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Senate File 100 - IntroducedA Bill ForAn Act 1relating to the creation of land banks.
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2LAND BANKS
3 Section 1. NEW SECTION. 358A.1 Short title.
4This chapter shall be known and may be cited as the “Iowa
5Land Bank Act”.
6 Sec. 2. NEW SECTION. 358A.2 Legislative intent.
7The general assembly finds and declares all of the
8following:
91. Iowa’s communities are important to the social and
10economic vitality of this state. Whether urban, suburban,
11or rural, many communities are struggling with dilapidated,
12abandoned, blighted, and tax-delinquent properties.
132. Citizens of Iowa are affected adversely by dilapidated,
14abandoned, blighted, and tax-delinquent properties,
15including properties that have been abandoned due to mortgage
16foreclosure.
173. Dilapidated, abandoned, blighted, and tax-delinquent
18properties impose significant costs on neighborhoods and
19communities by lowering property values, increasing fire
20and police protection costs, decreasing tax revenues, and
21undermining community cohesion.
224. There is an overwhelming public need to confront the
23problems caused by dilapidated, abandoned, blighted, and
24tax-delinquent properties; to return properties that are in
25non-revenue-generating, non-tax-producing status to productive
26status in order to revitalize urban, suburban, and rural
27areas, provide affordable housing, and attract new industry;
28and to create jobs for the citizens of this state through the
29establishment of new tools that enable communities to turn
30abandoned spaces into vibrant places.
315. Land banks are one of the tools that communities can use
32to facilitate the return of dilapidated, abandoned, blighted,
33and tax-delinquent properties to productive use.
34 Sec. 3. NEW SECTION. 358A.3 Definitions.
35As used in this chapter, unless the context otherwise
-1-1requires:
21. “Abandoned” means a parcel containing a building has
3remained vacant for a period of at least twelve consecutive
4months and is in need of rehabilitation.
52. “Blighted” means a parcel containing a building is unsafe
6with objectively determinable signs of deterioration sufficient
7to constitute a threat to human health, safety, and welfare.
83. “Board” means the board of directors of a land bank.
94. “Dilapidated” means a parcel containing a building is in
10a state of deterioration as a result of age or neglect.
115. “Geographical boundaries of the land bank” means the
12jurisdiction of the municipality that created the land bank
13or in the case of any combination of municipalities creating
14a single land bank or joining an existing land bank, the
15combined jurisdictions of the municipalities. In the case of a
16land bank created by a county, such land bank’s jurisdiction
17includes only the area of the county not included within an
18incorporated city.
196. “Land bank” means an entity created under section 358A.4.
207. “Local employee” means a person employed by a
21municipality of this state and does not include an independent
22contractor.
238. “Local official” means an officeholder of a municipality
24of this state.
259. “Municipality” means a city, county, or township.
2610. “Rehabilitation” means the action of restoring to its
27former condition something that has deteriorated or has been
28damaged.
29 Sec. 4. NEW SECTION. 358A.4 Creation.
301. A land bank organized under this chapter shall be a
31body corporate and politic, with the name under which it was
32organized, and may sue and be sued in its own name, contract
33and be contracted with, acquire and hold real and personal
34property necessary for corporate purposes, adopt a corporate
35seal and alter the same at pleasure, and exercise all the
-2-1powers conferred in this chapter.
22. a. Any municipality may create a land bank. Creation
3shall be by ordinance in the case of a city or by resolution in
4the case of a county or township. The ordinance or resolution
5shall make reference to the purposes listed under section
6358A.2.
7b. Any municipality may create a land bank in combination
8with other municipalities. Municipalities seeking to create
9such a land bank shall comply with the procedures set forth in
10chapter 28E. A land bank shall be considered a public agency
11for the purposes of chapters 28E and 28H.
12c. (1) Any city or township passing an ordinance or a
13resolution or entering into a chapter 28E agreement creating
14a land bank pursuant to this section shall promptly deliver
15copies of the ordinance, resolution, or agreement to the
16auditor, treasurer, and the county attorney of each county in
17which the municipality is situated.
18(2) Any board of supervisors adopting a resolution or
19entering into a chapter 28E agreement creating a land bank
20pursuant to this section shall deliver a copy of the resolution
21or agreement to the county auditor, county treasurer, and
22county attorney.
233. a. The enabling ordinance or resolution, or chapter 28E
24agreement, shall set forth all of the following:
25(1) The initial members of the board and the initial terms
26of those members.
27(2) General term lengths and limits for members of the
28board.
29(3) Procedures that the board shall follow in exercising
30discretionary provisions of this chapter.
31b. A chapter 28E agreement relating to a land bank shall
32include procedures for the distribution of assets between
33participating municipalities upon the dissolution of the land
34bank.
35c. Unless otherwise limited in the ordinance, resolution,
-3-1or chapter 28E agreement, the powers and procedures of a newly
2created land bank shall be the powers and procedures specified
3in this chapter.
44. A council of governments established in section 28H.1
5shall not form a land bank. However, pursuant to a chapter
628E agreement, a council of governments may provide community
7development services, planning services, and technical
8assistance to a land bank.
9 Sec. 5. NEW SECTION. 358A.5 Board of directors.
101. a. A land bank shall have a board of directors in which
11all powers of the land bank shall be vested.
12b. Unless restricted by the enabling ordinance, resolution,
13or agreement as specified in section 358A.4, the provisions of
14this section shall apply to the governance of a land bank.
152. a. The membership of the board shall be established in
16the bylaws of the land bank and shall consist of an odd number
17of members, which shall be not less than five nor more than
18eleven.
19b. Unless otherwise specified by the ordinance, resolution,
20or agreement under section 358A.4, the default length of a term
21for a board member shall be four years. The maximum length of a
22term for a board member shall be five years.
23c. A land bank may, as determined in the bylaws, limit the
24number of terms or consecutive terms that members of its board
25may serve.
263. a. A local official may serve as a board member, and
27service as a board member shall neither terminate nor impair
28the local official’s office.
29b. A local employee shall be eligible to serve as a board
30member.
31c. The members of a board shall all be voting members.
32Board members shall, to the extent practicable, include
33representatives of each of the following:
34(1) A local government.
35(2) A chamber of commerce.
-4- 1(3) Persons with experience in financial services.
2(4) Persons with experience in real property acquisition or
3real property development.
4(5) Persons with experience in nonprofit or affordable
5housing.
6(6) Persons who meet all of the following:
7(a) The person resides in the geographical boundaries of the
8land bank.
9(b) The person is not a local official or local employee.
10d. Requirements provided in paragraph “c” may be satisfied
11by the appointment of a single voting member who meets more
12than one of the criteria.
13e. A member removed under subsection 9 shall be ineligible
14for reappointment to the board unless the reappointment is
15confirmed unanimously by the board.
164. Annually, the board shall select from the board
17membership a chair, vice chair, secretary, and treasurer and
18such other officers as the board deems necessary.
195. A vacancy on the board shall be filled following the
20procedure adopted pursuant to subsection 9. Removal of a
21member shall cause the position to become vacant.
226. Board members shall serve without compensation.
23However, the board may reimburse a member for expenses actually
24incurred in the performance of duties on behalf of the land
25bank as provided in bylaws adopted pursuant to subsection 9.
267. The board shall meet as follows:
27a. In regular session according to a schedule adopted by the
28board.
29b. In special session convened by the chair or upon written
30petition signed by a majority of the members.
318. a. A majority of the board, excluding vacancies,
32constitutes a quorum.
33b. A board may permit any or all members to participate in
34a regular or special meeting by, or conduct a meeting through
35the use of, any means of electronic communication by which all
-5-1directors participating can simultaneously hear each other
2during the meeting. A member participating in a meeting by
3means of electronic communication is deemed to be present, in
4person, at the meeting.
59. a. The board shall adopt bylaws establishing all of the
6following:
7(1) Duties of officers selected pursuant to subsection 4.
8(2) Requirements for attendance and participation of
9members at regular and special meetings of the board.
10(3) A procedure for removal of a member for failure
11to comply with a bylaw. Removal shall only be made by the
12affirmative vote of no less than a majority of all of the other
13members of the board.
14(4) A procedure detailing prioritization of what and which
15types of properties to acquire, a procedure for acquisition of
16properties, and a statement of purpose.
17(5) A procedure for the terms and conditions relating
18to disposition of properties, including but not limited to a
19process for distribution of any proceeds to any claimants or
20taxing entities, and to any other land bank.
21(6) A procedure for the establishment, membership, and
22duties of committees of the board.
23(7) Rules to determine which expenses may be reimbursed.
24(8) A procedure for making an appointment to fill a vacancy
25on the board. The procedure shall include a simple majority
26vote by the board to approve the appointment.
27(9) Other matters necessary to govern the conduct of a land
28bank.
29b. When in actual conflict, the ordinances, resolutions, or
30agreements described in section 358A.4 shall control over any
31bylaws adopted by the board.
3210. a. Except as set forth in paragraph “b” or “c”, the
33enabling ordinance, resolution, or agreement, or as set forth
34by a land bank in its bylaws, an action of the board must be
35approved by the affirmative vote of a majority of the board
-6-1present and voting.
2b. Action of the board on the following matters must be
3approved by a majority of the entire board membership excluding
4vacancies:
5(1) Adoption of bylaws.
6(2) Hiring or firing of an employee or contractor of the
7land bank.
8(3) Incurring of debt.
9(4) Adoption or amendment of the annual budget.
10(5) Sale, lease, encumbrance, or alienation of real
11property or personal property with a value of more than fifty
12thousand dollars.
13c. A resolution regarding dissolution of the land bank under
14section 358A.17 must be approved by two-thirds of the entire
15board membership.
16d. A member of the board shall not vote by proxy.
17e. A member may request that a vote on any resolution or
18action of the land bank be recorded.
1911. Members of the board shall not be liable personally on
20the obligations of the land bank, and rights of creditors of a
21land bank shall be solely against the land bank.
22 Sec. 6. NEW SECTION. 358A.6 Staff.
231. A land bank may employ or contract for the employment
24of a secretary, an executive director, legal counsel and legal
25staff, including the use of student clinicians from a reputable
26law school in this state with a clinical law program, and such
27other technical experts and agents and employees, permanent
28or temporary, as the land bank may require. The land bank
29may determine the qualifications and fix the compensation and
30benefits of such persons. A land bank may also enter into
31contracts and agreements with municipalities or nonprofit
32entities for staffing services to be provided to the land
33bank or for a land bank to provide such staffing services to
34municipalities or agencies or departments of municipalities.
352. An employee of the land bank is not and shall not be
-7-1deemed to be an employee of the municipality for whose benefit
2the land bank is organized solely because the employee is
3employed by the land bank.
43. A land bank is an employer as defined in section 97B.1A,
5subsection 9, paragraph “a”, and an employee of the land bank is
6an employee as defined in section 97B.1A, subsection 8.
