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House Study Bill 124 - IntroducedA Bill ForAn Act 1relating to the creation of land redevelopment trusts.
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2LAND redevelopment trusts
3 Section 1. NEW SECTION. 358A.1 Short title.
4This chapter shall be known and may be cited as the “Iowa
5Land Redevelopment Trust 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 redevelopment trusts are one of the tools that
32communities can use to facilitate the return of dilapidated,
33abandoned, blighted, and tax-delinquent properties to
34productive use.
35 Sec. 3. NEW SECTION. 358A.3 Definitions.
-1- 1As used in this chapter, unless the context otherwise
2requires:
31. “Abandoned” means a parcel is vacant or a building on
4a parcel has remained vacant for a period of at least six
5consecutive months and is in need of rehabilitation.
62. “Blighted” means a vacant parcel or a parcel containing
7a building is unsafe with objectively determinable signs of
8deterioration sufficient to constitute a threat to human
9health, safety, and welfare.
103. “Board” means the board of directors of a land
11redevelopment trust.
124. “Dilapidated” means a parcel containing a building is in
13a state of deterioration as a result of age or neglect.
145. “Geographical boundaries of the land redevelopment trust”
15means the jurisdiction of the municipality that created the
16land redevelopment trust or in the case of any combination
17of municipalities creating a single land redevelopment
18trust or joining an existing land redevelopment trust, the
19combined jurisdictions of the municipalities. In the case
20of a land redevelopment trust created by a county, such land
21redevelopment trust’s jurisdiction includes only the area of
22the county not included within an incorporated city.
236. “Land redevelopment trust” means an entity created under
24section 358A.4.
257. “Local employee” means a person employed by a
26municipality of this state and does not include an independent
27contractor.
288. “Local official” means an officeholder of a municipality
29of this state.
309. “Municipality” means a city, county, or township.
3110. “Rehabilitation” means the action of restoring to its
32former condition something that has deteriorated or has been
33damaged.
34 Sec. 4. NEW SECTION. 358A.4 Creation.
351. A land redevelopment trust organized under this chapter
-2-1shall be a body corporate and politic, with the name under
2which it was organized, and may sue and be sued in its own
3name, contract and be contracted with, acquire and hold real
4and personal property necessary for corporate purposes, adopt a
5corporate seal and alter the same at pleasure, and exercise all
6the powers conferred in this chapter.
72. a. Any municipality may create a land redevelopment
8trust. Creation shall be by ordinance in the case of a city
9or by resolution in the case of a county or township. The
10ordinance or resolution shall make reference to the purposes
11listed under section 358A.2.
12b. Any municipality may create a land redevelopment
13trust in combination with one or more other municipalities.
14Municipalities seeking to create such a land redevelopment
15trust shall comply with the procedures set forth in chapter
1628E. A land redevelopment trust shall be considered a public
17agency for the purposes of chapters 28E and 28H.
18c. (1) Any city or township passing an ordinance or a
19resolution or entering into a chapter 28E agreement creating
20a land redevelopment trust pursuant to this section shall
21promptly deliver copies of the ordinance, resolution, or
22agreement to the auditor, treasurer, and the county attorney of
23each county in which the municipality is located.
24(2) Any board of supervisors adopting a resolution
25or entering into a chapter 28E agreement creating a land
26redevelopment trust pursuant to this section shall deliver a
27copy of the resolution or agreement to the county auditor,
28county treasurer, and county attorney.
293. a. The enabling ordinance or resolution, or chapter
3028E agreement, shall set forth any restrictions or required
31procedures that exceed those set forth in this chapter.
32b. A chapter 28E agreement relating to a land redevelopment
33trust shall include procedures for the distribution of assets
34between participating municipalities upon the dissolution of
35the land redevelopment trust.
-3- 1c. Unless otherwise limited in the ordinance, resolution,
2or chapter 28E agreement, the powers and procedures of a newly
3created land redevelopment trust shall be the powers and
4procedures specified in this chapter.
54. A council of governments established in section 28H.1
6shall not form a land redevelopment trust. However, pursuant
7to a chapter 28E agreement, a council of governments may
8provide community development services, planning services, and
9technical assistance to a land redevelopment trust.
10 Sec. 5. NEW SECTION. 358A.5 Board of directors.
111. a. A land redevelopment trust shall have a board of
12directors in which all powers of the land redevelopment trust
13shall be vested.
14b. Unless restricted by the enabling ordinance, resolution,
15or agreement as specified in section 358A.4, the provisions of
16this section apply to the governance of a land redevelopment
17trust.
182. The membership of the board shall be established in the
19bylaws of the land redevelopment trust.
203. a. A local official may serve as a board member, and
21service as a board member shall neither terminate nor impair
22the local official’s office.
23b. A local employee shall be eligible to serve as a board
24member.
254. Board members shall serve without compensation.
26However, the board may reimburse a member for expenses actually
27incurred in the performance of duties on behalf of the land
28redevelopment trust as provided in bylaws adopted pursuant to
29subsection 5.
305. a. Upon creation by the enabling ordinance, resolution,
31or agreement as specified in section 358A.4, the board shall
32adopt bylaws addressing matters necessary to govern the conduct
33of the land redevelopment trust and shall meet as the bylaws
34prescribe.
35b. When in actual conflict, the ordinances, resolutions, or
-4-1agreements described in section 358A.4 shall control over any
2bylaws adopted by the board.
36. Except as set forth in the enabling ordinance,
4resolution, or agreement, or as set forth by a land
5redevelopment trust in its bylaws, an action of the board must
6be approved by the affirmative vote of a majority of the board
7present and voting.
87. Members of the board shall not be liable personally on
9the obligations of the land redevelopment trust, and rights of
10creditors of a land redevelopment trust shall be solely against
11the land redevelopment trust.
12 Sec. 6. NEW SECTION. 358A.6 Staff.
131. A land redevelopment trust may employ or contract for
14the employment of any persons the land redevelopment trust
15may require to fulfill the objectives of its bylaws and this
16chapter.
172. An employee of the land redevelopment trust is not and
18shall not be deemed to be an employee of the municipality for
19whose benefit the land redevelopment trust is organized solely
20because the employee is employed by the land redevelopment
21trust.
223. A land redevelopment trust is an employer as defined in
23section 97B.1A, subsection 9, paragraph “a”, and an employee
24of the land redevelopment trust is an employee as defined in
25section 97B.1A, subsection 8.
26 Sec. 7. NEW SECTION. 358A.7 Powers.
271. In furtherance of the purposes set forth in section
28358A.2, a land redevelopment trust shall have the power to
29perform all actions necessary or convenient to carry out the
30purposes set forth in this chapter, including but not limited
31to all of the following powers:
32a. To borrow money for any of the purposes of the land
33redevelopment trust by means of loans, lines of credit, or
34any other financial instruments or securities other than
35through the issuance of bonds, debentures, or notes. A
-5-1land redevelopment trust may secure its indebtedness by
2mortgage, pledge, deed of trust, or other lien on its property,
3franchises, rights, and privileges of every kind and nature
4or any part thereof or interest therein. The moneys borrowed
5by the land redevelopment trust are payable as to principal,
6interest, and any other amounts owed the lender solely from
7the proceeds from the net revenues of the land redevelopment
8trust and are not a debt of or charge against any of the
9municipalities that formed the land redevelopment trust within
10the meaning of any constitutional or statutory debt limitation
11provision. For purposes of this paragraph:
12(1) “Gross revenues” means the income and receipts of the
13land redevelopment trust from any source whatsoever, including
14but not limited to contributions from private parties or member
15municipalities, sale or lease of rehabilitated properties,
16and collection of a portion of the property taxes during the
17five-year period after sale or lease of the rehabilitated
18property.
19(2) “Net revenues” means the gross revenues of the land
20redevelopment trust less the land redevelopment trust’s
21operating expenses.
22b. To petition for abatement pursuant to chapter 657A. A
23land redevelopment trust is an “interested person” for purposes
24of that chapter.
25c. To contract with the federal government, the state,
26a subdivision of the state, and any other party, whether
27nonprofit or for-profit.
282. The powers enumerated in this chapter shall not be
29construed to limit the general powers of a land redevelopment
30trust or a municipality. The powers granted under this chapter
31are in addition to the powers granted by any other section of
32the Code, but as to a land redevelopment trust, shall be used
33only for the purposes set forth in section 358A.2.
34 Sec. 8. NEW SECTION. 358A.8 Eminent domain.
35A land redevelopment trust shall not possess or exercise the
-6-1power of eminent domain, including under chapters 6A and 6B.
