SF 144 (LSB 1438XS (3) 91)

SENATE FILE 144

BY  WINCKLER, BLAKE, TOWNSEND, DONAHUE, PETERSEN, DOTZLER, STAED, CELSI, WEINER, BENNETT, TRONE GARRIOTT, BISIGNANO, and QUIRMBACH

A BILL FOR

An Act relating to the creation of land redevelopment trusts.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
LAND REDEVELOPMENT TRUSTS

    Section 1.  NEW SECTION.  358A.1  Short title.
   This chapter shall be known and may be cited as the “Iowa Land Redevelopment Trust Act”.
    Sec. 2.  NEW SECTION.  358A.2  Legislative intent.
   The general assembly finds and declares all of the following:
   1.  Iowa’s communities are important to the social and economic vitality of this state. Whether urban, suburban, or rural, many communities are struggling with dilapidated, abandoned, blighted, and tax-delinquent properties.
   2.  Citizens of Iowa are affected adversely by dilapidated, abandoned, blighted, and tax-delinquent properties, including properties that have been abandoned due to mortgage foreclosure.
   3.  Dilapidated, abandoned, blighted, and tax-delinquent properties impose significant costs on neighborhoods and communities by lowering property values, increasing fire and police protection costs, decreasing tax revenues, and undermining community cohesion.
   4.  There is an overwhelming public need to confront the problems caused by dilapidated, abandoned, blighted, and tax-delinquent properties; to return properties that are in non-revenue-generating, non-tax-producing status to productive status in order to revitalize urban, suburban, and rural areas, provide affordable housing, and attract new industry; and to create jobs for the citizens of this state through the establishment of new tools that enable communities to turn abandoned spaces into vibrant places.
   5.  Land redevelopment trusts are one of the tools that communities can use to facilitate the return of dilapidated, abandoned, blighted, and tax-delinquent properties to productive use.
    Sec. 3.  NEW SECTION.  358A.3  Definitions.
   As used in this chapter, unless the context otherwise requires:
   1.  “Abandoned” means a parcel is vacant or a building on a parcel has remained vacant for a period of at least six consecutive months and is in need of rehabilitation.
   2.  “Blighted” means a vacant parcel or a parcel containing a building is unsafe with objectively determinable signs of deterioration sufficient to constitute a threat to human health, safety, and welfare.
   3.  “Board” means the board of directors of a land redevelopment trust.
   4.  “Dilapidated” means a parcel containing a building is in a state of deterioration as a result of age or neglect.
   5.  “Geographical boundaries of the land redevelopment trust” means the jurisdiction of the municipality that created the land redevelopment trust or in the case of any combination of municipalities creating a single land redevelopment trust or joining an existing land redevelopment trust, the combined jurisdictions of the municipalities. In the case of a land redevelopment trust created by a county, such land redevelopment trust’s jurisdiction includes only the area of the county not included within an incorporated city.
   6.  “Land redevelopment trust” means an entity created under section 358A.4.
   7.  “Local employee” means a person employed by a municipality of this state and does not include an independent contractor.
   8.  “Local official” means an officeholder of a municipality of this state.
   9.  “Municipality” means a city, county, or township.
   10.  “Rehabilitation” means the action of restoring to its former condition something that has deteriorated or has been damaged.
    Sec. 4.  NEW SECTION.  358A.4  Creation.
   1.  A land redevelopment trust organized under this chapter shall be a body corporate and politic, with the name under which it was organized, and may sue and be sued in its own name, contract and be contracted with, acquire and hold real and personal property necessary for corporate purposes, adopt a corporate seal and alter the same at pleasure, and exercise all the powers conferred in this chapter.
   2.  a.  Any municipality may create a land redevelopment trust. Creation shall be by ordinance in the case of a city or by resolution in the case of a county or township. The ordinance or resolution shall make reference to the purposes listed under section 358A.2.
   b.  Any municipality may create a land redevelopment trust in combination with one or more other municipalities. Municipalities seeking to create such a land redevelopment trust shall comply with the procedures set forth in chapter 28E. A land redevelopment trust shall be considered a public agency for the purposes of chapters 28E and 28H.
   c.  (1)  Any city or township passing an ordinance or a resolution or entering into a chapter 28E agreement creating a land redevelopment trust pursuant to this section shall promptly deliver copies of the ordinance, resolution, or agreement to the auditor, treasurer, and the county attorney of each county in which the municipality is located.