74. The land bank shall determine the compensation for an
8executive director who shall manage the operations of a land
9bank and employ or contract for the employment of others for
10the benefit of the land bank as approved and funded by the
11board of directors.
12 Sec. 7. NEW SECTION. 358A.7 Powers.
131. In furtherance of the purposes set forth in section
14358A.2, a land bank shall have all of the following powers:
15a. To borrow money for any of the purposes of the land bank
16by means of loans, lines of credit, or any other financial
17instruments or securities other than through the issuance
18of bonds, debentures, or notes. A land bank may secure its
19indebtedness by mortgage, pledge, deed of trust, or other lien
20on its property, franchises, rights, and privileges of every
21kind and nature or any part thereof or interest therein. The
22funds borrowed by the land bank are payable as to principal,
23interest, and any other amounts owed the lender solely from
24the proceeds from the net revenues of the land bank and are
25not a debt of or charge against any of the municipalities that
26formed the land bank within the meaning of any constitutional
27or statutory debt limitation provision. For purposes of this
28subsection:
29(1) “Gross revenues” means the income and receipts of the
30land bank from any source whatsoever, including but not limited
31to contributions from private parties or member municipalities,
32sale or lease of rehabilitated properties, and collection of a
33portion of the property taxes during the five-year period after
34sale or lease of the rehabilitated property.
35(2) “Net revenues” means the gross revenues of the land bank
-8-1less the land bank’s operating expenses.
2b. To purchase, receive, hold, manage, lease,
3lease-purchase, or otherwise acquire and to sell, convey,
4including a conveyance by installment purchase contract,
5transfer, lease, sublease, or otherwise dispose of real and
6personal property, together with any incidental or appurtenant
7rights, privileges, or uses, including but not limited to any
8real or personal property acquired by the land bank in the
9satisfaction of debts or the enforcement of obligations.
10c. (1) To acquire the good will, business, rights, real and
11personal property, and other assets of any person, subject to
12any obligations enforceable against the property so acquired.
13(2) To acquire, reclaim, manage, or contract for the
14management of improved or unimproved and underutilized
15real property for the purpose of constructing or causing
16the construction of business establishments or housing on
17the property, for the purpose of assembling and enhancing
18utilization of the real property, or for the purpose of
19disposing of such real property to others in whole or in part
20for the construction of business establishments or housing.
21(3) To acquire, reclaim, manage, contract for the
22management of, construct or reconstruct, alter, repair,
23maintain, operate, sell, convey, including a conveyance by
24installment purchase contract, transfer, lease, sublease, or
25otherwise dispose of business establishments or housing.
26d. To acquire, subscribe for, own, hold, sell, assign,
27transfer, mortgage, pledge, or otherwise dispose of stocks,
28shares, bonds, debentures, notes, or other securities
29interests or indebtedness and evidences of interest in, or
30indebtedness of, any person, notwithstanding section 12B.10.
31Any tax revenue received by a land bank shall not be used for
32acquisition or subscription. The acquisition of securities
33shall only be by gift. Securities so acquired shall be
34converted to cash as soon as practicable.
35e. To mortgage, pledge, or otherwise encumber any property
-9-1acquired pursuant to the powers contained in paragraph “b”, “c”,
2or “d”.
3f. To serve as an agent for grant applications and for the
4administration of grants, or to make applications as principal
5for grants intended for use by the land bank.
6g. To charge fees or exchange in-kind goods or services for
7services rendered to political subdivisions and other persons
8for whom services are rendered.
9h. To purchase tax sale certificates at auction, negotiated
10sale, or from a third party who purchased and is a holder of one
11or more tax sale certificates issued pursuant to chapter 446.
12i. To be assigned a mortgage on real property from a
13mortgagee in lieu of acquiring such real property subject to
14a mortgage.
15j. To register as a bidder for tax sales conducted under
16chapter 446, including tax sales conducted under section
17446.19C, to bid on parcels offered at such sales, and to hold
18and administer tax sale certificates obtained at such sales,
19provided that a land bank may exercise the powers authorized
20under this paragraph only with respect to parcels within the
21geographical boundaries of the land bank.
22k. To petition for abatement pursuant to chapter 657A.
23A land bank is an “interested person” for purposes of that
24chapter.
25l. To do all acts and things necessary or convenient to
26carry out the purposes set forth in section 358A.2 and the
27powers especially created for a land bank in this section,
28including but not limited to contracting with the federal
29government, the state or any political subdivision of the
30state, and any other party, whether nonprofit or for-profit.
312. The powers enumerated in this chapter shall not be
32construed to limit the general powers of a land bank. The
33powers granted under this chapter are in addition to the powers
34granted by any other section of the Code, but as to a land
35bank, shall be used only for the purposes set forth in section
-10-1358A.2.
2 Sec. 8. NEW SECTION. 358A.8 Eminent domain.
31. A land bank shall not possess or exercise the power of
4eminent domain, including under chapters 6A and 6B.
52. Land acquired by a municipality by the exercise of
6condemnation through eminent domain shall not be used to
7effectuate the purposes of this chapter.
8 Sec. 9. NEW SECTION. 358A.9 Acquisition of property.
91. a. Except as provided in section 358A.8, a land bank
10may acquire real property or interests in real property by
11gift, devise, transfer, exchange, foreclosure, purchase, or
12otherwise, on terms and conditions and in a manner the board
13considers is in the best interest of the land bank.
14b. A land bank may hold and own in its name any property
15acquired by or conveyed to the land bank. All deeds,
16mortgages, contracts, leases, purchases, or other agreements
17regarding property of the land bank, including agreements to
18acquire or dispose of real property, may be approved by and
19executed in the name of the land bank.
202. a. A land bank may acquire real property by purchase
21contracts, lease-purchase agreements, installment sales
22contracts, land contracts, or other contracts that convey an
23interest in real property. A land bank may accept transfers
24of property or interests in property from the state or
25any political subdivision of the state upon such terms and
26conditions as agreed to by the land bank and that unit of
27government so long as the real property is located within the
28geographical boundaries of the land bank.
29b. A land bank may acquire tax sale certificates at a tax
30sale conducted under chapter 446 and may subsequently acquire
31title through tax lien foreclosure procedures. A land bank
32shall not be considered a city or county for purposes of
33bidding on and acquiring tax sale certificates under chapter
34446, redeeming property under chapter 447, or obtaining a tax
35sale deed under chapter 448.
-11- 1c. The acquisition of property by the land bank shall not
2be governed or controlled by any regulations or laws relating
3to procurement or acquisition of property of any municipality
4that created the land bank, unless specifically provided in the
5ordinance, resolution, or chapter 28E agreement establishing
6the land bank.
7d. Except as otherwise provided in paragraph “e”, a land
8bank shall not own or hold real property located outside the
9geographical boundaries of the land bank.
10e. A land bank may be granted, pursuant to an
11intergovernmental contract with a political subdivision of
12this state, the authority to manage and maintain real property
13located within the geographical boundaries of the political
14subdivision, but outside the geographical boundaries of the
15land bank. If a land bank receives a gift or devise of real
16property located outside of the geographical boundaries of the
17land bank, the land bank shall dispose of such property by sale
18or exchange as soon as reasonably practicable.
193. A land bank shall maintain all of its real property in
20accordance with the laws and ordinances of the jurisdiction in
21which the real property is located.
224. A land bank shall maintain and make available for public
23review and inspection an inventory of all real property held
24by the land bank.
25 Sec. 10. NEW SECTION. 358A.10 Disposition of property.
261. A land bank may convey, exchange, sell, transfer, lease,
27grant, or mortgage interests in real property of the land bank
28at such times, to such persons, upon such terms and conditions,
29and subject to such restrictions and covenants as the land bank
30deems necessary or appropriate to assure the effective use of
31the bank in accordance with the purposes of section 358A.2.
322. The land bank shall set forth in a resolution the land
33bank’s proposal for sale, exchange, transfer, lease for more
34than a period of three years, grant, or other disposition of
35real property the land bank owns and shall publish notice in a
-12-1newspaper published at least once weekly and having a general
2circulation within the general boundaries of the land bank at
3least four and not more than twenty days prior to the date of
4the public hearing. The published notice shall provide the
5date, time, and place of a public hearing on the proposal.
6However, if the population within the geographical boundaries
7of the land bank is less than two hundred or if there is not
8a newspaper published within the geographical boundaries of
9the land bank, the land bank may post such notice on the real
10property that is the subject of such proposal and at two public
11places within the geographical boundaries of the land bank.
123. After the public hearing, the land bank shall make a
13final determination on the proposal by resolution.
144. A land bank shall not dispose of real property by gift
15except to a governmental body for a public purpose.
165. A land bank shall determine the amount and form of
17consideration necessary to convey, exchange, sell, transfer,
18lease, grant, or mortgage interests in real property.
19Consideration may take the form of monetary payments and
20secured financial obligations, covenants and conditions related
21to the present and future use of the property, contractual
22commitments by the transferee, and other forms of consideration
23as determined by the board to be in the best interest of
24the land bank. The value of the consideration shall be
25not less than the lesser of the fair market value of the
26property subject to any terms and conditions imposed upon the
27disposition of the property or the amount paid by the land bank
28to acquire and rehabilitate the property.
296. A municipality may in the ordinance or resolution
30creating a land bank, or in the chapter 28E agreement in the
31case of any combination of municipalities creating a single
32land bank, require that a particular form of disposition of
33real property or a disposition of real property located within
34a specified jurisdiction be subject to specified voting and
35approval requirements of the board.
-13-1 Sec. 11. NEW SECTION. 358A.11 Financing.
21. A land bank may receive funding through grants, loans,
3and other moneys from the municipality that created the land
4bank, from other municipalities, from the state, from the
5federal government, and from other public and private sources,
6including but not limited to donations, gifts, or bequests.
72. A land bank may receive and retain payments for services
8rendered, for rents and leasehold payments received, for
9consideration for disposition of real and personal property,
10for proceeds of insurance coverage for losses incurred, for
11income from investments, and for any other asset and activity
12lawfully permitted to a land bank under this chapter.
133. Up to seventy-five percent of the real property taxes
14remaining after the division of taxes pursuant to section
15403.19, if applicable, and exclusive of any amount levied by a
16school district, collected on real property that a land bank
17has conveyed or leased to a third party shall be remitted to
18the land bank. The specific percentage of the taxes to be
19remitted, as to each municipality that created the land bank,
20shall be set forth in the enabling ordinance, resolution, or
21chapter 28E agreement creating the land bank. The allocation
22of property tax revenues shall commence with property taxes
23payable on the assessed value of the property determined on the
24first assessment year beginning January 1 following the date
25of conveyance or lease by the land bank and shall be allocated
26for a period of five consecutive years. The land bank shall
27give the treasurer in the county where the property is located
28written notice of the date of the sale or lease of any property
29for which the land bank claims a real property tax payment
30under this subsection. The notice shall identify the property
31by local tax parcel number, address, and legal description and
32include a copy of the ordinance, resolution, or chapter 28E
33agreement setting forth the portion of such taxes allocable to
34the land bank under this subsection. Upon receipt of the taxes
35from such property, the treasurer shall pay the land bank its
-14-1share of the taxes paid on such property with respect to the
2applicable five-year period.