2 Sec. 9. NEW SECTION. 358A.9 Acquisition of property.
31. a. Except as provided in section 358A.8, a land
4redevelopment trust may acquire, hold, own, accept, and
5otherwise obtain real property or interests in real property
6by gift, devise, transfer, exchange, foreclosure, purchase, or
7otherwise, on terms and conditions and in a manner the board
8considers is in the best interest of the land redevelopment
9trust and consistent with the purposes set forth in section
10358A.2 and the land redevelopment trust’s bylaws.
11b. A land redevelopment trust may acquire tax sale
12certificates at a tax sale conducted under chapter 446 and
13may subsequently acquire title through tax lien foreclosure
14procedures. A land redevelopment trust shall not be considered
15a city or county for purposes of bidding on and acquiring tax
16sale certificates under chapter 446, redeeming property under
17chapter 447, or obtaining a tax sale deed under chapter 448.
18c. The acquisition of property by the land redevelopment
19trust shall not be governed or controlled by any regulations or
20laws relating to procurement or acquisition of property of any
21municipality that created the land redevelopment trust, unless
22specifically provided in the ordinance, resolution, or chapter
2328E agreement establishing the land redevelopment trust.
24d. Except as otherwise provided in paragraph “e”, a land
25redevelopment trust shall not own or hold real property located
26outside the geographical boundaries of the land redevelopment
27trust.
28e. A land redevelopment trust may be granted, pursuant to
29an intergovernmental contract with a political subdivision of
30this state, the authority to manage and maintain real property
31located within the geographical boundaries of the political
32subdivision, but outside the geographical boundaries of the
33land redevelopment trust. If a land redevelopment trust
34receives a gift or devise of real property located outside of
35the geographical boundaries of the land redevelopment trust,
-7-1the land redevelopment trust shall dispose of such property by
2sale or exchange as soon as reasonably practicable.
32. A land redevelopment trust shall maintain all of its
4real property in accordance with the laws and ordinances of the
5jurisdiction in which the real property is located.
63. A land redevelopment trust shall maintain and make
7available for public review and inspection an inventory of all
8real property held by the land redevelopment trust.
9 Sec. 10. NEW SECTION. 358A.10 Disposition of property.
101. A land redevelopment trust may convey, exchange, sell,
11transfer, lease, grant, mortgage, or otherwise dispose of
12interests in real property of the land redevelopment trust at
13such times, to such persons, upon such terms and conditions,
14and subject to such restrictions and covenants as the land
15redevelopment trust deems necessary or appropriate to assure
16the effective use of the land redevelopment trust in accordance
17with the purposes of section 358A.2 and consistent with the
18land redevelopment trust’s bylaws.
192. A land redevelopment trust shall determine the amount
20and form of consideration necessary to convey, exchange, sell,
21transfer, lease, grant, mortgage, or otherwise dispose of
22interests in real property. Consideration may take the form of
23monetary payments and secured financial obligations, covenants
24and conditions related to the present and future use of the
25property, contractual commitments by the transferee, and other
26forms of consideration as determined by the board to be in the
27best interest of the land redevelopment trust and consistent
28with its bylaws.
293. A municipality may in the ordinance or resolution
30creating a land redevelopment trust, or in the chapter 28E
31agreement in the case of any combination of municipalities
32creating a single land redevelopment trust, require that
33a particular form of disposition of real property or a
34disposition of real property located within a specified
35jurisdiction be subject to specified voting and approval
-8-1requirements of the board.
2 Sec. 11. NEW SECTION. 358A.11 Financing.
31. A land redevelopment trust may receive funding through
4grants, loans, and other moneys from the municipality
5that created the land redevelopment trust, from other
6municipalities, from the state, from the federal government,
7and from any other public and private sources, including but
8not limited to donations, gifts, or bequests.
92. A land redevelopment trust may receive and retain
10payments for services rendered, for rents and leasehold
11payments received, for consideration for disposition of real
12and personal property, for proceeds of insurance coverage for
13losses incurred, for income from investments, and for any other
14asset and activity lawfully permitted to a land redevelopment
15trust under this chapter.
163. Up to seventy-five percent of the real property taxes
17remaining after the division of taxes pursuant to section
18403.19, if applicable, and exclusive of any amount levied
19by a school district, collected on real property that a
20land redevelopment trust has conveyed or leased to a third
21party shall be remitted to the land redevelopment trust.
22The allocation of property tax revenues shall commence with
23property taxes payable on the assessed value of the property
24determined on the first assessment year beginning January
251 following the date of conveyance or lease by the land
26redevelopment trust and shall be allocated for a period
27of up to five consecutive years. The specific percentage
28of the taxes to be remitted, if any, and the number of
29consecutive years to allocate the taxes shall be established
30by the municipality creating the land redevelopment trust
31in accordance with this section and shall be set forth in
32the enabling ordinance, resolution, or chapter 28E agreement
33creating the land redevelopment trust. Each municipality may,
34in the enabling ordinance, resolution, or chapter 28E agreement
35creating the land redevelopment trust, include the right of
-9-1the municipality to waive or amend by resolution, and on a
2project-specific basis, the percentage of real estate taxes
3to be remitted to the land redevelopment trust for a specific
4property and the number of consecutive years of tax allocation
5for a specific property. The land redevelopment trust shall
6give the treasurer in the county where the property is located
7written notice of the date of the sale or lease of any property
8for which the land redevelopment trust claims a real property
9tax payment under this subsection. The notice shall identify
10the property by local tax parcel number, address, and legal
11description and include a copy of the ordinance, resolution,
12or chapter 28E agreement setting forth the portion of such
13taxes allocable to the land redevelopment trust under this
14subsection. Upon receipt of the taxes from such property, the
15treasurer shall pay the land redevelopment trust its share of
16the taxes paid on such property for the applicable number of
17consecutive years.
18 Sec. 12. NEW SECTION. 358A.12 Delinquent property tax
19enforcement.
201. Whenever a land redevelopment trust acquires real
21property encumbered by a lien or claim for real property taxes
22owed to one or more of the municipalities that established the
23land redevelopment trust, or to other political subdivisions
24that have entered into an intergovernmental contract with the
25land redevelopment trust, the land redevelopment trust may
26request, by resolution of the board or as otherwise provided in
27its bylaws, that the county in which the property is located
28discharge and extinguish any and all of the liens or claims.
29If a portion of the real property taxes are attributable to
30property taxes certified for levy by a school district, the
31land redevelopment trust shall notify the school district
32in writing of its intent to extinguish all such liens and
33claims. If the school district sends a written objection to
34the proposed extinguishment of such liens and claims to the
35land redevelopment trust within thirty days of receipt of such
-10-1notice, the land redevelopment trust shall not attempt to
2extinguish the liens and claims. If the school district fails
3to send a written objection to the proposed extinguishment to
4the land redevelopment trust within thirty days of receipt of
5such notice from the land redevelopment trust, the county in
6which the land redevelopment trust is located shall have the
7power, by resolution of the board, to discharge and extinguish
8any and all such liens or claims.
92. If a land redevelopment trust receives payments of any
10kind attributable to liens or claims for real property taxes
11owed or allocated to a municipality, public utility, or school
12district on property acquired by the land redevelopment trust,
13the land redevelopment trust shall remit the full amount of the
14payments to the appropriate taxing entity.
15 Sec. 13. NEW SECTION. 358A.13 Exemption from taxation.
16The income and operations of a land redevelopment trust
17are exempt from taxation by the state and by any political
18subdivision of the state.
19 Sec. 14. NEW SECTION. 358A.14 Public records and public
20meetings.
21A land redevelopment trust is a “governmental body” for
22purposes of chapter 21 and a “government body” for the purposes
23of chapter 22. A land redevelopment trust shall comply with
24all public meeting requirements under chapter 21 and all public
25records requirements under chapter 22.
26 Sec. 15. NEW SECTION. 358A.15 Reports.
27A land redevelopment trust shall submit to the governing
28body of the municipality that created the land redevelopment
29trust an annual report that informs the municipality of the
30land redevelopment trust’s activities for the previous year.
31 Sec. 16. NEW SECTION. 358A.16 Audits.
32A land redevelopment trust is a “governmental subdivision”
33for the purposes of chapter 11. A land redevelopment trust
34shall be subject to periodic examination by the auditor of
35state.
-11-1 Sec. 17. NEW SECTION. 358A.17 Dissolution of land
2redevelopment trusts.
31. A land redevelopment trust may be dissolved in accordance
4with its bylaws. Upon dissolution of the land redevelopment
5trust, all liabilities, real property, personal property,
6and other assets of the land redevelopment trust shall
7become the liabilities and assets of the municipality that
8created the land redevelopment trust, or, in the case of a
9land redevelopment trust created pursuant to a chapter 28E
10agreement, shall be distributed pursuant to the chapter 28E
11agreement.
122. A municipality may withdraw from a land redevelopment
13trust if the land redevelopment trust was created pursuant to
14a chapter 28E agreement. The withdrawing municipality shall
15receive its share of assets and liabilities as determined
16in the chapter 28E agreement. A land redevelopment trust
17consisting of two or more municipalities does not dissolve upon
18the withdrawal of a single municipality.