   (2)  Any board of supervisors adopting a resolution or entering into a chapter 28E agreement creating a land redevelopment trust pursuant to this section shall deliver a copy of the resolution or agreement to the county auditor, county treasurer, and county attorney.
   3.  a.  The enabling ordinance or resolution, or chapter 28E agreement, shall set forth any restrictions or required procedures that exceed those set forth in this chapter.
   b.  A chapter 28E agreement relating to a land redevelopment trust shall include procedures for the distribution of assets between participating municipalities upon the dissolution of the land redevelopment trust.
   c.  Unless otherwise limited in the ordinance, resolution, or chapter 28E agreement, the powers and procedures of a newly created land redevelopment trust shall be the powers and procedures specified in this chapter.
   4.  A council of governments established in section 28H.1 shall not form a land redevelopment trust. However, pursuant to a chapter 28E agreement, a council of governments may provide community development services, planning services, and technical assistance to a land redevelopment trust.
    Sec. 5.  NEW SECTION.  358A.5  Board of directors.
   1.  a.  A land redevelopment trust shall have a board of directors in which all powers of the land redevelopment trust shall be vested.
   b.  Unless restricted by the enabling ordinance, resolution, or agreement as specified in section 358A.4, the provisions of this section apply to the governance of a land redevelopment trust.
   2.  The membership of the board shall be established in the bylaws of the land redevelopment trust.
   3.  a.  A local official may serve as a board member, and service as a board member shall neither terminate nor impair the local official’s office.
   b.  A local employee shall be eligible to serve as a board member.
   4.  Board members shall serve without compensation. However, the board may reimburse a member for expenses actually incurred in the performance of duties on behalf of the land redevelopment trust as provided in bylaws adopted pursuant to subsection 5.
   5.  a.  Upon creation by the enabling ordinance, resolution, or agreement as specified in section 358A.4, the board shall adopt bylaws addressing matters necessary to govern the conduct of the land redevelopment trust and shall meet as the bylaws prescribe.
   b.  When in actual conflict, the ordinances, resolutions, or agreements described in section 358A.4 shall control over any bylaws adopted by the board.
   6.  Except as set forth in the enabling ordinance, resolution, or agreement, or as set forth by a land redevelopment trust in its bylaws, an action of the board must be approved by the affirmative vote of a majority of the board present and voting.
   7.  Members of the board shall not be liable personally on the obligations of the land redevelopment trust, and rights of creditors of a land redevelopment trust shall be solely against the land redevelopment trust.
    Sec. 6.  NEW SECTION.  358A.6  Staff.
   1.  A land redevelopment trust may employ or contract for the employment of any persons the land redevelopment trust may require to fulfill the objectives of its bylaws and this chapter.
   2.  An employee of the land redevelopment trust is not and shall not be deemed to be an employee of the municipality for whose benefit the land redevelopment trust is organized solely because the employee is employed by the land redevelopment trust.
   3.  A land redevelopment trust is an employer as defined in section 97B.1A, subsection 9, paragraph “a”, and an employee of the land redevelopment trust is an employee as defined in section 97B.1A, subsection 8.
    Sec. 7.  NEW SECTION.  358A.7  Powers.
   1.  In furtherance of the purposes set forth in section 358A.2, a land redevelopment trust shall have the power to perform all actions necessary or convenient to carry out the purposes set forth in this chapter, including but not limited to all of the following powers:
   a.  To borrow money for any of the purposes of the land redevelopment trust by means of loans, lines of credit, or any other financial instruments or securities other than through the issuance of bonds, debentures, or notes. A land redevelopment trust may secure its indebtedness by mortgage, pledge, deed of trust, or other lien on its property, franchises, rights, and privileges of every kind and nature or any part thereof or interest therein. The moneys borrowed by the land redevelopment trust are payable as to principal, interest, and any other amounts owed the lender solely from the proceeds from the net revenues of the land redevelopment trust and are not a debt of or charge against any of the municipalities that formed the land redevelopment trust within the meaning of any constitutional or statutory debt limitation provision. For purposes of this paragraph:
   (1)  “Gross revenues” means the income and receipts of the land redevelopment trust from any source whatsoever, including but not limited to contributions from private parties or member municipalities, sale or lease of rehabilitated properties, and collection of a portion of the property taxes during the five-year period after sale or lease of the rehabilitated property.