34. At the time that a land bank sells or otherwise disposes
4of property as part of its land bank program, the proceeds from
5the sale, if any, shall be allocated as determined by the land
6bank among the following priorities:
7a. Furtherance of land bank operations.
8b. Recovery of land bank expenses.
9 Sec. 12. NEW SECTION. 358A.12 Delinquent property tax
10enforcement.
111. Whenever a land bank acquires real property encumbered
12by a lien or claim for real property taxes owed to one or
13more of the municipalities that established the land bank,
14or to other political subdivisions that have entered into an
15intergovernmental contract with the land bank, the land bank
16may, by resolution of the board, discharge and extinguish any
17and all of the liens or claims. The decision by the board to
18extinguish the property tax liens or claims is subject to the
19voting requirements contained in section 358A.5, subsection
2010. If a portion of the real property taxes are attributable
21to property taxes certified for levy by a school district,
22the land bank shall notify the school district in writing of
23its intent to extinguish all such liens and claims. If the
24school district sends a written objection to the proposed
25extinguishment of such liens and claims to the land bank within
26thirty days of receipt of such notice, the land bank shall not
27extinguish the liens and claims. If the school district fails
28to send a written objection to the proposed extinguishment to
29the land bank within thirty days of receipt of such notice
30from the land bank, the land bank shall have the power, by
31resolution of the board, to discharge and extinguish any
32and all such liens or claims. To the extent necessary and
33appropriate, the land bank shall file with the appropriate
34taxing entity a copy of the resolution providing for the
35discharge and the extinguishment of liens or claims under this
-15-1section.
22. If a land bank receives payments of any kind attributable
3to liens or claims for real property taxes owed or allocated
4to a municipality or school district on property acquired by
5the land bank, the land bank shall remit the full amount of the
6payments to the appropriate taxing entity.
7 Sec. 13. NEW SECTION. 358A.13 Exemption from taxation.
8The income and operations of a land bank are exempt from
9taxation by the state and by any political subdivision of the
10state.
11 Sec. 14. NEW SECTION. 358A.14 Public records and public
12meetings.
13A land bank is a “governmental body” for purposes of chapter
1421 and a “government body” for the purposes of chapter 22. A
15land bank shall comply with all public meeting requirements
16under chapter 21 and all public records requirements under
17chapter 22.
18 Sec. 15. NEW SECTION. 358A.15 Reports.
191. A land bank shall submit to the governing body of the
20municipality that created the land bank a monthly report that
21informs the municipality of the land bank’s activities for the
22previous month.
232. By January 31 of each year, the land bank shall submit an
24annual report to the governing body of the municipality that
25created the land bank that informs the municipality of the land
26bank’s activities for the preceding calendar year.
273. A land bank shall submit an annual report, by January
2831 of each year, to the general assembly concerning the land
29bank’s activities for the preceding calendar year.
30 Sec. 16. NEW SECTION. 358A.16 Audits.
31A land bank is a “governmental subdivision” for the purposes
32of chapter 11. A land bank shall be subject to periodic
33examination by the auditor of state.
34 Sec. 17. NEW SECTION. 358A.17 Dissolution of land banks.
351. A land bank may be dissolved sixty calendar days after
-16-1a resolution of dissolution is approved by two-thirds of the
2voting members of the board and by two-thirds of the membership
3of each governing body of a municipality that created the
4land bank. The board shall appoint a trustee to distribute
5assets held by the land bank. The board shall give sixty
6calendar days advance written notice of its consideration of
7a resolution of dissolution by publishing a notice in local
8newspapers of general circulation within each municipality that
9created the land bank. Upon dissolution of the land bank, all
10liabilities, real property, personal property, and other assets
11of the land bank shall become the liabilities and assets of the
12municipality that created the land bank, or, in the case of a
13land bank created pursuant to a chapter 28E agreement, shall be
14distributed pursuant to the chapter 28E agreement.
152. A municipality may withdraw from a land bank if the land
16bank was created pursuant to a chapter 28E agreement. The
17withdrawing municipality shall receive its share of assets and
18liabilities as determined in the chapter 28E agreement. A land
19bank consisting of two or more municipalities does not dissolve
20upon the withdrawal of a single municipality.
21 Sec. 18. NEW SECTION. 358A.18 Conflicts of interest.
221. For purposes of this section, “family member” means a
23person who is a spouse, domestic partner, child, step-child,
24grandchild, parent, step-parent, grandparent, sibling, niece,
25nephew, uncle, aunt, mother-in-law, father-in-law, son-in-law,
26or daughter-in-law of a member of the board or an employee of a
27land bank. “Family member” includes a person who is a family
28member through adoption.
292. A member of the board, employee of a land bank, or family
30member of a member of the board or an employee of the land
31bank shall not acquire any direct or indirect interest in real
32property of the land bank or in any property to be acquired
33from the land bank, or have or acquire any direct or indirect
34interest in any real property to be acquired by a land bank.
35A land bank shall not acquire any real property from a board
-17-1member, employee of the land bank, or family member of a board
2member or employee of the land bank.
33. Members of the board and employees of the land bank shall
4disclose to the board any direct or indirect ownership interest
5such person or a family member of such person has in any
6property to be acquired by the land bank or located within one
7thousand feet of any property that the land bank is considering
8acquiring before the land bank takes any action to acquire such
9property. A member of the board who is required to make such
10disclosure shall not participate in the decision to approve the
11acquisition of such property.
124. A member of the board, employee of a land bank, or family
13member of a member of the board or an employee of the land
14bank may have a direct or indirect interest in any contract
15or proposed contract for material or services to be furnished
16to or used by a land bank only upon all of the following
17conditions:
18a. The member of the board or employee of the land bank
19discloses the material facts of such transaction and the nature
20of such interest to the board before the board acts to approve
21such contract and, if the person is a board member, does not
22participate in the discussion or vote to consider approval of
23such contract.
24b. Such contract is approved by a majority of the members
25of the board who have no direct or indirect interest in such
26contract and whose family members have no direct or indirect
27interest in such contract.
28c. Such contract is fair at the time the contract is
29approved.
305. a. Any person who serves or is employed by a land bank
31shall not engage in any of the following conduct:
32(1) Outside employment or an activity that involves the use
33of the land bank’s time, facilities, equipment, and supplies
34or the use of evidences of office or employment to give the
35person, an entity affiliated with or controlled by the person,
-18-1or a family member of the person an advantage or pecuniary
2benefit that is not available to other similarly situated
3members or classes of members of the general public. For
4purposes of this subparagraph, a person is not “similarly
5situated” merely by being, or being related to, a person who
6serves or is employed by the land bank.
7(2) Outside employment or an activity that involves the
8receipt of, promise of, or acceptance of money or other
9consideration by the person, an entity affiliated with or
10controlled by the person, or a family member of the person from
11anyone other than the land bank for the performance of any act
12that the person would be required or expected to perform as a
13part of the person’s regular duties or during the hours during
14which the person performs service or work for the land bank.
15(3) Outside employment or an activity that is subject to
16the official control, inspection, review, audit, or enforcement
17authority of the person, during the performance of the person’s
18duties of office or employment.
19b. If the outside employment or activity is employment or
20activity described in paragraph “a”, subparagraph (1) or (2),
21the person shall immediately cease the employment or activity.
22If the outside employment or activity is employment or activity
23described in paragraph “a”, subparagraph (3), unless otherwise
24provided by law, the person shall take one of the following
25courses of action:
26(1) Cease the outside employment or activity.
27(2) Publicly disclose the existence of the conflict and
28refrain from taking any official action or performing any
29official duty that would detrimentally affect or create a
30benefit for the outside employment or activity. For purposes
31of this subparagraph, “official action” or “official duty”
32includes but is not limited to participating in any vote,
33taking affirmative action to influence any vote, granting any
34license or permit, determining the facts or law in a contested
35case or rulemaking proceeding, conducting any inspection, or
-19-1providing any other official service or thing that is not
2available generally to members of the public in order to
3further the interests of the outside employment or activity.
46. Unless otherwise specifically provided, the requirements
5of this section shall be in addition to, and shall not
6supersede, any other rights or remedies provided by law.
7DIVISION II
8LAND BANK TAX SALE COORDINATING PROVISIONS
9 Sec. 19. Section 446.16, subsection 2, Code 2021, is amended
10to read as follows:
112. The treasurer may establish and collect a reasonable
12registration fee from each registered bidder at the tax
13sale. The fee shall not be assessed against a county, or
14 municipality, or land bank. The total of the fees collected
15shall not exceed the total costs of the tax sale. Registration
16fees collected shall be deposited in the general fund of the
17county.
18 Sec. 20. NEW SECTION. 446.19C Land bank tax sale.
191. A land bank has the exclusive bidder’s right to purchase
20tax sale certificates offered at the treasurer’s annual tax
21sale with respect to tax delinquent parcels located within the
22geographical boundaries of the land bank that are dilapidated,
23abandoned, or blighted and that are suitable for housing or
24commercial use following rehabilitation.
252. To qualify for the exclusive bidder’s right to purchase
26tax sale certificates under this section, a land bank must
27file a verified statement with the treasurer on or before May
2815. The land bank is responsible for obtaining information
29from the treasurer as needed to accurately identify tax parcel
30numbers and total amounts due. The land bank shall provide the
31treasurer with the federal tax identification number of the
32land bank, but such information is not required to be shown on
33the verified statement. The verified statement shall include
34all of the following:
35a. The name, address, telephone number, and electronic mail
-20-1address of the land bank.
2b. A statement that the land bank is exercising its right to
3purchase each identified parcel pursuant to this section.
4c. Specific identification of each parcel by the parcel’s
5official county tax parcel number.
6d. With respect to each identified parcel, a statement that
7the parcel is dilapidated, abandoned, or blighted and that the
8parcel is suitable for housing or commercial use following
9rehabilitation.
10e. The total amount due for each identified parcel computed
11to the date of the tax sale.
123. In addition to the verified statement, the land bank
13shall submit payment to the treasurer of an amount equal to
14the total amount due cumulatively for all of the parcels
15identified in the verified statement. The filing of the
16verified statement by a land bank accompanied by payment of the
17total amount due for all identified parcels shall constitute
18the registration by the land bank as a bidder at the tax sale.
19The land bank shall not be required to pay a registration fee.