19 Sec. 18. NEW SECTION. 358A.18 Conflicts of interest.
201. For purposes of this section, “family member” means a
21person who is a spouse, domestic partner, child, step-child,
22grandchild, parent, step-parent, grandparent, sibling, niece,
23nephew, uncle, aunt, mother-in-law, father-in-law, son-in-law,
24or daughter-in-law of a member of the board or an employee of a
25land redevelopment trust. “Family member” includes a person who
26is a family member through adoption.
272. A member of the board, employee of a land redevelopment
28trust, or family member of a member of the board or an
29employee of the land redevelopment trust shall not acquire
30any direct or indirect interest in real property of the land
31redevelopment trust or in any property to be acquired from
32the land redevelopment trust, or have or acquire any direct
33or indirect interest in any real property to be acquired by a
34land redevelopment trust. A land redevelopment trust shall not
35acquire any real property from a board member, employee of the
-12-1land redevelopment trust, or family member of a board member or
2employee of the land redevelopment trust.
33. Members of the board and employees of the land
4redevelopment trust shall disclose to the board any direct or
5indirect ownership interest such person or a family member of
6such person has in any property to be acquired by the land
7redevelopment trust or located within one thousand feet of
8any property that the land redevelopment trust is considering
9acquiring before the land redevelopment trust takes any
10action to acquire such property. A member of the board who is
11required to make such disclosure shall not participate in the
12decision to approve the acquisition of such property.
134. A member of the board, employee of a land redevelopment
14trust, or family member of a member of the board or an employee
15of the land redevelopment trust may have a direct or indirect
16interest in any contract or proposed contract for material or
17services to be furnished to or used by a land redevelopment
18trust only upon all of the following conditions:
19a. The member of the board or employee of the land
20redevelopment trust discloses the material facts of such
21transaction and the nature of such interest to the board before
22the board acts to approve such contract and, if the person is a
23board member, does not participate in the discussion or vote to
24consider approval of such contract.
25b. Such contract is approved by a majority of the members
26of the board who have no direct or indirect interest in such
27contract and whose family members have no direct or indirect
28interest in such contract.
29c. Such contract is fair at the time the contract is
30approved.
315. a. Any person who serves or is employed by a land
32redevelopment trust shall not engage in any of the following
33conduct:
34(1) Outside employment or an activity that involves the use
35of the land redevelopment trust’s time, facilities, equipment,
-13-1and supplies or the use of evidences of office or employment
2to give the person, an entity affiliated with or controlled
3by the person, or a family member of the person an advantage
4or pecuniary benefit that is not available to other similarly
5situated members or classes of members of the general public.
6For purposes of this subparagraph, a person is not “similarly
7situated” merely by being, or being related to, a person who
8serves or is employed by the land redevelopment trust.
9(2) Outside employment or an activity that involves the
10receipt of, promise of, or acceptance of money or other
11consideration by the person, an entity affiliated with or
12controlled by the person, or a family member of the person
13from anyone other than the land redevelopment trust for the
14performance of any act that the person would be required or
15expected to perform as a part of the person’s regular duties or
16during the hours during which the person performs service or
17work for the land redevelopment trust.
18(3) Outside employment or an activity that is subject to
19the official control, inspection, review, audit, or enforcement
20authority of the person, during the performance of the person’s
21duties of office or employment.
22b. If the outside employment or activity is employment or
23activity described in paragraph “a”, subparagraph (1) or (2),
24the person shall immediately cease the employment or activity.
25If the outside employment or activity is employment or activity
26described in paragraph “a”, subparagraph (3), unless otherwise
27provided by law, the person shall take one of the following
28courses of action:
29(1) Cease the outside employment or activity.
30(2) Publicly disclose the existence of the conflict and
31refrain from taking any official action or performing any
32official duty that would detrimentally affect or create a
33benefit for the outside employment or activity. For purposes
34of this subparagraph, “official action” or “official duty”
35includes but is not limited to participating in any vote,
-14-1taking affirmative action to influence any vote, granting any
2license or permit, determining the facts or law in a contested
3case or rulemaking proceeding, conducting any inspection, or
4providing any other official service or thing that is not
5available generally to members of the public in order to
6further the interests of the outside employment or activity.
76. Unless otherwise specifically provided, the requirements
8of this section shall be in addition to, and shall not
9supersede, any other rights or remedies provided by law.
10DIVISION II
11LAND redevelopment trust TAX SALE COORDINATING PROVISIONS
12 Sec. 19. Section 446.16, subsection 2, Code 2023, is amended
13to read as follows:
142. The treasurer may establish and collect a reasonable
15registration fee from each registered bidder at the tax
16sale. The fee shall not be assessed against a county, or
17 municipality, or land redevelopment trust created under chapter
18358A. The total of the fees collected shall not exceed the
19total costs of the tax sale. Registration fees collected shall
20be deposited in the general fund of the county.
21 Sec. 20. NEW SECTION. 446.19C Land redevelopment trust tax
22sale.
231. A land redevelopment trust has the exclusive bidder’s
24right to purchase tax sale certificates offered at the
25treasurer’s annual tax sale with respect to tax delinquent
26parcels located within the geographical boundaries of the
27land redevelopment trust that are dilapidated, abandoned, or
28blighted and that are suitable for housing or commercial use
29following rehabilitation.
302. To qualify for the exclusive bidder’s right to purchase
31tax sale certificates under this section, a land redevelopment
32trust must file a verified statement with the treasurer on or
33before May 15. The land redevelopment trust is responsible
34for obtaining information from the treasurer as needed to
35accurately identify tax parcel numbers and total amounts due.
-15-1The land redevelopment trust shall provide the treasurer with
2the federal tax identification number of the land redevelopment
3trust, but such information is not required to be shown on the
4verified statement. The verified statement shall include all
5of the following:
6a. The name, address, telephone number, and electronic mail
7address of the land redevelopment trust.
8b. A statement that the land redevelopment trust is
9exercising its right to purchase each identified parcel
10pursuant to this section.
11c. Specific identification of each parcel by the parcel’s
12official county tax parcel number.
13d. With respect to each identified parcel, a statement that
14the parcel is dilapidated, abandoned, or blighted and that the
15parcel is suitable for housing or commercial use following
16rehabilitation.
17e. The total amount due for each identified parcel computed
18to the date of the tax sale.
193. In addition to the verified statement, the land
20redevelopment trust shall submit payment to the treasurer of
21an amount equal to the total amount due cumulatively for all
22of the parcels identified in the verified statement. The
23filing of the verified statement by a land redevelopment
24trust accompanied by payment of the total amount due for all
25identified parcels shall constitute the registration by the
26land redevelopment trust as a bidder at the tax sale. The land
27redevelopment trust shall not be required to pay a registration
28fee.
294. The land redevelopment trust’s verified statement shall
30be published at the same time and in the same manner as the
31notice of the annual tax sale, and the requirements in section
32446.9, subsection 2, for publication of notice of the annual
33tax sale also apply to publication of the verified statement.
345. Upon timely receipt of the verified statement and
35payment of the total amount due cumulatively for all identified
-16-1parcels, the treasurer shall remove all of the identified
2parcels from the regular annual tax sale and place those
3parcels in a separate sale known as the “land redevelopment
4trust tax sale”. On the day of the regular tax sale, the
5treasurer shall issue and deliver tax sale certificates to the
6land redevelopment trust for all parcels listed in the land
7redevelopment trust’s verified statement that remain liable
8to sale for delinquent taxes. The land redevelopment trust’s
9exclusive right to purchase tax sale certificates to parcels
10included in the land redevelopment trust tax sale is prior and
11superior to the rights of any other tax sale bidder. Any tax
12sale certificate issued to a land redevelopment trust under the
13provisions of this section shall secure a one redevelopment
14trust percent interest in the parcel.
156. The separate land redevelopment trust tax sale shall
16be conducted by the treasurer prior to the separate public
17nuisance tax sale conducted under section 446.19B. If the same
18parcel is listed in both such sales, the parcel shall be sold
19to the land redevelopment trust.
207. If any parcel identified within the land redevelopment
21trust’s verified statement has been removed from the land
22redevelopment trust tax sale because of receipt by the
23treasurer of payment of the taxes required to eliminate
24the delinquency, the treasurer shall refund to the land
25redevelopment trust the amount paid with respect to the total
26amount due for the parcel.
278. For purposes of this section, “abandoned”, “blighted”,
28“dilapidated”, “geographical boundaries of the land redevelopment
29trust”, “land redevelopment trust”, and “rehabilitation” mean the
30same as defined in section 358A.3.