   (2)  “Net revenues” means the gross revenues of the land redevelopment trust less the land redevelopment trust’s operating expenses.
   b.  To petition for abatement pursuant to chapter 657A. A land redevelopment trust is an “interested person” for purposes of that chapter.
   c.  To contract with the federal government, the state, a subdivision of the state, and any other party, whether nonprofit or for-profit.
   2.  The powers enumerated in this chapter shall not be construed to limit the general powers of a land redevelopment trust or a municipality. The powers granted under this chapter are in addition to the powers granted by any other section of the Code, but as to a land redevelopment trust, shall be used only for the purposes set forth in section 358A.2.
    Sec. 8.  NEW SECTION.  358A.8  Eminent domain.
   A land redevelopment trust shall not possess or exercise the power of eminent domain, including under chapters 6A and 6B.
    Sec. 9.  NEW SECTION.  358A.9  Acquisition of property.
   1.  a.  Except as provided in section 358A.8, a land redevelopment trust may acquire, hold, own, accept, and otherwise obtain real property or interests in real property by gift, devise, transfer, exchange, foreclosure, purchase, or otherwise, on terms and conditions and in a manner the board considers is in the best interest of the land redevelopment trust and consistent with the purposes set forth in section 358A.2 and the land redevelopment trust’s bylaws.
   b.  A land redevelopment trust may acquire tax sale certificates at a tax sale conducted under chapter 446 and may subsequently acquire title through tax lien foreclosure procedures. A land redevelopment trust shall not be considered a city or county for purposes of bidding on and acquiring tax sale certificates under chapter 446, redeeming property under chapter 447, or obtaining a tax sale deed under chapter 448.
   c.  The acquisition of property by the land redevelopment trust shall not be governed or controlled by any regulations or laws relating to procurement or acquisition of property of any municipality that created the land redevelopment trust, unless specifically provided in the ordinance, resolution, or chapter 28E agreement establishing the land redevelopment trust.
   d.  Except as otherwise provided in paragraph “e”, a land redevelopment trust shall not own or hold real property located outside the geographical boundaries of the land redevelopment trust.
   e.  A land redevelopment trust may be granted, pursuant to an intergovernmental contract with a political subdivision of this state, the authority to manage and maintain real property located within the geographical boundaries of the political subdivision, but outside the geographical boundaries of the land redevelopment trust. If a land redevelopment trust receives a gift or devise of real property located outside of the geographical boundaries of the land redevelopment trust, the land redevelopment trust shall dispose of such property by sale or exchange as soon as reasonably practicable.
   2.  A land redevelopment trust shall maintain all of its real property in accordance with the laws and ordinances of the jurisdiction in which the real property is located.
   3.  A land redevelopment trust shall maintain and make available for public review and inspection an inventory of all real property held by the land redevelopment trust.
    Sec. 10.  NEW SECTION.  358A.10  Disposition of property.
   1.  A land redevelopment trust may convey, exchange, sell, transfer, lease, grant, mortgage, or otherwise dispose of interests in real property of the land redevelopment trust at such times, to such persons, upon such terms and conditions, and subject to such restrictions and covenants as the land redevelopment trust deems necessary or appropriate to assure the effective use of the land redevelopment trust in accordance with the purposes of section 358A.2 and consistent with the land redevelopment trust’s bylaws.
   2.  A land redevelopment trust shall determine the amount and form of consideration necessary to convey, exchange, sell, transfer, lease, grant, mortgage, or otherwise dispose of interests in real property. Consideration may take the form of monetary payments and secured financial obligations, covenants and conditions related to the present and future use of the property, contractual commitments by the transferee, and other forms of consideration as determined by the board to be in the best interest of the land redevelopment trust and consistent with its bylaws. 
   3.  A municipality may in the ordinance or resolution creating a land redevelopment trust, or in the chapter 28E agreement in the case of any combination of municipalities creating a single land redevelopment trust, require that a particular form of disposition of real property or a disposition of real property located within a specified jurisdiction be subject to specified voting and approval requirements of the board.