204. The land bank’s verified statement shall be published at
21the same time and in the same manner as the notice of the annual
22tax sale, and the requirements in section 446.9, subsection 2,
23for publication of notice of the annual tax sale also apply to
24publication of the verified statement.
255. Upon timely receipt of the verified statement and
26payment of the total amount due cumulatively for all identified
27parcels, the treasurer shall remove all of the identified
28parcels from the regular annual tax sale and place those
29parcels in a separate sale known as the “land bank tax sale”.
30On the day of the regular tax sale, the treasurer shall issue
31and deliver tax sale certificates to the land bank for all
32parcels listed in the land bank’s verified statement that
33remain liable to sale for delinquent taxes. The land bank’s
34exclusive right to purchase tax sale certificates to parcels
35included in the land bank tax sale is prior and superior to the
-21-1rights of any other tax sale bidder. Any tax sale certificate
2issued to a land bank under the provisions of this section
3shall secure a one hundred percent interest in the parcel.
46. The separate land bank tax sale shall be conducted by
5the treasurer prior to the separate public nuisance tax sale
6conducted under section 446.19B. If the same parcel is listed
7in both such sales, the parcel shall be sold to the land bank.
87. If any parcel identified within the land bank’s verified
9statement has been removed from the land bank tax sale because
10of receipt by the treasurer of payment of the taxes required to
11eliminate the delinquency, the treasurer shall refund to the
12land bank the amount paid with respect to the total amount due
13for the parcel.
148. For purposes of this section, “abandoned”, “blighted”,
15“dilapidated”, “geographical boundaries of the land bank”, “land
16bank”, and “rehabilitation” mean the same as defined in section
17358A.3.
18 Sec. 21. Section 447.9, subsection 1, Code 2021, is amended
19to read as follows:
201. After one year and nine months from the date of sale, or
21after nine months from the date of a sale made under section
22446.18, or after three months from the date of a sale made
23under section 446.19A, or 446.19B, or 446.19C, the holder
24of the certificate of purchase may cause to be served upon
25the person in possession of the parcel, and also upon the
26person in whose name the parcel is taxed, a notice signed by
27the certificate holder or the certificate holder’s agent or
28attorney, stating the date of sale, the description of the
29parcel sold, the name of the purchaser, and that the right
30of redemption will expire and a deed for the parcel be made
31unless redemption is made within ninety days from the completed
32service of the notice. The notice shall be served by both
33regular mail and certified mail to the person’s last known
34address and such service is deemed completed when the notice
35is deposited in the mail and postmarked for delivery. The
-22-1ninety-day redemption period begins as provided in section
2447.12. When the notice is given by a county as a holder of
3a certificate of purchase the notice shall be signed by the
4county treasurer or the county attorney, and when given by a
5city, it shall be signed by the city officer designated by
6resolution of the council. When the notice is given by the
7Iowa finance authority or a city or county agency holding
8the parcel as part of an Iowa homesteading project, it shall
9be signed on behalf of the agency or authority by one of its
10officers, as authorized in rules of the agency or authority.
11DIVISION III
12other COORDINATING PROVISIONS
13 Sec. 22. Section 11.1, subsection 1, paragraph c, Code 2021,
14is amended to read as follows:
15c. “Governmental subdivision” means cities and
16administrative agencies established by cities, hospitals or
17health care facilities established by a city, counties, county
18hospitals organized under chapters 347 and 347A, memorial
19hospitals organized under chapter 37, entities organized under
20chapter 28E, land banks created under chapter 358A, community
21colleges, area education agencies, and school districts.
22 Sec. 23. Section 21.2, subsection 1, Code 2021, is amended
23by adding the following new paragraph:
24 NEW PARAGRAPH. k. A land bank created under chapter 358A.
25 Sec. 24. Section 22.1, subsection 1, Code 2021, is amended
26to read as follows:
271. “Government body” means this state, or any county,
28city, township, school corporation, political subdivision,
29tax-supported district, nonprofit corporation other than a
30fair conducting a fair event as provided in chapter 174, whose
31facilities or indebtedness are supported in whole or in part
32with property tax revenue and which is licensed to conduct
33pari-mutuel wagering pursuant to chapter 99D; the governing
34body of a drainage or levee district as provided in chapter
35468, including a board as defined in section 468.3, regardless
-23-1of how the district is organized; a land bank created under
2chapter 358A; or other entity of this state, or any branch,
3department, board, bureau, commission, council, committee,
4official, or officer of any of the foregoing or any employee
5delegated the responsibility for implementing the requirements
6of this chapter.
7 Sec. 25. Section 97B.1A, subsection 9, paragraph a, Code
82021, is amended to read as follows:
9a. “Employer” means the state of Iowa, the counties,
10municipalities, agencies, public school districts, all
11political subdivisions, and all of their departments and
12instrumentalities, including area agencies on aging, other than
13those employing persons as specified in subsection 8, paragraph
14“b”, subparagraph (7), land banks created under chapter 358A,
15 and joint planning commissions created under chapter 28E or
1628I.
17 Sec. 26. Section 331.361, subsection 2, unnumbered
18paragraph 1, Code 2021, is amended to read as follows:
19In disposing of an interest in real property by sale or
20exchange, by lease for a term of more than three years, or by
21gift, the following procedures shall be followed, except for
22dispositions to land banks created under chapter 358A and as
23otherwise provided by state law:
24 Sec. 27. Section 331.361, subsection 4, Code 2021, is
25amended to read as follows:
264. The board shall not dispose of real property by gift
27except for a public purpose, as determined by the board, in
28accordance with other state law. This subsection shall not
29apply to disposal of real property by gift to land banks
30created under chapter 358A.
31 Sec. 28. Section 364.7, Code 2021, is amended to read as
32follows:
33364.7 Disposal of property.
341. A city may not dispose of an interest in real property
35by sale, lease for a term of more than three years, or gift,
-24-1except in accordance with the following procedure:
21. a. The council shall set forth its proposal in a
3resolution and shall publish notice as provided in section
4362.3, of the resolution and of a date, time and place of a
5public hearing on the proposal.
62. b. After the public hearing, the council may make a
7final determination on the proposal by resolution.
83. c. A city may not dispose of real property by gift
9except to a governmental body for a public purpose.
102. This section shall not apply to disposal of an interest
11in real property to a land bank created under chapter 358A.
12 Sec. 29. Section 427.1, Code 2021, is amended by adding the
13following new subsection:
14 NEW SUBSECTION. 42. Land bank property. The real property
15of a land bank created under chapter 358A. For purposes of
16this subsection, real property includes but is not limited
17to real property held by a land bank as lessor pursuant
18to long-term lease contracts with community land trusts as
19defined in 42 U.S.C. §12773, but does not include real property
20otherwise leased by a land bank to a third party and does not
21include real property that has been sold on contract, which
22real property shall be subject to property taxation in the name
23of the contract buyer.
24 Sec. 30. Section 573.1, subsection 3, Code 2021, is amended
25to read as follows:
263. “Public corporation” shall embrace the state, and all
27counties, cities, public school corporations, any land bank
28created under chapter 358A, and all officers, boards, or
29commissions empowered by law to enter into contracts for the
30construction of public improvements.
31 Sec. 31. Section 657A.2, subsection 1, Code 2021, is amended
32to read as follows:
331. No sooner than the later of thirty days after the
34responsible building official’s findings have been provided
35under section 657A.1A or six months after a building has
-25-1become abandoned, a petition for abatement under this chapter
2may be filed in the district court of the county in which
3the property is located by the city in which the property is
4located, by the county if the property is located outside the
5limits of a city, by a neighboring landowner, by a land bank
6created under chapter 358A, or by a duly organized nonprofit
7corporation which has as one of its goals the improvement of
8housing conditions in the county or city in which the property
9in question is located. The petition shall not demand a
10personal judgment against any party, but shall concern only
11the interests in the property. A petition for abatement filed
12under this chapter shall include the legal description of
13the real property upon which the public nuisance is located
14unless the public nuisance is not situated on or confined to
15a parcel of real property, or is portable or capable of being
16removed from the real property. Service shall be made on all
17interested persons by personal service or, if personal service
18cannot be made, by certified mail and first class mail to the
19last known address of record of the interested person and by
20posting the notice in a conspicuous place on the building,
21or by publication. The last known address of record for the
22property owner shall be the address of record with the county
23treasurer of the county where the property is located. Service
24may also be made as provided in section 654.4A.
25EXPLANATION
26The inclusion of this explanation does not constitute agreement with
27the explanation’s substance by the members of the general assembly.
28This bill provides for the establishment of land banks.
29Division I of the bill authorizes one or more municipalities
30to establish a land bank as a method to return dilapidated,
31abandoned, blighted, and tax-delinquent properties in their
32communities to economically productive status. An established
33land bank is a public agency for the purpose of joint exercise
34of governmental powers, a governmental body for purposes
35of public meetings requirements of Code chapter 21, and a
-26-1government body for purposes of public records requirements
2of Code chapter 22. Land banks are subject to periodic
3examination by the auditor of state under Code chapter 11. The
4bill sets membership requirements and term limits for a board
5of directors of a land bank, including interests that shall
6be represented on the board. The bill requires the board to
7establish bylaws relating to governance of the land bank.
8Division I of the bill grants a land bank various powers
9and duties, including the authority to acquire properties
10through certain procedures, including the purchase of tax
11sale certificates and the foreclosure of properties acquired
12at a tax sale if not redeemed. However, the bill explicitly
13prohibits a land bank from possessing or exercising the power
14of eminent domain. The bill establishes financing procedures
15that govern land banks, including allowing to be remitted to
16the land bank up to 75 percent of real property taxes collected
17on a real property conveyed or leased by a land bank that
18remains after the division of taxes for an urban renewal area
19and exclusive of any amount levied by a school district for
20five consecutive years after the property is again put on the
21tax rolls. The bill requires a land bank to make monthly and
22annual reports to the governing body that created the land
23bank and submit an annual report to the general assembly. The
24bill provides procedures for disposing of property that is
25acquired by the land bank. The bill also provides procedures
26for dissolving a land bank.
27Division II of the bill creates a land bank tax sale
28procedure, which allows a land bank to acquire abandoned,
29blighted, or dilapidated properties through an exclusive tax
30sale. In order to acquire property through a land bank tax
31sale, the land bank shall file a verified statement identifying
32the parcels for which the land bank intends to purchase the tax
33sale certificates and shall pay the delinquent total amounts
34due on each parcel before May 15. Upon timely receipt of
35the land bank’s verified statement and payment, the county
-27-1treasurer shall remove the identified parcels from the regular
2annual tax sale and place those parcels in the land bank tax
3sale. The land bank tax sale shall occur before a public
4nuisance tax sale.
5Division III of the bill makes changes throughout the Code
6to conform with land bank procedures established in division
7I of the bill.