31 Sec. 21. Section 447.9, subsection 1, Code 2023, is amended
32to read as follows:
331. After one year and nine months from the date of sale, or
34after nine months from the date of a sale made under section
35446.18, or after three months from the date of a sale made
-17-1under section 446.19A, or 446.19B, or 446.19C, the holder
2of the certificate of purchase may cause to be served upon
3the person in possession of the parcel, and also upon the
4person in whose name the parcel is taxed, a notice signed by
5the certificate holder or the certificate holder’s agent or
6attorney, stating the date of sale, the description of the
7parcel sold, the name of the purchaser, and that the right
8of redemption will expire and a deed for the parcel be made
9unless redemption is made within ninety days from the completed
10service of the notice. The notice shall be served by both
11regular mail and certified mail to the person’s last known
12address and such service is deemed completed when the notice
13is deposited in the mail and postmarked for delivery. The
14ninety-day redemption period begins as provided in section
15447.12. When the notice is given by a county as a holder of
16a certificate of purchase the notice shall be signed by the
17county treasurer or the county attorney, and when given by a
18city, it shall be signed by the city officer designated by
19resolution of the council. When the notice is given by the
20Iowa finance authority or a city or county agency holding
21the parcel as part of an Iowa homesteading project, it shall
22be signed on behalf of the agency or authority by one of its
23officers, as authorized in rules of the agency or authority.
24DIVISION III
25other COORDINATING PROVISIONS
26 Sec. 22. Section 11.1, subsection 1, paragraph c, Code 2023,
27is amended to read as follows:
28c. “Governmental subdivision” means cities and
29administrative agencies established by cities, hospitals or
30health care facilities established by a city, counties, county
31hospitals organized under chapters 347 and 347A, memorial
32hospitals organized under chapter 37, entities organized under
33chapter 28E, land redevelopment trusts created under chapter
34358A, community colleges, area education agencies, and school
35districts.
-18-1 Sec. 23. Section 21.2, subsection 1, Code 2023, is amended
2by adding the following new paragraph:
3 NEW PARAGRAPH. k. A land redevelopment trust created under
4chapter 358A.
5 Sec. 24. Section 22.1, subsection 1, Code 2023, is amended
6to read as follows:
71. “Government body” means this state, or any county,
8city, township, school corporation, political subdivision,
9tax-supported district, nonprofit corporation other than a
10fair conducting a fair event as provided in chapter 174, whose
11facilities or indebtedness are supported in whole or in part
12with property tax revenue and which is licensed to conduct
13pari-mutuel wagering pursuant to chapter 99D; the governing
14body of a drainage or levee district as provided in chapter
15468, including a board as defined in section 468.3, regardless
16of how the district is organized; a land redevelopment trust
17created under chapter 358A; or other entity of this state, or
18any branch, department, board, bureau, commission, council,
19committee, official, or officer of any of the foregoing or any
20employee delegated the responsibility for implementing the
21requirements of this chapter.
22 Sec. 25. Section 97B.1A, subsection 9, paragraph a, Code
232023, is amended to read as follows:
24a. “Employer” means the state of Iowa, the counties,
25municipalities, agencies, public school districts, all
26political subdivisions, and all of their departments and
27instrumentalities, including area agencies on aging, other than
28those employing persons as specified in subsection 8, paragraph
29“b”, subparagraph (7), land redevelopment trusts created under
30chapter 358A, and joint planning commissions created under
31chapter 28E or 28I.
32 Sec. 26. Section 364.7, Code 2023, is amended to read as
33follows:
34364.7 Disposal of property.
35A city may shall not dispose of an interest in real property
-19-1by sale, lease for a term of more than three years, or gift,
2except in accordance with the following procedure:
31. The council shall set forth its proposal in a resolution
4and shall publish notice, as provided in section 362.3, of the
5resolution and of a date, time, and place of a public hearing
6on the proposal.
72. After the public hearing, the council may make a final
8determination on the proposal by resolution.
93. A city may shall not dispose of real property by gift
10except to a governmental body for a public purpose or to a land
11redevelopment trust created under chapter 358A.
12 Sec. 27. Section 427.1, Code 2023, is amended by adding the
13following new subsection:
14 NEW SUBSECTION. 42. Land redevelopment trust property. The
15real property of a land redevelopment trust created under
16chapter 358A. For purposes of this subsection, real property
17includes but is not limited to real property held by a land
18redevelopment trust as lessor pursuant to long-term lease
19contracts with community land trusts as defined in 42 U.S.C.
20§12773, but does not include real property otherwise leased
21by a land redevelopment trust to a third party and does not
22include real property that has been sold on contract, which
23real property shall be subject to property taxation in the name
24of the contract buyer.
25 Sec. 28. Section 573.1, subsection 3, Code 2023, is amended
26to read as follows:
273. “Public corporation” shall embrace the state, and
28all counties, cities, public school corporations, any land
29redevelopment trust created under chapter 358A, and all
30officers, boards, or commissions empowered by law to enter into
31contracts for the construction of public improvements.
32 Sec. 29. Section 657A.2, subsection 1, Code 2023, is amended
33to read as follows:
341. No sooner than the later of thirty days after the
35responsible building official’s findings have been provided
-20-1under section 657A.1A or six months after a building has become
2abandoned, a petition for abatement under this chapter may be
3filed in the district court of the county in which the property
4is located by the city in which the property is located, by
5the county if the property is located outside the limits of a
6city, by a neighboring landowner, by a land redevelopment trust
7created under chapter 358A, or by a duly organized nonprofit
8corporation which that has as one of its goals the improvement
9of housing conditions in the county or city in which the
10property in question is located. The petition shall not demand
11a personal judgment against any party, but shall concern only
12the interests in the property. A petition for abatement filed
13under this chapter shall include the legal description of
14the real property upon which the public nuisance is located
15unless the public nuisance is not situated on or confined to
16a parcel of real property, or is portable or capable of being
17removed from the real property. Service shall be made on all
18interested persons by personal service or, if personal service
19cannot be made, by certified mail and first class mail to the
20last known address of record of the interested person and by
21posting the notice in a conspicuous place on the building,
22or by publication. The last known address of record for the
23property owner shall be the address of record with the county
24treasurer of the county where the property is located. Service
25may also be made as provided in section 654.4A.
26EXPLANATION
27The inclusion of this explanation does not constitute agreement with
28the explanation’s substance by the members of the general assembly.
29This bill provides for the establishment of land
30redevelopment trusts.
31Division I of the bill authorizes one or more municipalities
32to establish a land redevelopment trust as a method to return
33dilapidated, abandoned, blighted, and tax-delinquent properties
34in their communities to economically productive status. An
35established land redevelopment trust is a public agency
-21-1for the purpose of joint exercise of governmental powers, a
2governmental body for purposes of public meetings requirements
3of Code chapter 21, and a government body for purposes
4of public records requirements of Code chapter 22. Land
5redevelopment trusts are subject to periodic examination by the
6auditor of state under Code chapter 11. The bill requires the
7board of directors of a land redevelopment trust to establish
8bylaws addressing matters necessary to govern the conduct of
9the land redevelopment trust.
10Division I of the bill also grants a land redevelopment
11trust various powers and duties, including the authority to
12acquire properties through certain procedures, including the
13purchase of tax sale certificates and the foreclosure of
14properties acquired at a tax sale if not redeemed. However,
15the bill explicitly prohibits a land redevelopment trust
16from possessing or exercising the power of eminent domain.
17The bill establishes financing procedures that govern land
18redevelopment trusts, including allowing to be remitted to the
19land redevelopment trust up to 75 percent of real property
20taxes collected on a real property conveyed or leased by a
21land redevelopment trust that remains after the division of
22taxes for an urban renewal area and exclusive of any amount
23levied by a school district for five consecutive years after
24the property is again put on the tax rolls. The bill requires
25a land redevelopment trust to submit annual reports to the
26governing body that created the land redevelopment trust.
27The bill provides procedures for disposing of property that
28is acquired by the land redevelopment trust. The bill also
29provides procedures for dissolving a land redevelopment trust.
30Division II of the bill creates a land redevelopment trust
31tax sale procedure, which allows a land redevelopment trust to
32acquire abandoned, blighted, or dilapidated properties through
33an exclusive tax sale. In order to acquire property through a
34land redevelopment trust tax sale, the land redevelopment trust
35shall file a verified statement identifying the parcels for
-22-1which the land redevelopment trust intends to purchase the tax
2sale certificates and shall pay the delinquent total amounts
3due on each parcel before May 15. Upon timely receipt of the
4land redevelopment trust’s verified statement and payment, the
5county treasurer shall remove the identified parcels from the
6regular annual tax sale and place those parcels in the land
7redevelopment trust tax sale. The land redevelopment trust tax
8sale shall occur before a public nuisance tax sale.
9Division III of the bill makes changes throughout the Code to
10conform with land redevelopment trust procedures established in
11division I of the bill.
