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Bill > HF617
IA HF617
IA HF617A bill for an act modifying public improvements relating to housing and residential development in urban renewal areas, and including effective date and applicability provisions.(See HF 1037.)
summary
Introduced
02/26/2025
02/26/2025
In Committee
02/26/2025
02/26/2025
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
Under current law, any urban renewal area established upon the determination that the area is an economic development area, a division of revenue (tax increment financing) shall not be allowed for the purpose of providing or aiding in the provision of public improvements related to housing and residential development, unless the municipality assures that the project will include assistance for low and moderate income family housing. This bill expands assistance to low and moderate income family housing by specifying that in a city with a population of more than 15,000, for projects in an urban renewal area containing property that has been located entirely within the corporate limits of a city for 20 or more years, the low and moderate income family housing assistance for such projects shall not be less than an amount equal to 20 percent of the original project cost instead of the current law minimum of 10 percent. The bill also extends the division of the revenue for such projects to tax collections for 20 fiscal years instead of the current law maximum of 10 years. For such projects under the new requirements in the bill, the bill also specifies that “low and moderate income family housing” includes housing that meets the requirements of Code section 15.353 (workforce housing). The bill also modifies the defined term “low or moderate income families” in Code chapter 403 to “low and moderate income families” to align with the terminology usage within the Code chapter. The bill takes effect upon enactment and applies to revenues divided for projects approved on or after the effective date of the bill.
AI Summary
This bill modifies provisions related to urban renewal areas and housing development in Iowa, primarily focusing on cities with populations over 15,000. The bill changes the definition of "low and moderate income families" by replacing "or" with "and" in the terminology, which slightly adjusts how these families are categorized. For urban renewal projects in economic development areas involving housing and residential development in cities with properties that have been within city limits for 20 or more years, the bill increases the required low and moderate income housing assistance from 10% to 20% of the original project cost. Additionally, the bill extends the tax increment financing (TIF) period from 10 to 20 fiscal years for such projects. The bill also expands the definition of "low and moderate income family housing" to include workforce housing as defined in another section of the state code. The changes are effective immediately upon enactment and will apply to projects approved on or after the effective date, potentially providing more support and longer financial incentives for housing development in established urban areas.
Committee Categories
Budget and Finance
Sponsors (4)
Last Action
Withdrawn. H.J. 1219. (on 05/14/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF617 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/HF617.html |
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