-28-js/ns
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2LAND BANKS
3 Section 1. NEW SECTION. 358A.1 Short title.
4This chapter shall be known and may be cited as the “Iowa
5Land Bank Act”.
6 Sec. 2. NEW SECTION. 358A.2 Legislative intent.
7The general assembly finds and declares all of the
8following:
91. Iowa’s communities are important to the social and
10economic vitality of this state. Whether urban, suburban,
11or rural, many communities are struggling with dilapidated,
12abandoned, blighted, and tax-delinquent properties.
132. Citizens of Iowa are affected adversely by dilapidated,
14abandoned, blighted, and tax-delinquent properties,
15including properties that have been abandoned due to mortgage
16foreclosure.
173. Dilapidated, abandoned, blighted, and tax-delinquent
18properties impose significant costs on neighborhoods and
19communities by lowering property values, increasing fire
20and police protection costs, decreasing tax revenues, and
21undermining community cohesion.
224. There is an overwhelming public need to confront the
23problems caused by dilapidated, abandoned, blighted, and
24tax-delinquent properties; to return properties that are in
25non-revenue-generating, non-tax-producing status to productive
26status in order to revitalize urban, suburban, and rural
27areas, provide affordable housing, and attract new industry;
28and to create jobs for the citizens of this state through the
29establishment of new tools that enable communities to turn
30abandoned spaces into vibrant places.
315. Land banks are one of the tools that communities can use
32to facilitate the return of dilapidated, abandoned, blighted,
33and tax-delinquent properties to productive use.
34 Sec. 3. NEW SECTION. 358A.3 Definitions.
35As used in this chapter, unless the context otherwise
-1-1requires:
21. “Abandoned” means a parcel containing a building has
3remained vacant for a period of at least twelve consecutive
4months and is in need of rehabilitation.
52. “Blighted” means a parcel containing a building is unsafe
6with objectively determinable signs of deterioration sufficient
7to constitute a threat to human health, safety, and welfare.
83. “Board” means the board of directors of a land bank.
94. “Dilapidated” means a parcel containing a building is in
10a state of deterioration as a result of age or neglect.
115. “Geographical boundaries of the land bank” means the
12jurisdiction of the municipality that created the land bank
13or in the case of any combination of municipalities creating
14a single land bank or joining an existing land bank, the
15combined jurisdictions of the municipalities. In the case of a
16land bank created by a county, such land bank’s jurisdiction
17includes only the area of the county not included within an
18incorporated city.
196. “Land bank” means an entity created under section 358A.4.
207. “Local employee” means a person employed by a
21municipality of this state and does not include an independent
22contractor.
238. “Local official” means an officeholder of a municipality
24of this state.
259. “Municipality” means a city, county, or township.
2610. “Rehabilitation” means the action of restoring to its
27former condition something that has deteriorated or has been
28damaged.
29 Sec. 4. NEW SECTION. 358A.4 Creation.
301. A land bank organized under this chapter shall be a
31body corporate and politic, with the name under which it was
32organized, and may sue and be sued in its own name, contract
33and be contracted with, acquire and hold real and personal
34property necessary for corporate purposes, adopt a corporate
35seal and alter the same at pleasure, and exercise all the
-2-1powers conferred in this chapter.
22. a. Any municipality may create a land bank. Creation
3shall be by ordinance in the case of a city or by resolution in
4the case of a county or township. The ordinance or resolution
5shall make reference to the purposes listed under section
6358A.2.
7b. Any municipality may create a land bank in combination
8with other municipalities. Municipalities seeking to create
9such a land bank shall comply with the procedures set forth in
10chapter 28E. A land bank shall be considered a public agency
11for the purposes of chapters 28E and 28H.
12c. (1) Any city or township passing an ordinance or a
13resolution or entering into a chapter 28E agreement creating
14a land bank pursuant to this section shall promptly deliver
15copies of the ordinance, resolution, or agreement to the
16auditor, treasurer, and the county attorney of each county in
17which the municipality is situated.
18(2) Any board of supervisors adopting a resolution or
19entering into a chapter 28E agreement creating a land bank
20pursuant to this section shall deliver a copy of the resolution
21or agreement to the county auditor, county treasurer, and
22county attorney.
233. a. The enabling ordinance or resolution, or chapter 28E
24agreement, shall set forth all of the following:
25(1) The initial members of the board and the initial terms
26of those members.
27(2) General term lengths and limits for members of the
28board.
29(3) Procedures that the board shall follow in exercising
30discretionary provisions of this chapter.
31b. A chapter 28E agreement relating to a land bank shall
32include procedures for the distribution of assets between
33participating municipalities upon the dissolution of the land
34bank.
35c. Unless otherwise limited in the ordinance, resolution,
-3-1or chapter 28E agreement, the powers and procedures of a newly
2created land bank shall be the powers and procedures specified
3in this chapter.
44. A council of governments established in section 28H.1
5shall not form a land bank. However, pursuant to a chapter
628E agreement, a council of governments may provide community
7development services, planning services, and technical
8assistance to a land bank.
9 Sec. 5. NEW SECTION. 358A.5 Board of directors.
101. a. A land bank shall have a board of directors in which
11all powers of the land bank shall be vested.
12b. Unless restricted by the enabling ordinance, resolution,
13or agreement as specified in section 358A.4, the provisions of
14this section shall apply to the governance of a land bank.
152. a. The membership of the board shall be established in
16the bylaws of the land bank and shall consist of an odd number
17of members, which shall be not less than five nor more than
18eleven.
19b. Unless otherwise specified by the ordinance, resolution,
20or agreement under section 358A.4, the default length of a term
21for a board member shall be four years. The maximum length of a
22term for a board member shall be five years.
23c. A land bank may, as determined in the bylaws, limit the
24number of terms or consecutive terms that members of its board
25may serve.
263. a. A local official may serve as a board member, and
27service as a board member shall neither terminate nor impair
28the local official’s office.
29b. A local employee shall be eligible to serve as a board
30member.
31c. The members of a board shall all be voting members.
32Board members shall, to the extent practicable, include
33representatives of each of the following:
34(1) A local government.
35(2) A chamber of commerce.
-4- 1(3) Persons with experience in financial services.
2(4) Persons with experience in real property acquisition or
3real property development.
4(5) Persons with experience in nonprofit or affordable
5housing.
6(6) Persons who meet all of the following:
7(a) The person resides in the geographical boundaries of the
8land bank.
9(b) The person is not a local official or local employee.
10d. Requirements provided in paragraph “c” may be satisfied
11by the appointment of a single voting member who meets more
12than one of the criteria.
13e. A member removed under subsection 9 shall be ineligible
14for reappointment to the board unless the reappointment is
15confirmed unanimously by the board.
164. Annually, the board shall select from the board
17membership a chair, vice chair, secretary, and treasurer and
18such other officers as the board deems necessary.
195. A vacancy on the board shall be filled following the
20procedure adopted pursuant to subsection 9. Removal of a
21member shall cause the position to become vacant.
226. Board members shall serve without compensation.
23However, the board may reimburse a member for expenses actually
24incurred in the performance of duties on behalf of the land
25bank as provided in bylaws adopted pursuant to subsection 9.
267. The board shall meet as follows:
27a. In regular session according to a schedule adopted by the
28board.
29b. In special session convened by the chair or upon written
30petition signed by a majority of the members.
318. a. A majority of the board, excluding vacancies,
32constitutes a quorum.
33b. A board may permit any or all members to participate in
34a regular or special meeting by, or conduct a meeting through
35the use of, any means of electronic communication by which all
-5-1directors participating can simultaneously hear each other
2during the meeting. A member participating in a meeting by
3means of electronic communication is deemed to be present, in
4person, at the meeting.
59. a. The board shall adopt bylaws establishing all of the
6following:
7(1) Duties of officers selected pursuant to subsection 4.
8(2) Requirements for attendance and participation of
9members at regular and special meetings of the board.
10(3) A procedure for removal of a member for failure
11to comply with a bylaw. Removal shall only be made by the
12affirmative vote of no less than a majority of all of the other
13members of the board.
14(4) A procedure detailing prioritization of what and which
15types of properties to acquire, a procedure for acquisition of
16properties, and a statement of purpose.
17(5) A procedure for the terms and conditions relating
18to disposition of properties, including but not limited to a
19process for distribution of any proceeds to any claimants or
20taxing entities, and to any other land bank.
21(6) A procedure for the establishment, membership, and
22duties of committees of the board.
23(7) Rules to determine which expenses may be reimbursed.
24(8) A procedure for making an appointment to fill a vacancy
25on the board. The procedure shall include a simple majority
26vote by the board to approve the appointment.
27(9) Other matters necessary to govern the conduct of a land
28bank.
29b. When in actual conflict, the ordinances, resolutions, or
30agreements described in section 358A.4 shall control over any
31bylaws adopted by the board.
3210. a. Except as set forth in paragraph “b” or “c”, the
33enabling ordinance, resolution, or agreement, or as set forth
34by a land bank in its bylaws, an action of the board must be
35approved by the affirmative vote of a majority of the board
-6-1present and voting.
2b. Action of the board on the following matters must be
3approved by a majority of the entire board membership excluding
4vacancies:
5(1) Adoption of bylaws.
6(2) Hiring or firing of an employee or contractor of the
7land bank.
8(3) Incurring of debt.
9(4) Adoption or amendment of the annual budget.
10(5) Sale, lease, encumbrance, or alienation of real
11property or personal property with a value of more than fifty
12thousand dollars.
13c. A resolution regarding dissolution of the land bank under
14section 358A.17 must be approved by two-thirds of the entire
15board membership.
16d. A member of the board shall not vote by proxy.
17e. A member may request that a vote on any resolution or
18action of the land bank be recorded.
1911. Members of the board shall not be liable personally on
20the obligations of the land bank, and rights of creditors of a
21land bank shall be solely against the land bank.
22 Sec. 6. NEW SECTION. 358A.6 Staff.
231. A land bank may employ or contract for the employment
24of a secretary, an executive director, legal counsel and legal
25staff, including the use of student clinicians from a reputable
26law school in this state with a clinical law program, and such
27other technical experts and agents and employees, permanent
28or temporary, as the land bank may require. The land bank
29may determine the qualifications and fix the compensation and
30benefits of such persons. A land bank may also enter into
31contracts and agreements with municipalities or nonprofit
32entities for staffing services to be provided to the land
33bank or for a land bank to provide such staffing services to
34municipalities or agencies or departments of municipalities.
352. An employee of the land bank is not and shall not be
-7-1deemed to be an employee of the municipality for whose benefit
2the land bank is organized solely because the employee is
3employed by the land bank.
43. A land bank is an employer as defined in section 97B.1A,
5subsection 9, paragraph “a”, and an employee of the land bank is
6an employee as defined in section 97B.1A, subsection 8.