-23-js/ns
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2LAND redevelopment trusts
3 Section 1. NEW SECTION. 358A.1 Short title.
4This chapter shall be known and may be cited as the “Iowa
5Land Redevelopment Trust 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 redevelopment trusts are one of the tools that
32communities can use to facilitate the return of dilapidated,
33abandoned, blighted, and tax-delinquent properties to
34productive use.
35 Sec. 3. NEW SECTION. 358A.3 Definitions.
-1- 1As used in this chapter, unless the context otherwise
2requires:
31. “Abandoned” means a parcel is vacant or a building on
4a parcel has remained vacant for a period of at least six
5consecutive months and is in need of rehabilitation.
62. “Blighted” means a vacant parcel or a parcel containing
7a building is unsafe with objectively determinable signs of
8deterioration sufficient to constitute a threat to human
9health, safety, and welfare.
103. “Board” means the board of directors of a land
11redevelopment trust.
124. “Dilapidated” means a parcel containing a building is in
13a state of deterioration as a result of age or neglect.
145. “Geographical boundaries of the land redevelopment trust”
15means the jurisdiction of the municipality that created the
16land redevelopment trust or in the case of any combination
17of municipalities creating a single land redevelopment
18trust or joining an existing land redevelopment trust, the
19combined jurisdictions of the municipalities. In the case
20of a land redevelopment trust created by a county, such land
21redevelopment trust’s jurisdiction includes only the area of
22the county not included within an incorporated city.
236. “Land redevelopment trust” means an entity created under
24section 358A.4.
257. “Local employee” means a person employed by a
26municipality of this state and does not include an independent
27contractor.
288. “Local official” means an officeholder of a municipality
29of this state.
309. “Municipality” means a city, county, or township.
3110. “Rehabilitation” means the action of restoring to its
32former condition something that has deteriorated or has been
33damaged.
34 Sec. 4. NEW SECTION. 358A.4 Creation.
351. A land redevelopment trust organized under this chapter
-2-1shall be a body corporate and politic, with the name under
2which it was organized, and may sue and be sued in its own
3name, contract and be contracted with, acquire and hold real
4and personal property necessary for corporate purposes, adopt a
5corporate seal and alter the same at pleasure, and exercise all
6the powers conferred in this chapter.
72. a. Any municipality may create a land redevelopment
8trust. Creation shall be by ordinance in the case of a city
9or by resolution in the case of a county or township. The
10ordinance or resolution shall make reference to the purposes
11listed under section 358A.2.
12b. Any municipality may create a land redevelopment
13trust in combination with one or more other municipalities.
14Municipalities seeking to create such a land redevelopment
15trust shall comply with the procedures set forth in chapter
1628E. A land redevelopment trust shall be considered a public
17agency for the purposes of chapters 28E and 28H.
18c. (1) Any city or township passing an ordinance or a
19resolution or entering into a chapter 28E agreement creating
20a land redevelopment trust pursuant to this section shall
21promptly deliver copies of the ordinance, resolution, or
22agreement to the auditor, treasurer, and the county attorney of
23each county in which the municipality is located.
24(2) Any board of supervisors adopting a resolution
25or entering into a chapter 28E agreement creating a land
26redevelopment trust pursuant to this section shall deliver a
27copy of the resolution or agreement to the county auditor,
28county treasurer, and county attorney.
293. a. The enabling ordinance or resolution, or chapter
3028E agreement, shall set forth any restrictions or required
31procedures that exceed those set forth in this chapter.
32b. A chapter 28E agreement relating to a land redevelopment
33trust shall include procedures for the distribution of assets
34between participating municipalities upon the dissolution of
35the land redevelopment trust.
-3- 1c. Unless otherwise limited in the ordinance, resolution,
2or chapter 28E agreement, the powers and procedures of a newly
3created land redevelopment trust shall be the powers and
4procedures specified in this chapter.
54. A council of governments established in section 28H.1
6shall not form a land redevelopment trust. However, pursuant
7to a chapter 28E agreement, a council of governments may
8provide community development services, planning services, and
9technical assistance to a land redevelopment trust.
10 Sec. 5. NEW SECTION. 358A.5 Board of directors.
111. a. A land redevelopment trust shall have a board of
12directors in which all powers of the land redevelopment trust
13shall be vested.
14b. Unless restricted by the enabling ordinance, resolution,
15or agreement as specified in section 358A.4, the provisions of
16this section apply to the governance of a land redevelopment
17trust.
182. The membership of the board shall be established in the
19bylaws of the land redevelopment trust.
203. a. A local official may serve as a board member, and
21service as a board member shall neither terminate nor impair
22the local official’s office.
23b. A local employee shall be eligible to serve as a board
24member.
254. Board members shall serve without compensation.
26However, the board may reimburse a member for expenses actually
27incurred in the performance of duties on behalf of the land
28redevelopment trust as provided in bylaws adopted pursuant to
29subsection 5.
305. a. Upon creation by the enabling ordinance, resolution,
31or agreement as specified in section 358A.4, the board shall
32adopt bylaws addressing matters necessary to govern the conduct
33of the land redevelopment trust and shall meet as the bylaws
34prescribe.
35b. When in actual conflict, the ordinances, resolutions, or
-4-1agreements described in section 358A.4 shall control over any
2bylaws adopted by the board.
36. Except as set forth in the enabling ordinance,
4resolution, or agreement, or as set forth by a land
5redevelopment trust in its bylaws, an action of the board must
6be approved by the affirmative vote of a majority of the board
7present and voting.
87. Members of the board shall not be liable personally on
9the obligations of the land redevelopment trust, and rights of
10creditors of a land redevelopment trust shall be solely against
11the land redevelopment trust.
12 Sec. 6. NEW SECTION. 358A.6 Staff.
131. A land redevelopment trust may employ or contract for
14the employment of any persons the land redevelopment trust
15may require to fulfill the objectives of its bylaws and this
16chapter.
172. An employee of the land redevelopment trust is not and
18shall not be deemed to be an employee of the municipality for
19whose benefit the land redevelopment trust is organized solely
20because the employee is employed by the land redevelopment
21trust.
223. A land redevelopment trust is an employer as defined in
23section 97B.1A, subsection 9, paragraph “a”, and an employee
24of the land redevelopment trust is an employee as defined in
25section 97B.1A, subsection 8.
26 Sec. 7. NEW SECTION. 358A.7 Powers.
271. In furtherance of the purposes set forth in section
28358A.2, a land redevelopment trust shall have the power to
29perform all actions necessary or convenient to carry out the
30purposes set forth in this chapter, including but not limited
31to all of the following powers:
32a. To borrow money for any of the purposes of the land
33redevelopment trust by means of loans, lines of credit, or
34any other financial instruments or securities other than
35through the issuance of bonds, debentures, or notes. A
-5-1land redevelopment trust may secure its indebtedness by
2mortgage, pledge, deed of trust, or other lien on its property,
3franchises, rights, and privileges of every kind and nature
4or any part thereof or interest therein. The moneys borrowed
5by the land redevelopment trust are payable as to principal,
6interest, and any other amounts owed the lender solely from
7the proceeds from the net revenues of the land redevelopment
8trust and are not a debt of or charge against any of the
9municipalities that formed the land redevelopment trust within
10the meaning of any constitutional or statutory debt limitation
11provision. For purposes of this paragraph:
12(1) “Gross revenues” means the income and receipts of the
13land redevelopment trust from any source whatsoever, including
14but not limited to contributions from private parties or member
15municipalities, sale or lease of rehabilitated properties,
16and collection of a portion of the property taxes during the
17five-year period after sale or lease of the rehabilitated
18property.
19(2) “Net revenues” means the gross revenues of the land
20redevelopment trust less the land redevelopment trust’s
21operating expenses.
22b. To petition for abatement pursuant to chapter 657A. A
23land redevelopment trust is an “interested person” for purposes
24of that chapter.
25c. To contract with the federal government, the state,
26a subdivision of the state, and any other party, whether
27nonprofit or for-profit.
282. The powers enumerated in this chapter shall not be
29construed to limit the general powers of a land redevelopment
30trust or a municipality. The powers granted under this chapter
31are in addition to the powers granted by any other section of
32the Code, but as to a land redevelopment trust, shall be used
33only for the purposes set forth in section 358A.2.
34 Sec. 8. NEW SECTION. 358A.8 Eminent domain.
35A land redevelopment trust shall not possess or exercise the
-6-1power of eminent domain, including under chapters 6A and 6B.
2 Sec. 9. NEW SECTION. 358A.9 Acquisition of property.
31. a. Except as provided in section 358A.8, a land
4redevelopment trust may acquire, hold, own, accept, and
5otherwise obtain real property or interests in real property
6by gift, devise, transfer, exchange, foreclosure, purchase, or
7otherwise, on terms and conditions and in a manner the board
8considers is in the best interest of the land redevelopment
9trust and consistent with the purposes set forth in section
10358A.2 and the land redevelopment trust’s bylaws.