    Sec. 11.  NEW SECTION.  358A.11  Financing.
   1.  A land redevelopment trust may receive funding through grants, loans, and other moneys from the municipality that created the land redevelopment trust, from other municipalities, from the state, from the federal government, and from any other public and private sources, including but not limited to donations, gifts, or bequests.
   2.  A land redevelopment trust may receive and retain payments for services rendered, for rents and leasehold payments received, for consideration for disposition of real and personal property, for proceeds of insurance coverage for losses incurred, for income from investments, and for any other asset and activity lawfully permitted to a land redevelopment trust under this chapter.
   3.  Up to seventy-five percent of the real property taxes remaining after the division of taxes pursuant to section 403.19, if applicable, and exclusive of any amount levied by a school district, collected on real property that a land redevelopment trust has conveyed or leased to a third party shall be remitted to the land redevelopment trust. The allocation of property tax revenues shall commence with property taxes payable on the assessed value of the property determined on the first assessment year beginning January 1 following the date of conveyance or lease by the land redevelopment trust and shall be allocated for a period of up to five consecutive years. The specific percentage of the taxes to be remitted, if any, and the number of consecutive years to allocate the taxes shall be established by the municipality creating the land redevelopment trust in accordance with this section and shall be set forth in the enabling ordinance, resolution, or chapter 28E agreement creating the land redevelopment trust. Each municipality may, in the enabling ordinance, resolution, or chapter 28E agreement creating the land redevelopment trust, include the right of the municipality to waive or amend by resolution, and on a project-specific basis, the percentage of real estate taxes to be remitted to the land redevelopment trust for a specific property and the number of consecutive years of tax allocation for a specific property. The land redevelopment trust shall give the treasurer in the county where the property is located written notice of the date of the sale or lease of any property for which the land redevelopment trust claims a real property tax payment under this subsection. The notice shall identify the property by local tax parcel number, address, and legal description and include a copy of the ordinance, resolution, or chapter 28E agreement setting forth the portion of such taxes allocable to the land redevelopment trust under this subsection. Upon receipt of the taxes from such property, the treasurer shall pay the land redevelopment trust its share of the taxes paid on such property for the applicable number of consecutive years.
    Sec. 12.  NEW SECTION.  358A.12  Delinquent property tax enforcement.
   1.  Whenever a land redevelopment trust acquires real property encumbered by a lien or claim for real property taxes owed to one or more of the municipalities that established the land redevelopment trust, or to other political subdivisions that have entered into an intergovernmental contract with the land redevelopment trust, the land redevelopment trust may request, by resolution of the board or as otherwise provided in its bylaws, that the county in which the property is located discharge and extinguish any and all of the liens or claims. If a portion of the real property taxes are attributable to property taxes certified for levy by a school district, the land redevelopment trust shall notify the school district in writing of its intent to extinguish all such liens and claims. If the school district sends a written objection to the proposed extinguishment of such liens and claims to the land redevelopment trust within thirty days of receipt of such notice, the land redevelopment trust shall not attempt to extinguish the liens and claims. If the school district fails to send a written objection to the proposed extinguishment to the land redevelopment trust within thirty days of receipt of such notice from the land redevelopment trust, the county in which the land redevelopment trust is located shall have the power, by resolution of the board, to discharge and extinguish any and all such liens or claims.
   2.  If a land redevelopment trust receives payments of any kind attributable to liens or claims for real property taxes owed or allocated to a municipality, public utility, or school district on property acquired by the land redevelopment trust, the land redevelopment trust shall remit the full amount of the payments to the appropriate taxing entity.
    Sec. 13.  NEW SECTION.  358A.13  Exemption from taxation.
   The income and operations of a land redevelopment trust are exempt from taxation by the state and by any political subdivision of the state. 
    Sec. 14.  NEW SECTION.  358A.14  Public records and public meetings.
   A land redevelopment trust is a “governmental body” for purposes of chapter 21 and a “government body” for the purposes of chapter 22. A land redevelopment trust shall comply with all public meeting requirements under chapter 21 and all public records requirements under chapter 22.
    Sec. 15.  NEW SECTION.  358A.15  Reports.
   A land redevelopment trust shall submit to the governing body of the municipality that created the land redevelopment trust an annual report that informs the municipality of the land redevelopment trust’s activities for the previous year.