74. The land bank shall determine the compensation for an
8executive director who shall manage the operations of a land
9bank and employ or contract for the employment of others for
10the benefit of the land bank as approved and funded by the
11board of directors.
12 Sec. 7. NEW SECTION. 358A.7 Powers.
131. In furtherance of the purposes set forth in section
14358A.2, a land bank shall have all of the following powers:
15a. To borrow money for any of the purposes of the land bank
16by means of loans, lines of credit, or any other financial
17instruments or securities other than through the issuance
18of bonds, debentures, or notes. A land bank may secure its
19indebtedness by mortgage, pledge, deed of trust, or other lien
20on its property, franchises, rights, and privileges of every
21kind and nature or any part thereof or interest therein. The
22funds borrowed by the land bank are payable as to principal,
23interest, and any other amounts owed the lender solely from
24the proceeds from the net revenues of the land bank and are
25not a debt of or charge against any of the municipalities that
26formed the land bank within the meaning of any constitutional
27or statutory debt limitation provision. For purposes of this
28subsection:
29(1) “Gross revenues” means the income and receipts of the
30land bank from any source whatsoever, including but not limited
31to contributions from private parties or member municipalities,
32sale or lease of rehabilitated properties, and collection of a
33portion of the property taxes during the five-year period after
34sale or lease of the rehabilitated property.
35(2) “Net revenues” means the gross revenues of the land bank
-8-1less the land bank’s operating expenses.
2b. To purchase, receive, hold, manage, lease,
3lease-purchase, or otherwise acquire and to sell, convey,
4including a conveyance by installment purchase contract,
5transfer, lease, sublease, or otherwise dispose of real and
6personal property, together with any incidental or appurtenant
7rights, privileges, or uses, including but not limited to any
8real or personal property acquired by the land bank in the
9satisfaction of debts or the enforcement of obligations.
10c. (1) To acquire the good will, business, rights, real and
11personal property, and other assets of any person, subject to
12any obligations enforceable against the property so acquired.
13(2) To acquire, reclaim, manage, or contract for the
14management of improved or unimproved and underutilized
15real property for the purpose of constructing or causing
16the construction of business establishments or housing on
17the property, for the purpose of assembling and enhancing
18utilization of the real property, or for the purpose of
19disposing of such real property to others in whole or in part
20for the construction of business establishments or housing.
21(3) To acquire, reclaim, manage, contract for the
22management of, construct or reconstruct, alter, repair,
23maintain, operate, sell, convey, including a conveyance by
24installment purchase contract, transfer, lease, sublease, or
25otherwise dispose of business establishments or housing.
26d. To acquire, subscribe for, own, hold, sell, assign,
27transfer, mortgage, pledge, or otherwise dispose of stocks,
28shares, bonds, debentures, notes, or other securities
29interests or indebtedness and evidences of interest in, or
30indebtedness of, any person, notwithstanding section 12B.10.
31Any tax revenue received by a land bank shall not be used for
32acquisition or subscription. The acquisition of securities
33shall only be by gift. Securities so acquired shall be
34converted to cash as soon as practicable.
35e. To mortgage, pledge, or otherwise encumber any property
-9-1acquired pursuant to the powers contained in paragraph “b”, “c”,
2or “d”.
3f. To serve as an agent for grant applications and for the
4administration of grants, or to make applications as principal
5for grants intended for use by the land bank.
6g. To charge fees or exchange in-kind goods or services for
7services rendered to political subdivisions and other persons
8for whom services are rendered.
9h. To purchase tax sale certificates at auction, negotiated
10sale, or from a third party who purchased and is a holder of one
11or more tax sale certificates issued pursuant to chapter 446.
12i. To be assigned a mortgage on real property from a
13mortgagee in lieu of acquiring such real property subject to
14a mortgage.
15j. To register as a bidder for tax sales conducted under
16chapter 446, including tax sales conducted under section
17446.19C, to bid on parcels offered at such sales, and to hold
18and administer tax sale certificates obtained at such sales,
19provided that a land bank may exercise the powers authorized
20under this paragraph only with respect to parcels within the
21geographical boundaries of the land bank.
22k. To petition for abatement pursuant to chapter 657A.
23A land bank is an “interested person” for purposes of that
24chapter.
25l. To do all acts and things necessary or convenient to
26carry out the purposes set forth in section 358A.2 and the
27powers especially created for a land bank in this section,
28including but not limited to contracting with the federal
29government, the state or any political subdivision of the
30state, and any other party, whether nonprofit or for-profit.
312. The powers enumerated in this chapter shall not be
32construed to limit the general powers of a land bank. The
33powers granted under this chapter are in addition to the powers
34granted by any other section of the Code, but as to a land
35bank, shall be used only for the purposes set forth in section
-10-1358A.2.
2 Sec. 8. NEW SECTION. 358A.8 Eminent domain.
31. A land bank shall not possess or exercise the power of
4eminent domain, including under chapters 6A and 6B.
52. Land acquired by a municipality by the exercise of
6condemnation through eminent domain shall not be used to
7effectuate the purposes of this chapter.
8 Sec. 9. NEW SECTION. 358A.9 Acquisition of property.
91. a. Except as provided in section 358A.8, a land bank
10may acquire real property or interests in real property by
11gift, devise, transfer, exchange, foreclosure, purchase, or
12otherwise, on terms and conditions and in a manner the board
13considers is in the best interest of the land bank.
14b. A land bank may hold and own in its name any property
15acquired by or conveyed to the land bank. All deeds,
16mortgages, contracts, leases, purchases, or other agreements
17regarding property of the land bank, including agreements to
18acquire or dispose of real property, may be approved by and
19executed in the name of the land bank.
202. a. A land bank may acquire real property by purchase
21contracts, lease-purchase agreements, installment sales
22contracts, land contracts, or other contracts that convey an
23interest in real property. A land bank may accept transfers
24of property or interests in property from the state or
25any political subdivision of the state upon such terms and
26conditions as agreed to by the land bank and that unit of
27government so long as the real property is located within the
28geographical boundaries of the land bank.
29b. A land bank may acquire tax sale certificates at a tax
30sale conducted under chapter 446 and may subsequently acquire
31title through tax lien foreclosure procedures. A land bank
32shall not be considered a city or county for purposes of
33bidding on and acquiring tax sale certificates under chapter
34446, redeeming property under chapter 447, or obtaining a tax
35sale deed under chapter 448.
-11- 1c. The acquisition of property by the land bank shall not
2be governed or controlled by any regulations or laws relating
3to procurement or acquisition of property of any municipality
4that created the land bank, unless specifically provided in the
5ordinance, resolution, or chapter 28E agreement establishing
6the land bank.
7d. Except as otherwise provided in paragraph “e”, a land
8bank shall not own or hold real property located outside the
9geographical boundaries of the land bank.
10e. A land bank may be granted, pursuant to an
11intergovernmental contract with a political subdivision of
12this state, the authority to manage and maintain real property
13located within the geographical boundaries of the political
14subdivision, but outside the geographical boundaries of the
15land bank. If a land bank receives a gift or devise of real
16property located outside of the geographical boundaries of the
17land bank, the land bank shall dispose of such property by sale
18or exchange as soon as reasonably practicable.
193. A land bank shall maintain all of its real property in
20accordance with the laws and ordinances of the jurisdiction in
21which the real property is located.
224. A land bank shall maintain and make available for public
23review and inspection an inventory of all real property held
24by the land bank.
25 Sec. 10. NEW SECTION. 358A.10 Disposition of property.
261. A land bank may convey, exchange, sell, transfer, lease,
27grant, or mortgage interests in real property of the land bank
28at such times, to such persons, upon such terms and conditions,
29and subject to such restrictions and covenants as the land bank
30deems necessary or appropriate to assure the effective use of
31the bank in accordance with the purposes of section 358A.2.
322. The land bank shall set forth in a resolution the land
33bank’s proposal for sale, exchange, transfer, lease for more
34than a period of three years, grant, or other disposition of
35real property the land bank owns and shall publish notice in a
-12-1newspaper published at least once weekly and having a general
2circulation within the general boundaries of the land bank at
3least four and not more than twenty days prior to the date of
4the public hearing. The published notice shall provide the
5date, time, and place of a public hearing on the proposal.
6However, if the population within the geographical boundaries
7of the land bank is less than two hundred or if there is not
8a newspaper published within the geographical boundaries of
9the land bank, the land bank may post such notice on the real
10property that is the subject of such proposal and at two public
11places within the geographical boundaries of the land bank.
123. After the public hearing, the land bank shall make a
13final determination on the proposal by resolution.
144. A land bank shall not dispose of real property by gift
15except to a governmental body for a public purpose.
165. A land bank shall determine the amount and form of
17consideration necessary to convey, exchange, sell, transfer,
18lease, grant, or mortgage interests in real property.
19Consideration may take the form of monetary payments and
20secured financial obligations, covenants and conditions related
21to the present and future use of the property, contractual
22commitments by the transferee, and other forms of consideration
23as determined by the board to be in the best interest of
24the land bank. The value of the consideration shall be
25not less than the lesser of the fair market value of the
26property subject to any terms and conditions imposed upon the
27disposition of the property or the amount paid by the land bank
28to acquire and rehabilitate the property.
296. A municipality may in the ordinance or resolution
30creating a land bank, or in the chapter 28E agreement in the
31case of any combination of municipalities creating a single
32land bank, require that a particular form of disposition of
33real property or a disposition of real property located within
34a specified jurisdiction be subject to specified voting and
35approval requirements of the board.
-13-1 Sec. 11. NEW SECTION. 358A.11 Financing.
21. A land bank may receive funding through grants, loans,
3and other moneys from the municipality that created the land
4bank, from other municipalities, from the state, from the
5federal government, and from other public and private sources,
6including but not limited to donations, gifts, or bequests.
72. A land bank may receive and retain payments for services
8rendered, for rents and leasehold payments received, for
9consideration for disposition of real and personal property,
10for proceeds of insurance coverage for losses incurred, for
11income from investments, and for any other asset and activity
12lawfully permitted to a land bank under this chapter.
133. Up to seventy-five percent of the real property taxes
14remaining after the division of taxes pursuant to section
15403.19, if applicable, and exclusive of any amount levied by a
16school district, collected on real property that a land bank
17has conveyed or leased to a third party shall be remitted to
18the land bank. The specific percentage of the taxes to be
19remitted, as to each municipality that created the land bank,
20shall be set forth in the enabling ordinance, resolution, or
21chapter 28E agreement creating the land bank. The allocation
22of property tax revenues shall commence with property taxes
23payable on the assessed value of the property determined on the
24first assessment year beginning January 1 following the date
25of conveyance or lease by the land bank and shall be allocated
26for a period of five consecutive years. The land bank shall
27give the treasurer in the county where the property is located
28written notice of the date of the sale or lease of any property
29for which the land bank claims a real property tax payment
30under this subsection. The notice shall identify the property
31by local tax parcel number, address, and legal description and
32include a copy of the ordinance, resolution, or chapter 28E
33agreement setting forth the portion of such taxes allocable to
34the land bank under this subsection. Upon receipt of the taxes
35from such property, the treasurer shall pay the land bank its
-14-1share of the taxes paid on such property with respect to the
2applicable five-year period.