11b. A land redevelopment trust may acquire tax sale
12certificates at a tax sale conducted under chapter 446 and
13may subsequently acquire title through tax lien foreclosure
14procedures. A land redevelopment trust shall not be considered
15a city or county for purposes of bidding on and acquiring tax
16sale certificates under chapter 446, redeeming property under
17chapter 447, or obtaining a tax sale deed under chapter 448.
18c. The acquisition of property by the land redevelopment
19trust shall not be governed or controlled by any regulations or
20laws relating to procurement or acquisition of property of any
21municipality that created the land redevelopment trust, unless
22specifically provided in the ordinance, resolution, or chapter
2328E agreement establishing the land redevelopment trust.
24d. Except as otherwise provided in paragraph “e”, a land
25redevelopment trust shall not own or hold real property located
26outside the geographical boundaries of the land redevelopment
27trust.
28e. A land redevelopment trust may be granted, pursuant to
29an intergovernmental contract with a political subdivision of
30this state, the authority to manage and maintain real property
31located within the geographical boundaries of the political
32subdivision, but outside the geographical boundaries of the
33land redevelopment trust. If a land redevelopment trust
34receives a gift or devise of real property located outside of
35the geographical boundaries of the land redevelopment trust,
-7-1the land redevelopment trust shall dispose of such property by
2sale or exchange as soon as reasonably practicable.
32. A land redevelopment trust shall maintain all of its
4real property in accordance with the laws and ordinances of the
5jurisdiction in which the real property is located.
63. A land redevelopment trust shall maintain and make
7available for public review and inspection an inventory of all
8real property held by the land redevelopment trust.
9 Sec. 10. NEW SECTION. 358A.10 Disposition of property.
101. A land redevelopment trust may convey, exchange, sell,
11transfer, lease, grant, mortgage, or otherwise dispose of
12interests in real property of the land redevelopment trust at
13such times, to such persons, upon such terms and conditions,
14and subject to such restrictions and covenants as the land
15redevelopment trust deems necessary or appropriate to assure
16the effective use of the land redevelopment trust in accordance
17with the purposes of section 358A.2 and consistent with the
18land redevelopment trust’s bylaws.
192. A land redevelopment trust shall determine the amount
20and form of consideration necessary to convey, exchange, sell,
21transfer, lease, grant, mortgage, or otherwise dispose of
22interests in real property. Consideration may take the form of
23monetary payments and secured financial obligations, covenants
24and conditions related to the present and future use of the
25property, contractual commitments by the transferee, and other
26forms of consideration as determined by the board to be in the
27best interest of the land redevelopment trust and consistent
28with its bylaws.
293. A municipality may in the ordinance or resolution
30creating a land redevelopment trust, or in the chapter 28E
31agreement in the case of any combination of municipalities
32creating a single land redevelopment trust, require that
33a particular form of disposition of real property or a
34disposition of real property located within a specified
35jurisdiction be subject to specified voting and approval
-8-1requirements of the board.
2 Sec. 11. NEW SECTION. 358A.11 Financing.
31. A land redevelopment trust may receive funding through
4grants, loans, and other moneys from the municipality
5that created the land redevelopment trust, from other
6municipalities, from the state, from the federal government,
7and from any other public and private sources, including but
8not limited to donations, gifts, or bequests.
92. A land redevelopment trust may receive and retain
10payments for services rendered, for rents and leasehold
11payments received, for consideration for disposition of real
12and personal property, for proceeds of insurance coverage for
13losses incurred, for income from investments, and for any other
14asset and activity lawfully permitted to a land redevelopment
15trust under this chapter.
163. Up to seventy-five percent of the real property taxes
17remaining after the division of taxes pursuant to section
18403.19, if applicable, and exclusive of any amount levied
19by a school district, collected on real property that a
20land redevelopment trust has conveyed or leased to a third
21party shall be remitted to the land redevelopment trust.
22The allocation of property tax revenues shall commence with
23property taxes payable on the assessed value of the property
24determined on the first assessment year beginning January
251 following the date of conveyance or lease by the land
26redevelopment trust and shall be allocated for a period
27of up to five consecutive years. The specific percentage
28of the taxes to be remitted, if any, and the number of
29consecutive years to allocate the taxes shall be established
30by the municipality creating the land redevelopment trust
31in accordance with this section and shall be set forth in
32the enabling ordinance, resolution, or chapter 28E agreement
33creating the land redevelopment trust. Each municipality may,
34in the enabling ordinance, resolution, or chapter 28E agreement
35creating the land redevelopment trust, include the right of
-9-1the municipality to waive or amend by resolution, and on a
2project-specific basis, the percentage of real estate taxes
3to be remitted to the land redevelopment trust for a specific
4property and the number of consecutive years of tax allocation
5for a specific property. The land redevelopment trust shall
6give the treasurer in the county where the property is located
7written notice of the date of the sale or lease of any property
8for which the land redevelopment trust claims a real property
9tax payment under this subsection. The notice shall identify
10the property by local tax parcel number, address, and legal
11description and include a copy of the ordinance, resolution,
12or chapter 28E agreement setting forth the portion of such
13taxes allocable to the land redevelopment trust under this
14subsection. Upon receipt of the taxes from such property, the
15treasurer shall pay the land redevelopment trust its share of
16the taxes paid on such property for the applicable number of
17consecutive years.
18 Sec. 12. NEW SECTION. 358A.12 Delinquent property tax
19enforcement.
201. Whenever a land redevelopment trust acquires real
21property encumbered by a lien or claim for real property taxes
22owed to one or more of the municipalities that established the
23land redevelopment trust, or to other political subdivisions
24that have entered into an intergovernmental contract with the
25land redevelopment trust, the land redevelopment trust may
26request, by resolution of the board or as otherwise provided in
27its bylaws, that the county in which the property is located
28discharge and extinguish any and all of the liens or claims.
29If a portion of the real property taxes are attributable to
30property taxes certified for levy by a school district, the
31land redevelopment trust shall notify the school district
32in writing of its intent to extinguish all such liens and
33claims. If the school district sends a written objection to
34the proposed extinguishment of such liens and claims to the
35land redevelopment trust within thirty days of receipt of such
-10-1notice, the land redevelopment trust shall not attempt to
2extinguish the liens and claims. If the school district fails
3to send a written objection to the proposed extinguishment to
4the land redevelopment trust within thirty days of receipt of
5such notice from the land redevelopment trust, the county in
6which the land redevelopment trust is located shall have the
7power, by resolution of the board, to discharge and extinguish
8any and all such liens or claims.
92. If a land redevelopment trust receives payments of any
10kind attributable to liens or claims for real property taxes
11owed or allocated to a municipality, public utility, or school
12district on property acquired by the land redevelopment trust,
13the land redevelopment trust shall remit the full amount of the
14payments to the appropriate taxing entity.
15 Sec. 13. NEW SECTION. 358A.13 Exemption from taxation.
16The income and operations of a land redevelopment trust
17are exempt from taxation by the state and by any political
18subdivision of the state.
19 Sec. 14. NEW SECTION. 358A.14 Public records and public
20meetings.
21A land redevelopment trust is a “governmental body” for
22purposes of chapter 21 and a “government body” for the purposes
23of chapter 22. A land redevelopment trust shall comply with
24all public meeting requirements under chapter 21 and all public
25records requirements under chapter 22.
26 Sec. 15. NEW SECTION. 358A.15 Reports.
27A land redevelopment trust shall submit to the governing
28body of the municipality that created the land redevelopment
29trust an annual report that informs the municipality of the
30land redevelopment trust’s activities for the previous year.
31 Sec. 16. NEW SECTION. 358A.16 Audits.
32A land redevelopment trust is a “governmental subdivision”
33for the purposes of chapter 11. A land redevelopment trust
34shall be subject to periodic examination by the auditor of
35state.
-11-1 Sec. 17. NEW SECTION. 358A.17 Dissolution of land
2redevelopment trusts.
31. A land redevelopment trust may be dissolved in accordance
4with its bylaws. Upon dissolution of the land redevelopment
5trust, all liabilities, real property, personal property,
6and other assets of the land redevelopment trust shall
7become the liabilities and assets of the municipality that
8created the land redevelopment trust, or, in the case of a
9land redevelopment trust created pursuant to a chapter 28E
10agreement, shall be distributed pursuant to the chapter 28E
11agreement.
122. A municipality may withdraw from a land redevelopment
13trust if the land redevelopment trust was created pursuant to
14a chapter 28E agreement. The withdrawing municipality shall
15receive its share of assets and liabilities as determined
16in the chapter 28E agreement. A land redevelopment trust
17consisting of two or more municipalities does not dissolve upon
18the withdrawal of a single municipality.
