEMENT DATE. 19 IF YOU CANCEL THIS POST-LOSS ASSIGNMENT, THE RESIDENTIAL 20 CONTRACTOR HAS UP TO TEN (10) BUSINESS DAYS TO RETURN ALL 21 PAYMENTS OR DEPOSITS YOU HAVE MADE. 22 (6) A provision that requires the assignee to indemnify and 23 hold harmless the assignor from liabilities, damages, losses, 24 and costs, including but not limited to attorney fees related 25 to the loss claim. 26 b. A post-loss assignment shall not impair the interest of 27 a mortgagee listed on the declarations page of the property and 28 casualty insurance policy that is the subject of the post-loss 29 assignment. All mortgagees shall be named as a co-payee for 30 the payment of benefits under a property and casualty insurance 31 policy covering residential real estate. 32 c. A post-loss assignment shall only authorize a residential 33 contractor to be named as a co-payee, along with the named 34 insured and all mortgagees, for the payment of benefits under 35 -18- LSB 1094HV (2) 91 nls/ko 18/ 103

H.F. 957 a property and casualty insurance policy covering residential 1 real estate. 2 d. A post-loss assignment shall not prevent or inhibit 3 an insurer from communicating with the named insured or a 4 mortgagee listed on the declarations page of the property and 5 casualty insurance policy that is the subject of the post-loss 6 assignment. 7 e. An electronic copy of the fully executed post-loss 8 assignment shall be provided to the insurer of the residential 9 real estate, the named insured, and all mortgagees of the 10 damaged residential real estate within five business days after 11 execution of the post-loss assignment. A paper copy shall be 12 provided to the insurer, a named insured, and any mortgagee of 13 the damaged residential real estate within five business days 14 of a request by the insurer, the named insured, or a mortgagee. 15 f. A residential contractor named in a post-loss assignment 16 must cooperate with the insurer of the damaged residential 17 real estate in a claim investigation by providing documents 18 and records requested by the insurer and complying with each 19 post-loss duty included in the named insured’s insurance 20 policy. 21 5. a. A named insured shall have the right to cancel a 22 post-loss assignment without penalty or fee under all of the 23 following circumstances: 24 (1) For any reason within five business days from the 25 date on which the named insured receives a copy of the fully 26 executed post-loss agreement. 27 (2) The assignee has not substantially performed work on 28 the property that is the subject of the post-loss assignment at 29 least thirty calendar days after the date work on the property 30 was scheduled to commence. 31 (3) The assignee has not begun substantial work on the 32 property that is the subject of the post-loss assignment at 33 least thirty calendar days after the date the insured received 34 a fully executed copy of the executed post-loss assignment and 35 -19- LSB 1094HV (2) 91 nls/ko 19/ 103