34. At the time that a land bank sells or otherwise disposes
4of property as part of its land bank program, the proceeds from
5the sale, if any, shall be allocated as determined by the land
6bank among the following priorities:
7a. Furtherance of land bank operations.
8b. Recovery of land bank expenses.
9 Sec. 12. NEW SECTION. 358A.12 Delinquent property tax
10enforcement.
111. Whenever a land bank acquires real property encumbered
12by a lien or claim for real property taxes owed to one or
13more of the municipalities that established the land bank,
14or to other political subdivisions that have entered into an
15intergovernmental contract with the land bank, the land bank
16may, by resolution of the board, discharge and extinguish any
17and all of the liens or claims. The decision by the board to
18extinguish the property tax liens or claims is subject to the
19voting requirements contained in section 358A.5, subsection
2010. If a portion of the real property taxes are attributable
21to property taxes certified for levy by a school district,
22the land bank shall notify the school district in writing of
23its intent to extinguish all such liens and claims. If the
24school district sends a written objection to the proposed
25extinguishment of such liens and claims to the land bank within
26thirty days of receipt of such notice, the land bank shall not
27extinguish the liens and claims. If the school district fails
28to send a written objection to the proposed extinguishment to
29the land bank within thirty days of receipt of such notice
30from the land bank, the land bank shall have the power, by
31resolution of the board, to discharge and extinguish any
32and all such liens or claims. To the extent necessary and
33appropriate, the land bank shall file with the appropriate
34taxing entity a copy of the resolution providing for the
35discharge and the extinguishment of liens or claims under this
-15-1section.
22. If a land bank receives payments of any kind attributable
3to liens or claims for real property taxes owed or allocated
4to a municipality or school district on property acquired by
5the land bank, the land bank shall remit the full amount of the
6payments to the appropriate taxing entity.
7 Sec. 13. NEW SECTION. 358A.13 Exemption from taxation.
8The income and operations of a land bank are exempt from
9taxation by the state and by any political subdivision of the
10state.
11 Sec. 14. NEW SECTION. 358A.14 Public records and public
12meetings.
13A land bank is a “governmental body” for purposes of chapter
1421 and a “government body” for the purposes of chapter 22. A
15land bank shall comply with all public meeting requirements
16under chapter 21 and all public records requirements under
17chapter 22.
18 Sec. 15. NEW SECTION. 358A.15 Reports.
191. A land bank shall submit to the governing body of the
20municipality that created the land bank a monthly report that
21informs the municipality of the land bank’s activities for the
22previous month.
232. By January 31 of each year, the land bank shall submit an
24annual report to the governing body of the municipality that
25created the land bank that informs the municipality of the land
26bank’s activities for the preceding calendar year.
273. A land bank shall submit an annual report, by January
2831 of each year, to the general assembly concerning the land
29bank’s activities for the preceding calendar year.
30 Sec. 16. NEW SECTION. 358A.16 Audits.
31A land bank is a “governmental subdivision” for the purposes
32of chapter 11. A land bank shall be subject to periodic
33examination by the auditor of state.
34 Sec. 17. NEW SECTION. 358A.17 Dissolution of land banks.
351. A land bank may be dissolved sixty calendar days after
-16-1a resolution of dissolution is approved by two-thirds of the
2voting members of the board and by two-thirds of the membership
3of each governing body of a municipality that created the
4land bank. The board shall appoint a trustee to distribute
5assets held by the land bank. The board shall give sixty
6calendar days advance written notice of its consideration of
7a resolution of dissolution by publishing a notice in local
8newspapers of general circulation within each municipality that
9created the land bank. Upon dissolution of the land bank, all
10liabilities, real property, personal property, and other assets
11of the land bank shall become the liabilities and assets of the
12municipality that created the land bank, or, in the case of a
13land bank created pursuant to a chapter 28E agreement, shall be
14distributed pursuant to the chapter 28E agreement.
152. A municipality may withdraw from a land bank if the land
16bank was created pursuant to a chapter 28E agreement. The
17withdrawing municipality shall receive its share of assets and
18liabilities as determined in the chapter 28E agreement. A land
19bank consisting of two or more municipalities does not dissolve
20upon the withdrawal of a single municipality.
21 Sec. 18. NEW SECTION. 358A.18 Conflicts of interest.
221. For purposes of this section, “family member” means a
23person who is a spouse, domestic partner, child, step-child,
24grandchild, parent, step-parent, grandparent, sibling, niece,
25nephew, uncle, aunt, mother-in-law, father-in-law, son-in-law,
26or daughter-in-law of a member of the board or an employee of a
27land bank. “Family member” includes a person who is a family
28member through adoption.
292. A member of the board, employee of a land bank, or family
30member of a member of the board or an employee of the land
31bank shall not acquire any direct or indirect interest in real
32property of the land bank or in any property to be acquired
33from the land bank, or have or acquire any direct or indirect
34interest in any real property to be acquired by a land bank.
35A land bank shall not acquire any real property from a board
-17-1member, employee of the land bank, or family member of a board
2member or employee of the land bank.
33. Members of the board and employees of the land bank shall
4disclose to the board any direct or indirect ownership interest
5such person or a family member of such person has in any
6property to be acquired by the land bank or located within one
7thousand feet of any property that the land bank is considering
8acquiring before the land bank takes any action to acquire such
9property. A member of the board who is required to make such
10disclosure shall not participate in the decision to approve the
11acquisition of such property.
124. A member of the board, employee of a land bank, or family
13member of a member of the board or an employee of the land
14bank may have a direct or indirect interest in any contract
15or proposed contract for material or services to be furnished
16to or used by a land bank only upon all of the following
17conditions:
18a. The member of the board or employee of the land bank
19discloses the material facts of such transaction and the nature
20of such interest to the board before the board acts to approve
21such contract and, if the person is a board member, does not
22participate in the discussion or vote to consider approval of
23such contract.
24b. Such contract is approved by a majority of the members
25of the board who have no direct or indirect interest in such
26contract and whose family members have no direct or indirect
27interest in such contract.
28c. Such contract is fair at the time the contract is
29approved.
305. a. Any person who serves or is employed by a land bank
31shall not engage in any of the following conduct:
32(1) Outside employment or an activity that involves the use
33of the land bank’s time, facilities, equipment, and supplies
34or the use of evidences of office or employment to give the
35person, an entity affiliated with or controlled by the person,
-18-1or a family member of the person an advantage or pecuniary
2benefit that is not available to other similarly situated
3members or classes of members of the general public. For
4purposes of this subparagraph, a person is not “similarly
5situated” merely by being, or being related to, a person who
6serves or is employed by the land bank.
7(2) Outside employment or an activity that involves the
8receipt of, promise of, or acceptance of money or other
9consideration by the person, an entity affiliated with or
10controlled by the person, or a family member of the person from
11anyone other than the land bank for the performance of any act
12that the person would be required or expected to perform as a
13part of the person’s regular duties or during the hours during
14which the person performs service or work for the land bank.
15(3) Outside employment or an activity that is subject to
16the official control, inspection, review, audit, or enforcement
17authority of the person, during the performance of the person’s
18duties of office or employment.
19b. If the outside employment or activity is employment or
20activity described in paragraph “a”, subparagraph (1) or (2),
21the person shall immediately cease the employment or activity.
22If the outside employment or activity is employment or activity
23described in paragraph “a”, subparagraph (3), unless otherwise
24provided by law, the person shall take one of the following
25courses of action:
26(1) Cease the outside employment or activity.
27(2) Publicly disclose the existence of the conflict and
28refrain from taking any official action or performing any
29official duty that would detrimentally affect or create a
30benefit for the outside employment or activity. For purposes
31of this subparagraph, “official action” or “official duty”
32includes but is not limited to participating in any vote,
33taking affirmative action to influence any vote, granting any
34license or permit, determining the facts or law in a contested
35case or rulemaking proceeding, conducting any inspection, or
-19-1providing any other official service or thing that is not
2available generally to members of the public in order to
3further the interests of the outside employment or activity.
46. Unless otherwise specifically provided, the requirements
5of this section shall be in addition to, and shall not
6supersede, any other rights or remedies provided by law.
7DIVISION II
8LAND BANK TAX SALE COORDINATING PROVISIONS
9 Sec. 19. Section 446.16, subsection 2, Code 2021, is amended
10to read as follows:
112. The treasurer may establish and collect a reasonable
12registration fee from each registered bidder at the tax
13sale. The fee shall not be assessed against a county, or
14 municipality, or land bank. The total of the fees collected
15shall not exceed the total costs of the tax sale. Registration
16fees collected shall be deposited in the general fund of the
17county.
18 Sec. 20. NEW SECTION. 446.19C Land bank tax sale.
191. A land bank has the exclusive bidder’s right to purchase
20tax sale certificates offered at the treasurer’s annual tax
21sale with respect to tax delinquent parcels located within the
22geographical boundaries of the land bank that are dilapidated,
23abandoned, or blighted and that are suitable for housing or
24commercial use following rehabilitation.
252. To qualify for the exclusive bidder’s right to purchase
26tax sale certificates under this section, a land bank must
27file a verified statement with the treasurer on or before May
2815. The land bank is responsible for obtaining information
29from the treasurer as needed to accurately identify tax parcel
30numbers and total amounts due. The land bank shall provide the
31treasurer with the federal tax identification number of the
32land bank, but such information is not required to be shown on
33the verified statement. The verified statement shall include
34all of the following:
35a. The name, address, telephone number, and electronic mail
-20-1address of the land bank.
2b. A statement that the land bank is exercising its right to
3purchase each identified parcel pursuant to this section.
4c. Specific identification of each parcel by the parcel’s
5official county tax parcel number.
6d. With respect to each identified parcel, a statement that
7the parcel is dilapidated, abandoned, or blighted and that the
8parcel is suitable for housing or commercial use following
9rehabilitation.
10e. The total amount due for each identified parcel computed
11to the date of the tax sale.
123. In addition to the verified statement, the land bank
13shall submit payment to the treasurer of an amount equal to
14the total amount due cumulatively for all of the parcels
15identified in the verified statement. The filing of the
16verified statement by a land bank accompanied by payment of the
17total amount due for all identified parcels shall constitute
18the registration by the land bank as a bidder at the tax sale.
19The land bank shall not be required to pay a registration fee.