19 Sec. 18. NEW SECTION. 358A.18 Conflicts of interest.
201. For purposes of this section, “family member” means a
21person who is a spouse, domestic partner, child, step-child,
22grandchild, parent, step-parent, grandparent, sibling, niece,
23nephew, uncle, aunt, mother-in-law, father-in-law, son-in-law,
24or daughter-in-law of a member of the board or an employee of a
25land redevelopment trust. “Family member” includes a person who
26is a family member through adoption.
272. A member of the board, employee of a land redevelopment
28trust, or family member of a member of the board or an
29employee of the land redevelopment trust shall not acquire
30any direct or indirect interest in real property of the land
31redevelopment trust or in any property to be acquired from
32the land redevelopment trust, or have or acquire any direct
33or indirect interest in any real property to be acquired by a
34land redevelopment trust. A land redevelopment trust shall not
35acquire any real property from a board member, employee of the
-12-1land redevelopment trust, or family member of a board member or
2employee of the land redevelopment trust.
33. Members of the board and employees of the land
4redevelopment trust shall disclose to the board any direct or
5indirect ownership interest such person or a family member of
6such person has in any property to be acquired by the land
7redevelopment trust or located within one thousand feet of
8any property that the land redevelopment trust is considering
9acquiring before the land redevelopment trust takes any
10action to acquire such property. A member of the board who is
11required to make such disclosure shall not participate in the
12decision to approve the acquisition of such property.
134. A member of the board, employee of a land redevelopment
14trust, or family member of a member of the board or an employee
15of the land redevelopment trust may have a direct or indirect
16interest in any contract or proposed contract for material or
17services to be furnished to or used by a land redevelopment
18trust only upon all of the following conditions:
19a. The member of the board or employee of the land
20redevelopment trust discloses the material facts of such
21transaction and the nature of such interest to the board before
22the board acts to approve such contract and, if the person is a
23board member, does not participate in the discussion or vote to
24consider approval of such contract.
25b. Such contract is approved by a majority of the members
26of the board who have no direct or indirect interest in such
27contract and whose family members have no direct or indirect
28interest in such contract.
29c. Such contract is fair at the time the contract is
30approved.
315. a. Any person who serves or is employed by a land
32redevelopment trust shall not engage in any of the following
33conduct:
34(1) Outside employment or an activity that involves the use
35of the land redevelopment trust’s time, facilities, equipment,
-13-1and supplies or the use of evidences of office or employment
2to give the person, an entity affiliated with or controlled
3by the person, or a family member of the person an advantage
4or pecuniary benefit that is not available to other similarly
5situated members or classes of members of the general public.
6For purposes of this subparagraph, a person is not “similarly
7situated” merely by being, or being related to, a person who
8serves or is employed by the land redevelopment trust.
9(2) Outside employment or an activity that involves the
10receipt of, promise of, or acceptance of money or other
11consideration by the person, an entity affiliated with or
12controlled by the person, or a family member of the person
13from anyone other than the land redevelopment trust for the
14performance of any act that the person would be required or
15expected to perform as a part of the person’s regular duties or
16during the hours during which the person performs service or
17work for the land redevelopment trust.
18(3) Outside employment or an activity that is subject to
19the official control, inspection, review, audit, or enforcement
20authority of the person, during the performance of the person’s
21duties of office or employment.
22b. If the outside employment or activity is employment or
23activity described in paragraph “a”, subparagraph (1) or (2),
24the person shall immediately cease the employment or activity.
25If the outside employment or activity is employment or activity
26described in paragraph “a”, subparagraph (3), unless otherwise
27provided by law, the person shall take one of the following
28courses of action:
29(1) Cease the outside employment or activity.
30(2) Publicly disclose the existence of the conflict and
31refrain from taking any official action or performing any
32official duty that would detrimentally affect or create a
33benefit for the outside employment or activity. For purposes
34of this subparagraph, “official action” or “official duty”
35includes but is not limited to participating in any vote,
-14-1taking affirmative action to influence any vote, granting any
2license or permit, determining the facts or law in a contested
3case or rulemaking proceeding, conducting any inspection, or
4providing any other official service or thing that is not
5available generally to members of the public in order to
6further the interests of the outside employment or activity.
76. Unless otherwise specifically provided, the requirements
8of this section shall be in addition to, and shall not
9supersede, any other rights or remedies provided by law.
10DIVISION II
11LAND redevelopment trust TAX SALE COORDINATING PROVISIONS
12 Sec. 19. Section 446.16, subsection 2, Code 2023, is amended
13to read as follows:
142. The treasurer may establish and collect a reasonable
15registration fee from each registered bidder at the tax
16sale. The fee shall not be assessed against a county, or
17 municipality, or land redevelopment trust created under chapter
18358A. The total of the fees collected shall not exceed the
19total costs of the tax sale. Registration fees collected shall
20be deposited in the general fund of the county.
21 Sec. 20. NEW SECTION. 446.19C Land redevelopment trust tax
22sale.
231. A land redevelopment trust has the exclusive bidder’s
24right to purchase tax sale certificates offered at the
25treasurer’s annual tax sale with respect to tax delinquent
26parcels located within the geographical boundaries of the
27land redevelopment trust that are dilapidated, abandoned, or
28blighted and that are suitable for housing or commercial use
29following rehabilitation.
302. To qualify for the exclusive bidder’s right to purchase
31tax sale certificates under this section, a land redevelopment
32trust must file a verified statement with the treasurer on or
33before May 15. The land redevelopment trust is responsible
34for obtaining information from the treasurer as needed to
35accurately identify tax parcel numbers and total amounts due.
-15-1The land redevelopment trust shall provide the treasurer with
2the federal tax identification number of the land redevelopment
3trust, but such information is not required to be shown on the
4verified statement. The verified statement shall include all
5of the following:
6a. The name, address, telephone number, and electronic mail
7address of the land redevelopment trust.
8b. A statement that the land redevelopment trust is
9exercising its right to purchase each identified parcel
10pursuant to this section.
11c. Specific identification of each parcel by the parcel’s
12official county tax parcel number.
13d. With respect to each identified parcel, a statement that
14the parcel is dilapidated, abandoned, or blighted and that the
15parcel is suitable for housing or commercial use following
16rehabilitation.
17e. The total amount due for each identified parcel computed
18to the date of the tax sale.
193. In addition to the verified statement, the land
20redevelopment trust shall submit payment to the treasurer of
21an amount equal to the total amount due cumulatively for all
22of the parcels identified in the verified statement. The
23filing of the verified statement by a land redevelopment
24trust accompanied by payment of the total amount due for all
25identified parcels shall constitute the registration by the
26land redevelopment trust as a bidder at the tax sale. The land
27redevelopment trust shall not be required to pay a registration
28fee.
294. The land redevelopment trust’s verified statement shall
30be published at the same time and in the same manner as the
31notice of the annual tax sale, and the requirements in section
32446.9, subsection 2, for publication of notice of the annual
33tax sale also apply to publication of the verified statement.
345. Upon timely receipt of the verified statement and
35payment of the total amount due cumulatively for all identified
-16-1parcels, the treasurer shall remove all of the identified
2parcels from the regular annual tax sale and place those
3parcels in a separate sale known as the “land redevelopment
4trust tax sale”. On the day of the regular tax sale, the
5treasurer shall issue and deliver tax sale certificates to the
6land redevelopment trust for all parcels listed in the land
7redevelopment trust’s verified statement that remain liable
8to sale for delinquent taxes. The land redevelopment trust’s
9exclusive right to purchase tax sale certificates to parcels
10included in the land redevelopment trust tax sale is prior and
11superior to the rights of any other tax sale bidder. Any tax
12sale certificate issued to a land redevelopment trust under the
13provisions of this section shall secure a one redevelopment
14trust percent interest in the parcel.
156. The separate land redevelopment trust tax sale shall
16be conducted by the treasurer prior to the separate public
17nuisance tax sale conducted under section 446.19B. If the same
18parcel is listed in both such sales, the parcel shall be sold
19to the land redevelopment trust.
207. If any parcel identified within the land redevelopment
21trust’s verified statement has been removed from the land
22redevelopment trust tax sale because of receipt by the
23treasurer of payment of the taxes required to eliminate
24the delinquency, the treasurer shall refund to the land
25redevelopment trust the amount paid with respect to the total
26amount due for the parcel.
278. For purposes of this section, “abandoned”, “blighted”,
28“dilapidated”, “geographical boundaries of the land redevelopment
29trust”, “land redevelopment trust”, and “rehabilitation” mean the
30same as defined in section 358A.3.