    Sec. 16.  NEW SECTION.  358A.16  Audits.
   A land redevelopment trust is a “governmental subdivision” for the purposes of chapter 11. A land redevelopment trust shall be subject to periodic examination by the auditor of state.
    Sec. 17.  NEW SECTION.  358A.17  Dissolution of land redevelopment trusts.
   1.  A land redevelopment trust may be dissolved in accordance with its bylaws. Upon dissolution of the land redevelopment trust, all liabilities, real property, personal property, and other assets of the land redevelopment trust shall become the liabilities and assets of the municipality that created the land redevelopment trust, or, in the case of a land redevelopment trust created pursuant to a chapter 28E agreement, shall be distributed pursuant to the chapter 28E agreement.
   2.  A municipality may withdraw from a land redevelopment trust if the land redevelopment trust was created pursuant to a chapter 28E agreement. The withdrawing municipality shall receive its share of assets and liabilities as determined in the chapter 28E agreement. A land redevelopment trust consisting of two or more municipalities does not dissolve upon the withdrawal of a single municipality.
    Sec. 18.  NEW SECTION.  358A.18  Conflicts of interest.
   1.  For purposes of this section, “family member” means a person who is a spouse, domestic partner, child, step-child, grandchild, parent, step-parent, grandparent, sibling, niece, nephew, uncle, aunt, mother-in-law, father-in-law, son-in-law, or daughter-in-law of a member of the board or an employee of a land redevelopment trust. “Family member” includes a person who is a family member through adoption.
   2.  A member of the board, employee of a land redevelopment trust, or family member of a member of the board or an employee of the land redevelopment trust shall not acquire any direct or indirect interest in real property of the land redevelopment trust or in any property to be acquired from the land redevelopment trust, or have or acquire any direct or indirect interest in any real property to be acquired by a land redevelopment trust. A land redevelopment trust shall not acquire any real property from a board member, employee of the land redevelopment trust, or family member of a board member or employee of the land redevelopment trust.
   3.  Members of the board and employees of the land redevelopment trust shall disclose to the board any direct or indirect ownership interest such person or a family member of such person has in any property to be acquired by the land redevelopment trust or located within one thousand feet of any property that the land redevelopment trust is considering acquiring before the land redevelopment trust takes any action to acquire such property. A member of the board who is required to make such disclosure shall not participate in the decision to approve the acquisition of such property.
   4.  A member of the board, employee of a land redevelopment trust, or family member of a member of the board or an employee of the land redevelopment trust may have a direct or indirect interest in any contract or proposed contract for material or services to be furnished to or used by a land redevelopment trust only upon all of the following conditions:
   a.  The member of the board or employee of the land redevelopment trust discloses the material facts of such transaction and the nature of such interest to the board before the board acts to approve such contract and, if the person is a board member, does not participate in the discussion or vote to consider approval of such contract.
   b.  Such contract is approved by a majority of the members of the board who have no direct or indirect interest in such contract and whose family members have no direct or indirect interest in such contract.
   c.  Such contract is fair at the time the contract is approved.
   5.  a.  Any person who serves or is employed by a land redevelopment trust shall not engage in any of the following conduct:
   (1)  Outside employment or an activity that involves the use of the land redevelopment trust’s time, facilities, equipment, and supplies or the use of evidences of office or employment to give the person, an entity affiliated with or controlled by the person, or a family member of the person an advantage or pecuniary benefit that is not available to other similarly situated members or classes of members of the general public. For purposes of this subparagraph, a person is not “similarly situated” merely by being, or being related to, a person who serves or is employed by the land redevelopment trust.
   (2)  Outside employment or an activity that involves the receipt of, promise of, or acceptance of money or other consideration by the person, an entity affiliated with or controlled by the person, or a family member of the person from anyone other than the land redevelopment trust for the performance of any act that the person would be required or expected to perform as a part of the person’s regular duties or during the hours during which the person performs service or work for the land redevelopment trust.
   (3)  Outside employment or an activity that is subject to the official control, inspection, review, audit, or enforcement authority of the person, during the performance of the person’s duties of office or employment.
   b.  If the outside employment or activity is employment or activity described in paragraph “a”, subparagraph (1) or (2), the person shall immediately cease the employment or activity. If the outside employment or activity is employment or activity described in paragraph “a”, subparagraph (3), unless otherwise provided by law, the person shall take one of the following courses of action:
   (1)  Cease the outside employment or activity.