204. The land bank’s verified statement shall be published at
21the same time and in the same manner as the notice of the annual
22tax sale, and the requirements in section 446.9, subsection 2,
23for publication of notice of the annual tax sale also apply to
24publication of the verified statement.
255. Upon timely receipt of the verified statement and
26payment of the total amount due cumulatively for all identified
27parcels, the treasurer shall remove all of the identified
28parcels from the regular annual tax sale and place those
29parcels in a separate sale known as the “land bank tax sale”.
30On the day of the regular tax sale, the treasurer shall issue
31and deliver tax sale certificates to the land bank for all
32parcels listed in the land bank’s verified statement that
33remain liable to sale for delinquent taxes. The land bank’s
34exclusive right to purchase tax sale certificates to parcels
35included in the land bank tax sale is prior and superior to the
-21-1rights of any other tax sale bidder. Any tax sale certificate
2issued to a land bank under the provisions of this section
3shall secure a one hundred percent interest in the parcel.
46. The separate land bank tax sale shall be conducted by
5the treasurer prior to the separate public nuisance tax sale
6conducted under section 446.19B. If the same parcel is listed
7in both such sales, the parcel shall be sold to the land bank.
87. If any parcel identified within the land bank’s verified
9statement has been removed from the land bank tax sale because
10of receipt by the treasurer of payment of the taxes required to
11eliminate the delinquency, the treasurer shall refund to the
12land bank the amount paid with respect to the total amount due
13for the parcel.
148. For purposes of this section, “abandoned”, “blighted”,
15“dilapidated”, “geographical boundaries of the land bank”, “land
16bank”, and “rehabilitation” mean the same as defined in section
17358A.3.
18 Sec. 21. Section 447.9, subsection 1, Code 2021, is amended
19to read as follows:
201. After one year and nine months from the date of sale, or
21after nine months from the date of a sale made under section
22446.18, or after three months from the date of a sale made
23under section 446.19A, or 446.19B, or 446.19C, the holder
24of the certificate of purchase may cause to be served upon
25the person in possession of the parcel, and also upon the
26person in whose name the parcel is taxed, a notice signed by
27the certificate holder or the certificate holder’s agent or
28attorney, stating the date of sale, the description of the
29parcel sold, the name of the purchaser, and that the right
30of redemption will expire and a deed for the parcel be made
31unless redemption is made within ninety days from the completed
32service of the notice. The notice shall be served by both
33regular mail and certified mail to the person’s last known
34address and such service is deemed completed when the notice
35is deposited in the mail and postmarked for delivery. The
-22-1ninety-day redemption period begins as provided in section
2447.12. When the notice is given by a county as a holder of
3a certificate of purchase the notice shall be signed by the
4county treasurer or the county attorney, and when given by a
5city, it shall be signed by the city officer designated by
6resolution of the council. When the notice is given by the
7Iowa finance authority or a city or county agency holding
8the parcel as part of an Iowa homesteading project, it shall
9be signed on behalf of the agency or authority by one of its
10officers, as authorized in rules of the agency or authority.
11DIVISION III
12other COORDINATING PROVISIONS
13 Sec. 22. Section 11.1, subsection 1, paragraph c, Code 2021,
14is amended to read as follows:
15c. “Governmental subdivision” means cities and
16administrative agencies established by cities, hospitals or
17health care facilities established by a city, counties, county
18hospitals organized under chapters 347 and 347A, memorial
19hospitals organized under chapter 37, entities organized under
20chapter 28E, land banks created under chapter 358A, community
21colleges, area education agencies, and school districts.
22 Sec. 23. Section 21.2, subsection 1, Code 2021, is amended
23by adding the following new paragraph:
24 NEW PARAGRAPH. k. A land bank created under chapter 358A.
25 Sec. 24. Section 22.1, subsection 1, Code 2021, is amended
26to read as follows:
271. “Government body” means this state, or any county,
28city, township, school corporation, political subdivision,
29tax-supported district, nonprofit corporation other than a
30fair conducting a fair event as provided in chapter 174, whose
31facilities or indebtedness are supported in whole or in part
32with property tax revenue and which is licensed to conduct
33pari-mutuel wagering pursuant to chapter 99D; the governing
34body of a drainage or levee district as provided in chapter
35468, including a board as defined in section 468.3, regardless
-23-1of how the district is organized; a land bank created under
2chapter 358A; or other entity of this state, or any branch,
3department, board, bureau, commission, council, committee,
4official, or officer of any of the foregoing or any employee
5delegated the responsibility for implementing the requirements
6of this chapter.
7 Sec. 25. Section 97B.1A, subsection 9, paragraph a, Code
82021, is amended to read as follows:
9a. “Employer” means the state of Iowa, the counties,
10municipalities, agencies, public school districts, all
11political subdivisions, and all of their departments and
12instrumentalities, including area agencies on aging, other than
13those employing persons as specified in subsection 8, paragraph
14“b”, subparagraph (7), land banks created under chapter 358A,
15 and joint planning commissions created under chapter 28E or
1628I.
17 Sec. 26. Section 331.361, subsection 2, unnumbered
18paragraph 1, Code 2021, is amended to read as follows:
19In disposing of an interest in real property by sale or
20exchange, by lease for a term of more than three years, or by
21gift, the following procedures shall be followed, except for
22dispositions to land banks created under chapter 358A and as
23otherwise provided by state law:
24 Sec. 27. Section 331.361, subsection 4, Code 2021, is
25amended to read as follows:
264. The board shall not dispose of real property by gift
27except for a public purpose, as determined by the board, in
28accordance with other state law. This subsection shall not
29apply to disposal of real property by gift to land banks
30created under chapter 358A.
31 Sec. 28. Section 364.7, Code 2021, is amended to read as
32follows:
33364.7 Disposal of property.
341. A city may not dispose of an interest in real property
35by sale, lease for a term of more than three years, or gift,
-24-1except in accordance with the following procedure:
21. a. The council shall set forth its proposal in a
3resolution and shall publish notice as provided in section
4362.3, of the resolution and of a date, time and place of a
5public hearing on the proposal.
62. b. After the public hearing, the council may make a
7final determination on the proposal by resolution.
83. c. A city may not dispose of real property by gift
9except to a governmental body for a public purpose.
102. This section shall not apply to disposal of an interest
11in real property to a land bank created under chapter 358A.
12 Sec. 29. Section 427.1, Code 2021, is amended by adding the
13following new subsection:
14 NEW SUBSECTION. 42. Land bank property. The real property
15of a land bank created under chapter 358A. For purposes of
16this subsection, real property includes but is not limited
17to real property held by a land bank as lessor pursuant
18to long-term lease contracts with community land trusts as
19defined in 42 U.S.C. §12773, but does not include real property
20otherwise leased by a land bank to a third party and does not
21include real property that has been sold on contract, which
22real property shall be subject to property taxation in the name
23of the contract buyer.
24 Sec. 30. Section 573.1, subsection 3, Code 2021, is amended
25to read as follows:
263. “Public corporation” shall embrace the state, and all
27counties, cities, public school corporations, any land bank
28created under chapter 358A, and all officers, boards, or
29commissions empowered by law to enter into contracts for the
30construction of public improvements.
31 Sec. 31. Section 657A.2, subsection 1, Code 2021, is amended
32to read as follows:
331. No sooner than the later of thirty days after the
34responsible building official’s findings have been provided
35under section 657A.1A or six months after a building has
-25-1become abandoned, a petition for abatement under this chapter
2may be filed in the district court of the county in which
3the property is located by the city in which the property is
4located, by the county if the property is located outside the
5limits of a city, by a neighboring landowner, by a land bank
6created under chapter 358A, or by a duly organized nonprofit
7corporation which has as one of its goals the improvement of
8housing conditions in the county or city in which the property
9in question is located. The petition shall not demand a
10personal judgment against any party, but shall concern only
11the interests in the property. A petition for abatement filed
12under this chapter shall include the legal description of
13the real property upon which the public nuisance is located
14unless the public nuisance is not situated on or confined to
15a parcel of real property, or is portable or capable of being
16removed from the real property. Service shall be made on all
17interested persons by personal service or, if personal service
18cannot be made, by certified mail and first class mail to the
19last known address of record of the interested person and by
20posting the notice in a conspicuous place on the building,
21or by publication. The last known address of record for the
22property owner shall be the address of record with the county
23treasurer of the county where the property is located. Service
24may also be made as provided in section 654.4A.
25EXPLANATION
26The inclusion of this explanation does not constitute agreement with
27the explanation’s substance by the members of the general assembly.
28This bill provides for the establishment of land banks.
29Division I of the bill authorizes one or more municipalities
30to establish a land bank as a method to return dilapidated,
31abandoned, blighted, and tax-delinquent properties in their
32communities to economically productive status. An established
33land bank is a public agency for the purpose of joint exercise
34of governmental powers, a governmental body for purposes
35of public meetings requirements of Code chapter 21, and a
-26-1government body for purposes of public records requirements
2of Code chapter 22. Land banks are subject to periodic
3examination by the auditor of state under Code chapter 11. The
4bill sets membership requirements and term limits for a board
5of directors of a land bank, including interests that shall
6be represented on the board. The bill requires the board to
7establish bylaws relating to governance of the land bank.
8Division I of the bill grants a land bank various powers
9and duties, including the authority to acquire properties
10through certain procedures, including the purchase of tax
11sale certificates and the foreclosure of properties acquired
12at a tax sale if not redeemed. However, the bill explicitly
13prohibits a land bank from possessing or exercising the power
14of eminent domain. The bill establishes financing procedures
15that govern land banks, including allowing to be remitted to
16the land bank up to 75 percent of real property taxes collected
17on a real property conveyed or leased by a land bank that
18remains after the division of taxes for an urban renewal area
19and exclusive of any amount levied by a school district for
20five consecutive years after the property is again put on the
21tax rolls. The bill requires a land bank to make monthly and
22annual reports to the governing body that created the land
23bank and submit an annual report to the general assembly. The
24bill provides procedures for disposing of property that is
25acquired by the land bank. The bill also provides procedures
26for dissolving a land bank.
27Division II of the bill creates a land bank tax sale
28procedure, which allows a land bank to acquire abandoned,
29blighted, or dilapidated properties through an exclusive tax
30sale. In order to acquire property through a land bank tax
31sale, the land bank shall file a verified statement identifying
32the parcels for which the land bank intends to purchase the tax
33sale certificates and shall pay the delinquent total amounts
34due on each parcel before May 15. Upon timely receipt of
35the land bank’s verified statement and payment, the county
-27-1treasurer shall remove the identified parcels from the regular
2annual tax sale and place those parcels in the land bank tax
3sale. The land bank tax sale shall occur before a public
4nuisance tax sale.
5Division III of the bill makes changes throughout the Code
6to conform with land bank procedures established in division
7I of the bill.
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