31 Sec. 21. Section 447.9, subsection 1, Code 2023, is amended
32to read as follows:
331. After one year and nine months from the date of sale, or
34after nine months from the date of a sale made under section
35446.18, or after three months from the date of a sale made
-17-1under section 446.19A, or 446.19B, or 446.19C, the holder
2of the certificate of purchase may cause to be served upon
3the person in possession of the parcel, and also upon the
4person in whose name the parcel is taxed, a notice signed by
5the certificate holder or the certificate holder’s agent or
6attorney, stating the date of sale, the description of the
7parcel sold, the name of the purchaser, and that the right
8of redemption will expire and a deed for the parcel be made
9unless redemption is made within ninety days from the completed
10service of the notice. The notice shall be served by both
11regular mail and certified mail to the person’s last known
12address and such service is deemed completed when the notice
13is deposited in the mail and postmarked for delivery. The
14ninety-day redemption period begins as provided in section
15447.12. When the notice is given by a county as a holder of
16a certificate of purchase the notice shall be signed by the
17county treasurer or the county attorney, and when given by a
18city, it shall be signed by the city officer designated by
19resolution of the council. When the notice is given by the
20Iowa finance authority or a city or county agency holding
21the parcel as part of an Iowa homesteading project, it shall
22be signed on behalf of the agency or authority by one of its
23officers, as authorized in rules of the agency or authority.
24DIVISION III
25other COORDINATING PROVISIONS
26 Sec. 22. Section 11.1, subsection 1, paragraph c, Code 2023,
27is amended to read as follows:
28c. “Governmental subdivision” means cities and
29administrative agencies established by cities, hospitals or
30health care facilities established by a city, counties, county
31hospitals organized under chapters 347 and 347A, memorial
32hospitals organized under chapter 37, entities organized under
33chapter 28E, land redevelopment trusts created under chapter
34358A, community colleges, area education agencies, and school
35districts.
-18-1 Sec. 23. Section 21.2, subsection 1, Code 2023, is amended
2by adding the following new paragraph:
3 NEW PARAGRAPH. k. A land redevelopment trust created under
4chapter 358A.
5 Sec. 24. Section 22.1, subsection 1, Code 2023, is amended
6to read as follows:
71. “Government body” means this state, or any county,
8city, township, school corporation, political subdivision,
9tax-supported district, nonprofit corporation other than a
10fair conducting a fair event as provided in chapter 174, whose
11facilities or indebtedness are supported in whole or in part
12with property tax revenue and which is licensed to conduct
13pari-mutuel wagering pursuant to chapter 99D; the governing
14body of a drainage or levee district as provided in chapter
15468, including a board as defined in section 468.3, regardless
16of how the district is organized; a land redevelopment trust
17created under chapter 358A; or other entity of this state, or
18any branch, department, board, bureau, commission, council,
19committee, official, or officer of any of the foregoing or any
20employee delegated the responsibility for implementing the
21requirements of this chapter.
22 Sec. 25. Section 97B.1A, subsection 9, paragraph a, Code
232023, is amended to read as follows:
24a. “Employer” means the state of Iowa, the counties,
25municipalities, agencies, public school districts, all
26political subdivisions, and all of their departments and
27instrumentalities, including area agencies on aging, other than
28those employing persons as specified in subsection 8, paragraph
29“b”, subparagraph (7), land redevelopment trusts created under
30chapter 358A, and joint planning commissions created under
31chapter 28E or 28I.
32 Sec. 26. Section 364.7, Code 2023, is amended to read as
33follows:
34364.7 Disposal of property.
35A city may shall not dispose of an interest in real property
-19-1by sale, lease for a term of more than three years, or gift,
2except in accordance with the following procedure:
31. The council shall set forth its proposal in a resolution
4and shall publish notice, as provided in section 362.3, of the
5resolution and of a date, time, and place of a public hearing
6on the proposal.
72. After the public hearing, the council may make a final
8determination on the proposal by resolution.
93. A city may shall not dispose of real property by gift
10except to a governmental body for a public purpose or to a land
11redevelopment trust created under chapter 358A.
12 Sec. 27. Section 427.1, Code 2023, is amended by adding the
13following new subsection:
14 NEW SUBSECTION. 42. Land redevelopment trust property. The
15real property of a land redevelopment trust created under
16chapter 358A. For purposes of this subsection, real property
17includes but is not limited to real property held by a land
18redevelopment trust as lessor pursuant to long-term lease
19contracts with community land trusts as defined in 42 U.S.C.
20§12773, but does not include real property otherwise leased
21by a land redevelopment trust to a third party and does not
22include real property that has been sold on contract, which
23real property shall be subject to property taxation in the name
24of the contract buyer.
25 Sec. 28. Section 573.1, subsection 3, Code 2023, is amended
26to read as follows:
273. “Public corporation” shall embrace the state, and
28all counties, cities, public school corporations, any land
29redevelopment trust created under chapter 358A, and all
30officers, boards, or commissions empowered by law to enter into
31contracts for the construction of public improvements.
32 Sec. 29. Section 657A.2, subsection 1, Code 2023, is amended
33to read as follows:
341. No sooner than the later of thirty days after the
35responsible building official’s findings have been provided
-20-1under section 657A.1A or six months after a building has become
2abandoned, a petition for abatement under this chapter may be
3filed in the district court of the county in which the property
4is located by the city in which the property is located, by
5the county if the property is located outside the limits of a
6city, by a neighboring landowner, by a land redevelopment trust
7created under chapter 358A, or by a duly organized nonprofit
8corporation which that has as one of its goals the improvement
9of housing conditions in the county or city in which the
10property in question is located. The petition shall not demand
11a personal judgment against any party, but shall concern only
12the interests in the property. A petition for abatement filed
13under this chapter shall include the legal description of
14the real property upon which the public nuisance is located
15unless the public nuisance is not situated on or confined to
16a parcel of real property, or is portable or capable of being
17removed from the real property. Service shall be made on all
18interested persons by personal service or, if personal service
19cannot be made, by certified mail and first class mail to the
20last known address of record of the interested person and by
21posting the notice in a conspicuous place on the building,
22or by publication. The last known address of record for the
23property owner shall be the address of record with the county
24treasurer of the county where the property is located. Service
25may also be made as provided in section 654.4A.
26EXPLANATION
27The inclusion of this explanation does not constitute agreement with
28the explanation’s substance by the members of the general assembly.
29This bill provides for the establishment of land
30redevelopment trusts.
31Division I of the bill authorizes one or more municipalities
32to establish a land redevelopment trust as a method to return
33dilapidated, abandoned, blighted, and tax-delinquent properties
34in their communities to economically productive status. An
35established land redevelopment trust is a public agency
-21-1for the purpose of joint exercise of governmental powers, a
2governmental body for purposes of public meetings requirements
3of Code chapter 21, and a government body for purposes
4of public records requirements of Code chapter 22. Land
5redevelopment trusts are subject to periodic examination by the
6auditor of state under Code chapter 11. The bill requires the
7board of directors of a land redevelopment trust to establish
8bylaws addressing matters necessary to govern the conduct of
9the land redevelopment trust.
10Division I of the bill also grants a land redevelopment
11trust various powers and duties, including the authority to
12acquire properties through certain procedures, including the
13purchase of tax sale certificates and the foreclosure of
14properties acquired at a tax sale if not redeemed. However,
15the bill explicitly prohibits a land redevelopment trust
16from possessing or exercising the power of eminent domain.
17The bill establishes financing procedures that govern land
18redevelopment trusts, including allowing to be remitted to the
19land redevelopment trust up to 75 percent of real property
20taxes collected on a real property conveyed or leased by a
21land redevelopment trust that remains after the division of
22taxes for an urban renewal area and exclusive of any amount
23levied by a school district for five consecutive years after
24the property is again put on the tax rolls. The bill requires
25a land redevelopment trust to submit annual reports to the
26governing body that created the land redevelopment trust.
27The bill provides procedures for disposing of property that
28is acquired by the land redevelopment trust. The bill also
29provides procedures for dissolving a land redevelopment trust.
30Division II of the bill creates a land redevelopment trust
31tax sale procedure, which allows a land redevelopment trust to
32acquire abandoned, blighted, or dilapidated properties through
33an exclusive tax sale. In order to acquire property through a
34land redevelopment trust tax sale, the land redevelopment trust
35shall file a verified statement identifying the parcels for
-22-1which the land redevelopment trust intends to purchase the tax
2sale certificates and shall pay the delinquent total amounts
3due on each parcel before May 15. Upon timely receipt of the
4land redevelopment trust’s verified statement and payment, the
5county treasurer shall remove the identified parcels from the
6regular annual tax sale and place those parcels in the land
7redevelopment trust tax sale. The land redevelopment trust tax
8sale shall occur before a public nuisance tax sale.
9Division III of the bill makes changes throughout the Code to
10conform with land redevelopment trust procedures established in
11division I of the bill.
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