   (2)  Publicly disclose the existence of the conflict and refrain from taking any official action or performing any official duty that would detrimentally affect or create a benefit for the outside employment or activity. For purposes of this subparagraph, “official action” or “official duty” includes but is not limited to participating in any vote, taking affirmative action to influence any vote, granting any license or permit, determining the facts or law in a contested case or rulemaking proceeding, conducting any inspection, or providing any other official service or thing that is not available generally to members of the public in order to further the interests of the outside employment or activity.
   6.  Unless otherwise specifically provided, the requirements of this section shall be in addition to, and shall not supersede, any other rights or remedies provided by law.
DIVISION II
LAND REDEVELOPMENT TRUST TAX SALE COORDINATING PROVISIONS

    Sec. 19.  Section 446.16, subsection 2, Code 2025, is amended to read as follows:
   2.  The treasurer may establish and collect a reasonable registration fee from each registered bidder at the tax sale. The fee shall not be assessed against a county, or municipality, or land redevelopment trust created under chapter 358A. The total of the fees collected shall not exceed the total costs of the tax sale. Registration fees collected shall be deposited in the general fund of the county.
    Sec. 20.  NEW SECTION.  446.19C  Land redevelopment trust tax sale.
   1.  A land redevelopment trust has the exclusive bidder’s right to purchase tax sale certificates offered at the treasurer’s annual tax sale with respect to tax delinquent parcels located within the geographical boundaries of the land redevelopment trust that are dilapidated, abandoned, or blighted and that are suitable for housing or commercial use following rehabilitation.
   2.  To qualify for the exclusive bidder’s right to purchase tax sale certificates under this section, a land redevelopment trust must file a verified statement with the treasurer on or before May 15. The land redevelopment trust is responsible for obtaining information from the treasurer as needed to accurately identify tax parcel numbers and total amounts due. The land redevelopment trust shall provide the treasurer with the federal tax identification number of the land redevelopment trust, but such information is not required to be shown on the verified statement. The verified statement shall include all of the following:
   a.  The name, address, telephone number, and electronic mail address of the land redevelopment trust.
   b.  A statement that the land redevelopment trust is exercising its right to purchase each identified parcel pursuant to this section.
   c.  Specific identification of each parcel by the parcel’s official county tax parcel number.
   d.  With respect to each identified parcel, a statement that the parcel is dilapidated, abandoned, or blighted and that the parcel is suitable for housing or commercial use following rehabilitation.
   e.  The total amount due for each identified parcel computed to the date of the tax sale.
   3.  In addition to the verified statement, the land redevelopment trust shall submit payment to the treasurer of an amount equal to the total amount due cumulatively for all of the parcels identified in the verified statement. The filing of the verified statement by a land redevelopment trust accompanied by payment of the total amount due for all identified parcels shall constitute the registration by the land redevelopment trust as a bidder at the tax sale. The land redevelopment trust shall not be required to pay a registration fee.
   4.  The land redevelopment trust’s verified statement shall be published at the same time and in the same manner as the notice of the annual tax sale, and the requirements in section 446.9, subsection 2, for publication of notice of the annual tax sale also apply to publication of the verified statement.
   5.  Upon timely receipt of the verified statement and payment of the total amount due cumulatively for all identified parcels, the treasurer shall remove all of the identified parcels from the regular annual tax sale and place those parcels in a separate sale known as the “land redevelopment trust tax sale”. On the day of the regular tax sale, the treasurer shall issue and deliver tax sale certificates to the land redevelopment trust for all parcels listed in the land redevelopment trust’s verified statement that remain liable to sale for delinquent taxes. The land redevelopment trust’s exclusive right to purchase tax sale certificates to parcels included in the land redevelopment trust tax sale is prior and superior to the rights of any other tax sale bidder. Any tax sale certificate issued to a land redevelopment trust under the provisions of this section shall secure a one redevelopment trust percent interest in the parcel.
   6.  The separate land redevelopment trust tax sale shall be conducted by the treasurer prior to the separate public nuisance tax sale conducted under section 446.19B. If the same parcel is listed in both such sales, the parcel shall be sold to the land redevelopment trust.
