Senate File 488 - Reprinted SENATE FILE 488 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SSB 1035) (COMPANION TO HF 439 BY COMMITTEE ON ECONOMIC GROWTH) (As Amended and Passed by the Senate April 18, 2017 ) A BILL FOR An Act relating to the workforce housing tax incentives program 1 by requiring allocations to certain housing projects and 2 by increasing the allowable average dwelling unit cost and 3 the percentage of investment for tax incentives for certain 4 housing projects. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 SF 488 (3) 87 aw/sc/jh

S.F. 488 Section 1. Section 15.119, subsection 2, paragraph g, Code 1 2017, is amended to read as follows: 2 g. The workforce housing tax incentives program administered 3 pursuant to sections 15.351 through 15.356 . In allocating tax 4 credits pursuant to this subsection , the authority shall not 5 allocate more than twenty million dollars for purposes of this 6 paragraph. Of the moneys allocated under this paragraph, five 7 million dollars shall be reserved for allocation to qualified 8 housing projects in small cities, as defined in section 15.352, 9 that are registered on or after July 1, 2017. 10 Sec. 2. Section 15.352, Code 2017, is amended by adding the 11 following new subsections: 12 NEW SUBSECTION . 3A. “Greenfield site” means a site that 13 does not meet the definition of a brownfield site or grayfield 14 site. A project proposed at a site located on previously 15 undeveloped land or agricultural land shall be presumed to be 16 a greenfield site. 17 NEW SUBSECTION . 9. “Small city” means any city or township 18 located in this state, except those located within the eleven 19 most populous counties in the state, as determined by the most 20 recent federal decennial census. For the purposes of this 21 part, a small city that is located in more than one county 22 shall be considered to be located in the county having the 23 greatest taxable base within the small city. 24 Sec. 3. Section 15.353, subsection 1, paragraph a, Code 25 2017, is amended to read as follows: 26 a. Four or more single-family dwelling units , except for a 27 project located in a small city, then two or more single-family 28 dwelling units . 29 Sec. 4. Section 15.353, subsection 2, Code 2017, is amended 30 by adding the following new paragraph: 31 NEW PARAGRAPH . 0d. For a housing project located in a 32 small city that meets program requirements under subsection 1, 33 paragraph “a” , development at a greenfield site. 34 Sec. 5. Section 15.353, subsection 2, paragraph d, 35 -1- SF 488 (3) 87 aw/sc/jh 1/ 3

S.F. 488 subparagraph (2), subparagraph division (c), Code 2017, is 1 amended to read as follows: 2 (c) The demand for projects applying under this paragraph 3 “d” compared to the demand for projects applying under 4 paragraphs “a” through “c” “0d” . 5 Sec. 6. Section 15.353, subsection 3, paragraph b, Code 6 2017, is amended to read as follows: 7 b. (1) The average dwelling unit cost does not exceed 8 two hundred fifty thousand dollars per dwelling unit if the 9 project involves the rehabilitation, repair, redevelopment, 10 or preservation of property described in section 404A.1, 11 subsection 8 , paragraph “a” . 12 (2) The average dwelling unit cost for the project does not 13 exceed two hundred fifteen thousand dollars per dwelling unit 14 if the project is located in a small city. 15 Sec. 7. Section 15.354, subsection 4, paragraph c, Code 16 2017, is amended to read as follows: 17 c. (1) The authority shall issue tax incentives under the 18 program on a first-come, first-served basis until the maximum 19 amount of tax incentives allocated pursuant to section 15.119, 20 subsection 2 , is reached. The authority shall maintain a list 21 of registered housing projects under the program so that if 22 the maximum aggregate amount of tax incentives is reached in 23 a given fiscal year, registered housing projects that were 24 completed but for which tax incentives were not issued shall 25 be placed on a wait list in the order the registered housing 26 projects were registered and shall be given priority for 27 receiving tax incentives in succeeding fiscal years. 28 (2) The authority shall administer allocations reserved for 29 qualified housing projects in small cities separately from the 30 general allocation in subparagraph (1). The authority shall 31 issue tax incentives for small cities under the program on a 32 first-come, first-served basis until the maximum amount of the 33 allocation reserved for small cities under section 15.119, 34 subsection 2, paragraph “g” , is reached. The authority shall 35 -2- SF 488 (3) 87 aw/sc/jh 2/ 3

S.F. 488 maintain a list of registered housing projects in small cities 1 under the program so that if the maximum aggregate amount 2 of tax incentives reserved for small cities is reached in a 3 given fiscal year, such registered housing projects that were 4 completed but for which tax incentives were not issued shall 5 be placed on a wait list in the order the registered housing 6 projects were registered and shall be given priority for 7 receiving tax incentives in succeeding fiscal years. If the 8 maximum aggregate amount of tax incentives reserved for small 9 cities is not reached in a given fiscal year, the authority may 10 issue tax incentives reserved under this subparagraph (2) to 11 other housing projects registered under subsection 2. 12 Sec. 8. Section 15.355, subsection 3, paragraph a, Code 13 2017, is amended to read as follows: 14 a. A housing business may claim a tax credit in an amount 15 not to exceed the following: 16 (1) For a housing project not located in a small city, ten 17 percent of the qualifying new investment of a housing project. 18 (2) For a housing project located in a small city, twenty 19 percent of the qualifying new investment of a housing project. 20 -3- SF 488 (3) 87 aw/sc/jh 3/ 3