Senate File 2242 - Reprinted SENATE FILE 2242 BY COMMITTEE ON VETERANS AFFAIRS (SUCCESSOR TO SSB 3178) (As Amended and Passed by the Senate March 3, 2014 ) A BILL FOR An Act relating to the home ownership assistance program for 1 military members. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 SF 2242 (2) 85 aw/sc/jh

S.F. 2242 Section 1. Section 16.54, subsections 1 and 3, Code 2014, 1 are amended to read as follows: 2 1. For the purposes of this section , “eligible member of the 3 armed forces of the United States” or “eligible service member” 4 means a person who is or was , if discharged under honorable 5 conditions, a member of the national guard, or a reserve , or 6 regular component of the armed forces of the United States , 7 who has served at least ninety days of active duty service 8 beginning on or after September 11, 2001 , or during the period 9 of the Persian Gulf Conflict, beginning August 2, 1990, and 10 ending April 6, 1991 . “Eligible member of the armed forces of 11 the United States” or “eligible service member” also means a 12 former member of the national guard, or a reserve , or regular 13 component of the armed forces of the United States , who was 14 honorably discharged due to injuries incurred while on federal 15 active duty beginning on or after September 11, 2001 , or during 16 the period of the Persian Gulf Conflict, beginning August 2, 17 1990, and ending April 6, 1991 , that precluded completion of a 18 minimum aggregate of ninety days of federal active duty. 19 3. The program shall be administered by the authority and 20 shall provide loans, grants, or other assistance to persons 21 who are or were eligible service members of the armed forces 22 of the United States . In the event an eligible service member 23 is deceased, the surviving spouse of the eligible member shall 24 be eligible for assistance under the program, subject to the 25 surviving spouse meeting the program’s eligibility requirements 26 other than the military service requirement. In addition, 27 a person eligible for the program under this section may 28 participate in other loan and grant programs of the authority, 29 provided the person meets the requirements of those programs. 30 Sec. 2. Section 16.54, subsection 4, paragraphs a and b, 31 Code 2014, are amended to read as follows: 32 a. The person eligible for the program shall, for financed 33 home purchases that close on or after July 1, 2008, use a 34 lender that participates in the authority’s applicable first 35 -1- SF 2242 (2) 85 aw/sc/jh 1/ 2

S.F. 2242 mortgage financing programs for homebuyers or a lender approved 1 by the authority under subsection 5 . 2 b. (1) For financed home purchases that close on or 3 after July 1, 2008, the eligible person shall participate, 4 if eligible to participate, in one of the authority’s other 5 applicable first mortgage financing programs for homebuyers. 6 However 7 (2) Notwithstanding subparagraph (1), a person an eligible 8 service member who qualifies for one of the authority’s other 9 applicable first mortgage financing programs for homebuyers 10 may use a lender that does not participate in the authority’s 11 first mortgage financing programs for homebuyers if such lender 12 is approved by the authority under subsection 5 . For financed 13 home purchases that close on or after July 1, 2014, an eligible 14 service member who qualifies for one of the authority’s first 15 mortgage financing programs may accept financing other than 16 that available under the authority’s first mortgage financing 17 programs for homebuyers if all of the following apply: 18 (a) The financing is offered by a lender that participates 19 in one of the authority’s first mortgage financing programs for 20 homebuyers or by a lender approved pursuant to subsection 5. 21 (b) The authority determines that the offered financing 22 would be economically feasible and financially advantageous for 23 the eligible service member. 24 -2- SF 2242 (2) 85 aw/sc/jh 2/ 2