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Senate File 2127 - IntroducedA Bill ForAn Act 1relating to an extension granted by the economic
2development authority for certain agreements with eligible
3housing businesses.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. 2014 Iowa Acts, chapter 1130, section 43,
2subsection 1, as amended by 2015 Iowa Acts, chapter 138,
3section 86, and 2016 Iowa Acts, chapter 1109, section 13, is
4amended to read as follows:
51. On or after the effective date of this division of
6this Act May 30, 2014, a city or county shall not create an
7enterprise zone under chapter 15E, division XVIII, or enter
8into a new agreement under chapter 15E, division XVIII, unless
9otherwise authorized in this Act 2015 Iowa Acts, chapter 138,
10section 85.
11a. A city or county and the economic development authority,
12with the approval of the economic development authority board,
13may amend an agreement for compliance reasons if the. The
14 amendment does shall not increase the amount of incentives or
15change the type of incentives originally awarded under the
16agreement.
17b. A city or county and the economic development authority,
18with the approval of the economic development authority board,
19may approve an extension for an agreement with an eligible
20housing business, pursuant to section 15E.193B, Code 2014,
21to complete the housing business’ building or rehabilitation
22project if the project is located in a county that meets the
23distress criteria described in section 15E.194, Code 2014,
24and there remains a demonstrated need for housing within a
25community in the county. The agreement extension shall be for
26a maximum of one year from the date the extension is granted
27and only one extension shall be permitted. The agreement
28extension shall not increase the amount of incentives or change
29the type of incentives originally awarded under the agreement.
30EXPLANATION
31The inclusion of this explanation does not constitute agreement with
32the explanation’s substance by the members of the general assembly.
33This bill relates to an extension granted by the economic
34development authority for agreements with eligible housing
35businesses. The authority’s program to provide incentives
-1-1and assistance to eligible housing businesses to build or
2rehabilitate single-family homes, or multiple dwelling unit
3buildings, in economic development enterprise zones pursuant to
4Code section 15E.193B, Code 2014, was terminated in 2014 when
5Code section 15E.193B was repealed.
6Under the 2014 law, agreements with eligible housing
7businesses required the project or rehabilitation to be
8completed within two years of the date the eligible housing
9business began the building or rehabilitation. The bill
10allows an extension to be granted by the economic development
11authority, as approved by the economic development board,
12for up to one year from the date the extension is granted
13for the eligible housing business to complete its building
14or rehabilitation project. The bill provides that only one
15extension may be granted and only for a project in a distressed
16county within a community with a demonstrated need for housing.
17The bill prohibits the agreement extension from increasing
18the amount of incentives or the type of incentives originally
19awarded under the agreement.
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2development authority for certain agreements with eligible
3housing businesses.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. 2014 Iowa Acts, chapter 1130, section 43,
2subsection 1, as amended by 2015 Iowa Acts, chapter 138,
3section 86, and 2016 Iowa Acts, chapter 1109, section 13, is
4amended to read as follows:
51. On or after the effective date of this division of
6this Act May 30, 2014, a city or county shall not create an
7enterprise zone under chapter 15E, division XVIII, or enter
8into a new agreement under chapter 15E, division XVIII, unless
9otherwise authorized in this Act 2015 Iowa Acts, chapter 138,
10section 85.
11a. A city or county and the economic development authority,
12with the approval of the economic development authority board,
13may amend an agreement for compliance reasons if the. The
14 amendment does shall not increase the amount of incentives or
15change the type of incentives originally awarded under the
16agreement.
17b. A city or county and the economic development authority,
18with the approval of the economic development authority board,
19may approve an extension for an agreement with an eligible
20housing business, pursuant to section 15E.193B, Code 2014,
21to complete the housing business’ building or rehabilitation
22project if the project is located in a county that meets the
23distress criteria described in section 15E.194, Code 2014,
24and there remains a demonstrated need for housing within a
25community in the county. The agreement extension shall be for
26a maximum of one year from the date the extension is granted
27and only one extension shall be permitted. The agreement
28extension shall not increase the amount of incentives or change
29the type of incentives originally awarded under the agreement.
30EXPLANATION
31The inclusion of this explanation does not constitute agreement with
32the explanation’s substance by the members of the general assembly.
33This bill relates to an extension granted by the economic
34development authority for agreements with eligible housing
35businesses. The authority’s program to provide incentives
-1-1and assistance to eligible housing businesses to build or
2rehabilitate single-family homes, or multiple dwelling unit
3buildings, in economic development enterprise zones pursuant to
4Code section 15E.193B, Code 2014, was terminated in 2014 when
5Code section 15E.193B was repealed.
6Under the 2014 law, agreements with eligible housing
7businesses required the project or rehabilitation to be
8completed within two years of the date the eligible housing
9business began the building or rehabilitation. The bill
10allows an extension to be granted by the economic development
11authority, as approved by the economic development board,
12for up to one year from the date the extension is granted
13for the eligible housing business to complete its building
14or rehabilitation project. The bill provides that only one
15extension may be granted and only for a project in a distressed
16county within a community with a demonstrated need for housing.
17The bill prohibits the agreement extension from increasing
18the amount of incentives or the type of incentives originally
19awarded under the agreement.
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