   7.  If any parcel identified within the land redevelopment trust’s verified statement has been removed from the land redevelopment trust tax sale because of receipt by the treasurer of payment of the taxes required to eliminate the delinquency, the treasurer shall refund to the land redevelopment trust the amount paid with respect to the total amount due for the parcel.
   8.  For purposes of this section, “abandoned”, “blighted”, “dilapidated”, “geographical boundaries of the land redevelopment trust”, “land redevelopment trust”, and “rehabilitation” mean the same as defined in section 358A.3.
    Sec. 21.  Section 447.9, subsection 1, Code 2025, is amended to read as follows:
   1.  After one year and nine months from the date of sale, or after nine months from the date of a sale made under section 446.18, or after three months from the date of a sale made under section 446.19A, or 446.19B, or 446.19C, the holder of the certificate of purchase may cause to be served upon the person in possession of the parcel, and also upon the person in whose name the parcel is taxed, a notice signed by the certificate holder or the certificate holder’s agent or attorney, stating the date of sale, the description of the parcel sold, the name of the purchaser, and that the right of redemption will expire and a deed for the parcel be made unless redemption is made within ninety days from the completed service of the notice. The notice shall be served by both regular mail and certified mail to the person’s last known address and such service is deemed completed when the notice is deposited in the mail and postmarked for delivery. The ninety-day redemption period begins as provided in section 447.12. When the notice is given by a county as a holder of a certificate of purchase the notice shall be signed by the county treasurer or the county attorney, and when given by a city, it shall be signed by the city officer designated by resolution of the council. When the notice is given by the Iowa finance authority or a city or county agency holding the parcel as part of an Iowa homesteading project, it shall be signed on behalf of the agency or authority by one of its officers, as authorized in rules of the agency or authority.
DIVISION III
OTHER COORDINATING PROVISIONS

    Sec. 22.  Section 11.1, subsection 1, paragraph c, Code 2025, is amended to read as follows:
   c.  “Governmental subdivision” means cities and administrative agencies established by cities, hospitals or health care facilities established by a city, counties, county hospitals organized under chapters 347 and 347A, memorial hospitals organized under chapter 37, entities organized under chapter 28E, land redevelopment trusts created under chapter 358A, community colleges, area education agencies, and school districts.
    Sec. 23.  Section 21.2, subsection 1, Code 2025, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  k.  A land redevelopment trust created under chapter 358A.
    Sec. 24.  Section 22.1, subsection 1, Code 2025, is amended to read as follows:
   1.  “Government body” means this state, or any county, city, township, school corporation, political subdivision, tax-supported district, nonprofit corporation other than a fair conducting a fair event as provided in chapter 174, whose facilities or indebtedness are supported in whole or in part with property tax revenue and which is licensed to conduct pari-mutuel wagering pursuant to chapter 99D; the governing body of a drainage or levee district as provided in chapter 468, including a board as defined in section 468.3, regardless of how the district is organized; a land redevelopment trust created under chapter 358A; or other entity of this state, or any branch, department, board, bureau, commission, council, committee, official, or officer of any of the foregoing or any employee delegated the responsibility for implementing the requirements of this chapter.
    Sec. 25.  Section 97B.1A, subsection 9, paragraph a, Code 2025, is amended to read as follows:
   a.  “Employer” means the state of Iowa, the counties, municipalities, agencies, public school districts, all political subdivisions, and all of their departments and instrumentalities, including area agencies on aging, other than those employing persons as specified in subsection 8, paragraph “b”, subparagraph (7), land redevelopment trusts created under chapter 358A, and joint planning commissions created under chapter 28E or 28I.
    Sec. 26.  Section 364.7, Code 2025, is amended to read as follows:
   364.7  Disposal of property.
   A city may shall not dispose of an interest in real property by sale, lease for a term of more than three years, or gift, except in accordance with the following procedure:
   1.  The council shall set forth its proposal in a resolution and shall publish notice, as provided in section 362.3, of the resolution and of a date, time, and place of a public hearing on the proposal.
   2.  After the public hearing, the council may make a final determination on the proposal by resolution.
   3.  A city may shall not dispose of real property by gift except to a governmental body for a public purpose or to a land redevelopment trust created under chapter 358A.
    Sec. 27.  Section 427.1, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  43.  Land redevelopment trust property.  The real property of a land redevelopment trust created under chapter 358A. For purposes of this subsection, real property includes but is not limited to real property held by a land redevelopment trust as lessor pursuant to long-term lease contracts with community land trusts as defined in 42 U.S.C. §12773, but does not include real property otherwise leased by a land redevelopment trust to a third party and does not include real property that has been sold on contract, which real property shall be subject to property taxation in the name of the contract buyer.
    Sec. 28.  Section 573.1, subsection 3, Code 2025, is amended to read as follows:
   3.  “Public corporation” shall embrace the state, and all counties, cities, public school corporations, any land redevelopment trust created under chapter 358A, and all officers, boards, or commissions empowered by law to enter into contracts for the construction of public improvements.
    Sec. 29.  Section 657A.2, subsection 1, Code 2025, is amended to read as follows:
   1.  No sooner than the later of thirty days after the responsible building official’s findings have been provided under section 657A.1A or six months after a building has become abandoned, a petition for abatement under this chapter may be filed in the district court of the county in which the property is located by the city in which the property is located, by the county if the property is located outside the limits of a city, by a neighboring landowner, by a land redevelopment trust created under chapter 358A, or by a duly organized nonprofit corporation which that has as one of its goals the improvement of housing conditions in the county or city in which the property in question is located. The petition shall not demand a personal judgment against any party, but shall concern only the interests in the property. A petition for abatement filed under this chapter shall include the legal description of the real property upon which the public nuisance is located unless the public nuisance is not situated on or confined to a parcel of real property, or is portable or capable of being removed from the real property. Service shall be made on all interested persons by personal service or, if personal service cannot be made, by certified mail and first class mail to the last known address of record of the interested person and by posting the notice in a conspicuous place on the building, or by publication. The last known address of record for the property owner shall be the address of record with the county treasurer of the county where the property is located. Service may also be made as provided in section 654.4A.
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 for the establishment of land redevelopment trusts.
   Division I of the bill authorizes one or more municipalities to establish a land redevelopment trust as a method to return dilapidated, abandoned, blighted, and tax-delinquent properties in their communities to economically productive status. An established land redevelopment trust is a public agency for the purpose of joint exercise of governmental powers, a governmental body for purposes of public meetings requirements of Code chapter 21, and a government body for purposes of public records requirements of Code chapter 22. Land redevelopment trusts are subject to periodic examination by the auditor of state under Code chapter 11. The bill requires the board of directors of a land redevelopment trust to establish bylaws addressing matters necessary to govern the conduct of the land redevelopment trust.
   Division I of the bill also grants a land redevelopment trust various powers and duties, including the authority to acquire properties through certain procedures, including the purchase of tax sale certificates and the foreclosure of properties acquired at a tax sale if not redeemed. However, the bill explicitly prohibits a land redevelopment trust from possessing or exercising the power of eminent domain. The bill establishes financing procedures that govern land redevelopment trusts, including allowing to be remitted to the land redevelopment trust up to 75 percent of real property taxes collected on a real property conveyed or leased by a land redevelopment trust that remains after the division of taxes for an urban renewal area and exclusive of any amount levied by a school district for five consecutive years after the property is again put on the tax rolls. The bill requires a land redevelopment trust to submit annual reports to the governing body that created the land redevelopment trust. The bill provides procedures for disposing of property that is acquired by the land redevelopment trust. The bill also provides procedures for dissolving a land redevelopment trust.
   Division II of the bill creates a land redevelopment trust tax sale procedure, which allows a land redevelopment trust to acquire abandoned, blighted, or dilapidated properties through an exclusive tax sale. In order to acquire property through a land redevelopment trust tax sale, the land redevelopment trust shall file a verified statement identifying the parcels for which the land redevelopment trust intends to purchase the tax sale certificates and shall pay the delinquent total amounts due on each parcel before May 15. Upon timely receipt of the land redevelopment trust’s verified statement and payment, the county treasurer shall remove the identified parcels from the regular annual tax sale and place those parcels in the land redevelopment trust tax sale. The land redevelopment trust tax sale shall occur before a public nuisance tax sale.
   Division III of the bill makes changes throughout the Code to conform with land redevelopment trust procedures established in division I of the bill.